C AS E S TUDY

Nike business 1
 FUNDAMENTALS OF ENTREPENEURSHIP (ENT300)

CASE STUDY

PREPARED BY:

FACULTY/PROGRAME : ELECTRICAL ENGINEERING

(ELECTRONIC) EE111

PART :4

PROJECT TITLE : CASE STUDY ON NIKE

NAME : MUHAMMAD RUZAINIE BIN MAZRIE

ID : 2019258458

PREPARED FOR:

MADAM SUHANA BT MOHAMED

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TABLE OF CONTENTS

No. TOPICS PAGE NUMBER

1. Cover Page 1-2
2. Table of Contents & List of Figures 3-4
3. Executive Summary 5
4. Introduction : Entrepreneur &
Business Profile
- Introduction
- Company’s Background
- Organizational Structure 6-24
- Business Model
- Products of Nike
- Business Strategy of Nike
- Financial Achievement of Nike
5. Personal Entrepreneur Characteristic
(PECs)
25-27
6. S.W.O.T Analysis 28-34
7. Overall Report 35-36
8. Appendices 37-40
9. References 41

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LIST OF FIGURES
Figure 1: A simple visualisation of Nike business model………………………….....11
Figure 2: Nike’s Innovations from 1974-2012…………………………………………11
Figure 3: Nike Air Zoom Pegasus 37…………………………………………………..12
Figure 4: Nike ZoomX Vaporfly NEXT%..................................................................13
Figure 5: Nike PG2……………………………………………………………………….13
Figure 6: Nike Precision 4…………………………………………………………….....14
Figure 7: Air Jordan 1 Mid…………………………………………………………….....14
Figure 8: Air Jordan XXXV PF…………………………………………………………..15
Figure 9: FC Barcelona 20-21 Away Kit………………………………………………..15
Figure 10: Nike Mercurial Vapor 14 Elite FG…………………………………………..16
Figure 11: Nike VR TW Pro blades……………………………………………………..16
Figure 12: Air Jordan 1 Chicago……………………………………………………….. 17
Figure 13: Air Jordan 1 Bred Toe……………………………………………………….18
Figure 14: Air Jordan 1 Black Toe………………………………………………………18
Figure 15: 15: Brands that Nike owned…………………………………………………21
Figure 16: Comparison most used brand in USA Olympic…………………………...22
Figure 17: Nike’s Financial Achievements……………………………………………..23
Figure 18: Nike’s Financial Achievements……………………………………………..23

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EXECUTIVE SUMMARY

In this assignment, I have been assigned to do a case study on any company.

A case study of a company is a detailed study that state the history or background and
the achievements of the company itself. The main purpose of this assignment is to
analyze a company by using the S.W.O.T analysis and the Personal
Entrepreneurial Competencies (PECs) on the founder of the company. S.W.O.T stand
for Strength, Weakness, Opportunities and Threat it was a tool or steps that help a
company to overcome their weaknesses and strengthen a company itself. There a
many other founder that used this tool on their company and survived in the industry.
Personal Entrepreneurial Competencies (PECs) is a characteristic that each
entrepreneur have which make them succeed in their businesses.

It is vital for us to do a case study especially on a big successful company so

that we can learn on the built up of the company from nothing. From there, we can see
and learn on how they overcome the barrier that occurred during their ups and down
phase. Other than that, we can also see the achievements they reached along its
journey on surviving in the industry with many other powerful competitor.

The company of my choice for this case study is Nike. Nike is a big prosperous
sportswear brand that focus on supplying the best running shoes. It is also producing
other products that related to sports and daily lifestyle accessories. By using the
S.W.O.T analysis on this company, we can praise its pro’s and take notes on the cons
so that we are able to create a more successful company.

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INTRODUCTION

There are thousands of brand that are involved in sports and supplying the need
for people. These brands not only focusing on the sport itself but also the necessity of
the sports such as clothing, sports equipment, and accessories. In this assignment
report, I have did my case study based on the world best sportswear brand which is
Nike. Case study is a method for research purposes on a subject that will bring out the
key of success and give an up-close and detailed research of the subject or any
particular case. In this case, we are going to look on how a big brand like Nike claimed
and perpetuate it position as the world best sportswear production. There are many
other sportswear brand such as Adidas, Puma, New Balance, Reebok and many more
but still Nike manage to be on top.

Broadly, a case study is a content of research of a subject as in this case a

brand that indicate ways to their success or efficacy on their market. The outcomes
from this case study is that we should learn the skills on how to overcome a problem
base on the company of how they overcome problems in different situations. We can
also retain on how the management of a company manage on their sales marketing.
From this, we can see what actually happen or how the multibillionaire company thinks
and work.

The reason I chose this company is because there are a lot great story of athlete
that related with Nike. There are also Nike’s products that have sentimental value and
the origins for each product that were created and why the items can be so evergreen
Even though the products have been over than 20 years. Furthermore, Nike gave a
lot inspiring stories either relation between the company and client or the company
itself.

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COMPANY’S BACKGROUND

Origin of Nike

Before Nike were created, it were originally known as Blur Ribbon Sports. The
company was founded by Phil Knight who was a track athlete at the University of
Oregon and his coach Bill Bowerman in January 1964. At first, the company started
as a distributor for Japanese shoes product Onitsuka Tiger go by the name ASICS
(present) and making the most sales sport shoes at track meets with only sell it on Phil
Knight’s car trunk.

In January 1964, the first year of their business, Phil Knight with his business
partner invested 500$ on their first order of 300 shoes. They succeeded to sell their
first order by July and within that year, the company sold 1300 pairs of Japanese
running shoes worth 8000$. Phil then started hiring salesman from that money. On the
next year (1965), their revenue had increased to 20,000$. Then in 1966, they open
their very own store in Santa Monica. Blue Ribbon Sports expanded its retail and
distribution operations on the East Coast, in Wellesley, Massachusetts, in response to
rapidly increasing sales. Phil and Bill knew that to expand their company more, they
need to evolve beyond being just a simple distributor. Since Bill was the one who
design the new jogging shoes, Cortez for Onitsuka Tiger, they saw the opportunity to
make create the shoes themselves. Since their contract with the Japanese brand is

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going to end in 1972 just before the Olympic in Munich, they started to plan on his
plan. He started with the branding. One of his employee suggested the name ‘Nike’
for the brand. Phil then searched for a graphic design student, Carolyn Davidson and
ask her to make him a logo. With only 35$ worth of money, he got the swoosh. Nike
first used the Swoosh on June 18, 1971, and registered it with the United States Patent
and Trademark Office on January 22, 1974.

From then on, the story of Nike became a big hit. They became the largest
sportswear company in America in 1989 with a great marketing like the “Just Do It”
campaign and by signing rookie athlete that would then became one of the greatest
athletes in the world.

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ORGANIZATIONAL STRUCTURE

CHAIRMAN EMERITUS

EXECUTIVE CHAIRMAN

PRESIDENT & CEO

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BUSINESS MODEL

There are several kinds of products that Nike supply in several categories like running,
Nike Basketball, football, Jordans , training and Sportswear. For the last ten years, Nike
succeeded in increasing its profit at a compounded annual rate of growth (CAGR) of
seven from 19$ billion in 2010 up to 37.4$ billion in 2020. Nike really emphasize about the
standard of its product. Dri-Fit is one in all Nike innovations that may be say as a part of our
daily lives. the fabric or fabric were made of polyester that may transfer heat, sweat and
moisture from skin to the surface of the merchandise where the medium are often evaporate
and keeping you dry. Nike also created lots more innovations like the Nike Air, Free, Zoom,
Flyknit, Flyweave, FlyEase, React, and plenty of more.

Figure 1: A simple visualisation of Nike business model.

Figure 2: Nike’s Innovations from 1974-2012.

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PRODUCTS OF NIKE

Nike has released thousands of products ranging from equipment which

is trainers to street fashion. Currently, Nike also make shoes, shorts, jersey, cleats
(football shoe), baselayer, caps, ball, and more for variety sports which including track
and fields, football, baseball, basketball, tennis, cricket, hockey and lacrosse. In 31st
May 2016, the corporate focused the Nike brand products in nine main categories
which is Running, Nike Basketball, the Jordan, Football, Man’s Training, Women’s
Training, Action Sports, Sportswear and Golf
Nike Running

Figure 3: Nike Air Zoom Pegasus 37

- Perfect for everyday training.

- Made from react cushion with latest forefoot Air.

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 Figure 4: Nike ZoomX Vaporfly NEXT%

- Best for road racing

- Come with a lighter design and faster feel than before.
- Made with more cushioning underfoot and reduced weight up top.

Nike Basketball

Figure 5: Nike PG2

- Comes with Half-bootie construction that secures the foot with streamlined fit

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 Figure 6: Nike Precision 4
- Combination of racer look and low-profile design that can make the output
speed and agility.

The Jordans

Figure 7: Air Jordan 1 Mid

- Inspired by the first AJ1

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 Figure 8: Air Jordan XXXV PF

Football

Figure 9: FC Barcelona 20-21 Away Kit

- The first black away kit for FC Barcelona since 2011-12.

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 Figure 10: Nike Mercurial Vapor 14 Elite FG
- Featured a stripped-down design that uses the minimal amount of materials
possible.

Nike Golf

Figure 11: Nike VR TW Pro blades

- Tiger Woods helped create this set to replace the old Nike blades that he
used for over five years and this set is well accepted by all golfers.

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 By all these products, there is one product created by Nike that became an
evergreen product and people would spend thousands on this product. This product
was created for Hall of Fame Basketball player and six-time NBA Finals MVP, Michael
Jordan during his time in Chicago Bulls team. It was The Jordan brands.

There are over 30 different types of Jordan shoes, each with its own style. Each Jordan
shoe has its own backstory and point of origin. The most well-known Jordan shoe is
the superb Air Jordan 1 Retro Chicago. Sneakerheads and non-sneakerheads alike
can easily spot the Air Jordan one from a distance. The Air Jordan 1 Chicago was
released in 1985 as one of the best OG colorways of the Air Jordan 1. It retailed for
$65 at the time. There are many OG Air Jordan 1 colorways, but Michael Jordan only
wore three of them: Breds, Black Toe, and Chicagos. It took nearly two decades for
Jordan Brand to bring back the Air Jordan 1 when it was released in 2013.

Figure 12: Air Jordan 1 Chicago

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Figure 13: Air Jordan 1 Bred Toe

Figure 14: Air Jordan 1 Black Toe

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BUSINESS STRATEGY

Starting by selling track shoes at the rear of a car to the foremost powerful
sportswear brand, Nike has been providing a spread of equipment for athletes and
clothing for normal people.

Nike is successful because it's a number of the simplest, if not the simplest,
marketing within the world. Their brand is that the most useful brand within the world
and therefore the favored brand within the equipment industry. Nike's business
strategy is simple: invest in a brand building via emotional marketing and sports
celebrity endorsements, develop products with high-quality, market-leading
technology, and acquire competing sports brands.

1. Nike Has Established their Brand and Logo through Marketing

There is no company during this world that spends the most amount of cash on
sports sponsorships as Nike. Nike invests in marketing, as evidenced by their 2014
fiscal report, Nike spent $3.031 billion on what they visit as "Demand Creation. Nike
isn't exactly sure what it means (marketing is commonly anything from a TV ad buy to
a collaboration with a definite segment shop). Matt defines it as Nike-speak for
'Advertising. Meaning Nike spends approximately $100 per second on advertising.
Nike spends nearly the identical amount on marketing as Under Armour does on sales.
This text discusses the importance of promoting that Nike focuses on in 2016. "Nike
spent $3.3 billion on marketing last year, while Under Armour did $3.96 billion in sales
last year," the article says. Nike promotes their products through sponsorship
agreements with celebrities, professional and college athletes. Ilie Natase, a
Romanian player, was Nike's first athlete to endorse their products. Nike, too, invested
in marketing ahead of time in their history. Nike is currently that specialize
in sponsorships, internet marketing, email marketing, and multimedia marketing
campaigns.

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2. Nike Focuses on Selling the "Emotional Benefits" of their Product
Nike sells some way of life, it appeals to an emotional a part of the buyer who
wants to measure a healthier lifestyle and see their own "greatness." It should be
noted that Bill Bowerman's marketing strategy failed to sell his shoes, but rather the
emotional benefits of jogging and healthy living. consistent with a writer, Nike mentions
their product only briefly in their advertisements, instead emphasising the
advantages of exercise

3. Distribution through E-commerce.

Nike has established itself because the market leader in e-commerce by
being the first to launch an e-commerce website. Nike launched its e-commerce site
in April 1999, offering 65 styles of shoes available within the u. s.. Nike expanded its
e-commerce presence in November 1999 with the launch of NIKEiD. NIKEiD allows
internet buyers to customize key elements of the shoes they buy. this can be often the
first time that a corporation has offered mass customization of footwear. Nike's future
plans include launching an online store in Japan next year, followed by a worldwide
rollout. Nike is prepared to see itself because the primary to push by being the first to
push while competitors rush to hitch us.

4. Nike Provides a Wide Variety of Products To A Large Number Of Sports To

Capture Great Market Share.
Nike features a large selection of kit for everyone. This includes baseball, ice
hockey, track and field, soccer, surfing, yoga, tennis, basketball, lacrosse,
skateboarding, combat sports, cycling, wrestling, volleyball, cheerleading, car racing,
aquatic activities, cricket, and equipment and apparel. They sell clothing (tracksuits,
sport shorts, sports bras, and casual clothes like shirts, jeans, jackets, socks, and
hats), watches, apps, backpacks, purses, wallets, gloves, sunglasses, hair-bands,
scarves, belts, and so on, additionally to shoes and sport equipment. Nike not only
encompasses a large selection of products, but it also owns the Hurley, Converse, and
Jordan brands. they're able to capture a far greater market share than the
opposite company by offering more products to more people in additional markets
than the opposite sports company.

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 Figure 15: Brands that Nike owned.

5. Nike Focuses on Product Quality and Creating Products that Help Athletes
Perform Better
Nike, like most market leaders, values the buyer and therefore the importance
of providing a high-quality product. Nike's quality and sturdiness are critical
components of its strategy for commanding high prices for its products. Their brand is
related to providing athletes with high-quality products that help them perform better.
According to one article, Nike's message to customers has been consistent,
emphasizing the importance of their needs and preferences. The message to
customers is that Nike wants to improve your life by making it easier to try something
you enjoy (basketball, running, jogging, etc.) and to live a healthier lifestyle. Enhance
your overall health. Nike won the Olympics for us athletes who wore their sneaker
brand in 2016. See the chart below for a comparison of Nike and their competitors,
likewise as how one could argue Nike's product helped athletes perform better.

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Figure 16: Comparison most used brand in USA Olympic

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FINAL ACHIEVEMENTS

Financial Progress from 2015 to 2020.

Figure 17

Figure 18: Nike’s Financial Achievements

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 Based on the table above, it shows that from 2010 to 2020, Nike’s revenue
growth increases annually. On an profit-and-loss statement, revenue is that
the top item from which all costs and expenses are deducted to hit profit. From the
table, it shows that Nike annual revenue for 2015 was 30,601$ million, 2,802$ million
increase from 2014 while annual for 2019 was 39,117$ million, a 20.8% increase from
2016. However, I are often seen that Nike’s annual revenue for 2020 was 37,403$
million, which a 4.4% decline from 2019. This may be caused of pandemic during the
Covid-19 virus spread to the whole world. on it time, lots of individuals loses their job
since people cannot venture out from their properties and this brings an
enormous impact to most retailing company. However, this doesn't stop Nike from
expanding its revenue for the upcoming years. The President and Chief military
officer of Nike, John Donahoe said that 2019 and 2020 may be a very challenging
year thanks to the pandemic and racial issue that occurred during that point. He said
that the corporate prioritize the security and health for his or her employee,
consumers and community. The Nike brand also has been a pacesetter in embracing
Black athletes and Black culture because of the racial issue. They also took actions
on bring equality for all.

Hence, because of all the challenges throughout the years, Nike shows that its
company downturn for profit annually from 2018 to 2020 where from the fiscal table,
2018 net profit was 36,397$ million, 2019 net was 39,117$ million and earnings for
2020 was 37,403$ million.

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 PERSONAL

ENTREPRENUER

COMPETENCIES

(PEC)

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PERSONAL ETREPRENEURIAL COMPETENCIES (PECs)

Each individual that success has their own Personal Entrepreneurial

Competencies especially those who own a big company as Phil Knight. Personal
Entrepreneurial Competencies are skills and ability of one possesses and can be
improve in order to become a proactive.

1. Initiative.
As an entrepreneur, one should be ready to take actions to
begin something and provides 100% commitment into it. It will be seen on Phil Knight
and his business partner Bill Bowerman when it involves initiate on something. For
instance Phil knight when to japan just to determine the Japanese product that so
powerful it can replace German’s product in America and Bill Bowerman along with
his ideas in improving his inventions on sport shoes to relinquish an
improved performance for athletes while wearing their products.

2. Sees and acts on opportunities

Phil Knight, joined of the highest leading entrepreneurs throughout the 1960s,
was always searching for ways to expand his idea and business to a world level. If Phil
Knight wanted to extend his market share within the current market, he
would should attempt to lure customers far from the sports titans. Therein case, he
would be wasting valuable resources fighting those competitors. He'd have
disappeared from the market. To avoid this, the most effective option was to seem for
a Market Growth Strategy instead of focusing solely on increasing the company's
market share within the existing market.

3. Persistence
Persistence is one in every of the large keys to realize a successful output in
business or anything. This characteristic may be found from both Phil Knight and Bill
Bowerman. It all started when Bill Bowerman wrote his business paper while studying
for his MBA. Phil could just choose leave it on how he ridiculed for peddling shoes out
of his car. However, he decided not since he felt that he wouldn’t and couldn’t stop.
He constantly pursue his idea and have become such successful within the market.

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When it came to advertising, this perseverance paid off still. He briefly mentions how
people mocked him for paying $250,000 to own a university basketeer market his
product. Looking back, signing Michael Jordan was one in every of the wisest moves
he could have made.

4. Self-Confidence
Phil Knight is has his own quite self-confidence. Before becoming a successful
businessman, before founding Nike, Phil Knight was doing employment where selling
encyclopedias from door-to-door with another selling securities. He didn't do his
best thereon time plus he discovered that he just don’t have the abilities at sales. But
when he started selling trainers, he can’t even sustain with the orders he received.

5. Concern of high quality of work.

As mentioned before, Nike always detain touch with its client. Phil Knight
always accentuate on the performance of his product than depending on his sells. So
as to extend the performance of his products, he with please accepted every feedback
from customer about his products. It's important for Phil about the standard and
sturdiness of his products because it may be a critical a part of his strategy that enable
him to command high prices for his products. Phil also always stress the importance
of his clients’ need and preferences. His message to his consumers is that his
company wants to form his clients’ life better at something and dependent on.

6. Information Seeking
Phil Knight may be a very passionate person. Since his dream to
become knowledgeable athlete didn't come true, he have to find crazy ideas. Then he
decided to pursue an “enormous, doubtful dream that appear worthy, which seem
enjoyable, and chase it with an athlete’s single-minded dedication and purpose”. It
came to Phil’s mind the new idea which is to import and sell prime quality trainers from
Japan. Since he was obsessive about sports shoes, he moved into Stanford graduate
school library for an exploration paper and devoured everything he could find about
importing, exporting and starting an organization.

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COMPANY

SWOT

ANALYSIS

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COMPANY SWOT ANALYSIS.

Phil Knight and Bill Bowerman, the company's chairman, founded Nike in 1962.
Nike is one of the most powerful sports companies, allowing and encouraging a wide
range of athletes and ordinary people to use their products. A SWOT analysis is a
structure used to evaluate an organization's strategic positioning in its market
environment. Nike employs S.W.O.T analysis to define their internal strengths (S) and
weaknesses (W), followed by the identification of opportunities (O) and threats (T) in
their broad market setting.

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STRENGHTS

Nike may be a company founded 59 years ago. Thus, it's one in all the corporate that
has been running for a awfully very long time. As we know, each company during this world
must have their very own strengths primarily for an organization that has been built an
extended time ago to stay their business run smoothly. Hence, here are several strengths that
may be show with SWOT analysis for Nike.

First and foremost, the company's well-known strength is its strong brand awareness.
Nike may be a brand that's well-known throughout the globe. Nike is one among the world's
most recognizable brands because its name is memorable, easy to pronounce, and one-of-a-
kind. Most are acquainted with the swoosh symbol. Nike controls approximately 31% of the
worldwide athletic footwear market.

Second, one among Nike's strengths is its huge customer base. We knew Nike was always
up thus far on the most recent trending issue and would never pass up a chance to
boost awareness. As a result, an oversized number of individuals consistently support this
brand. Nike has lots of customers worldwide who follow Nike's trends, attend Nike events, and
even provide customer feedback. Nike's capitalization has risen to $224 billion as of February
2021, thanks to its large customer base.

Third, Nike is well-known for its iconic relationship. Nike's collaboration with
athletes everywhere the planet, from track and field to street sports like skateboarding, is
undeniable. Nike has signed Kobe Bryant, Tiger Woods, Serena Williams, Allyson Felix, and
others. Nike's long-term partnership with Michael Jordan has proven to be profitable for the
corporate in terms of sales. Their collaboration resulted within the creation of the "Air Jordan
1 Shoes." additionally, Nike collaborated with the famous athlete to style the "Air Jordan 1
Shoes”.

Next, one among Nike's strengths is its superior marketing capabilities. Nike always found the
simplest way and always had a deck up its sleeve to draw in more customers. Nike, for
instance, always creates a campaign in response to current events round the world. Nike's
marketing campaigns are excellent. The brand places a high value on demand generation
expenses. Nike spent $3.7 billion and $3.5 billion in fiscal years 2019 and 2020,
respectively. To achieve bent more customers, the brand has successfully used social media
and marketing campaigns.

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Finally, Nike has always prioritized sustainability. There are many retail stores during this era
that produce legion their products during a brief period of it slow while sacrificing quality. Not
only that, but it'll also degrade the environment because it requires an outsized number of
resources to produce its products. However, this does not apply to Nike. Nike CEO Mark
Parker has stated that the company will still recognize environmental issues within the
communities. Nike's CEO assures that the company will contribute to finding a solution to
those environmental issues.

WEAKNESS

Every company has their own weaknesses and it's not

something thereto one must focus and improve it. With SWOT analysis, weaknesses
may develop into strength since shows the liability of an organization and
folks can observe on it. Even an enormous company like Nike has its own
weaknesses.

First and foremost. Nike incorporates a lot of pending debts, which is one in
all its weaknesses. It takes plenty of cash and a giant career to start out a brand
new business and become a successful company. Although Nike's income statements
show that the corporate is doing well, a fast have a look at their record may paint a
distinct picture. Nike continues to be facing financial difficulties. Nike's total long-term
debt was $9.54 billion as of August 2020.

Second, Nike is that the subject of a slew of legal proceedings.

There are several complaints from former employees about management and
discrimination. A former Nike employee recently accused the corporate of
discrimination supported his Croatian heritage. In August 2018, four former female
Nike employees filed a class-action lawsuit against the corporate. Nike, consistent
with these women, features a toxic workplace culture for girls. The ladies filed a
lawsuit against the sportswear company, alleging that it violated the Equal Pay
Act. The ladies claimed that the corporate engaged in systematic gender pay
discrimination, with men being paid quite women for the identical amount of labor.

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 Third, Nike's marketing strategy is truly contradictory. Although it's been
stated that Nike's marketing strategies are always centered on environmental issues,
there are some Nike ideas that contradict what has been stated. Nike's over-reliance
on sporting apparel, or lack of diversification, may be a significant weakness. Sporting
events are canceled or postponed as a results of the pandemic, discouraging physical
interaction and gathering. Several sports teams are on the verge of failure. If the crisis
continues to discourage sporting events, Nike's losses may well be catastrophic.

Lastly, Nike really has to concentrate to the harassment case among

employees. Former female employees have also stated that molestation and
misconduct are prevalent within the company. The the big apple Times interviewed 50
former Nike employees and is now investigating the company's culture. Through those
interviews, it had been established that Nike does, in fact, have a toxic work
environment with a high rate of harassment. Some female employees reported
that they'd complained to HR but that no action had been taken. While performing
at Nike, the ladies were devastated and felt insecure. Some have even quit their
jobs. The complete controversy has had a major impact on the company's image.

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OPPORTUNITIES

SWOT opportunities are simply positive, external factors in a business that are
likely to be relevant to the company's success. Thus, Nike has a lot of opportunities
since it has the ability to explore more factors that can bring profits and use it as
information tools for planning.

Nike's first opportunity will come from developing innovative products. It is true
that Nike has a wide range of products. However, there is still much to be done in
terms of innovation. Nike has expanded its technological reach in association with
fitness and health. Wearable technology, which monitors physical activity, is the first
step in developing innovative technology products. Combining technology and athletic
wear can be beneficial because it is an aspect of the fashion industry that has yet to
be explored extensively.

Second, Nike is severing ties with major retailers. Nike is said to have decided
to sever ties with another major multi-brand retail company as well as some wholesale
partners. This step was taken in order to provide a better product positioning and a
better customer experience for their brand. According to a report, Nike will no longer
work with wholesale retailers such as Zapoo's, Dillard's, Fred Meyer, Bob's Stores,
and many others.

Lastly, Nike came up with a consumer direct strategy. Since in 2020 most of
the world are in pandemic, Nike accelerated the consumer-direct strategy where Nike
shifting the company main objective onto focusing to digital business and eventually
would close physical stores.

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THREATS

Threats are something that can affect venture, products or even a company
itself in SWOT analysis. This including the s7upply chain problems, market shift
requirement or even a shortage of recruits. It is very important to counter the threats
and take actions as soon as possible to prevent it before the company become a
victim of the threats and it will block the growth of the company.

To begin with, it is clear that there are numerous counterfeit products that
imitate Nike's. Counterfeit products can have a significant impact on Nike's revenue
and reputation. The company operates on a global scale, and the risk of counterfeit
products has increased. Several merchandisers and retailers sell counterfeit Nike
products at reduced prices. The low-cost items are made of low-quality materials but
bear the Nike logo. This can tarnish the brand's image because customers may
believe Nike has begun producing low-quality products.

The same can be said for other large retailing companies; there must be
competitive pressure, especially in this day and age when the industry is flooded with
hundreds of new brands. Despite Nike's dominance in the athletic industry,
competition and new emerging brands pose potential threats to the company. Nike
must spend more money on marketing and advertising because of the higher
competition ratio. In fiscal year 2020, Nike spent $3.5 Billion on marketing and demand
generation. Nike's best bet for dominating competition is to create innovative products
that are tailored to athletes' needs.

Last but not least, there are several irresponsible parties who will do anything
for profit, which in this case is a patent dispute that occurred in Nike's company.
Regardless of whether a company is correct or incorrect, patent disputes are hotly
contested in the public domain and expose some dirty secrets about the parties
involved. Nike and Adidas have been embroiled in a bitter patent battle over Primeknit
and Flyknit shoes in both US and German courts.

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OVERALL REPORT

To sum up everything, it's proof that every successful company encompasses

a successful person stand behind it. This individual knows every up and down, every
corner, and also the company's advantage itself. From this report, Personal Entrepreneur
Competencies (PECs) could be a complete characteristic that may be seen from a
pacesetter so as to possess everything in check and build a healthy environment among
employees in order that the workers can provides a full commitment. Then, Strengths,
Weaknesses, Opportunities, and Threats in S.W.O.T analysis are important values that
analyze a company’s advantages and downsides which may help one company to
enhance its growth. To not mention that SWOT can also help an organization to totally use
the positive values from strengths and advantages which they need and overcome the
obstacles just like the weaknesses and threats, and exploit the opportunities which may be
achieved and provides profit to the corporate.

It may be concluded that if one wants to start out a business, the primary thing they have to
try to to is to require action. It’s true that planning and management are important for essential
business requirements however, without actions taken, it absolutely was nothing but just a
word. Consumers also an awfully important subject as they're those that uses the company’s
products. Hence, they're going to give feedback and this is often an honest opportunity for a
corporation to beat the weaknesses stated by the consumers.

As a student of applied science from UiTM Johor, Kampus Pasir Gudang, it's an honor to try
to research on Nike and that I would love to precise my gratitude to the corporate for giving
me plenty of useful information about the corporate during my time on completing this report.
From start to end this case study, I’ve got received lots of data in doing business and
acknowledge the corporate history, market strategies, the community, and also the
products of the products. Special due to Madam Suhana for giving guidance on doing this
case study.

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APPENDICES

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APPENDICES

Annual Report of Nike 2020

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Annual report of Nike 2019

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REFFERENCES

1. Nike website. https://www.nike.com.

2. Nike annual reports. https://investors.nike.com.
3. NIKE, Inc. SWOT Analysis. (2019). NIKE, Inc:
https://s1.q4cdn.com/806093406/files/doc_financials/2020/ar/NKE-FY20-10K.pdf
4. NIKE, Inc. SWOT Analysis. (2020). NIKE, Inc:
https://s1.q4cdn.com/806093406/files/doc_financials/2019/annual/nike-2019-form-
10K.pdf
5. Britannica, The Editors of Encyclopaedia. "Nike, Inc.". Encyclopedia Britannica, 16
Dec. 2019, https://www.britannica.com/topic/Nike-Inc. Accessed 5 May 2021.
6. Nike Revenue from 2005-2021. Retrieved from: https://www.macrotrends.net
7. The Official Board, Nike. Retreived from: https://www.macrotrends.net
8. Nike’s Community News. Retrieved from: https://purpose.nike.com

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