Strategic Analysis of NIKE

2. Phil Knight and Bill Bowman founded Nike Inc. as Blue Ribbon sports in 1962, the first Blue Ribbon sports shoe was introduced as a soccer shoe which bore the Nike brand name referring the Greek Goddess of Victory and Swoosh trademark. In today’s sports world, Nike is well known as the leading seller and distributor of genuine sports footwear, clothing, kits and accessories for a wide variety of sports and fitness activities along with the fashionable commodities as well.

10. Porter’s 5 Forces Model STRATEGIES CONCLUSION & RECOMMENDATIONS EXTERNAL INTERNAL ORGANIZATIONAL ANALYSIS ANALYSIS PURPOSES High Moderate Low Bargaining power of buyers Threat of Substitutes Intensity of Rivalry Between Firms Threat of New Entry Bargaining power of suppliers

12. Industry Life Cycle STRATEGIES CONCLUSION & RECOMMENDATIONS EXTERNAL INTERNAL ORGANIZATIONAL ANALYSIS ANALYSIS PURPOSES Growth Shake-out Maturity Decline Market Size Nike is in the stage at which the efficiency of dominant business model provides the company competitive advantage over the competition. Factors: Strong Product Awareness Barrier of New Entry Share Market Quality of Product Development

13. Strategic Group Analysis STRATEGIES CONCLUSION & RECOMMENDATIONS EXTERNAL INTERNAL ORGANIZATIONAL ANALYSIS ANALYSIS PURPOSES PRODUCT LINE CASUAL ATHLETIC BRAND IDENTIFICATION LOW MEDIUM HIGH 11.2% 2% 2.5% 1.4% 1.8% 0.5% 2.7% 2.7% 5% 2.3%

21. Competitive Advantage STRATEGIES CONCLUSION & RECOMMENDATIONS EXTERNAL INTERNAL ORGANIZATIONAL ANALYSIS ANALYSIS PURPOSES

23. Mission Statement STRATEGIES CONCLUSION & RECOMMENDATIONS EXTERNAL INTERNAL ORGANIZATIONAL ANALYSIS ANALYSIS PURPOSES “ To bring inspiration and innovation to every athlete* in the world. “ * If you have a body, you are an athlete . Markets Customers Technology Self-concept Products/ services Philosophy

24. Mission Statement - Breakdown STRATEGIES CONCLUSION & RECOMMENDATIONS EXTERNAL INTERNAL ORGANIZATIONAL ANALYSIS ANALYSIS PURPOSES 1. Customers Each person 2. Products or services Revolutionary sports correlated commodities 3. Markets Global 4. Technology Up to date through innovation 5. Concern for survival, growth and profitability. No 6. Philosophy Considering every entity as a possible valued buyer 7.Self-concept Carry along motivation and innovation which differentiates the company from their rivals. 8. Concern for public image No 9. Concern for employees No

26. Ansoff Matrix STRATEGIES CONCLUSION & RECOMMENDATIONS EXTERNAL INTERNAL ORGANIZATIONAL ANALYSIS ANALYSIS PURPOSES Existing PRODUCTS New INCREASING RISK INCREASING RISK Existing MARKETS New MARKET PENETRATION In fiscal 2009, U.S. sales of accounted for 42% and non-U.S. sales of accounted for 58% of the total revenues with the target revenue growth to $23 billion by fiscal 2011 MARKET DEVEOPMENT Nike, used this approach to sell their existing range of sports clothes and sport shoes in the fashion market (fashionable leisurewear) and recently the company challenged Adidas by extending their market by sponsoring the Germany national football team starting in 2011. PRODUCT DEVELOPMENT By redesigning their products, Nike can give reposition existing products in new ways to their customers. In addition, it saves Nike the costs of developing an all together new product, and allows them to earn more of a return Eg Nike Air Force 1, Nike ‘Dunk’ DIVERSIFICATION Since now Nike has not focused on diversifying their products.

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