B U S I NE S S OP P OR T U NI T Y

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 FUNDAMENTALS OF ENTREPENEURSHIP (ENT300)

BUSINESS OPPORTUNITY

PREPARED BY:

FACULTY/PROGRAME : ELECTRICAL ENGINEERING

(ELECTRONIC) EE111

PART :4

PROJECT TITLE : BUSINESS OPPORTUNITY 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. S.W.O.T Analysis 25-31
6. Business Model Canvas 32-44
7. Overall Report 45
8. Appendices 47-50
9. References 51

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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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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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BUSINESS MODEL

CANVAS (BMC)

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BUSINESS MODEL CANVAS

The canvas business model is a methodology or instrument used to create all

modules to establish a company. These include clients, market pathways, value proposals
and funding.

Customer Segment

Customer Segment is the main group of people that company prioritize to

attract in order to maximize the sales of the company. In business model canvas, the
customer segment is divided into several group which are Demographic &
Socioeconomic Segmentation, Geographic Segmentation, Behavioral Segmentation,
Psychographic Segmentation, and Social Media Segmentation. It can be said that
since Nike is a sport brand and their target market must be “all athletes”. However, it
does not mean that Nike did not use these segmentations to precisely define various
market segments.

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 Nike used the Demographic Segment to target people through their age,
gender, generation and occupation. For most, Nike usually target customers with the
age between 15-40 years old. The company focus on both men and women athletes
equally, and also focusing on tweens and teens in order to build long term brand
loyalty. In order to focus the rapidly developing women's apparel industry, Nike has
introduced a line of females clothes. Nike now accounts for just 20% of sales based
on women's items, but in the next couple of years this number is likely to rise
substantially. Nike does not target the consumer on the grounds of gender, ethnicity,
religion, or socioeconomic class; it considers money and education as suggestive
variables, however, considering the company's high costs of products. Nevertheless,
given the high costs of the products of the corporation, Nike does not consider money
and education as trend-setting elements, because of their gender, colour, religion or
socio-economic status.

Nike also used the geographic segmentation for the market nations, cities,
region and population density differently. In the United States, for example, Nike
focuses on football and baseball. Hence, Nike make and distribute numerous of
advertisements for football and baseball for certain athletes. Sports however differ
from place to country, therefore it is doubtful that one could see American soccer or
baseball commercials in Europe. Rather, it is likely see soccer more often, while Nike
promotes their products using football players. In England or Australia, you may
witness rugby.

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Value Proposition

The value proposition is Nike's business model's second cornerstone. The

company can convince individuals to join or to purchase the products of the firm. The
value proposition. You must convince potential clients why the services or products of
the firm are more important to them than the goods of the rivals of the firm. Four key
value proposals made by Nike were Accessibility, Innovation, Customization and
Brand/Status.

Nike offers a range of affordable alternatives. It has purchased a number of

footwear and clothing companies since it first began to broaden its product range and
provide consumers additional options, including Converse and Hurley International.
Their quick accessibility will be nearly inescapable when buying several different
producers of footwear and clothes. In their daily lives, consumers may simply access
their products.

Innovation is a major priority for the company. At its headquarters is the Nike
Explore Team Sports Research Laboratory, a research facility dedicated to creative
product creation that manages a new Nike product centre focused on the adoption of
technology.

The company provides NikeID customization services that customers can

use to personalize all aspects of shoes, including sports style, grip and color, and
customizable socks. Nike By You is a Nike service which enables users to customise
Nike's wear and shoes. By change and personalising the selected pieces, the
customer becomes a designer. The services can be access online from Nike’s official
website.

The company has created a strong brand because of its success; it is the
world's top retailer of shoes and sportswear. Nike has been coorperated with a few of
the top athletes like Michael Jordan, Cristiano Ronaldo and Tiger, to market their
products. For three consecutive years, Nike earned several honours, including being
designated the world's most creative company (2013) and the “Most Admired
Company in America”.

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CHANNELS

Nike has used various marketing tactics to get consumers into the conversation
of the athletic brand. Methods such as investing in safer factory environments,
highlight the key values of the company. They have expanded Nike products into many
areas in the consumer model, and have built brand familiarity because of it.

Nike is still promoting themselves through television publications, but they has
mostly eliminated the conventional means of publicity. Instead, they concentrate on
consumer digital marketing to share a range of services and goods and services and
goods for the consumer market. Using social networks like Facebook, Twitter,
Instagram, and even their own Nike+ network and also utilise YouTube to generate
amazing commercials for people and encourage their passions on the basis of their
"Just Do It" YouTube marketing tools. A large amount of information on the company
activities is contained on Nike's website. Transparency is one of the most crucial areas
of success from the list of manufacturers to sustainability reports. You can develop
confidence in the community and organisation by sharing this information to customers
worldwide. It also teaches and teaches users on contemporary ethical guidelines,
which are supported by the public.

Nike's flagship shop is trained to deliver the greatest service and client
experience for any problems. They know which things they sell and can turn
consumers into the right decision for their specific requirements. This gives the
customers an exceptional experience in Nike shops. In addition, Nike may combine its
products with specific people by expanding its third party suppliers. For example, Nike
may add its clothes to retail outlets to encourage their interest as the Hudsons Bay
Company is a lifestyle company. It can reach far than their key targets, young athletes
and runners.

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Customer Relationship

Nike can gather and store data that satisfies customer's demands and trends
by creating new technologies and devices that monitor specific client metrics by
forming a new business unit called Nike digital sports (NDS). NDS provides Nike with
its consumer base as a platform for discussing and communicating openly with Nike.
Through a new NikeID online shop created in 2005, buyers may now build sneakers
that fit their own brand. Nike+ is a social networking service designed by Nike that
focuses on creating social and community links. There is also a Nike Run application,
which consumers may utilise on social media such as Facebook and Twitter to share
their experience. In order to monitor their progress, customers use Nike+ gadgets.
These products help customers to comprehend and make contact with Nike the
newest trends and knowledge about the Nike brand.

In order to inform customers about Nike items, Nike connects with consumers
through personalization of the sales and staff in these stores are trained. The team will
also aid clients in selecting the proper Nike merchandise. Get customer experience
and empowerment with sound procurement choices. Sometimes consumers get
special offers and vouchers as ads, to illustrate advantages and to stimulate new
clients. In 2006 Nike and Google co-founded joga.com. Football enthusiasts' social
network. Members are able to post blogs, submit videos, host matches and establish
their favorite teams or players for fan communities. The strategy is released mostly
during the World Championships. In 2008, he created Ballers Network and organises
street games for basketball players. In social media like Facebook, Twitter and
Pinterest, Nike spreads its communication channels. Videos, photos and product posts
are updated every day to your Facebook profile. Nike also utilises Twitter to answer
daily requests, promotions and product information via the network. Feed through
nike.com Feed. Nike Support feed also meets product and technical needs and
answers over 100 queries every day. Your account will be built up specifically for Nike
ladies by looking at the demographics of older Pinterest users.

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Revenue Streams

Three categories – women, young athletes and runners – have been effectively
used by Nike as the basis of their value proposals. Nike sponsorships from local ligas
and clubs in particular have helped the younger generation to create brand awareness
and loyalty. Through it, it has demonstrated its potential to return a household name
to the community and an easy choice for the supply of sporting gear. Also, Nike
commercials were made to those interested in world sports such as basketball or
soccer during sports events.

This offers them a considerable impact on the consumer market through the
capital they put in the shop and the Nike brand in the media. Potential customers have
already thought about Nike's company. So people have made up their choice when
they are browsing for their merchandise. Nike items offer a wide range of
personalization possibilities, and consumers realize that Nike items improve their
learning experience through improved personal performance efficiently. In all four
categories Nike sneakers are more costly (lightweight, comfortable, grip, and high-
speed). Meet the purchasers' wish for a promotional meeting

Through Nike marketing talents and corporate openness, they convinced their
customers that they are supporting an ethically sound and responsible company.
Since Nike provides a wide array of items, they are often made at dynamic pricing and
fixed pricing. Nike enters the whole consumer market, irrespective of the financial
status of a person. High-end items, such as those above, normally have a set price,
although your normal items may change according to pricing. Depends in the season
or on someone else. NikeTOWNs is the largest retailer with six or seven Nike brand
names and offers the greatest items and services these categories need to provide;
Nike has gotten higher-priced items thanks to great customer service.

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Key Activities

Nike+ Run Analysis for men and women, bra fits, hemming as well as personal
shopping include in-store services. Weekly schedules and customized activities
services. Their aim is to inspire and enhance the active female community in and
around Shanghai Central Business District. The Nike Community's ambassadors –
athletes who train in kid sports programs – will be volunteering to serve their
communities each month. Nike also awards volunteer staff with money sent to their
chosen non-profit organizations.

Nike offers proven performance innovation driven by science through the Nike
The trademark is owned by Nike Labs and has professionals in a wide range of
scientific fields such as biomechanical, physiological, biomedical, mechanical,
physics, mathematical, kinesiological and systemics. NIKE, Inc. has almost 250 years
of experience in sports research. The sustainability site is one of the most significant
places in a number of significant activities. The focus is on material innovation, supply
chain energy efficiency and renewable energy exploration. With numerous alliances,
operations and constant research Nike achieves this aim. The application MAKING
was created. This is a prediction tool that assists product designers and developers to
choose materials in a more educated manner. Nike updated the application lately to
show the environment effect of the materials such as Chemistry, trash, water and so
forth. Nike will not neglect any component which is vital to sustainability and impacts
company activities, but may have consequences for Nike's drive for innovation and
active drive for all major changes including excess energy/climate, work, and
community. Feedback on global change and based on the established capability of
the organization to quickly market technologies and business models throughout the
global value chain.

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 Nike's list also includes specific geographic sites and local communities. Nike
operates community shops and, through a unified strength of sports, promotes and
strengthens healthy local communities and works as the incentive for beneficial
changes in all sectors. The shop includes local items. Some of the regional public
interests have also pushed the involvement of Nike. There's a business in Brazil that
sells solely football appliances and clothes that customers anticipate and want this
kind of sports. Nike's geographical location not only concerns convenience and
enjoyment, but also the neighborhood itself and how it influences and empowers
people in the region. NikeGO, for example, is the distinctive US community of Nike.
The company initiative is aimed toward NikeGO awarded the subsidiary Boys & Girls
Club-Arlington, a subsidiary of the NikeGO, with a $5,000 donation and commodities
to commemorate the inauguration of the Texas store.

40
Key Resources.

In 679 facilities in 43 countries/regions, Nike has over 1 million people and a

robust network which can cover a wide range of market requirements. The range of
products and services are abroad. In the East, they establish contracts for
manufacturing their garments and shoes with manufacturers. Distributors, in particular
materials, are also widespread in areas such as China, distribution centres and
warehouses. Since sustainable development has a major role to play, many of these
camps are technologically equipped, such as Nike items in some places like Mamphis
in the US, to smaller distributors. They are subsequently forwarded by truck or air
freight to a separate e-mail warehouse. They are controlled by Nike's Beaverton,
Oregon headquarters.

In order to retain the ability to market new technology, Nike remains investing
considerably on patents every year. In 2013, Nike received over 300 patents and next
year over 500. It is now a hub of innovation in the field of sports. It moves the conveyor
belt and guarantees the safety of your intellectual property when there are
opportunities. Nike also gathers data and statistics concerning its items; sellers clean
and reproduce; sellers do not fall off the regiments. A great number of women, young
athletes and runners adopt the same strategy. Today, they examine corporate
information to identify possibilities of expanding their lifestyle and the next step.

Nike has 62,000 workers and more and more workers, who assign teams and
departments to manage company leaders' procedures at all levels. Following their
membership, workers register for internal training, introduce them into the
organisation, and eventually integrate in a team atmosphere into Nike's corporate
culture. View duty enables them to focus on Nike brand improvement. Furthermore,
Nike perks employees include flexible working hours, discounts, benefits and the high
level of professional ethics. Nike also has several sports facilities, especially for
product testing. However, staff can also utilise them.

41
Key Partner

Nike Inc.'s worldwide supply chain encompasses around 50 countries and

over 800 contract plants and Nike manufacturers are supplied by hundreds of textile
producers. On his website, Nike also offers an interactive map showing all the
facilities with which the corporation cooperates globally. In order to further this
commitment towards reducing its environmental effect, Nike has now announced: As
part of the objective: The MIT puts breakthrough materials at the forefront and strives
100 percent for the Climate Colab Institute of Technology (CCTI) to become the
company's proprietors and operators by 2025.

Apple (offering applications), EVERLAST (producing partially-recycled

Nike-shoes fitness flooring), EA Games, and FootLocker are the most important
partners in Nike's history (professional retailer) and utilise fitness equipment and
join Nike + Community. Nike, Garmin, TomTom, Wahoo Fitness and Netpulse: a
new and innovative method to use networked GPS montractors, heart rate
monitors and workout equipment, to allow everyone to be involved. This
collaboration is a global endeavour to relate every area of life to contemporary
technology. Nike sells specific lifestyles and identity attributes to its clients and
Nike works with the people and organizations. Nike ambassadors are picked
each year for the brand by famous athletes, including the Nike Club, Nike and
Nike App. LeBron Ernes, Michael Jordan and Cristiano Maria Sharapova are
among the most famous workers.

Nike continues to upgrade the collaboration to strengthen its features of

sustainability regularly. To provide Nike a better supply chain, innovative techniques
were deployed. Nike works with different organisations throughout the world in order
to reach certain groups of people in order to get more youngsters involved. In youth
sports (e.g. marathon children), working with companies and organisations which
specifically target this limited area (e.g. Oregon Community Foundation partnership)
has a direct impact in communities in Portlands and southwestern Washington) in
order to ensure that Nike also influences a local community.

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Cost Structure

Nike anticipates profits to expand in the next several years, like any company
with the same size. Nike anticipates its profits to increase by 0.4 percent annually by
modifying its business strategy. They seek to achieve this objective by focusing on
quality goods price. Retail sales and operational costs are increased via the
deployment of new technology. They are now aiming to boost the retail share of your
retailers since they tend to have larger profit margins. Since various patents are
gained by Nike worldwide, they continue to expand at 14% a year.

In addition, Nike normally acknowledges and appreciates the work of its

production firms, which are a fixed cost to optimize corporate efficiency. Their results
may be increased at many major companies. As a worldwide enterprise, their main
mission is to influence people and companies in their supply chain sector in a good
and methodical manner. Nike continues to enhance its procedures with regard to
scale and breadth to reduce the negative effects on people and the environment.
They require high levels from the manufacturers they recruit and share with the
general public, so that others understand and adapt, enhance or establish their own
methods of working and keep their brand transparent. The code sets out ideals such
as volunteering, recruitment of legal personnel, fair competition, the healthy work
environment and timetable, and compliance. Furthermore, through the efficient water
use programmes, Nike returns funding to manufacturers to engage in efforts to
enhance safety, waste, energy and health.

Nike's R&D team also has an extensive team. In order to achieve success in all
areas, the sales and business planning team provides business cases to the regional
management team every two weeks. Nike may choose possible options and ensure
cost-effective results. Save time and money on internal procedures, integration and
purchase of suppliers. Nike also has a wholesale procurement policy. Large orders
have been ordered six months in advance so that Nike is able to place a certain

43
amount of orders on the producer in order to eliminate surplus inventories and increase
energy efficiency.

44
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, I researched and how it fits
into identity and culture in Nike's business model. Nike may be viewed in the consumer market
as a pioneer in developing brands. Nike managed to inspire the public to establish a culture
by integrating concepts precisely into their goods. Everything about your clothing. Since they
serve many in the consumer sector, Nike items have acquired social significance among
cultural enthusiasts.

It may be concluded that if one wants to start out a business, the primary thing they have to
try 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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46
APPENDICES

47
APPENDICES

Annual Report of Nike 2020

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Annual report of Nike 2019

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50
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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