VELAMMAL ENGINEERING COLLEGE

(An Autonomous Institution, Affiliated to Anna University, Chennai)

DEPARTMENT OF MANAGEMENT SCIENCES

ASSIGNMENT

NAME : MOONISHA S N

DEGREE : MBA

SEMESTER :I

BATCH : 2022-2024
ROLL NO : 34
SUBJECT CODE AND TITLE : 19BA6112T Human Resource Management

TOPIC : HRM Practices Followed In Nike,Inc.

SUBMITTED TO :Dr. R. Muzhumathi

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 ACKNOWLEDGEMENT

We express our sincere thanks to Shri. M. V. Muthuramalingam, Chairman and Mr. M .V

M .Velmurugan, Chief Executive Officer of Velammal Engineering College for their support during
our project work.

We thank Dr. S. Satish Kumar, Principal, Velammal Engineering College for his motivation
and support during the course of the project.

We are very much grateful to Dr. A. Nirmal Raj, Professor and Head, Department of
Management Sciences, Velammal Engineering College for the encouragement and useful suggestions
during this work.

We are very much indebted to our Incharge, Dr.R. Muzhumathi, Department of Management Sciences,
Velammal Engineering College for her admirable guidance and constant encouragement throughout the
project work.

We would like to extend our fullest gratitude to our Coordinator and Exercise review committee
for their timely advice and successful grooming.

We take this opportunity to thank our parents, all faculty and staff of our department for their
kind help during the course of work.

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 TABLE OF CONTENTS

SERIAL TITLE PAGE

NO. NO

1 ABSTRACT 5

2 6
OVERVIEW OF THE ORGANISATION

3 PRODUCTS ORGANIZATION STRUCTURE 17

4 CHALLENGES FACED BY THE COMPANY 26

5 GROWTH AND SUCCESS OF THE COMPANY 28

6 CONCLUSION 30

7 REFERENCE 31

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 VELAMMAL ENGINEERING COLLEGE (AUTONOMOUS), Chennai 600066

ASSIGNMENT RUBRIC

REG NO: 34 NAME OF THE STUDENT:MOONISHA S N

FACULTY NAME: Dr. R. Muzhumathi SUBMISSION DATE:

Weightage Distinguishe Proficient/good Basic/Fair Non-

Parameters (100) d/ Excellent Performance/ TOTAL
90% 75% Poor MARKS
100%
0%
1. Overview of 20%
Organization
All the information
related to Organization
should be given
2. Products 15%
Organization
Structure

3. Challenges Faced by 25%

the company

4. Growth and Success 10%

of the Company

20%
5. Conclusion

5. Writing Skills / 10%

Professional
Presentation
Includes overall
composition, grammar,
structure, spelling and
punctuation .These errors
include spelling,
grammar, word usage,
capitalization, spelling,
paragraphing, word use.

TOTAL MARKS

NAME OF THE FACULTY SIGNATURE

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 ABSTRACT
Nike is a global athletic footwear and apparel company that designs, develops,
and sells a range of products for athletes and fitness enthusiasts. The company
has a strong brand image and has been successful in creating a loyal customer
base. Nike's success is attributed to its innovative product design, effective
marketing strategies, and emphasis on sustainability.

Human Resource Management (HRM) is a critical function of modern

organizations that focuses on the management of people in the workplace. HRM
encompasses a wide range of activities, including recruitment and selection,
training and development, performance management, compensation and benefits,
and employee relations.

Effective HRM practices can help organizations to attract and retain talented
employees, improve productivity and performance, and create a positive and
supportive work environment.

This abstract provides an brief overview of Nike's history, practices of HRM, as

well as the challenges and opportunities that HR professionals face in today's
dynamic and competitive business environment. It also discusses the role of HRM
in promoting diversity, equity, and inclusion in the workplace and the impact of
technology on HRM practices.

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 OVERVIEW OF THE ORGANISATION

Nike, Inc. is an American multinational corporation that designs, develops, and

markets athletic footwear, apparel, equipment, and accessories. The company is
headquartered in Beaverton, Oregon and was founded in 1964 by Bill Bowerman
and Phil Knight. Today, Nike is one of the world's largest suppliers of athletic
shoes and apparel and has a presence in over 190 countries.

Nike's product lines include running, basketball, football, soccer, training, and
lifestyle apparel and footwear. The company's portfolio of brands includes
Converse, Hurley, and Jordan, among others. Nike operates through both direct-
to-consumer and wholesale channels and has a strong digital presence with its e-
commerce website and Nike app. In addition to its core business, Nike has been
actively involved in social and environmental initiatives.

The company has committed to achieving zero carbon and zero waste across its
supply chain and has also made investments in sustainable materials and
manufacturing processes. Nike's competitors in the athletic footwear and apparel
industry include Adidas, Under Armour, Puma, and Reebok, among others. The
company also faces competition from emerging brands that focus on
sustainability and ethical practices.

Nike's operations are centered around designing, developing, and marketing

athletic footwear, apparel, equipment, and accessories. The company operates

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through a combination of direct-to- consumer and wholesale channels, selling its
products through its own retail stores, e-commerce website, and through retail
partners such as sporting goods stores and department stores. Nike's operations
are global, with a presence in over 190 countries. The company has
manufacturing facilities and contract factories in countries such as China,
Vietnam, and Indonesia, where the majority of its products are produced.

Nike's supply chain is complex and involves multiple tiers of suppliers and
subcontractors. The company also invests heavily in research and development
to stay at the forefront of innovation in the industry. Nike has a strong focus on
technology and has developed several proprietary technologies, such as Nike Air
and Flywire, that are used in its products.

In addition to its core operations, Nike has also been actively involved in social
and environmental initiatives. The company has committed to achieving zero
carbon and zero waste across its supply chain and has also made investments in
sustainable materials and manufacturing processes. Overall, Nike's strong brand
recognition, diverse product offerings, and commitment to sustainability have
contributed to its success in the highly competitive athletic footwear and apparel
industry. However, the company also faces challenges such as supply chain
disruptions, increasing competition, and changing consumer preferences.

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Formerly
Blue Ribbon Sports, Inc.(1964–1971)
Called

Industry Apparel, Accessories, Sports equipment

Headquarter Beaverton, Oregon, U.S.

Founders Bill Bowerman and Phil Knight

Founded January 25, 1964

Phil Knight (Chairman Emeritus), Mark Parker (Executive

Key People
Chairman), and John Donahoe (President and CEO)

Areas Served Worldwide

Website www.nike.com

Nike - Vision, and Mission

Nike's vision statement says, “To bring inspiration and innovation to every
athlete in the world.”

Nike's mission statement says, "Our mission is what drives us to do

everything possible to expand human potential. We do that by creating
ground breaking sports innovations, by making our products more
sustainably, by building a creative and diverse global team and by making
a positive impact in communities where we live and work."

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HISTORY

NIKE was founded as Blue Ribbon Sports in 1964 by Bill Bowerman and Phil
Knight. Blue Ribbon Sports was engaged in the distribution of Tiger shoes, a
product of Japan-based Onitsuka Tiger, in the western US. The founders turned
their agreement into a partnership in 1966. The company was incorporated in1967
as BRS, a successor to the Blue Ribbon Sports partnership. In 1968, BRS opened
its first west retail store in Eugene, Oregon.

The company's Swoosh trademark and the NIKE brand name were created in
1971. In the same year, the company introduced its first apparel product, NIKE
T-shirt. In 1972, the company's agreement with Onitsuka Tiger ended. BRS
launched NIKE line of footwear for athletes during 1972. The company
established its first US track and field training club for athletes in 1977. The
company changed its name from BRS to NIKE in 1978.

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NIKE signed a deal with tennis player John McEnroe, as its brand ambassador,
in 1978 and engineered its first air-sole footwear cushioning unit (durable bags
filled with pressurized gas) with former NASA employee Frank Rudy. NIKE
introduced its first pair of running shoes, the Tailwind, with its patented air-sole
cushioning technology in 1979.

The company completed its initial public offering (IPO) of Class B common stock
in 1980. In the following year, BRS (a subsidiary of NIKE) merged with NIKE.
In 1982, the company introduced the first NIKE basketball shoe that incorporated
NIKE Air cushioning technology. In 1986, NIKE began producing its apparel
collection. NIKE launched its 'Just Do It' ad campaign and acquired Cole Haan,
men's and women's footwear, accessories and outerwear brand, in 1988. The
company opened its first NIKETOWN store in Portland, Oregon, in 1990. Later
in the same year, NIKE opened its first European headquarters in Amsterdam, the
Netherlands. The company entered into an exclusive agreement with The Athletic
Congress in 1992,under which every medalist on the track and the Barcelona
Games wore NIKE apparel.

NIKE acquired Sports Specialties, a marketer and distributor of licensed team

logo headwear, in 1993.NIKE changed the acquired company's name as NIKE
Team Sports. Further in 1993, the company introduced the Reuse-A-Shoe
program, whereby old athletic shoes were collected, separated and grinded to be
used in the making of athletic courts, tracks and fields. In 1995, NIKE acquired a
hockey gear manufacturer Canstar Sports, which included Bauer. The company
entered into a contract with Tiger Woods to endorse NIKE Golf apparel and
footwear in 1996. The company also developed apparel and footwear in his name.
NIKE formed Bauer Nike Hockey in 1998 to manufacture athletic footwear for
Hockey players. The company's former Canstar brand was consolidated under the
Bauer brand name in the same year. NIKE acquired Hurley International in 2002,
and launched the NikeGo program, a nationwide community program to increase

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physical activity in American youth. The company added Converse brand to its
brand portfolio in 2003.

In the following year, NIKE established the Exeter Brands Group, a wholly-
owned subsidiary, which will engage in the design, marketing and distribution of
athletic footwear and apparel under the Starter, Team Starter, Asphalt, Shaq,
Dunkman and Tailwind brands. In the same year, the company acquired Official
Starter Properties and Official Starter, featuring a line of athletic apparel,
footwear and accessory products. NIKE ceased its operations at Nike Town,
Orange County in 2005.During 2006, the company launched Untold Truth, a
collection of urban sportswear. In the same year, NIKE and Google jointly
launched Joga.com, an online community for football.

Also in 2006, NIKE and Maven Networks introduced JogaTV, an internet

television channel focused on football. Further in the same year, the company
opened its first factory store in Kansas and Louisiana. Later in 2006, NIKE and
Apple entered into a partnership to launch Nike+iPod products. The first product
developed through this partnership was the Nike+iPod Sport Kit, a wireless
system that allows NIKE footwear to connect with iPod Nano.

The company introduced a new footwear brand for women called Tailwind
(produced by its subsidiary Exeter Brand Group) across three Payless stores in
Manhattan and Brooklyn in 2007. In the same year, NIKE teamed up with Foot
Locker, a US-based athletic apparel and footwear company, to open nearly 50
House of Hoops by Foot Locker stores in the US. House of Hoops by Foot Locker
was established as a hub for basketball products offering exclusively Nike, Jordan
and Converse branded basketball footwear, apparel and equipment products. Also
in 2007, the company opened a flagship store in Beijing, China.

NIKE launched Nike Air Native N7, an athletic shoe specially designed for
Native Americans. Further in 2007, the company launched NikeiD studio at the

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NIKETOWN store in central London. The store provides customers the option to
personalize their sports footwear, apparel and equipment. In the same year, NIKE
sold its Starter brand to Iconix Brand, a brand management company engaged in
licensing, marketing and providing trend direction for an owned consumer brands
portfolio, for $60 million. Converse, the company's subsidiary, entered into an
agreement with Target to offer One Star; vintage sports-inspired lifestyle apparel
and footwear exclusively at Target stores. Nike Vapor, a subsidiary of the
company, acquired 19.9% of Sports Direct International's holdings in Umbro.
The acquisition created a platform to acquire the football brand. The company
sold its Exeter Brands Group at the end of 2007.The company sold its Bauer
Hockey unit to an investor group led by investment company Kohlberg & Co and
Canadian businessman W. Graeme Roustan, for $200 million, in 2008. In the
same year, NIKE extended its relationship with the US Olympic Committee as
an official outfitter of the US Olympic and Paralympic teams through the London
2012 Olympic Games. Also in 2008, the company opened its first Nike
Sportswear retail store in SoHo, New York City. Further in the same year, the
company acquired Umbro, a UK-based global football brand.

In FY2009, NIKE consolidated its Wilsonville (Oregon) and Winchester

(Memphis, Tennessee) based footwear distribution centers into a single location.
During the same period, the company initiated are organization of the NIKE
brand business into a new operating model. As a result of this reorganization, the
NIKE brand operations consisted of the following six geographies: North
America, Western Europe, Central/Eastern Europe, Greater China, Japan, and
emerging markets.

The company launched its new Nike+ GPS App on the App Store in 2010. The
new Nike+ GPS App includes several features which allow runners to use their
iPhone to map every run while tracking pace, distance, time and calories-burned.
It also provides feedback during and after each run from athletes such as Paula

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Radcliffe and Lance Armstrong. During 2011, NIKE collaborated with TomTom
for the launch of Nike+ Sport Watch GPS.

In the same year, the company opened its largest distribution center in Asia, the
China Logistics Center in Taicang, Jiangsu, China. Further in 2011, adidas, C&A,
H&M, Li Ning, NIKE and Puma released a joint roadmap towards zero discharge
of hazardous chemicals (ZDHC) in the supply chain by 2020.In early 2012, the
company announced plans to construct nearly 600,000 square foot headquarters
in Shanghai, China. In the same year, NIKE entered into a strategic partnership
with DyeCoo Textile Systems, a Netherlands-based company that supplies
industrial carbon dioxide (CO2) dyeing equipment and is an innovator in CO2
dyeing technology and processes, to scale waterless dyeing technology.

During the same time, the company launched Nike Free Gym+ for dynamic yoga
and other mind-body activities, as well as for training activities and Nike Fit
workouts. NIKE strengthened its position as the largest sports brand in Brasilian
football by partnering with four new teams, including Bahia, Coritiba,
Internacional and Santos, in 2012. In the same year, Converse opened its first
West Coast specialty retail store in Santa Monica, California. Also in the same
year, Nike Basketball launched a series of pinnacle basketball shoes, new
premium editions of the Lebron 9, NikeKobe VII and the Nike Zoom Hyperdunk
designed for playoff performance. Also in 2012, Converse opened its first
specialty retail store in Beijing, China.

In the same year, Converse opened its first mall-based retail store in New Jersey.
Further in the same year, the company announced plans to divest two of its
wholly-owned affiliate brands, Cole Haan and Umbro, to improve its focus on
driving growth in the NIKE, Jordan, Converse and Hurley brands. In mid-2012,
NIKE along with The Coca-Cola Company, Ford Motor Company, H.J. Heinz
Company, and Procter & Gamble announced the formation of the Plant PET

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Technology Collaborative (PTC) to accelerate development and use of 100%
plant-based PET materials and fiber in their products.

Later in2012, the company entered into a strategic partnership with LLamasoft,
to co-develop supply chain solutions that offer both logistics and environmental
benefits. In late 2012, NIKE completed the sale of Umbro affiliate brand to Iconix
Brand Group for $225 million. In 2013, the company completed the sale of Cole
Haan affiliate brand to Apax Partners, one of the world's leading private equity
investment groups, for $570 million. NIKE and South African Football
Association entered into a five-year partnership, under which NIKE will design
and develop football kits for the men's and women's South African national
football teams, in early2014.

Around the same time, NIKE and Under Armour (the Baltimore-based sports
apparel brand) agreed to settle their trademark infringement lawsuit, in which
Under Armour accused NIKE of illegally using versions of the 'I Will' slogan.
Further in 2014, NIKE, through its strategic partnerships team, took a minority
stake in California-based start-up Reflektion, an innovator in online retail
predictive analytics. NIKE and Football Association of Finland announced a new
partnership, under which NIKE became the official apparel and equipment
sponsor of Football Association of Finland, in 2014.

In the same year, the company opened its first football-only store in Brazil.
Further in 2014, USA Track & Field (USATF) and NIKE extended their
partnership from 2017 through 2040. The company will continue to sponsor
USATF's Indoor and Outdoor Track & Field Championships and will outfit all
USATF teams in international competitions, including the Olympic Games,
World Championships, Pan American Games and World Junior Championships,
among others. The long-term partnership significantly increases the overall
support for track and field athletes throughout the US. NIKE launched ColorDry
Polo, its first product with ColorDry technology, in mid-2014.

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The ColorDry technology dyes fabric with zero water, thereby saving energy and
eliminating the need for added chemicals in the fabric dyeing process. In the same
year, the company opened its first pop-up store in Brazil. Further in mid-2014,
the company created NikeLab, a new customer destination which will enhance
the retail experience in both physical spaces and through e-commerce. Through
NikeLab, the customers will have access to information about Nike's innovations.
NikeLab will also expand the company's consumer engagement globally through
Twitter, Instagram and viaWe Chat in China. In April 2015, NIKE opened its first
community store in Washington, DC. In the following month, the company
opened its first women's-only store in Europe, Nike King's Road. Also in May
2015, NIKE opened its first New York community store in Brooklyn. In
November 2015, the company opened its new factory store in Lubbock, Texas.
The new store supports athletes from all sports and features a large multi-purpose
outdoor sport court.

Phil Knight announced in mid-2015 that he would step down as chairman of Nike
in 2016. He officially stepped down from all duties with the company on June 30,
2016.

In a company public announcement on March 15, 2018, Nike CEO Mark

Parker said Trevor Edwards, a top Nike executive who was seen as a potential
successor to the chief executive, was relinquishing his position as Nike's brand
president and would retire in August.

In October 2019, John Donahoe was announced as the next CEO, and succeeded
Parker on January 13, 2020. In November 2019, the company stopped selling
directly through Amazon, focusing more on direct relationships with customers.

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LOGO EVOLUTION

1964–71

1971–78

1978–95

1995–present

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 PRODUCTS ORGANIZATIONAL STRUCTURE

Nike follows a matrix organizational structure which is a combination of

horizontal and vertical structures. In a matrix structure, there are multiple
reporting lines and responsibilities for the employee. Even though, this structure
may seem complicated, but Nike has been able to leverage it for its own benefit.

Employees often report to multiple supervisors, which can often get cumbersome
in this type of organizational structures but for Nike this has worked in favor of
the company. The company follows a highly standardized operational process,
which helps the leaders to make quick decision and foster seamless
communication. Even though there are multiple reporting authorities, the
employees are well-aware of what is expected from them from their supervisors.

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The diagram shown above clearly highlights the multiple reporting lines in the
matrix organizational structure of Nike.

Nike Hierarchy

Nike Executives

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The diagram above showcases the key individuals in operating in the global
headquarters and are responsible for taking all the centralized decisions of the
company.

HRM POLICIES

1. Diversity and Inclusion: Nike has a strong commitment to diversity and

inclusion, and has implemented policies and programs to promote a more
diverse and inclusive workplace. These include diversity hiring initiatives,
employee resource groups, and unconscious bias training.
2. Performance Management: Nike uses a performance-based culture to
evaluate employee performance and set goals. The company provides
regular feedback and coaching to help employees improve their skills and
achieve their goals.
3. Employee Development: Nike invests in employee development,
providing opportunities for training, mentoring, and career development.
The company also offers tuition reimbursement and other programs to
support employee growth and development.
4. Work-Life Balance: Nike recognizes the importance of work-life balance
and offers flexible work arrangements, such as telecommuting and flexible
scheduling, to help employees manage their personal and professional
responsibilities.
5. Compensation and Benefits: Nike offers competitive compensation
packages to attract and retain top talent, including competitive salaries,
bonuses, and benefits. The company also offers wellness programs,
retirement plans, and other benefits to support employee well-being.
6. Health and Safety: Nike is committed to providing a safe and healthy
workplace for its employees. The company has implemented policies and
procedures to prevent workplace injuries and illnesses, and provides on-
site health and wellness services to employees.
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 7. Employee Engagement: Nike fosters employee engagement through
regular communication, employee recognition programs, and social events.

PRODUCTS

Sports apparel

Nike Zoom Elite 2 athletic shoe

A pair of Nike Air Jordan I basketball shoes

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 Another example of the Nike Air Jordan

Nike produces a wide range of sports equipment and apparel. Their first products
were track running shoes. Nike Air Max is a line of shoes first released by Nike,
Inc. in 1987. Additional product lines were introduced later, such as Air
Huarache, which debuted in 1992.

The most recent additions to their line are the Nike 6.0, Nike NYX, and Nike
SB shoes, designed for skateboarding. Nike has recently introduced cricket shoes
called Air Zoom Yorker, designed to be 30% lighter than their competitors'. In
2008, Nike introduced the Air Jordan XX3, a high-performance basketball shoe
designed with the environment in mind.

Nike's range of products include shoes, jerseys, shorts, cleats, baselayers, etc. for
sports activities such as association football, basketball, track and field, combat
sports, tennis, American football, athletics, golf, ice hockey, and cross
training for men, women, and children.

Nike also sells shoes for activities such as skateboarding, baseball, cycling,
volleyball, wrestling, cheerleading, lacrosse, cricket, aquatic activities, auto
racing, and other athletic and recreational uses. Nike recently teamed up
with Apple Inc. to produce the Nike+ product that monitors a runner's
performance via a radio device in the shoe that links to the iPod nano. While the
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product generates useful statistics, it has been criticized by researchers who were
able to identify users' RFID devices from 60 feet (18 m) away using small,
concealable intelligence motes in a wireless sensor network.

In 2004, Nike launched the SPARQ Training Program/Division. Some of Nike's

newest shoes contain Flywire and Lunarlite Foam to reduce weight. The Air
Zoom Vomero running shoe, introduced in 2006 and currently in its 11th
generation, featured a combination of groundbreaking innovations including a
full-length air cushioned sole, an external heel counter, a crashpad in the heel for
shock absorption, and Fit Frame technology for a stable fit.

In 2023, Nike told ESPN that it would cease using kangaroo skins in its products
by the end of that year and debut "a new Nike-only, proprietary synthetic upper,
[with] a new material that is a better performance solution and replaces the use of
kangaroo leather."

Nike Vaporfly

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Nike Vaporfly cut in half to show the different layers that make up the base of
the shoe. The dark grey line shows the carbon fiber plate.

The Nike Vaporfly first came out in 2017 and their popularity, along with its
performance, prompted a new series of running shoes. The Vaporfly series has a
new technological composition that has revolutionized long-distance running
since studies have shown that these shoes can improve marathon race time up to
4.2%. The composition of the sole contains a foamy material, Pebax, that Nike
has altered and now calls it ZoomX (which can be found in other Nike products
as well). Pebax foam can also be found in airplane insulation and is "squishier,
bouncier, and lighter" than foams in typical running shoes.

In the middle of the ZoomX foam there is a full-length carbon fiber plate
"designed to generate extra spring in every step". At the time of this writing Nike
had just released its newest product from the Vaporfly line, the Nike ZoomX
Vaporfly NEXT%, which was marketed as "the fastest shoe we’ve ever made"
using Nike's "two most innovative technologies, Nike ZoomX foam and
VaporWeave material".

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Street fashions

Nike Elite no-show socks with cushioned sole

The Nike brand, with its distinct V-shaped logo, quickly became regarded as a
status symbol in modern urban fashion and hip-hop fashion due to its association
with success in sport. Beginning in the 1980s, various items of Nike clothing
became staples of mainstream American youth fashion, especially
tracksuits, shell suits, baseball caps, Air Jordans, Air Force 1's, and Air
Max running shoes with thick, air cushioned rubber soles and contrasting blue,
yellow, green, white, or red trim. Limited edition sneakers and prototypes with a
regional early release were known as Quickstrikes, and became highly desirable
items for teenage members of the sneakerhead subculture.

By the 1990s and 2000s, American and European teenagers associated with
the preppy or popular clique began combining these sneakers, leggings,
sweatpants, crop tops, and tracksuits with regular casual chic street clothes such

24
as jeans, skirts, leg warmers, slouch socks, and bomber jackets. Particularly
popular[citation needed] were the unisex spandex Nike Tempo compression
shorts worn for cycling and running, which had a mesh lining, waterproofing,
and, later in the 2000s, a zip pocket for a Walkman or MP3 player.

From the late 2000s into the 2010s, Nike Elite basketball socks began to be worn
as everyday clothes by hip-hop fans and young children. Originally plain white
or black, these socks had special shock absorbing cushioning in the sole plus a
moisture wicking upper weave. Later, Nike Elite socks became available in bright
colors inspired by throwback basketball uniforms, often with contrasting bold
abstract designs, images of celebrities, and freehand digital print to capitalise
upon the emerging nostalgia for 1990s fashion.

In 2015, a new self-lacing shoe was introduced. Called the Nike Mag, which are
replicas of the shoes featured in Back to the Future Part II, it had a preliminary
limited release, only available by auction with all proceeds going to the Michael
J. Fox Foundation. This was done again in 2016.

Nike have introduced a premium line, focused more on streetwear than sports
wear called NikeLab.

In March 2017, Nike announced its launch of a plus-size clothing line, which will
feature new sizes 1X through 3X on more than 200 products. Another significant
development at this time was the Chuck Taylor All-Star Modern, an update of the
classic basketball sneaker that incorporated the circular knit upper and cushioned
foam sole of Nike's Air Jordans.

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 CHALLENGES FACED BY NIKE
Nike, one of the world's leading sportswear companies, faces various challenges
that impact its operations and business strategies. Here are some of the major
challenges faced by Nike:

Nike v. Warren Lotas (A Competitor) – literature review

In a swiftly-settled but closely-watched case involving Nike and Warren Lotas,

Nike filed an injunction to stop the distribution of sneakers that were deceptively
similar to Nike’s sneakers by Warren Lotas on the ground of committing brand
infringement and dilution. Asserting that it had not consented to look-alike
sneakers such as Warren Lotas X Staple Pigeon OG, Warren Lotas Freddy
Broccolini Chanclas, Warren Lotas Toxic Green, and Warren Lotas Jason
Voorhees Dunk Low” styles – and did not authorize Lotas’ pre-sale offering or
their release. The parties thereafter “entered into a confidential settlement
agreement”.

1. Increasing competition: Nike faces intense competition from other

sportswear companies like Adidas, Under Armour, and Puma, as well as
smaller brands. The competition has increased as more companies enter the
market and strive to gain market share.

2. Changing consumer preferences: Consumer preferences and behaviors are

continually changing, making it challenging for Nike to keep up with the
latest trends. Consumers are increasingly concerned about sustainability,
ethical production, and inclusivity, which puts pressure on Nike to adapt
its products and practices.

3. Supply chain issues: Nike sources materials and products from around the
world, which can lead to supply chain disruptions due to factors such as
geopolitical tensions, natural disasters, and labor disputes.

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 4. Counterfeit products: Nike faces a significant challenge in combating
counterfeit products, which can damage the brand's reputation and lead to
lost sales. Nike invests heavily in anti-counterfeit measures, but it remains
an ongoing challenge.

5. Economic conditions: The global economy has a significant impact on

Nike's sales and profitability. Economic downturns, such as the one caused
by the COVID-19 pandemic, can lead to reduced consumer spending on
non-essential items like sportswear.

6. Reputation management: Nike has faced criticism in the past for labor
practices and supply chain issues, which can harm the brand's reputation.
Nike has taken steps to address these issues, but they remain an ongoing
challenge.

Overall, Nike must navigate these challenges while continuing to innovate and
stay ahead of its competitors to maintain its position as a leader in the sportswear
industry.

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 GROWTH AND SUCCESS OF NIKE
Nike, founded in 1964, has grown into one of the world's largest and most
successful sportswear companies. he key factors that have contributed to Nike's
growth:

1. Innovation: Nike has always been a pioneer in product innovation,

developing new materials and technologies to enhance the performance
and comfort of its products. From the introduction of the Air Jordan
sneaker in 1985 to the launch of the Nike Flyknit running shoe in 2012,
Nike has consistently pushed the boundaries of what is possible in
sportswear.

2. Branding: Nike's "Just Do It" slogan and iconic swoosh logo have become
some of the most recognizable branding elements in the world. The
company's marketing campaigns have been highly effective at capturing
the spirit of athleticism and inspiring people to pursue their passions.

3. Strategic partnerships: Nike has partnered with some of the world's top
athletes, sports teams, and cultural influencers to promote its products and
strengthen its brand. These partnerships have helped Nike build credibility
and increase its visibility in the market.

4. Global expansion: Nike has a strong presence in countries around the

world, with a particular focus on emerging markets like China and India.
The company's expansion into new markets has helped drive growth and
increase its customer base.

5. Diversification: In addition to its core footwear and apparel business, Nike

has diversified into other areas such as digital fitness, equipment, and
accessories. This diversification has allowed the company to capture new

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6. E-commerce: Nike has invested heavily in its e-commerce capabilities,
making it easy for customers to shop for its products online. The company
has also launched mobile apps and partnered with online marketplaces like
Amazon to increase its online reach.

7. Sustainability: In recent years, Nike has made significant efforts to reduce

its environmental footprint and improve the sustainability of its products
and operations. This has resonated with consumers who are increasingly
concerned about the impact of their purchasing decisions on the planet.

8. Strong financial performance: Nike's growth has been fueled by its strong
financial performance, with the company consistently reporting high
revenues and profits. This has allowed Nike to invest in research and
development, marketing, and other areas to drive continued growth.

9. Corporate social responsibility: Nike has also focused on corporate social

responsibility, taking steps to improve working conditions in its supply
chain, promote diversity and inclusion, and support local communities.
This has helped to build a positive image for the company and strengthen
its relationship with customers and other stakeholders.
10.Organizational culture: Nike has a strong organizational culture that
emphasizes innovation, collaboration, and creativity. This has helped to
attract and retain talented employees, who have played a critical role in
driving the company's growth over the years.

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 CONCLUSION
The company has a history of developing new products and materials that push
the boundaries of athletic performance, such as the Flywire and Flyknit
technologies, which offer lightweight support and flexibility to athletes. Nike has
also been at the forefront of digital innovation, launching its Nike+ platform and
mobile apps that allow customers to track their athletic progress and connect with
other athletes.

In addition to its focus on innovation and technology, Nike is also known for its
marketing and branding efforts, which have helped to establish the company as a
leader in the sportswear industry. Nike's "Just Do It" slogan is one of the most
recognized in the world, and the company has used celebrity endorsements,
product placements, and social media campaigns to create a strong brand identity
and connect with consumers.

Nike has been a highly successful company in the sportswear industry, with a
strong brand, innovative products, and a global presence. The company's HRM
practices and policies have played an important role in its success by attracting
and retaining top talent, fostering a culture of innovation and collaboration, and
promoting diversity and inclusion.

Nike's HRM practices include an emphasis on performance and results, employee

development, work-life balance, competitive compensation, health and wellness,
and employee engagement. Overall, Nike's HRM practices have helped the
company create a positive and inclusive workplace culture that supports
employee growth and development, and contributes to its continued success in
the industry.

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 REFRENCES

• https://home.business.utah.edu/u0030108/nike_case_oct98.pdf
• https://startuptalky.com/nike-success-story/
• https://www.studocu.com/in/document/sardar-vallabhbhai-national-
institute-of-technology-surat/applied-mathematics-and-
humanities/project-report-on-marketing-strategy-for-nike-
shoes/23048989
• https://blog.ipleaders.in/challenges-faced-nike-protect-intellectual-
property/#Case_analysis_of_Nikes_IP_protection_challenges

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