Strategic Analysis of Nike, Inc
Essay by people • July 23, 2011 • Case Study • 9,176 Words (37 Pages) • 2,125 Views
Strategic Analysis of Nike, IncStrategic Analysis of Nike, Inc.
Executive Summary...........................................................................................p.4
History.............................................................................................................p.6
Profile of CEO...................................................................................................p.7
Competitor's Profile............................................................................................p.7
Industry Profile..................................................................................................p.8
Company Analysis.............................................................................................p.9
Industry Analysis................................................................................................p.24
Top Competitor Analysis.....................................................................................p.25
Other External Forces........................................................................................p.26
Key Opportunity................................................................................................p.27
Key Threat......................................................................................................p.27
Major and Subordinate Problems.........................................................................p.28
Strategic Match................................................................................................p.29
Primary Strategic Match Position.........................................................................p.30
Strategic Plan..................................................................................................p.33
Conclusion......................................................................................................p.38
LIST OF EXHIBITS
Sales Trends Graph.......................................................................................p.5
Net Income Trends Graph...............................................................................p.5
Nike Board of Directors Table...........................................................................p.11
Table of Key Financial Ratios...........................................................................p.22
Net Income Trend Graph.................................................................................p.24
Primary Strategic Match Position Chart..............................................................p.30
Industry Attractiveness Matrix..........................................................................p.31
Business Strength/Competitive Position Chart.....................................................p.32
Grand Strategy Chart.................................................................................... p.34
Marketing Short-term Strategy Chart.................................................................p.35
Production Short-term Strategy Chart................................................................p.36
Research and Development Short-term Strategy Chart.........................................p.37
Human Resources Short-term Strategy Chart......................................................p.37
Finance Short-term Strategy Chart....................................................................p.38
EXECUTIVE SUMMARY
Nike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership
under the name, Blue Ribbon Sports. Our modest goal then was to distribute
low-cost, high-quality Japanese athletic shoes to American consumers in an
attempt to break Germany's domination of the domestic industry. Today in 2000,
Nike Inc. not only manufactures and distributes athletic shoes at every
marketable price point to a global market, but over 40% of our sales come from
athletic apparel, sports equipment, and subsidiary ventures. Nike maintains
traditional and non-traditional distribution channels in more than 100 countries
targeting its primary market regions: United States, Europe, Asia Pacific, and
the Americas (not including the United States). We utilize over 20,000
retailers, Nike factory stores, Nike stores, NikeTowns, Cole Haan stores, and
internet-based Web sites to sell our sports and leisure products. We dominate
sales in the athletic footwear industry with a 33% global market share. Nike
Inc. has been able to attain this premier position through "quality production,
innovative products, and aggressive marketing." As a result, for the fiscal year
end 1999, Nike's 20,700 employees generated almost $8.8 billion in revenue.1
Products
Our primary product focus is athletic footwear designed for specific-sport
and/or leisure use(s). We also sell athletic apparel carrying the same
trademarks and brand names as many of our footwear lines. Among our newer
product offerings, we sell a line of
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