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every athlete". It originated in the 60's when Philip H. Knight had a vision in
import products to the United States. Thus, the first official name of the
company was Blue Ribbon Sports. Knight's partner, William Bowman, wanted
invent new running shoes. In 1968, the company's first shoe became a top
seller. The seventies was a great decade for Nike, as they started to
manufacture and market their own shoes, the Nike brand was made official,
and the first line of sports clothes became available. Throughout the 80's and
most of the 90's, Nike was only growing bigger; it dominated the market,
and acquired many more companies (Cole Haan, and Canstar Sports). By late
90's, Nike was attacked for environmental and human reasons in Asia, which
crisis, the company made many changes, not in its marketing tactics
setting minimum age, better working environments, and less work hours.
Beaverton, Oregon, Nike employs over 36,000 people around the world.
contractors, primarily located overseas, with Nike invo lved in the design,
development, and marketing". So how does the company keep up with all
these numbers? Before answering that question, let us take a closer look at
Strengths.
often quoted as saying that 'Business is war without bullets.' Nike has
went to the expense of sponsoring the games. Nike did not. However
Nike has no factories. It does not tie up cash in buildings and manufacturing
produce high quality product at the lowest possible price. If prices rise,
and products can be made more cheaply elsewhere (to the same or
Nike is a global brand. It is the number one sports brand in the World. Its
the income of the business is still heavily dependent upon its share of
the footwear market. This may leave it vulnerable if for any reason its
The retail sector is very price sensitive. Nike does have its own retailer in
Nike Town. However, most of its income is derived from selling into
consumer. Can you tell one sports retailer from another? So margins
tend to get squeezed as retailers try to pass some of the low price
Opportunities.
defended by its owners whom truly believe that Nike is not a fashion
youth culture especially, Nike is a fashion brand. This creates its own
can be utilised to support the brand such as the World Cup (soccer)
Threats.
different currencies and so costs and margins are not stable over long
global brands.
The market for sports shoes and garments is very competitive. The model
around for a better deal. So if one store charges a price for a pair of
sports shoes, the consumer could go to the store along the street to
compare prices for the exactly the same item, and buy the cheaper of
the two. Such consumer price sensitivity is a potential external threat
to Nike.
In 1972, Nike enters the global market while the supply chain
supply chain system became a must. At that time, Nike went with the
ordered six months in advance. The Future Program worked for that specific
systems were divided into five geographic regions and still poorly linked to
profit dropped from $798 million to $399 in 1998. Thus, the need for a better
supply chain management system was only increasing. Shelley Dewey, the
Vice president of Supply Chain and Steels, initiated the idea of implementing
ERP, Supply Chain and CRM software into a single platform. The system was