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States. The company is headquartered in the Portland metropolitan area of Oregon, near Beaverton. It is the world's
leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of
$16 billion USD in 2007. As of 2008, it employed over 30,000 people world-wide. Nike and Precision Castparts are the
only Fortune 500 companies headquartered in the state of Oregon.
The company was founded in 1962 as Blue Ribbon Sports by Bill Bowerman and Philip Knight, and officially became
Nike, Inc. in 1978. 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 Skateboarding, Team Starter, and
subsidiaries including Cole Haan, Hurley International, Umbro and Converse. Nike also owned Bauer Hockey (later
rena med Nike Bauer) between 1995 and 2008. In addition to manufacturing sportswear and equipment, the company
operates retail stores under the name Niketown. Nike sponsors many high profile athletes and sports teams around the
world, with the highly rec ognized trademarks of "Just do it" and the Swoosh logo.
STRATEGIC THINKING
PURPOSE: is to carry on his 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.
MISSION:“To bring inspiration and innova tion to every athlete in the world”
VISION:“Innovate for better world ”
Unleashing potential through sport. In the last two years, Nike has invested $100 million worldwide in
community-based sports initiatives. By 2011, NIKE is expected to invest another $315 million. These investments
will be used to give excluded youth a round the world the chance to play because as access to sport can enhance
their lives.
Nike will provide products, resurface playing fields, support community-based programs, and help young people create
their own communities. This is all will be the NIKE“Let Me Play commitment.”
VALUE: Three core values of the company are honesty, competitiveness, and teamwork.
Despite its size, Nike operates with a minimum of hierarchy. As a result, there is a lot of collaboration and consensus
decision-making. Commonly held values are imperative in such a matrix organization.
STRATEGIC PLANNING
INTERNAL ENVIRONMENTS
STRENGTHS
Strong management team and good corporate strategy in both North American and
overseas markets.
First mover advantage in e-commerce.
Brand recognition and reputation.
Diversity and variety in products offered on the web (footwear, apparel, sporting
equipment, etc.)
Innovative designs in footwear enabling consumers to design their own shoes online .
Diversity and variety in products offered on the web.
The direct sale to consumers is creating conflicts with its own resellers .
Currently available supply chain, manufacturing, and fulfillment technologies aren't known for its research easily
integrated with online build-to-order systems and development leading to innovative designs.
The e-commerce is limited to USA, however, has planned to expand to Canada and
internati onal in the near future.
Online customer service not "helpful" or easy to find.
ALIGNING THE 7 S’
STRUCTURE:
Matrix-struc ture.
Balances creative with structure and discipline.
STAFFING:
Mix of new hires and promotions .
Promotions = consistency/company knowledge.
New-hire employees = business minded.
Socializing.
SHARED VALUES:
Balance of individualistic atmosphere and structure of matrix.
Calculated risk taking.
SYSTEMS:
Encourages work ethics.
State of the art computer systems .
SKILLS:
Financially disciplined.
STYLE:Empowerment of top management.
STRATEGY:
Diversify business portfolio with new acquisitions.
EXTERNAL ENVIRONMENTS
OPPORTUNITIES
Increasing demand in the industry for products available online.
Increase female participation in athletics.
E-commerce will reduce the cost of goods sold thus improving the "bottom line".
New technology and innovation to stay on top of ma rket needs .
Expand e-commerce to global markets.
Possibility of outsourcing the web development and e-commerce to a third party
develope r.
Growing interest in the sport of Basketball. Partnering up with other retailers to sell
basketball footwear and apparel.
Growing reputation in non-basketball sports will boost e-business.
E-commerce will reduce the cost of goods sold thus improving the "bottom line".
Expand e-commerce to global markets.
Collaborate with other online retailers to offer Adidas products.
THREATS
Strong competition from some of its major challengers in all branches of the business.
How can you impose your standards on them? What about the other companies?
PEST ANALYSIS
POLITICAL FORCES
World is entering global trade climate with NAFTA and GATT
There is anti-dumping regulation existed in EU.
ECONOMIC FORCES
EU has changed into one currency.
USA economic growth is in slow growth because of WTC.
Contract manufacturing is chosen by many athletic shoes company.
SOCIAL FORCES
Since 70-s, customer is more brand-minded.
Sports Consumer preferences are changing into more fashion-oriented.
Young consumer is believed much in advertising promotion and use internet as the
prima ry sources of information.
Buying motives of young consumer is dominated for leisure activity.
Since 90-s, woman’s consumer dominated the athletic shoe market because of the
changing lifestyle.
TECHNOLOGY FORCES
Nike has integrated technology system to develop their product.
Nike always adopted latest technology for their product and matched with their vision.
GENERIC STRATEGIES
Nike uses network structure.
Nike implemented Differentiation Strategies .
DETAIL STRATEGIES
Finance:
Keep the financial ratio in standard
Marke ting:
Use endorser in every sport
Higher allocation of marketing budget
Operation:
Centralization of R&D in Oregon
Application of NSRL
HR:
Network Structure
Athlete management
nike
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Uploaded:
11/07/2008
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nike products
apparel
demographic forces
shared vision
sports companies
competency
nike company
(more tags)
nike products
apparel
demographic forces
shared vision
sports companies
competency
nike company
chain nike
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Sunil Sethia
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nike
THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT A Project report submitted
in partial fulfillment of the requirements for the course curriculum of the subject Power Business
Strategies By: RADHIKA SHANKAR FAISAL TUMBI SUNIL SETHIA SIDDHARTH
SHRIVASTAV MURTUZA ALI K...
• From: Sunil Sethia
• Uploaded: 11 / 07 / 2008
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