Nike Hyperadapt1 Week 1

Nike is one of the biggest footwear and apparel manufacturing companies in the word. The company came into existence in 1964 by Bill Boweman and Phil Knight and named it as the Blue Ribbon Sports. The company changed the name to Nike, which is Greek word meaning victory, in 1972 after producing a good brand of shoes that became popular among the athletes (NIKE, Inc., 2001). Since then, the company has been successful, dominating the world market of athletic shoes. The company’s products are sold in more than 170 countries across the world. The company also sponsors various sports events at national and international levels. The company slogan “just do it” is catchy and attract many people tom

The report focuses on the Economic Value Added of Nike Inc. The analysis is conducted through a detailed assessment of the financial statements including income statement, balance sheet, and cash flow. Such financial statements are then applied to derive common-size statements for income statement and balance. The trends and predictions obtained from the common-size statements predict the future economic value. Similarly, the Pro-forma financial statements derived provide vital future economic performances of Nike Inc. According to the regression analysis and the assessment of the common-size and Pro-forma financial statements; Nike Inc. has a growth in revenue and earnings per share. The EVA computed using WACC, Net Operating Profit after Taxes (NOPAT), and Invested Capital is positive (+$391.24); this shows that Nike Inc. is financially stable and will grow in the next three years.

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.

Customers make purchasing decisions based on the information they have among products and the values of goods a company offers. For that reason, companies have to promote their products to increase products awareness. In order to achieve organizational goals, companies must understand the market’s needs to ensure the success of their businesses. Such information can be gained through research. The industry that will form the basis of this paper is Western Canadian Shoe Association. The three brands under study are Reebok, Adidas, and Nike.

Quality: Customers expect a good quality brand that is consistent. These expectations are not constant, as they change over time and usually become more demanding (Slideshare.net, 2015). Consumers want the same quality shoe as Nike. They want support on their feet and ankles, sustainable and light material. The shoe must also be breathable (Slideshare.net, 2015).

The subject is an American football player, the position that the subject plays is a lineman, the weighs of the subject 86.18kg, subject age is 19 and the height of the subject is 175.2 cm. Before the trials took place the subject filled in a health screening and the trial got consent, which are in accordance with the Edge Hill University ethics committee.

The forces of Nike’s customer-supplier relationship is based on joint efforts of improved quality, mutually beneficial partnerships, reduced costs, and increased market share for both parties. According to Nike building customer-supplier relationship is one of the most important goals because it is the analysis of the value chain which is defined as the collection of all activities involved in designing, marketing, manufacturing, delivering and supporting Nike’s products. Having strong relationship with both parties helps Nike to predict and notice any problem at might rise in the supply chain; as a result Nike will be able to develop better solutions to avoid it (Wankel, 2009). The first tier supplier of Nike is located mainly in Taiwan and South Korea, which work closely with R&D personnel in Oreon making the most expensive footwear. Strategies have shown that Nike implements include the vertical integration strategy. In general, the vertical integration strategy allows a firm to gain control over distributors, suppliers and competitors (Nike report, 2015). Nike has implemented forward integration by having its own retail locations throughout the United States, foreign countries & online stores. Every partner has a hugely significant

Running is what Nike is known for, it is part of their heritage and biggest performance category. The major new running shoes include the LunarTempo, which was inspired and designed for sprinters. Nike is also designing new running apparel to compete with Lululemon, Under Armour, and Adidas. Nike has also redesigned its Nike+ running app. Nike+ allows runners to track their distance, pace, and calories. It also lets users to share photos and compare progress with their

Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.

Understanding customer needs will help Nike to define new market opportunities and drive innovation and revenue growth in every aspect of its organisation. The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation (Kotler and Armstrong, 2006). Customer logic is derived from evaluation of a company and its product based upon customer needs, customer benefits, and product features. For branded athletic shoes, Nike has to understand customer needs on a global level as the products are sold

Nike has seldom manufactured products own premises, except their air bladders. The shoes are manufactured through outsourcing and alliances with other companies. A successful company like Nike formed its organization on the customer values that have the MOST impact on the consumers mind – Design/R&D, Marketing and Distribution. Even though manufacturing is a vital function to perform, Nike realized that there were other ways to go about this function and thereby save both cost and maintain its focus on the critical customer value areas.

Nike must cater to a large portion of the new generation that demands the latest trends and styles. Nike should take into account the changing US demographics due to the rising proportion of Hispanics, Asians, and African Americans. These groups have different preferences that Nike should be able to satisfy. Nike should identify the next generation of loyal customers and provide for their needs.

As more people become more health conscious, expanding to include fitness centers in their campaigns would be a great step for Nike, especially to compete with a fitness-focused company like Reebok. As the number one sport supplier and their relationship with their sponsored athletes, future consumers would definitely try their new products. They currently have the Nike Run Club and the Nike Training Club that both are free at select NIKE Stores in the United States. Nike Run Club is available in 19 Nike Stores, and in this particular club, runners are actually given a free trial using their running shoes; they can choose to run 3, 5, or 7 miles with hundreds of other runners. In addition, Nike Training Club is an hour free workout at select Nike Stores (currently provided at 10 stores nationwide) that is held once a week. Nike also launched the workout plan application that Android and iOS user can download. As more than one million users have this application, hundreds of people participate in the weekly club, which creates a sense of strong brand image, Nike Fitness will definitely a huge hit.

The report is about Nike, regarding the case study. The report elaborates on the aspects including buyer behaviour, brand image, consumer decision making, and marketing research techniques applicable to Nike. 3.0 Introduction Nike is the worlds number one sports shoe company. In the US Nike dominates 35% (source: see appendices) of the sports shoe market and its products are sold in more than 140

Conversely, the personalized of Nike+ application perceived the lowest stimulation to the overall quality performance, respondents seems to position neutral attitude toward unduplicated personalized service of Nike+ application. Regarding to the result from one-sample test of ‘‘personalize’’ turns out that despite the generally agreement of the application fulfill their specific need, respondents recognize less attractive from the exclusive value of personalize service provided by Nike+ application.