Nike Business Strategy Essay

analytical Essay
5600 words
5600 words


Jacob Tafur
Business Strategy & Policy
Professor McCarty
November 29, 2017


Nike Inc. is a very successful publicly traded sportswear and equipment company based in the United States. Nike is a multi-national and Fortune 500 company. It has reached achievements in their innovation in products that Nike has become one of the most recognized companies today and companies dream to have what Nike has created. The main headquarters for the company is in the Portland area near Beaverton, Oregon. Nike leads the world in supplying athletic apparel and shoes. Nike shows how devoted they are in the satisfaction of their customer’s needs that it shines upon their mission statement and encompasses their vision. Nike ensures to go far and …show more content…

In this essay, the author

  • Explains that nike is a multi-national and fortune 500 company based in the united states.
  • Explains that nike is the leader of the worlds manufacturing of shoe making and controls over twenty percent of us athletic shoe market.
  • Explains that nike's strengths are built off strong banding and name recognition. they are financially strong and have strong international sales.
  • Explains that nike makes most of its profit in footwear; they have plenty of other products that keep them as valuable competitors in the market.
  • Explains that developing new and innovative products is the main focus to gain new opportunities in the market. focus on other product lines such as sunglasses and jewelry, it can have big price tags but will net high profits and expand its demographic.
  • Explains that there are strong competitors in the industry such as adidas and puma. manufacturing cost could rise and lower overnight especially using foreign production.
  • Analyzes how nike's creative product design and innovative technological developments is what separates them from other competitors.
  • Explains that nike's core values rely on performance, authenticity, and sustainability. the company has a strong financial position and empowerment of the top management.
  • Explains that nike has a large economy of scale and is able to retain performance advantage and control costs over emerging competitors.
  • Explains that nike, adidas, reebok and under armor have grown immensely over the last two decades. the market growth rate is low due to the high market penetration from the few competitor firms.
  • Explains that there are several substitutes of athletic shoes, but the threat is low because nike has unique products and functions.
  • Explains that nike's supply or supplier can affect nike through the availability of raw materials, such as rubber, foam, and cotton.
  • Explains that nike, adidas, puma, and reebok have similar products and quality. consumers are price sensitive when it comes to buying. brand loyalty and nike's continuous service is what allows consumers to stay loyal.
  • Analyzes porter's five force model to compare industry competitors, and nike to the competition. many companies have tried to compete, but none have come close.
  • Explains that nike is targeting new markets by expanding on to certain types of sports such as women's sports in soccer, to extreme sports and even racecar driving.
  • Explains that nike is a big company with many opportunities in developing geographies such as china, central and eastern europe and other emerging markets.
  • Explains income statement, balance sheet, cash flow statement and owner's equity statements.
  • Predicts that the company will face cash flow problems in the upcoming period due to the inconsistent increase and decrease in cash flows from operating activities over the last five years.
  • Explains that bill bowerman and philip knight founded nike in 1972. they wanted to show the world that every body is an athlete and prove that transforming technology through shoes and apparel can go to great lengths.
  • Cites rowland, christine, and panmore institute's "nike inc. five forces analysis (porter’s model).
  • Explains that a mission and vision statement are what nike is doing and what its main objective is, and the company's growth through innovation and leadership is how they see themselves.
  • Explains that nike's history began in 1964 when bill bowerman and partner philip h. knight started the company as blue ribbon sports.
  • Opines that there are plenty of opportunities for new competition in the market, but competing against a huge company like nike, it is almost impossible to be major threat to them.
  • Explains that nike has entreated merger and acquisition strategies when the right moments appeared. nike only targets alliances with firms that are related to their existing markets.
  • Explains that total revenue of the company has increased from $25,313,000 in 2013 to $27,799,000 in 2014 to $30,601,000 in 2015 and finally $34,350,000 in 2017.
  • Explains that nike's financial performance has pleased investors, who now see a company where earnings are less volatile and less fad-driven, yet still growing rapidly enough to gain lots of profit.
  • Recommends that nike concentrate on creating more of an impact to their international expansion. nike could build a stronger brand by taking advantage of certain events like the olympics and the world cup.
  • Cites press, st. james, the motley fool, seth jayson, todd campbell, and seasonal investor database.
  • Analyzes how nike's marketing mix and 4 ps of nike make up a significant portion of the overall footwear market.

The “Bo Knows” ad campaign allowed the company to make big leaps ahead of all its competition. The company’s headquarters was then built in Portland Oregon because of the major break through in the 80s. in the 90s Nike signed an amazing and successful golfer, Tiger Woods. He signed with the company in 1996 with a reportedly $5 million a year, he as well as a number of professional and successful athletes maintained their image as the industry leader. The company was now a public corporation.

It wasn’t until 1999 when Nike suffered a great loss. It was the Death of co-founder William “Bill” Bowerman at the age of 88. The company Nike continues to grow opening stores worldwide. From just having two men trying to create better and lighter running shoes for their athletes at the University of Oregon, they created a multi-billion dollar company that has taken the world by storm with their innovative and well thought out products. Nike has now expanded their style in the industry from running many other sporting goods.


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