Strategic Analysis of Nike, Inc

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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