Case Study:

Nike – Product Development from Concept to Customer

A Case Analysis Submitted to the Faculty

of the Graduate School of the
AMA Online University

In Partial Fulfillment of the requirement

for the Degree of Master in
Business Administration

ALMARIO G. PARCO, JR., CPA

20200113412
 Table of Contents
Page

TITLE PAGE......................................................................................................1

I. INTRODUCTION/BACKGROUND................................................................3

II. POINT OF VIEW...........................................................................................3

III. TIME CONTEXT...........................................................................................4

IV. STATEMENT OF THE PROBLEM..............................................................5

V. STATEMENT OF THE OBJECTIVES..........................................................6

VI. AREAS OF CONSIDERATION (S.W.O.T)..................................................5

VI. ALTERNATIVE COURSES OF ACTION....................................................6

VIII. STRATEGY FORMULATION....................................................................6

IX. ACTION PLAN/PROGRAMS......................................................................7

X. CONCLUSIONS............................................................................................8

XI. ATTACHMENT............................................................................................9

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I. Introduction

Nike has become a leading manufacturer of U.S. footwear, clothing,

sportswear supplier based in Beaverton, Oregon. The company employs
approximately 24,000+ people and as Nike operates across the six
continents, the suppliers, shippers, retailers and service providers employ
close to one million people. In 2005, Nike reported a revenue of $US 13.7
Billion as the largest sports and fitness company. The company was humbly
founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman and
Phil Knight. On May 30, 1971. It was incorporated into Nike, Inc. The
company takes its name from Nike, the Greek goddess of victory. In 1980, the
company had reached a whopping 50% market share in the U.S. athletic
shoe market and had become a publicly traded company. After 5 years, new
era introduction of a Michael Jordan- introduced basketball shoe which made
the company on-top in the industry in 1988. Also, in 1988 Nike started to
begin diversifying by purchasing Cole Haan Shoes and acquire other brands.
To accomplish the maintainability, the company work centered by its mission
which engages by corporate social responsibility. Being on top in the
business outcome the test to stay on this position and keep serving the
consumers through product innovation.

II. Point of View

The study broadens the knowledge on how organization must focus

on their mission to serve the consumer needs thru product development
and to intentionally broad and outward looking, focusing on the needs of
athletes, and, through its corporate responsibility work, consideration is
given to the needs of communities around the world.

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III. Time Context

Nike is a leading manufacturer of U.S. footwear, clothing,

sportswear supplier. Developed a prototypes shoes which was closely
copy the barefoot in 2005.

IV. Statement of the Problem

The expectation of necessities of the objective to develop more

highly quality products to target consumers demands

1.) How to provide effective customer support and to gain the

competitive advantages in an efficient manner;

2.) How the company to adapt changes in developing a new

product competitively in the market and in the mind of a target
consumer; and

3.) How the company considered other media platform to seek

information and target difference audiences around the world.

V. Statement of the Objectives

The objective of study for Nike, Inc. is to develop product that from
the concept that helps the athletes of every level of ability reach their full
potential and to make business opportunities that set Nike apart from the
competition and provide value for their stakeholders needs.

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VI. Areas of considerations
STRENGTHS WEAKNESSES

I 1.) Very informative website to its 1.) Higher price among its’ major
N targeted consumer competitors
T 2.) Strong financial position as the
E company reported revunue amounting 2.) Concentrated on youth to young
R to $13 Billion. adults.
N 3.) Product quality - as one of the
A company in developing and 3.) Heavy dependency on footwear
L manufacturing their products. sales
4.) Strong international presence -
Maintained a strong global reputation.

OPPORTUNITIES THREATS
E
X 1.) New production line for protective 1.) Government actions hasn’t full
T and enforced to fight the penetration of
E safety footwear counterfeit products in the market
R 2.) Strong anti-counterfeit campaign 2.) Underground manufacturing
N counterfeit products
A 3.) Penetration in other regions with 3.) Local and international
L feasibility competitiors.
of high sales growth.

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VII. Alternative course of action

Nike's statement of purpose is purposefully wide and outward

looking, focusing on the necessities of a*athletes, and, through its
corporate responsibility work, thought is given to the requirements of
com*unities around the globe. Nike's center is to constantly look to
innovate, design and create items to improve athletic execution. Its
superseding want is to design products with true performance innovation
and technology benefits which help the athlete perform better. With its
most recent innovation, Nike scientists and architects have created Nike
Free, a sports shoe described as a foot-strengthening training tool.
Tagged 'natural technology', Nike Free has been designed to copy
barefoot running. By running shoeless, the foot is reinforced, increasing
more prominent adaptability and scope of movement which prompts better
execution since you are less inclined to wounds. For improving the
customer service inside the focused-on course of events, the organization
needs to concentrate on making strategic approaches. Enhancing better
customer relationships, facilitates new concepts discovery for customers
satisfaction, and helps the sales team in closing deals faster.

VIII. Strategy Formulation

To make sure about the position of the company in the business,

Nike must concentrate on meeting the consumer demands through
product development and augmenting the objective purchasers. Strong
research and develop of product will benefited both company and
customers as it gives an incentive for the customers, social advancement
and development for the company.

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IX. Programs
Action
Wide-ranging target market
Securing the product quality
development
Increasing the visibility of the
company with stakeholders
Specific Tasks Responsible Area
Product innovation, Design
Customer Driven Marketing
Nike marketing department
Strategies, and Advertisement of
products.
Extensive research of consumer’s
Research and Development
needs and adoption of new
department
technology based on nature.
More employee engagement
with the communities, to ensure
to meet the environmental Nike Corporate Social
compliance and easy access of Responsibility
company website for public
awareness.
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IX. Conclusion

Nike aims to bring inspiration and innovation to every athlete in the

world - and it considers everybody to be an athlete! As a high profile,
industry-leading sports company, Nike continually strives to keep itself at
the forefront of product innovation and design. Through extensive
research and development, the Nike Free shoe was created in response
to the recognition that barefoot running can strengthen athletes' feet and
legs naturally.
Nike Free was developed after extensive research and product
testing. With a strategic promotion campaign, Nike hopes to deliver the
message that Nike Free is not designed to replace athletic performance
footwear but to be an important part of training, thus improving
performance.

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X. Attachments

https://www.westpac.com.au/docs/pdf/aw/sustainability-community/2013-
2017_Sustainability_Strategy.pdf
https://www.westpac.com.au/docs/pdf/aw/sustainability-community/2012-
SSCM-CaseStudiesBooklet.pdf
https://www.westpac.com.au/docs/pdf/aw/SSCM_Case_Study_Booklet.pdf

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