The company's major vision is "to bring inspiration and innovation to every athlete". It originated in the 60's when Philip H.

Knight had a vision in Japanese athletic shows, so he agreed with Onitsuka Tiger Co. in Japan to import products to the United States. Thus, the first official name of the company was Blue Ribbon Sports. Knight's partner, William Bowman, wanted to do more than mere import of sporting goods; he was experimenting to invent new running shoes. In 1968, the company's first shoe became a top seller. The seventies was a great decade for Nike, as they started to manufacture and market their own shoes, the Nike brand was made official, and the first line of sports clothes became available. Throughout the 80's and most of the 90's, Nike was only growing bigger; it dominated the market, introduced more products like children's sports shoes, went internationally, and acquired many more companies (Cole Haan, and Canstar Sports). By late 90's, Nike was attacked for environmental and human reasons in Asia, which led to a downfall in the company's sales. In efforts to rebound from this crisis, the company made many changes, not in its marketing tactics however. In 2002, the company invested in a new IS project, logistic and supply-chain management; they steered the wheel towards managing the company instead of making new products and marketing plans. In addition, the company managed to overcome the many acquisitions it faced in Asia by setting minimum age, better working environments, and less work hours. Today Nike's 2010 revenue comes to $19.00 billion, Nike Campus consists of 17 major buildings, consists of almost 22,000 stores in the US,

"Nearly all of the items are manufactured b y independent contractors.and "sold in more than 160 countries". While the headquarter remain in Beaverton.000 people around the world. However Nike sponsored the top athletes and gained valuable coverage. This makes a very lean organization. It does not tie up cash in buildings and manufacturing workers. Phil Knight (Founder and CEO) is often quoted as saying that 'Business is war without bullets. If prices rise. Finally.' Nike has a healthy dislike of is competitors. development. Strengths. with Nike invo lved in the design. Nike did not. and products can be made more cheaply elsewhere (to the same or better specification). Nike is strong at research and development. Nike is a very competitive organization. Nike will move production. Oregon. let us take a closer look at the company's SWOT Analysis. They then manufacture wherever they can produce high quality product at the lowest possible price. Nike has no factories. as is evidenced by its evolving and innovative product range. Nike is a global brand. Reebok went to the expense of sponsoring the games. and marketing". So how does the company keep up with all these numbers? Before answering that question. At the Atlanta Olympics. . and Phil Knight even has it tattooed on his ankle. Nike employs over 36. Its famous 'Swoosh' is instantly recognisable. It is the number one sports brand in the World. primarily located overseas.

However. most of its income is derived from selling into retailers. However. The business could also be developed internationally. Retailers tend to offer a very similar experience to the consumer. Can you tell one sports retailer from another? So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Nike. Some would argue that in youth culture especially. There is also the opportunity to develop products such as sport wear. building upon its . sunglasses and jewellery. consumers that wear Nike product do not always buy it to participate in sport. Nike is a fashion brand. the income of the business is still heavily dependent upon its share of the footwear market.Weaknesses. Such high value items do tend to have associated with them. consumers need to replace shoes. like it or not. Product development offers Nike many opportunities. The brand is fiercely defended by its owners whom truly believe that Nike is not a fashion brand. high profits.e. This may leave it vulnerable if for any reason its market share erodes. However. since product could become unfashionable before it wears out i. The retail sector is very price sensitive. The organization does have a diversified range of sports products. This creates its own opportunities. Nike does have its own retailer in Nike Town. Opportunities.

Competitors are developing alternative brands to take away Nike's market share. emerging markets such as China and India have a new richer generation of consumers. The market for sports shoes and garments is very competitive. There are many markets that have the disposable income to spend on high value sports goods. This ultimately means that consumers are shopping around for a better deal. and buy the cheaper of . It buys and sells in different currencies and so costs and margins are not stable over long periods of time. As discussed above in weaknesses. This is an issue that faces all global brands. There are also global marketing events that can be utilised to support the brand such as the World Cup (soccer) and The Olympics. the retail sector is becoming price competitive. Threats. Nike is exposed to the international nature of trade. For example. the consumer could go to the store along the street to compare prices for the exactly the same item. So if one store charges a price for a pair of sports shoes. The model developed by Phil Knight in his Stamford Business School days (high value branded product manufactured at a low cost) is now commonly used and to an extent is no longer a basis for sustainable competitive advantage. Such an exposure could mean that Nike may be manufacturing and/or selling at a loss.strong global brand recognition.

The Future Program worked for that specific market. At that time. However. Thus. and ultimately increase profitability. the need for a decent supply chain system became a must. Oregon. the need for a better supply chain management system was only increasing. decrease the manufacturing time from 9 months to 6 months. the Vice president of Supply Chain and Steels. by 1998. Thus. Shelley Dewey. Supply Chain and CRM software into a single platform. Nike's 27 globally located order management systems were divided into five geographic regions and still poorly linked to the central management. . initiated the idea of implementing ERP. In addition to the company's global growth. they guaranteed "inflation-proof discount" if the retailers ordered six months in advance. In 1972. Nike went with the Futures Program. The system was supposed to reduce the company's inventory by managing supply and demand. Nike's profit dropped from $798 million to $399 in 1998. Nike enters the global market while the supply chain remained centralized in Beaverton. Such consumer price sensitivity is a potential external threat to Nike.the two.

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