Expanding the Playing Field: Nike’s World Shoe Project

is a growth company. Over the last 10 years, we’ve more than doubled our revenue, and they have stated “we believe we’ll deliver $30 billion in revenue by FY15 and $36 billion by FY17.” Since we published our FY10/11 Sustainable Business Performance Summary, our overall employee base grew to approximately 48,000 at the end of FY13, an increase of 10,000 employees. We expect strong growth in Running, Basketball, Football, Men’s Training, Sportswear, Women’s Training and Direct to Consumer sales. As we look forward, we believe that sustainability is one of the key drivers that will catalyze innovation and lead us toward continued growth. NIKE, seeks to deliver shareholder value through sustainable growth. One of the ways we will achieve this goal is to find avenues to reach our long-term vision of decoupling profitable growth from constrained resources. The CEO shared that they are working to integrate sustainability into every aspect of our business. Our aim is to challenge, push and explore ways that change the game entirely for materials, design and manufacturing. We don’t grow just to get bigger. We grow to be better and do

The Nike brand was created in 1972, and renamed to Nike in 1978, and has since grown to be the largest worldwide seller of athletic goods, with approximately 168 Nike stores in the United States and a presence in about 160 countries. (Ferrell, O.., 2003) During the time Nike brand was created corporate responsibility was not considered a major deal yet and there were several actions taken to help increase profits by cutting corners to ensure profit was made for the company. One way, which was adopted by so many other companies today, using cheaper labor force through outsourcing to other groups of people or area where the jobs were needed and little pay could be paid. Also during this time there were no monitoring programs developed to ensure quality, inventory etc… Not having monitoring programs made it impossible for the leaders and production workers know what exactly product was needed and what was available. With not having an established and external form of corporate governance within their external supply system, many of the factories without guidance and knowledge left accountability and oversight open to their own interpretation, the external suppliers, and not Nike. That brings another issue to the reason why Nike failed to address

Nike is the leading and yet renowned supplier of athletic apparel and shoes. The company controls close to 33% of the global athletic shoe market (Dogiamis & Vijayashanker,2009).Nike was founded by Bill Power and Phil Knight in 1962 as a Blue Ribbon Support and then was later on renamed to Nike in the year 1968 (Patrow,2003).The company supplies very high quality product in close to 100 countries with major markets being located in the U.S,U,K, Asia Pacific as well as in the Americas. The company has managed to attain its lead and legendary position via the application of innovative and yet attractive product design which is backed by quality production as well as well crafted marketing strategies.

Along the 70’s , due to economic crisis in Japan, the costs began to soar, and production was no longer economic. Nike relocated the shoe factories back to the U.S. Due to increase in production in the U.S. as well, they did not compromise on the prices of labor and raw materials, and started searching for new suppliers, looking again in the Far east to Korea and Taiwan. As markets changed, Nike didn’t allow it to hinder its standard and costs, moving on to the next developing countries allowing to maintain low costs and high profits, while the Nike HQ experts and dictates the design, standards, and materials.

First, In the SWOT it is possible to notice that one of the major strength of Nike is also related to one of the company weakness. The fact that the company does not have its own factory and outsource its production in underdeveloped countries can guarantee a high-quality-low-price product to the final consumer, which it is very important in the current footwear/sporting goods high-competitive market, however, for a growing group (including people who practices sports and try to accomplish a healthy life), just the quality of the product and its

Nike Corporation has identified possible competitors as any sneaker that shares our product market and targets this market with a very similar product or service. When this situation exists, it’s important to divide the market into segments so opportunities are maximized. Maximizing opportunities can ensure that a company has implemented a well-designed and well-suited marketing mix. This correct marketing mix ensures the competitive advantage is retained and increased. Profitability

Nonetheless, in with the intention to grow, Nike, expanded to Asia, where some of its strategic partners were located. The low wages, and different labor laws and

Leadership - The marketing function was not well coordinated across the countries and the role of the Head of Marketing was not well defined. The country mangers were supposed to be independent and accountable to the Head of marketing at the same time. Communication was a challenge within the organization, Resistance to change

When Nike was founded technological advancement in communication was still very primitive. Nike will outsource shoe production with Japanese companies until the oil crisis of 1970 and the new labor which consequences lead to an increase in production cost. As a

     In order to create this shoe, Nike must implement the following actions. To begin with, funding to research and development must be increased to ensure that the technology employed in the chips and shoes will exceed that of Adidas. Next, Nike will need to allocate a certain amount of space in each of its main production plants in order to gear up for a mass rollout of the new product. Also, the product must be tested to ensure quality and safety. Another beneficial step is to offer a limited introduction of the product to a small test market to gauge customer satisfaction. The next step is to use Nike¡¯s strength in promotion to attract a top track star to endorse the new running shoe. Nike must use their celebrity endorsement along with an aggressive advertising campaign comprised of television, radio,

Nike, Inc. is a sporting goods and apparel company founded by Bill Bowerman and Phil Knight in 1972. Nike, being a world-wide phenomenon, has “more than 35,000 employees across six continents and in more than 160 countries around the globe. Through our suppliers, shippers, retailers and other service providers, we directly or indirectly employ nearly one million people” (Nike, Inc.). All this is done to help Nike fulfill their goal to “carry on [Bill Bowerman’s] legacy of innovative thinking, whether to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for our shareholders” (Nike, Inc.). Ultimately,

Since being founded in 1962, Nike has grown from a small fledgling shoe retailer into a world-wide corporate giant. During its first year, sales for Nike were $8000, but as of November 30th, annual sales for Nike were over 12 billion dollars. (hoover) Although Nike already dominates the sporting world, there are many opportunities for growth. According to our research, key strategic challenges facing Nike are increased competition from Adidas with their technological shoe, the Adidas One, and a potentially fatal inability to enter a new growth market such as the extreme sports market. Our recommendations to help Nike confront these challenges consist of developing a product to remain competitive with Adidas, and also an aggressive

Far east to Korea and Taiwan. As markets changed, Nike didn’t allow it to hinder its

This report will discuss in detail, the athletic footwear industry, and all aspects of its operations. It will focus on Nike, the industry’s leader, and a selected few of its competitors; Adidas-Salomon and Reebok, Sketchers, and K-Swiss. A brief overview of Nike and its competitor’s company profiles, brand portfolios, and current developments will provide an understanding that leads to an analysis of the external environment. This analysis further discusses the geographic distribution, general environment, industry environment using Porter’s Analysis, Nike’s competitor analysis, its dominant economic characteristics, driving forces, and key success factors. This report will then discuss the

Nike has been creative since the start. It has been pushing the technological boundaries of innovation to offer its customers new products and also differentiate itself from its competitors. Somewhere in its evolution, Nike also realised the importance of hi-tech gadgets in day-to-day lives. So, it started to combine new products with hi-tech