Introduction

Nike is an American multinational corporation that is engaged in the design, development,

manufacturing,
manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories,
and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan
metropolitan
area. It is the world's largest supplier of athletic shoes and apparel and a major manufacturer of
sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31,
2012). As of 2012, it employed more than 44,000 people worldwide. In 2014 the brand alone was
valued at $19 billion, making it the most valuable brand among sports businesses. As of 2017, the
Nike brand is valued at $29.6 billion.
The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman
and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes its name from
Nike, the Greek goddess of victory. Nike markets its products under its own brand, as well as Nike
Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike
Skateboarding, and subsidiaries including Brand Jordan, Hurley International and Converse. Nike also
owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008, and previously owned
Cole Haan and Umbro. In addition to manufacturing sportswear
sportswear and equipment, the company
operates retail stores under the Niketown name. Nike sponsors many high-profile athletes and sports
teams around the world, with the highly recognized trademarks of "Just Do It" and the Swoosh logo.
Background History
Nike, Inc., formerly called (1964 –78) Blue Ribbon Sports, American sportswear company
headquartered in Beaverton, Oregon. It was founded in 1964 as Blue Ribbon Sports by Bill
Bowerman, a track-and-field coach at the University of Oregon, and his former student Phil Knight.
The company was founded with just $1,200 in the bank.They opened their first retail outlet in 1966
and launched the Nike brand shoe in 1972. The company was renamed Nike, Inc., in 1978 and went
public two years later. By the early 21st century, Nike had retail outlets and distributors in more than
170 countries, and its logo—a curved check mark called the “swoosh”—was recognized throughout
the world. Knight had originally wanted to call the company
"Dimension 6." The Nike name comes from the Greek goddess of victory, and it’s pronounced "NY' -
kee." Nike's first employee, Jeff Johnson, came up with the name.
The first Nike shoes were made inside a waffle iron. Bowerman’s first eureka moment for footwear
innovation came in 1971, when he and his wife were making waffles for breakfast: It sparked an idea
for a grooved pattern on the sole of trainers to help athletes grip running tracks. It spawned the “Nike
Waffle Trainer,” patented in 1974 (at the expense of his wife Barbara's waffle iron).
According to Otis Davis, a student athlete whom Bowerman coached at the University of Oregon,
who later went on to win two gold medals at the 1960 Summer Olympics, Bowerman made the first
pair of Nike shoes for him. Says Davis, "I told Tom Brokaw that I was the first, Bill Bowerman made
the first pair of shoes for me. People don't believe me. In fact, I didn't like the way they felt on my
feet. There was no support and they were too tight. But I saw Bowerman make them from the waffle
iron, and they were mine." From the late
1980s Nike steadily expanded its business and diversified its product line through numerous
acquisitions, including the shoe companies Cole Haan (1988; sold in 2012) and Converse, Inc. (2003),
the sports-equipment producer Canstar Sports, Inc. (1994; later called Bauer and sold in 2008), and
the athletic apparel and equipment company Umbro (2008; sold in 2012). In 1996 the company
created Nike ACG (“all-conditions gear”), which markets products for extreme sports such as
snowboarding and mountain biking. In the early 21st century Nike began selling sports-technology
accessories, including portable heart-rate monitors and high-altitude wrist compasses.
Part of Nike’s success is owed to endorsements by such athletes as Michael Jordan, Mia Hamm, Roger
Federer, and Tiger Woods. The NikeTown chain stores, the first of which opened in 1990, pay tribute
to these and other company spokespersons while offering consumers a full range of Nike products. In
the 1990s the company’s image briefly suffered from revelations about poor working conditions in its
overseas factori The Nike swoosh was designed by Portland
State University student Carolyn Davidson, for just $35 (j ust over $200 in today's currency). At a later
stage she was given stock that is now worth more than $640,000.
The slogan “Just Do It” was inspired by serial killer Gary Gilmore, who said “let’s do it” just before he
was executed by a firing squad in 1977. The
world’s largest Nike store is not in its US homeland but on London’s Oxford Street. It cost £10.5
million to build the store, which spans three levels and roughly 42,000 feet. It was constructed
around the theme of a town square.
 The objectives of Nike
Objectives specify the organizational plan to achieve with marketing strategy. Ideally on objective
must be started in measurable terms must be realistic and specify by when it must be achieved. Nike
is one of the largest manufacturing of athletic apparel and sporting clothes in the world, therefore it
has numerous, distinct mission and aims. As

with all publicly traded companies, Nike’s first objective is to make a profit for the

shareholders.

In order to meet objectives, Nike makes a number of small aims and objectives. This i ncludes
manufacturing superior products, maintaining the integrity of the global operation in area of design
the product. The aim of this company is to balances these profit-driven goals with a number of social
and sustainable aims, including use small water, reducing waste of material they use and
strengthening communities . Nike as company within athletics industry also operates in Low
Countries, moving all over the country but depending on factor cost. Their aim is to move easily is
often cause of difficulty for many less developed countries, which has become economically
depended on how they operate. An aim is a goal which this company wants to achieve. Another
business can sell much as possible whilst others aim to improve the quality of their mission
statement. The Nike mission statement in extremely particular in the way that it is worded during
Nike investor day, management provided a long term revenue tom forecast of achieving 65 billion in
revenue by 2015. This objective translates to a roughly 8% compounded annual growth rate based on
Nike

Nike’s marketing objective

is to employ a range of marketing communication tactics that can cater to the

organization’s target market, who have different na

tionalities, genders, cultures, and ages. Nike has to achieve the highest sales. Have a highly
competitive advantage in the industry... Increase revenue from 2 million to 3 million in next financial
period. Increase market share from 24% to 28% and profit by 30% in the next year. Nike brick and
mortar stores will serve as testing grounds for new products and merchandising initiatives. Results
from these experiments will be shared with Nike's wholesale customers to further improve sales. The
company is about to embark on an ambitious, yet realistic plan that presents investors a great
opportunity to invest in a well-established company that is still experiencing growth.

Target market of Nike

Nike has been around for quite a while now actually dating all the way back to 1964 when it was one
known as "Blue Ribbon Sports. In time Nike sprung in too much bigger developing shoes for all sorts
of sports from baseball to tennis, basketball, soccer, and even golf. Nike understood they had to
tackle all sports to be the dominant brand in athletic sportswear which Nike has well done so. Nike's
big sport by all means has to be basketball whichever way you look it its where Nike builds its
popularity althoug

Mission and vision:

A company’s mission statement states the general courses of action for business development,
while the vision statement gives a picture of the future condition of the business. In Nike’s case, the
corporate mission statement is a prominent guide for strategic formulation. However, the corporate
vision statement requires development to suit Nike’s aims and business situation. As a leading
producer of sports shoes, apparel and equipment, Nike Inc. must maintain vision and mission
statements appropriate to the business and global market.
Nike, Inc.’s vision statement needs development to address what the business represents and wants
to strategically achieve in the future. On the other hand, Nike’s mission statement is appropriate for
its business situation as a global producer and retailer of athletic shoes, apparel and equipment.

Nike’s Vision Statement :

Nike’s CSR vision statement includes the company and its consumers as major
participants in the desired future goal of sustainability. The corresponding strategic objectives are
implied in the “sustainable economy” component of the vision statement. The third component of
Nike’s CSR vision statement reinforces sustainability by stating, “people, profit and planet are in
balance.” This CSR vision statement shows that, aside from being a manufactu rer of athletic shoes
and related products, Nike is also concerned with the sustainability and balance needed to ensure
that everyone benefits from the business.

Nike’s Mission Statement

 Nike Inc.’s official mission statement is “to bring inspiration and innovation to
every athlete in the world.” The company furthers that everybody is an athlete, based on Nike
founder Bill Bowerman’s statement, “If you have a body, you are an athlete.” This mission statement
represents the company’s strategic goal of reaching out to the global sports shoes, apparel and
equipment market. The following main components are in Nike’s mission statement:

 Inspiration
 Innovation
 Every athlete in the world

As a leading manufacturer of sports shoes, apparel and equipment, Nike Inc. inspires people to adopt
a winner mindset, which is covered in the “inspiration” component of the mission statement. The
company’s slogan “Just Do It” represents this inspirational goal. Also, Nike’s mission statement
emphasizes innovation. This component is applied through the company’s strategy of continuous
improvement of products through new technologies. The “every athlete in the world” component
indicates that Nike’s mission statement pushes the company to target ev ery consumer around the
world. Thus, the company’s athletic shoes are designed to attract and satisfy a wide vari ety of market
segments.
Nike, Inc. lacks a suitable corporate vision statement. However, the company’s vision statement for
corporate social responsibility is a good start. This vision statement offers considerable information
about Nike’s business activities and strategic objectives. However, it does not address all areas of the
business as a whole. Thus, the company needs to develop and publish an appropriate vision
statement for the corporation to inform employees and investors about what the entire business
aims to become in the future, with reference to the global market for athletic shoes, apparel, and
equipment.
Nike’s mission statement adequately outlines the general strategic directions of the business. This
mission statement also remains relevant to the current situation of the company. It is expected to
continue its relevance even in the years to come, considering that the components “inspiration” and
“innovation” are essential for Nike to ma intain its competitiveness amid tough global competition.
Thus, Nike can keep using its current mission statement to guide its strategies as a global sports
shoes, apparel and equipment company.
 STRATEGY

Nike's Generic Strategies:

Nike Inc.’s generic strategy for competitive advantage emphasizes product
mix diversity. A generic strategy, according to Michael Porter, defines how a business achieves and
maintains its competitiveness. On the other hand, Nike’s intensive growth strategy reflects the
company’s focus on innovation to develop the business. An intensive strategy shows how a c ompan y
grows. Founded in 1964, Nike Inc. has grown to become one of the biggest players in the global
athletic shoes, apparel and equipment market. To keep its position and competitive advantage, Nike
must ensure that its generic strategy and intensive growth strategies are always suited to current
business conditions.
Nike Inc.’s generic strategy (based on Michael Porter’s model) is appropriate for its diverse product
lines, ensuring competitive advantage. The corresponding intensive strategies grow Nike’s glo bal
sports shoes, apparel and equipment business. Nike
Inc. uses a combination strategy for its competitive advantage. This type of strategy includes two or
more of the generic strategies from Po rter’s model. The
following are the generic competitive strategies implemented in Nike’s combination strategy:

 Cost Leadership Strategy

 Differentiation Strategy
SWOT Analysis
Nike Inc.’s leadership in the global sports shoes, equipment and apparel
market shows the significance of its strengths in competing against other giants like Adidas. A SWOT
Analysis of Nike outlines how these strengths relate with the company’s weaknesses, opportunities
and threats. Established in 1964 as Blue Ribbon Sports, Nike Inc. is now one of the world’s biggest
players in the athletic footwear market. An understanding of the company’s strengths and
weaknesses (internal strategic factors), and weaknesses and threats (external strategic factors) yields
insights on how a manufacturing and retail business can achieve global success despite tough
competition.
Nike Inc.’s SWOT Analysis emphasizes the importance of product development to maintain a
competitive edge. However, the results of this SWOT Analysis point out some possible new strategic
directions to further enhance Nike’s global performance and leadership.

Nike’s Strengths (Internal Strategic Factors)

Nike’s strengths are the primary drivers of the company’s growth and global leadership in the sports
shoes, apparel and equipment market. This component of the SWOT Analysis deals with the internal
strategic factors that support business development and competitiveness. The following strengths are
the most notable in the case of Nike Inc.:

o Strong brand image

o Rapid innovation processes
o Extensive global production and distribution network
Nike’s strong brand image evolves based o n product quality. The company’s effective marketing
campaigns also contribute to this strength. Also, rapid innovation processes are a core factor in Nike’s
ability to create cutting edge designs for its athletic footwear, equipment and apparel. The company’s
extensive global production and distribution network is a strength that enables the business to
support global market dominance. This part of the SWOT Analysis shows that Nike Inc. has
capabilities to retain its global market leadership.

Nike’s Weaknesses (Internal Strategic Factors)

Weaknesses could disrupt Nike’s growth trajectory in the sports shoes, apparel and
equipment market. This component of the SWOT Analysis addresses the internal strategic factors that
prevent or reduce business performance. In the case of Nike Inc., the following weaknesses are the
most significant:

o Labor controversies
o Limitations in the product mix
o Limited presence in developing markets
Labor controversies continue to plague Nike’s business, especially in considering production facilities
in developing countries. This weakness negatively impacts the company’s brand image. Also, even
though Nike Inc. has expanded its product mix through the years, the resulting product lines are still
limited in capturing a larger share of the sports shoes, equipment and apparel market. Moreover, the
company suffers from limited presence in developing markets, partly because of issues with pricing,
imitation and patent protection. This weakness limits Nike’s global growth. Based on this part of the
SWOT Analysis, Nike Inc. must improve its policies and strategies in the areas of labor and
employment, product mix development, and penetration in developing markets.

Opportunities for Nike Inc. (External Strategic Factors)

Nike Inc. has opportunities to enhance its performance in the athletic footwear market. The external
strategic factors that facilitate business growth are covered in this component of the SWOT Analysis.
The following are the major opportunities in the case of Nike Inc.:

o Improve labor/employment practices

o Improve the product mix
o Increase market presence in developing countries
Nike has the opportunity to improve its labor practices to address controversies in this area of the
business. Proactive strategies for this concern can lead to an improved brand image. Another
opportunity is for Nike to improve its product mix to attract more customers, especially non-athletes.
The company also has the opportunity to improve its presence in developing markets to benefit from
these markets’ high growth potential. This part of the SWOT Analysis indicates that Nike Inc. must
reform some of its policies and strategies to ensure its continued leadership in the global athletic
footwear, apparel and equipment market.

Threats Facing Nike Inc. (External Strategic Factors)

Even though Nike is one of the major players in the sports shoes, equipment
and apparel market, some threats could limit or reduce the company’s performance. This component
of the SWOT Analysis deals with the external strategic factors that negatively impact business
performance. The following threats are most notable in Nike’s case :

o Tough competition
o Rapid technological innovation
o Imitation
Nike faces tough competition, considering other major players like Adidas. Also, rapid technological
innovation could further increase competitive pressure if Nike does not innovate as rapidly. In
addition, imitation remains a threat, especially in developing countries with poor legal protection for
patents. This part of the SWOT Analysis shows that, for Nike to maintain its leadership in the global
sports shoes market, product innovation and legal protection must be included in its major strategies.
This SWOT Analysis of Nike Inc. shows that the company has the strengths
needed to support its global leadership in the sports footwear, equipment and apparel market.
However, the company must address concerns regarding competition, labor practices, imitation and
patent protection. Thus, it is recommended that Nike Inc. must reform its strategies in these areas.
The company must also collaborate with government units to address patent protection issues.