can i know the name? Nike Strategic Analysis 9 of ability reach their potential or to create business opportunities that set Nike apart from the competition and provide value for our shareholders.” The person that the vision is talking about in the vision statement is Bowerman. To stay on top of their competitive game, Nike focuses on product differentiation and cost leadership. Strategic Analysis of Nike 4 Executive Summary Nike, previously known as Blue Ribbon Sports was created in 1962 by Phil Knight and Bill Bowerman (Pandey, 2017, p. 2). Firstly, assessment task details and instructions 1500 ONLY. The major threat to Nike is the imitation that goes hand in hand in various markets which are affecting its revenues and businesses. It was found by, in the communities. Nike- Strategic analysis 1. Hi Divya, Most of the information is from Nike’s annual report and few points have embedded hyperlinks for references. Porter's 5 Forces . From releasing new product lines to building new brands, to outsourcing, and establishing a global presence alone is an extraordinary achievement. Thank you. Nike's Strategic And Financial Position Analysis Nike is a globally recognized multinational corporation founded by the Stanford Graduate School of Business graduate, Phil Knight, and Bill Bowerman who was the track and field coach at the University of Oregon. The remaining comprised equipment and the Converse Brand. It’s safe to say Nike’s at the top of its game right now. Thanks. This preview shows page 1 - 6 out of 19 pages. Nike has the opportunity to improve its labor practices to address controversies in this area of the business. Hey, who is the author of this report and what year was it finalized. Analysis of Nike's market position, mergers and acquisitions, strategic partnerships and alliances, that the company endorsed, and the business aims or synergies that were achieved with them 10. iii. Through this SWOT analysis of Nike, you will be able to understand the business model of the brand. Nike needs to develop a strategy to ensure that the counterfeiting of their goods doesn’t affect their core business model, perhaps by taking legal action against counterfeiters or with a clever marketing campaign that encourages consumers to buy the real thing. Lack of Diversification: Nike’s over-dependence on sporting apparel or lack of diversification is a major weakness. Contents (Jump to) 1. Executive Summary: Constant innovation has been the byword for Nike's success.This case study analyses the ever-evolving marketing strategies adopted by Nike to become a … Toggle share menu. Culture At Nike, we believe that a brilliant, diverse and comprehensive employee The Swoosh. We realize that the team-mentality that captured the spirit of athletics in the late 1980's and early 1990's has been replaced by a sense of individualism. The previous strategy that Nike held now ‘no longer aligns’ with the brand’s core ideals – meaning that the SMEs that bought and sold wholesale products won’t have that option anymore. Thank you ! However, new entrants required the huge amount for the capital; therefore, Nike has the maximum market share in the footwear industry (Reuters, 2016). It doesn’t just sell sneakers; it sells the brand aspiration that imbues those sneakers with meaning. Nike’s Pricing and Business Strategy. Nike products are sold is the retail stores because of their strategic location around the world. I need this info for citations. Knight called his first shoe Tiger and began allocation at path meet. This has been the keynote of the Company’s growth strategy. Good read. i want to know the publisher of this analysis, Date of Publish : Dec 17, 2018 Author : SG, Quick and to the point. The organization has been able to achieve, this through aggressive marketing, innovative products, and quality production. Nike’s local sales for the current quarter in China, for instance, are forecast to be roughly flat year on year, rather than declining. Nike’s strengths are that the company is extremely competitive; the CEO of the company is often heard saying that business is a war without any bullets. ... Knight solicits the help of a history teacher Bill Bower man to help him in his big business project and in 1964 they ongoing Blue Ribbon sports. Marketing strategy helps companies achieve business goals & objectives, and marketing mix (4Ps) is the widely used framework to define the strategies. The student should use the Porter’s Generic Business Strategies model so as to analyze the NIKE business strategy. The article was enlightening. Course Hero, Inc. Thanks Taku, I am glad you liked our analysis. The women were left devastated and felt unsafe while working at Nike. ‘By mid-1985, inventories had fallen to less than 10 million pairs of shoes from a peak of 22 million in late 1983. Some even left their jobs. “All those companies that built a business on the back of Nike and Adidas are toast – there’s no way they can replace that [business],” explained a source to the Sunday Times. By Hilary George-Parkin. Nike- Strategic analysis 1. PESTLE Analysis of Nike. But to achieve the reach required to scale its business, Nike’s distribution strategy had long-relied on third-party retailers to sell its products, even if the consumer experience offered by those partners diluted its brand. Business Analysis-Nike's free workout apps are key to its high-end pricing strategy. Terms. This particular strategy appears to work well on generating responses not only to new product launches, but also to opportunities for online purchases, in-store purchases, and participation in Nike events. Nike is focused on its footwear business, which can be somewhat risky considering that market trends change and most companies sustain themselves through a product diversification strategy. Nike has implemented sophisticated systems and well-understood business procedures by keeping cross-functional cooperation, which consequently lead to the best inventory turnover from performance. Strong brand image 2. Differentiation Strategy Nike incorporates a business level strategy that most resembles a differentiation strategy. Strengths. Some even left their jobs. Business level strategy analysis/recommendations Nike’s major competitors consist of companies such as Adidas, Under Armor, and Rebook. During the recent years, the brand has made some strategic changes in its business model. Let us start the Nike Marketing Mix & Strategy: Nike Product Strategy: The pandemic has discouraged physical interaction and gathering with sporting events canceled or postponed. Interpretation of Nikes USP or unique selling proposition, mission statement, and vision statement. Nike is an international corporation that is involved in the designing, developing, producing and global sales and marketing of footwear, services, accessories, equipment, and, apparel. 5. NIKE, Inc. engages in the design, development, marketing, and sale of athletic footwear, apparel, accessories, equipment, and services. Other Interesting Facts 10. This has greatly helped the managers to lay a plan for the organization and take it where they want it to be. PGDM – B Group – 6 Avishek Singh 113Mohammad Shadab 129 Pratik Akerkar 139 Somjeet Dutta 152 1 2. The women were left devastated and felt unsafe while working at Nike. In addition to this, effectively responding to its. “Our digital business in China has accelerated even further over the past months and we are now seeing double-digit increases in retail traffic week over week, with some stores having already returned to prior-year levels,” Donahoe reported. Figure 2: Nike Advert Using Professional Athlete. Nike, Inc. is an American multinational corporation. Currently, Nike does not only, distribute and produce athletic shoes in all markets but also has over 40% of its total sales, derived from subsidiary ventures, sports equipment, and athletic apparel (Laplume, Petersen and, Pearce, 2016, p. 599). Dorrene, Thanks for your positive feedback, I am glad you liked it. 27 Recommendation In this report, we have analyse Nike’s different objectives along with Business strategy market strategy etc. Figure 3: Graph Showing NBA Players Perform Better when Wearing Nike Sneaker, Figure 4: Converse and Hurley Logo Brands. https://bstrategyhub.com/swot-analysis-of-nike-nike-swot-analysis In 1985, in the US alone, athletic footwear was a 5 billion dollar business with 250 million pairs of shoes sold. Examples of Nike's Marketing - To learn how you can use Nike's Marketing strategy to grow your business, listen to this podcast episode 8. References Nike's Strategy to Become the Leader in their Market. Nike : Business Analysis : Nike 1484 Words | 6 Pages. Nike Business Analysis Donny Otwell, Jasen Saavedra, Mohamed Takkouch Business 10 Mrs. Rochin December 5, 2016 Donny Otwell, Jasen Saavedra, Mohamed Takkouch Mrs. Rochin Bus 10 December 5, 2016 NIKE Although facing major competition throughout their history, Nike has been able to grow from a two-man team into a … To stay on top of their competitive game, Nike focuses on product differentiation and cost leadership. Tell us what you think? Author: S.K Gupta First published: December 17, 2018 Last updated: Oct 06, 2020. 4. S.K. It’s a great help. Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. In addition, we have the promotion, which is also known as the marketing communications Business level strategy analysis/recommendations. Secondly, Strategic Management 2019-20: Assessment 1 – Written Assignment (This assessment contributes 40% of the … Join our newsletter today to get updates on the latest posts! A Comparative Analysis of Strategies and Business Models of Nike, Inc. and Adidas Group with special reference to Competitive Advantage in the context of a Dynamic and Competitive Environment Hussain A. Ali Mahdi1, Mohammed Abbas2, Taher Ilyas Mazar3 1,2,3MBA Student, University of Bahrain, Kingdom of Bahrain Dr. Shaju George4 Gupta understands how to create and implement business strategies. Your information is safe and will never be shared. The above discussion made it apparent that a strategy of Nike revolves around creating a unique and distinct identity for each sport is effective and smart. Strategic management is a technique that Nike, Inc. has been able to apply to determine how it is performing in its current position and how its future should be. Not only does it own 48% of the American athletic footwear market, but its share of the basketball footwear market is at a staggering 96%! It can be said Nike has potentially implemented all the strategy to introduce new products. This component of the SWOT Analysis deals with the internal strategic factors that support business development and competitiveness. Nike's Values 9. A concise window into of Nike’s headquarters, turnover, revenue, and subsidiaries. In addition, the organization has more than twenty thousand retailers, Nike stores, Nike factory shoes and websites that assist in selling the company’s leisure and sports products, (Brohi et al., 2016, p. 43). 6. Course Hero is not sponsored or endorsed by any college or university. 7. Five Forces in the Sportswear Market. Nike’s Generic Strategy (Porter’s Model) market demand for fashionable apparel and athletic footwear will ensure that Nike stays on top. Another strength of Nike is that it is a global brand and its logo i.e. One of the critical ingredients of Nike success is its ability to create demand for its products. Indeed, Nike has continuously improved its operations management. Here’s a detailed breakdown of Nike SWOT analysis. Nike uses this innovation in order to become a more sustainable company, which is the second key aspect of its business strategy. The major threat to Nike is the imitation that goes hand in hand in various markets which are affecting its revenues and businesses. Strategic Analysis of Nike 4 Executive Summary Nike, previously known as Blue Ribbon Sports was created in 1962 by Phil Knight and Bill Bowerman (Pandey, 2017, p. 2). The management employs strategic management components such as vision, environmental analysis, strategy creation, strategy implementation, and strategy assessment (Nike, Inc., 2009). 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