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RESEARCH PROJECT
ON
NIKE
BY
Aanchal Jain
Headquarters in
Beaverton, Oregon
January 25, 1964
FOUNDER-Bill
Bowerman and Phil
Knight
Blue Ribbon Sports
Nike, Inc. on May 30,
1971.
TAGLINE - Just Do It
Coined in 1988
Our mission is what drives us to do everything
possible to expand human potential. We do
that by creating ground breaking sport
innovations, by making our products more
sustainably, by building a creative and diverse
global team and by making a positive impact in
communities where we live and work.
MISSION
Our purpose is to unite the world through
sport to create a healthy planet, active
communities and an equal playing field
for all.
PURPOSE
SITUATION ANALYSIS
STRENGTHS WEAKNESS
OPPORTUNITIESTHREATS
SWOT ANALYSIS
COMPETITIVE ANALYSIS
Nike has gained a major
market share in the
category of Athlete shoes.
The top competitor of
Nike is Adidas. Adidas
brand has the marketing
power to build the
positive brand in the
industry. However,
Reebok brand owns a
decent portion of the
market and it is the main
subsidiary of Adidas
CONSUMER ANALYSIS
There are a great number
of male and female
consumers who use Nike
product. 50.7 % of the
sales is made from males
while 49.3 %from
females. Consumers with
the age of 18-24 are
more likely to use
athletic products in a
fairly consistent manner
and keep more exercise
than any other.
SITUATION ANALYSIS
POLITICAL ECONOMIC
SOCIALTECHNOLOGICAL
PEST ANALYSIS
Threat of new
entrants: Low
Level of
competitive
rivalry: Strong
Bargaining
power of
suppliers: Low.
Threat of substitutes:
low to moderate
Bargaining
power of
buyers: low to
moderate.
MICHAEL PORTER’S FIVE FORCE ANALYSIS
Product Development
Market Penetration
Market Development
Diversification
STRATEGIC ALTERNATIVES
S
T
R
A
T
E
G
I
C
P
L
A
N
Nike had a rough 2016. Its stock
fell 18% throughout the year
Changing consumer market and
stiff competition from Under
Armour and a resurgent Adidas.
Things have started to turn
around for Nike in 2017, already
one of the best-performing
large-cap stocks of the year, and
it could get much better from
here.
Though Nike had a fall, it adopted
strategic alternatives to overcome the
situation.
Manufacturing
Revolution
Digital Investments
Continued International
Growth
Nike's sales in China jumped 17% year
over year in the quarter when adjusted
for currency fluctuations Nike already
gets more than half, and the company
believes that's just getting started.
Sales in Western Europe grew 12% year
over year
Nike's focus now is on increasing its digital
sales strategy to drive sales through
Nike.com.
Nike announced that in fiscal 2016,
Nike.com went live in 20 additional
countries
Nike management has started to
hype up what it refers to in the
most recent earnings call as
"Man Rev," which is short for
"manufacturing revolution
Focus on innovative materials,
assembly procedures, and
advancements with interesting
technology such as 3D printing
that the company believes will
overhaul the ways its products are
made in the years to come.
SET OBJECTIVES
Minimize Environmental Footprint
25 Years of Nike Grind Closing the Loop
Driving Toward Zero Waste
Nike Grind in Retail Spaces
Nike Moves Closer to 100% Renewable Energy
Transform Manufacturing
Product Carbon Footprint
Nike Scores 100 on Annual Corporate Equality Index
Unleash Human Potential
Strengthening Human Resources Management
Nike Employee Networks
FY20 Targets
Nike aims to minimize its environmental
footprint throughout the product
lifecycle, looking at carbon and energy,
chemistry, water and waste to identify
strategies to use less, use better,
innovate new solutions and, where
possible, close the loop and reuse
Minimize Environmental Footprint
Nike Grind materials are created from
Nike’s recycled surplus manufacturing
materials and athletic footwear. These
materials are incorporated into
performance products, ranging from new
Nike footwear and apparel to outdoor
play surfaces.
25 Years of Nike Grind
For example, about 60% of
the environmental impact
in a pair of Nike shoes is
embedded in the materials
used.
Closing the Loop
To minimize environmental
impact, Nike aims to
innovate up-front product
design and reclaim materials
throughout the
manufacturing process and
product lifecycle.
In addition to the materials recycled back
into Nike’s own products, waste has also
been given new life by forward-thinking
companies that use Nike Grind
manufacturing scrap and post-consumer
materials from the Reuse-A-Shoe
program.
Designers apply a less is more
product innovation principle to
physical environment creation,
incorporating Nike Grind materials
into everything from mannequins
and modular display blocks, to
wall and shelving displays, to
flooring and seating
Nike Grind in Retail Spaces
Driving Toward Zero Waste
Nike Moves Closer to 100% Renewable Energy
To tackle climate change, we’re focused on
scaling renewable energy across our value
chain as well as investing in lower-carbon
materials and building resilience to climate
uncertainty by reducing costs, innovating new
operating models, and strengthening our
supply chain.
To track the environmental impact of
products at the company-level, we look
at the average carbon footprint of a unit
of product and track this through our
Material Sustainability Index (MSI),
Apparel Sustainability Index (ASI), and
our Footwear Sustainability Index (FSI).
Product Carbon Footprint
Nike is strengthening its recruitment,
promotion and retention of diverse
talent throughout the world with the
goal of reflecting the diversity of the
consumers it serves and the communities
where its employees live and work
Unleash Human Potential
Transform Manufacturing
Nike’s Manufacturing
Revolution initiative is not
only transforming what
products Nike makes, but
also how it makes them
through technology, labor
and sustainable innovation
Nike Scores 100 on Annual Corporate Equality Index
Strong human resources policies and
capable, qualified management are
essential for all Nike suppliers to be
compliant with the law and our Code
Leadership Standards
Strengthening Human Resources Management
By investing in HR professionals,
systems and processes our
suppliers will be able to have the
right people, with the right skills, in
the right roles, who are engaged,
empowered and invested in driving
their business success
Nike has eight Employee Networks,
collectively known as NikeUNITED. These
employee-formed and -managed
communities offer resources to a diverse
spectrum of individuals across Nike. All
employees are welcome and encouraged
to join, participate or become leaders
within the Networks.
Nike Employee Networks
To have zero waste
To source 100% of products from contract
factories
To create products that deliver maximum
performance
By the end of FY25, to reach 100%
renewable energy
FY20 Targets
1.Transfers
2.Promotions (through Internal Job
Postings) and
3.Re-employment of ex-employees
INTERNAL RECRUITMENT
1.Employment at Factory Level
2.Advertisement
3.Employment Agencies
4.Educational Institutions
5.Recommendations
6.Labour Contractors
EXTERNAL RECRUITMENT
ALLOCATING RESOURCES
MARKETING MIX
Product Mix
Place/Distribution
Mix
Promotional Mix
Price Mix
1.Shoes
2.Apparel
3.Equipment and
accessories
1.Retail stores
2.Nike Online Store
3.Niketown retail outlets
(company-owned)
1.Advertising
2.Personal selling
3.Direct marketing
4.Sales promotions
5.Public relations
1.Value-based pricing
strategy
2.Premium pricing
strategy
INTERNATIONAL EXPANSION –
A GROWTH STRATEGY
Early BeginningsHow Did Nike Start?
Global Marketing Strategies
Innovation – The key to the growth strategy of Nike
Street Fashion
Digital Items
New Business Model
Social Media Presence
Strategic Partnerships and Sponsorships
GLOBAL PRESENCE
REFERENCES
•About Nike – The official corporate website for
Nike, Inc. and its affiliate brands.
•Dess, G. G., & Davis, P. S. (1984). Porter’s (1980)
generic strategies as determinants of strategic group
membership and organizational performance.
Academy of Management Journal, 27(3), 467-488.
•Merchant, H. (2014). Configurations of governance
structure, generic strategy, and firm size. Global
Strategy Journal
•https://news.nike.com/news/nike-inc-is-
accelerating-a-consumer-led-transformation-to-
ignite-its-next-phase-of-long-term-growth
•panmore.com › nike-inc-generic-strategy-intensive-
growth-strategies

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Nike Strategy Planing

  • 2. Headquarters in Beaverton, Oregon January 25, 1964 FOUNDER-Bill Bowerman and Phil Knight Blue Ribbon Sports Nike, Inc. on May 30, 1971. TAGLINE - Just Do It Coined in 1988
  • 3. Our mission is what drives us to do everything possible to expand human potential. We do that by creating ground breaking sport innovations, by making our products more sustainably, by building a creative and diverse global team and by making a positive impact in communities where we live and work. MISSION Our purpose is to unite the world through sport to create a healthy planet, active communities and an equal playing field for all. PURPOSE
  • 5. COMPETITIVE ANALYSIS Nike has gained a major market share in the category of Athlete shoes. The top competitor of Nike is Adidas. Adidas brand has the marketing power to build the positive brand in the industry. However, Reebok brand owns a decent portion of the market and it is the main subsidiary of Adidas CONSUMER ANALYSIS There are a great number of male and female consumers who use Nike product. 50.7 % of the sales is made from males while 49.3 %from females. Consumers with the age of 18-24 are more likely to use athletic products in a fairly consistent manner and keep more exercise than any other.
  • 7. Threat of new entrants: Low Level of competitive rivalry: Strong Bargaining power of suppliers: Low. Threat of substitutes: low to moderate Bargaining power of buyers: low to moderate. MICHAEL PORTER’S FIVE FORCE ANALYSIS
  • 8. Product Development Market Penetration Market Development Diversification STRATEGIC ALTERNATIVES
  • 9. S T R A T E G I C P L A N Nike had a rough 2016. Its stock fell 18% throughout the year Changing consumer market and stiff competition from Under Armour and a resurgent Adidas. Things have started to turn around for Nike in 2017, already one of the best-performing large-cap stocks of the year, and it could get much better from here. Though Nike had a fall, it adopted strategic alternatives to overcome the situation.
  • 10. Manufacturing Revolution Digital Investments Continued International Growth Nike's sales in China jumped 17% year over year in the quarter when adjusted for currency fluctuations Nike already gets more than half, and the company believes that's just getting started. Sales in Western Europe grew 12% year over year Nike's focus now is on increasing its digital sales strategy to drive sales through Nike.com. Nike announced that in fiscal 2016, Nike.com went live in 20 additional countries Nike management has started to hype up what it refers to in the most recent earnings call as "Man Rev," which is short for "manufacturing revolution Focus on innovative materials, assembly procedures, and advancements with interesting technology such as 3D printing that the company believes will overhaul the ways its products are made in the years to come.
  • 11. SET OBJECTIVES Minimize Environmental Footprint 25 Years of Nike Grind Closing the Loop Driving Toward Zero Waste Nike Grind in Retail Spaces Nike Moves Closer to 100% Renewable Energy Transform Manufacturing Product Carbon Footprint Nike Scores 100 on Annual Corporate Equality Index Unleash Human Potential Strengthening Human Resources Management Nike Employee Networks FY20 Targets
  • 12. Nike aims to minimize its environmental footprint throughout the product lifecycle, looking at carbon and energy, chemistry, water and waste to identify strategies to use less, use better, innovate new solutions and, where possible, close the loop and reuse Minimize Environmental Footprint Nike Grind materials are created from Nike’s recycled surplus manufacturing materials and athletic footwear. These materials are incorporated into performance products, ranging from new Nike footwear and apparel to outdoor play surfaces. 25 Years of Nike Grind For example, about 60% of the environmental impact in a pair of Nike shoes is embedded in the materials used. Closing the Loop To minimize environmental impact, Nike aims to innovate up-front product design and reclaim materials throughout the manufacturing process and product lifecycle.
  • 13. In addition to the materials recycled back into Nike’s own products, waste has also been given new life by forward-thinking companies that use Nike Grind manufacturing scrap and post-consumer materials from the Reuse-A-Shoe program. Designers apply a less is more product innovation principle to physical environment creation, incorporating Nike Grind materials into everything from mannequins and modular display blocks, to wall and shelving displays, to flooring and seating Nike Grind in Retail Spaces Driving Toward Zero Waste Nike Moves Closer to 100% Renewable Energy To tackle climate change, we’re focused on scaling renewable energy across our value chain as well as investing in lower-carbon materials and building resilience to climate uncertainty by reducing costs, innovating new operating models, and strengthening our supply chain.
  • 14. To track the environmental impact of products at the company-level, we look at the average carbon footprint of a unit of product and track this through our Material Sustainability Index (MSI), Apparel Sustainability Index (ASI), and our Footwear Sustainability Index (FSI). Product Carbon Footprint Nike is strengthening its recruitment, promotion and retention of diverse talent throughout the world with the goal of reflecting the diversity of the consumers it serves and the communities where its employees live and work Unleash Human Potential Transform Manufacturing Nike’s Manufacturing Revolution initiative is not only transforming what products Nike makes, but also how it makes them through technology, labor and sustainable innovation
  • 15. Nike Scores 100 on Annual Corporate Equality Index Strong human resources policies and capable, qualified management are essential for all Nike suppliers to be compliant with the law and our Code Leadership Standards Strengthening Human Resources Management By investing in HR professionals, systems and processes our suppliers will be able to have the right people, with the right skills, in the right roles, who are engaged, empowered and invested in driving their business success
  • 16. Nike has eight Employee Networks, collectively known as NikeUNITED. These employee-formed and -managed communities offer resources to a diverse spectrum of individuals across Nike. All employees are welcome and encouraged to join, participate or become leaders within the Networks. Nike Employee Networks To have zero waste To source 100% of products from contract factories To create products that deliver maximum performance By the end of FY25, to reach 100% renewable energy FY20 Targets
  • 17. 1.Transfers 2.Promotions (through Internal Job Postings) and 3.Re-employment of ex-employees INTERNAL RECRUITMENT 1.Employment at Factory Level 2.Advertisement 3.Employment Agencies 4.Educational Institutions 5.Recommendations 6.Labour Contractors EXTERNAL RECRUITMENT ALLOCATING RESOURCES
  • 18. MARKETING MIX Product Mix Place/Distribution Mix Promotional Mix Price Mix 1.Shoes 2.Apparel 3.Equipment and accessories 1.Retail stores 2.Nike Online Store 3.Niketown retail outlets (company-owned) 1.Advertising 2.Personal selling 3.Direct marketing 4.Sales promotions 5.Public relations 1.Value-based pricing strategy 2.Premium pricing strategy
  • 19. INTERNATIONAL EXPANSION – A GROWTH STRATEGY
  • 20. Early BeginningsHow Did Nike Start? Global Marketing Strategies Innovation – The key to the growth strategy of Nike Street Fashion Digital Items New Business Model Social Media Presence Strategic Partnerships and Sponsorships GLOBAL PRESENCE
  • 21. REFERENCES •About Nike – The official corporate website for Nike, Inc. and its affiliate brands. •Dess, G. G., & Davis, P. S. (1984). Porter’s (1980) generic strategies as determinants of strategic group membership and organizational performance. Academy of Management Journal, 27(3), 467-488. •Merchant, H. (2014). Configurations of governance structure, generic strategy, and firm size. Global Strategy Journal •https://news.nike.com/news/nike-inc-is- accelerating-a-consumer-led-transformation-to- ignite-its-next-phase-of-long-term-growth •panmore.com › nike-inc-generic-strategy-intensive- growth-strategies