FINAL ASSIGNMENT – GROUP 4

BRIEF INTRODUCTION ABOUT NIKE

Nike, Inc. is an American multinational corporation that creates, develops, produces, markets, and sells
clothing, accessories, equipment, and services on a global scale. It is also the largest maker of sporting
goods and the world's top provider of athletic footwear and clothing.

Bill Bowerman and Phil Knight launched it in 1964 under the name "Blue Ribbon Sports," and in 1971
company became formally known as Nike, Inc. The Nike squad, which includes the Jordan, Converse, and
Nike brands, gets its name from the Greek goddess of triumph.
INDEX
1. Company Mission, Vision and Values

2. Company Corporate Governance

3. Decision-Making Process

4. Company Value Chain

5. General Environment Analysis (PESTEL)

6. M. Porter Diamond Model

7. SWOT Analysis

8. TOWS Analysis and new strategy suggestions

9. Stakeholders Map

10. Resources & Capabilities Analysis

11. M. Porter Five Forces

1. MISSION,
VISION AND
VALUES
 We champion continual progress for athletes and sport by
taking action to help athletes reach their potential. Every
job at NIKE, Inc. is grounded in a team-first mindset,
MISSION cultivating a culture of innovation and a shared purpose to
leave an enduring impact.

“Bring
Inspiration and
Innovation to
every athlete in
the world.”
 Nike mission statement is “to bring inspiration and innovation to every athlete in the world.” The emphasis of this statement is on Nike's
power inside the sports industry. It particularly highlights this company's capacity to inspire and mold athletes into their finest selves. In fact,
it also suggests that this is what players should watch out for if they want to be clutch. The following are some elements co nnected to this
mission statement:

BRING INSPIRATION

Nike has been in the lead when it comes to encouraging its customers the best way it knows how —by giving them comfy shoes and clothing.

Additionally, the organization recognizes the value of dressing the part, which inspires their ambition to succeed. For insta nce, its extensive
selection of sportswear conveys a sense of what this is really about.

INNOVATION

The reason Nike has remained at the top of this market can be boiled down to its relentless pursuit of developing the most ad aptable,
aesthetically pleasing, and above all reliable products. When introducing any items on the market, it achieves this by enlist ing the brightest
minds in its team of professionals to further its inventive agenda.

In reality, the house of innovations features a wide variety of artifacts and data that demonstrate the company's dedication to sports -related
developments.

GLOBAL PRESENCE

Nike demonstrates in this section that it is a business that seeks to be recognized everywhere. The company's diversification strategies,
which include numerous items aimed at athletes around the world, are explained by the need to satisfy this requirement.

For instance, Nike has launched a number of initiatives that aim to develop sporting talent all around the world.
 This vision statement paints a picture of Nike as a firm that
doesn't settle for the ordinary and instead seeks out the
most innovative, straightforward, yet very effective designs
VISION that have positive effects on the users.

“Do everything
possible to
expand human
potential.”
 "Do everything possible to expand human potential," Nike's vision statement. Although carefully constructed, this statement d emonstrates that the
business does not restrict itself to particular techniques in order to provide its clients with the finest sports experience possible.

According to this vision statement, Nike does not settle for the ordinary; instead, the corporation seeks out the most innova tive, straightforward, yet very
effective designs that have positive effects on the users. The following traits are relevant to this vision statement in light of this observation:

IMPROVEMENT OF LIVES

Nike Corporation is a people-focused business that strives to have a positive influence on everyone it interacts with. The corpo ration does this by
including socially beneficial goals that run concurrently with its primary aims; these goals make up the company's corporate social responsibility.

Nike, for example, is recognized as a global leader in environmental conservation techniques, but this is not all. As part of its overarching goal of getting
the best out of the individuals it serves, the company is vocal about various social causes.

EXCEEDING EXPECTATIONS

If there are companies that have gone out of their way in what they do, Nike would definitely top the list. In all its operations, Nike has proven beyond
doubt that it does not simply give what the customer expects.

The ever-growing reputation of this company is directly linked to the incredible efforts it puts in manufacturing products whose quality goes over and
above the expectations of the market and Nike competitors as well. For years, there has been no comparison to what Nike does, their products are
simply extraordinary.

EXPANDING HUMAN POTENTIAL

The top objective for Nike continues to be providing the greatest footwear, clothing, and other equipment to its athletes’ cl ients.

The business has been committed to it for many years, ever since it was formed. In fact, the corporation is aware of the vari ous needs of various
sportspeople, and by doing so, it inspires innovation to develop products that are specifically suited to the requirements of each category.
 CORE VALUES

Inspiration Innovation Every athlete

in the world

Authentic Connected Distinctive

 INSPIRATION:
To be inspiration for athletes and encourage customers to practice sports.

INNOVATION:
Updating their models and employing the latest technologies they keep innovating to give customers the best experience with
their products.

EVERY ATHLETE IN THE WORLD:

With their wide range of products, they are able to meet the specific needs of many customers.

AUTHENTIC:
They are authentic in spite of the imitations of their brand that can be found in the market.

CONNECTED:
They keep connected with their customers in order to solve doubts, or for example they provide apps to train.

DISTINCTIVE:
With their quality, design and price they are distinctive to their competitors in the market.
IMPACTS AND PURPOSE OF
NIKE'S VALUES

Diversity, equity Responsible

& inclusion sourcing

Empowering Protecting the

communities planet
 Promoting diversity, equity, and inclusion for all is one of their top priorities, along with advancing a transparent and accountable supply chain, developing
environmentally friendly materials and manufacturing processes, creating a sense of community by supporting organizations that work to advance economic
empowerment, education, and equality, and uniting today's youth through sports and an active lifestyle so they can realize their full potential in the future.

DIVERSITY, EQUITY & INCLUSION

To better represent the athletes and communities in which they live, work, and play, Nike is constructing a more inclusive and diverse team.
Women occupy 43% of the top roles at NIKE.
$197M was spent on several vendors.
In the United States, racial and ethnic minorities make up 30.3% of workers at the Director level and above, a rise of 4.1 percentage points from 2020 to 2021.
By 2025, there will be 45% female leaders worldwide.
Spending on various vendors will total $1 billion by 2025.
Maintaining 30% representation of minority of colour at director level and above in the United States.

RESPONSIBLE SOURCING
A world-class supply chain, according to NIKE, must be built on respect for the people who produce and transport our goods as well as those who support
environmental preservation.
Gender equity in the clothing and footwear manufacturing sector was assessed using the Gender Equity Self-Diagnostic Tool, which was completed by all suppliers.
Through Nike's Engagement and Wellbeing Survey, 490K contract manufacturing workers have been contacted since May 2017.
The Supplier Climate Action Program, a program that offers suppliers technical support to help establish more aggressive climate goals, received commitments from 11
of NIKE's major finished products and materials suppliers.
Nike's fundamental labor, health, safety, and environmental standards are adhered to in all of the facilities that make up our extended supply chain. By 2025, 100% of
our strategic suppliers' facilities will increase access to career possibilities and upward mobility for women employees.
 EMPOWERING COMMUNITIES
They collaborate with professionals, non-profits, athletes, and workers to remove obstacles and contribute to the creation of a more active and fair future for everyone,
beginning with children.
More than 300 organizations across the world support our Made to Play commitment and investments in inclusive communities.
Employees of NIKE, Inc. distributed $21 million in donations to thousands of organizations worldwide.
NIKE, Inc. committed $97.7M in its fiscal year 2021 to promote goodwill in local communities all around the world.
The percentage of employees that give to charity and volunteer in their communities is 35%.
2% Invest 2% of the pre-tax income from the previous year to create positive social change.
50% of girls take part in the play and sport initiatives we fund.

PROTECTING THE PLANET

The future of sports and our common playing field are things they wish to safeguard. Every aspect of our organization is impacted by their solutions-driven work, which is
heavily focused on carbon, waste, water, and chemistry.
A rise from 48% in FY20 to 78% renewable energy used in owned or managed facilities
Waste from the manufacture of shoes is entirely avoided via landfill or energy less incineration.
Freshwater used for dyeing and finishing textiles has been reduced by 6.7 P.P.
Utilizing ecologically friendly products resulted in a reduction of 0.5 million tons of GHG emissions, which is the same as removing 110,000 automobiles from the road
for an entire year.
At least 80% of the garbage in our extended supply chain is recycled back into Nike products and other products, diverting 100% of waste from landfill.
Our expanded cotton supply chain has replenished 13B litres of water in water-stressed habitats.
2. CORPORATE
GOVERNANCE
 WHAT IS CORPORATE
GOVERNANCE:

Corporate governance is the issue of

shareholder control over management
and the mechanisms available for
exercising that control.
Each company will choose the governance
mechanism, as regards their efficacy,
measured in terms of the increase
recorded in the company´s value.
 THE BOARD:
Role of the board : The ultimate decision-making
body of the company, except with respect to those
matters reserved to shareholders.
Board's goals : Build long-term shareholder value,
including the promotion of sustainability of the
Company, and to responsibly address the
concerns of shareholders and other stakeholders,
including employees, consumers, customers,
suppliers, governments, local communities and the
general public.
The board acts as an advisor and oversees the
performance of the senior management team.
 BOARD MEETINGS

Frequency of the meetings: they meet at least four times per year.
Additional meetings can be scheduled if necessary.

Agenda for board and committee meetings: directors are invited to

suggest inclusion of items on the agenda and are free to raise at
any Board meeting subjects that are not specifically of the agenda.

Director attendance: directors are expected to attend the meetings, if

they are not able, they should notify the Chair of the Board.

Attendance of management at board meetings: members of senior

management present information regarding a particular matter or
participating in discussions. The board is free to excuse members of
senor management from the meeting at any time.
 The Board of Directors' Corporate Responsibility, Sustainability

COMITEE MATTERS: and Governance Committee is tasked with, among other things,
reviewing Nike's significant strategies, activities, and policies
regarding sustainability, contract manufacturer labor practices,
community impact, and charitable activities and making
recommendations to the Board. The group directs Nike's business
strategy's tone and pace with regard to sustainability.

The committee responsibility relies on:

1. Decide on the criteria for choosing new directors, which will be

outlined in NIKE's corporate governance principles, and
periodically evaluate them with the Board.

2. Locate, assess, and hire candidates who are qualified to be

directors.

3. Make recommendations to the Board regarding director

candidates

4. Establish the criteria for choosing a Chairman and periodically

evaluate them with the Board.

5. Evaluate the size, structure, makeup, salary, procedures, and

practices of the Board and its committees and offer
suggestions to the Board in this regard.

6. Make recommendations to the Board regarding candidates for

appointment to each Board.

7. Examine all transactions

MANAGEMENT REVIEW AND
SUCCESSION PLANNING
There is a succession plan for the current Chairman, Phil
Knight founder and director since 1964. This is something
decided by the whole board, but Phil made a
recommendation, Mark Parker.
He served as CEO from 2006 till 2020, and John Donahoe is
now CEO who was Ebay CEO.
Since 2015, Travis A. Knight Phil´s son its part the board
Another curious fact is that Tim Cook, Apple´s CEO is also
part of Nike´s board of directors.
This plan has been developed by Phil since Nike´s
founding, he has worked with many people, has many
experiences and all this information, he has built a great
management infrastructure based on expertise and trust.
Probably in the future his son Travis could take the lead,
since is still “young” and there are more experienced
people in charge.
3. DECISION-MAKING PROCESS
 DECISION-MAKING PROCESS
Determining a decision, acquiring data, and weighing potential
solutions are all steps in the decision-making process. You can
make more careful, intelligent decisions by organising pertinent
information and outlining alternatives by following a step-by-
step decision-making process.
Nike uses efficient and effective management to make decisions
that fits better the company´s purpose. To ensure success, Nike´s
managers must continually examine and improve strategies and
approaches used in the 10 strategic decision areas of
operations management.
These areas pertain to the main decisions in managing
streamlined operations and productivity that effectively adress
business goals and objectives. Nike´s operations management
considers talent management, product development, and total
quality management as some of the most important variables in
these 10 strategic decision areas.
 10 DECISION-MAKING AREAS:

1. Design of goods and 2. Quality management: the 3. Process and Capacity 4. Location strategy: the 5. Layout design and
services: deals with the objective is Design: Nike´s operations objective is to optimize strategy: the objective in
design of Nike´s athletic to satisfy consumer´s management must costs and efficiency this strategic decision are is
footwear and other expectations about product prioritize scream lining and through proximity to to optimize workflow based
products. Nike focuses on quality. efficiency of production. employees, suppliers and on human resources,
designs based on advanced The objective is to ensure the target market. In the capacity requirements,
technology and current adequate, effective, and case of Nike, the operations technology and
market preferences. efficient production. managers apply inventory requirements.
a corporate strategy
that chooses production
facility locations based on
costs and nearness to the
most significant markets.

6. Job design and human
resources: Nike satisfies this
concern through internal
leadership development,
along with coaching and
mentoring. The company
also has regular evaluations
of job assignments to
ensure person-job fit.
10 DECISION-MAKING AREA:
7. Supply 8. Inventory Management:
Chain Management: has an the objective is to
excellent supply chain maintain operations manag
management, which ement that minimizes
facilitates efficient inventory costs
production to support the while maximizing its
global sport shoes, effectiveness and efficiency.
apparel and equipment The operations managers
business. Align the supply apply the
chain with the perpetual method of
company´s overall strategic inventory
aims. management, which
involves
continuous monitoring and
movement of
inventory from the
supply chain to the
distributor and retailers.
9. Scheduling: is primarily
concerned with corporate
operations and the
coordination of the supply
chain with distribution and
retail operations. In this
strategic decision area of
operations management, th
e aim is
to maximize resource
utilization.
10. Maintenance:
considers adequacy of all
resources. Adequacy of
human resources, facilities
and capacity is the objective in
this strategic decision
areas. Nike’s operations
management implements
continuous recruitment
programs to support HR
needs, as well as reward
programs and career
development strategies for
maximum retention of
employees.
4. VALUE
CHAIN
 WHAT IS THE VALUE CHAIN
The value chain is one of the most fruitful and popular instruments designed for the internal diagnosis
and analysis of a firm and its proposal, and its diffusion is attributable to Porter.

The concept of value chain refers to the breakdown of the firm into the key operations that need to be
undertaken in order to sell a product or service. Each activity contains its share of the value associated
with the end product, and likewise accounts for part of the final costs of that self-same product. When
the price customers are willing to pay for the product or service exceeds the cost of the various
operations, a firm will generate a margin or profit on its business.

The purpose of analyzing the value chain is to identify the sources of competitive advantage, that is,
those aspects or parts of the firm that contribute most to the generation of the overall value
obtained.

The value chain is built by breaking the firm’s activities down according to their direct / indirect link to
its operations.
 SUPPORT Procurement:
The activity of purchasing the factors to be used

ACTIVITIES:

They are not directly Technology Development:

Activities for obtaining, improving and managing technologies, regarding both

part of the production products and process, or for ‘management’

process, but they do

provide support Human resource management:
Activities related to the search, recruitment, training, motivation, assessment,
for primary activities, remuneration, etc., of all nature of personnel.

guaranteeing the
firm’s normal Firm Infrastructure:
operations. Activities that may be grouped under the general definition of administration, and may
include planning, control, organization, information, accounting, finance, etc.
 PROCUREMENT

Procurement is the activity of pruchasing the

factors to be used.
In Nike, it involves the processes and practices
involved in purchasing all the raw materials,
equipment, packing materials, machinery and all
that is needed to manufacture the products and
for the system to work.
The Global Procurement Nike´s team work to
select the best suppliers regarding the quallity of
materials, the optimun cost and with the same
beliefs of sustainability and environmental safety.
 TECHNOLOGY
DEVELOPMENT
Are the activities for obtaining, improving and
managing technologies. For products and
processes or for management.
Nike is working a lot in the technological
development because they are known as the
leaders in innovative sportswear. To have a
greater product development, nike takes
advantage of using research and technology.
 HUMAN RESOURCE
MANAGEMENT

Nike is a multinational corporation with

manufacturing facilities, distribution hubs, and
retail locations all over the world. Therefore, in
the Nike value chain analysis, human resource
management is a crucial function. Over 70,000
people work for Nike worldwide in a variety of
positions. The organization offers a positive work
environment, supports the use of individuals'
abilities, and fosters an inclusive and diverse
workplace culture. Employee rewards programs
serve as another another perk to keep staff
members on board. According to Fortune, Nike
is the country's top diverse employer.
FIRM INFRASTRUCTURE

The broad group of tasks that make up the

company infrastructure includes quality
management, handling legal concerns,
financing, accounting, planning, and
strategic management. Nike can optimize
the entire chain thanks to strong
infrastructural operations throughout the
chain. These actions increase effectiveness,
reduce overhead expenses, and maintain
overall system stability.
 PRIMARY Inbound logistics:
ACTIVITIES: Include functions like receiving, warehousing, and managing inventory.

Operations or production:
Those that are Include procedures for converting raw materials into a finished product.

directly part of the

Outbound logistics:
core operating Include activities to distribute a final product to a consumer.

process, as well as Marketing and sales:

their transfer Include strategies to enhance visibility and target appropriate customers—such
as advertising, promotion, and pricing.
to customers After-sales service
and after-sales Includes programs to maintain products and enhance the consumer experience
- like customer service, maintenance, repair, refund, and exchange.
service.
 INBOUND LOGISTICS

Since Nike's success is built on quality and sustainability, these values inevitably translate to
the inbound logistics. To deliver high-quality products and services, Nike has a supply chain
that includes suppliers, transportation, internal delivery, and quality control. Nike items are
produced at 567 factories across 42 nations.
Worldwide. Nike also places a strong emphasis on protecting the environment and reducing
pollution. They favor vendors who share their core values and commitment to sustainability,
quality, and the environment. Independent contractors manufacture the majority of Nike's
goods. After rigorous quality inspection, the manufactured goods are sold through several
regional offices and distribution facilities.
 OUTBOUND LOGISTICS

The outbound logistics at nike are all the activities that include storing and distributing the products to
customers.

Nike products are manufactured in around 567 factories and 42 countries. The biggest distribution
center is in Tennessee.

The products are delivered to the regional offices and distrubution centers so that they can send them
into the market and that way the regional distribution channeks can make sure that as soon as they are
released the products are available to the customers.
 OPERATIONS OR
PRODUCTION
In addition to product manufacturing, assembly, packing, and
testing, operations often include equipment repair and
maintenance. The Nike value chain study highlights the
significance of operational operations in generating value and
establishing a competitive edge in the market.

Nike does not, however, own any of the factories where its apparel
and footwear are produced. Shoes and apparel sales account for
96% of Nike's branded income.

Instead, Nike contracts with external businesses to handle its

manufacturing. a considerable cost advantage.

The majority of Nike's raw materials are purchased from

independent contractors in the country that serves as the
manufacturing location.

Nike is among those who introduced the idea of production

outsourcing. Production and manufacturing processes have been
improved. Success also depends on consistent innovation and
high-quality goods. Lean manufacturing at the company raises
output, lowers waste, and improves effectiveness. It also
encourages efficiency and excellence.
MARKETING AND SALES
This is one of the strongest points of the chain, as Nike is
recognized as a marketing leader not only in its industry
but in the whole business landscape.

Nike uses integrated marketing activities, they use

effectively all channels (from TV, Social Media to
billboards).

Of course, and maybe the most important aspect; their

brand ambassadors, top athletes from every sportswear
Nike.

They combine well all this resources to create brand

awareness, being one of the top companies with this
regard. Nike has achieved creating a culture based in
their “Just do it”
 SERVICE

Nike takes care of the relationship between its customers, by means of loyalty programs.
Probably a product from the culture that the company has built.
Nike customers involved in loyalty programs expend three times more than newcomers.
This “fan club” of course is digitalized, this allows the company to track trends in the
market, level of satisfaction, engagement and how their strategies are working.
5. GENERAL ENVIRONMENT ANALYSIS (PESTEL)
 WHAT IS A PESTLE ANALYSIS:

A PESTLE analysis studies the key external factors that affect a company.
It is used to analyze before taking strategic decisions.

It analyses the political, economic, sociological, legal and environment data of the company.
 POLITICAL

Nike's "home nation," the United States, offers great growth-oriented policies that
are especially beneficial to this business. These consist of favorable international tax
arrangements and inexpensive interest rates.
However, because it manufactures and sells real items, Nike is constantly impacted
by modifications to tax and manufacturing legislation.
Political unrest of all kinds can always make customs procedures challenging or stop
imports and exports.
 ECONOMIC
Although Nike is less susceptible to economic issues than some other companies because it
produces a well-regarded medium-range product, these are some of the economic variables:

For Nike and many other well-known brands, a market crash might be catastrophic news. If this
were to happen, consumers might decide to switch to lower-end, less expensive goods, or even
just as it gets simpler to make goods with acceptable levels of quality.

Nike's profits are partially reliant on the low cost of labor in countries in Asia. The situation is
altering, though, and it's possible that more expensive Nike products may soon be available
everywhere.

Nike has the means to pursue minor new markets because of their "deep pocket" of money.
 SOCIAL

More people are adopting healthier lifestyles as a result of an increase in "health

consciousness" on a global scale. These consumers will definitely purchase a ton of
sporting goods, which would make Nike extremely happy.
Conversely, Nike is heavily criticized for its questionable manufacturing practices. In
fact, the problem of Nike sweatshops is so significant that it has merited its own
Wikipedia article.
 TECHNOLOGICAL
Companies may develop in a wide variety of ways thanks to technology. Technology
benefits businesses like Nike in a variety of ways, including consumer interaction
and product design. Here are some technological influences on it:
Things can blow up or fade away faster than ever thanks to social media. Nike is
doing a good job of leveraging social media to develop their brand, but misuse of it
might have unintended consequences.
Technology advancements also give Nike the chance to leverage useful information-
based measures, enabling them to optimize targeting and manufacturing and
increase income.
 LEGAL
You shouldn't be shocked to learn that Nike evades taxes significantly, just like the
majority of large firms . Although there hasn't been much of a crackdown on this in
recent years, it's still important to take this into account.
Additionally, Nike periodically faces legal consequences for its dubious marketing
techniques, which include offering deceptive discounts.
 ENVIRONMENT
Environmental challenges are becoming more and more significant. Obviously, there
are just a few elements that have an impact on Nike in this regard, but it is still
important to mention them:
There is no doubt that Nike's factories for mass production are bad for the
environment. Nike's manufacturing facilities occasionally go as far as to directly
pollute waterways in addition to releasing a lot of atmospheric pollution like most
manufacturers [5].
Although Nike has a great commitment to becoming more "green," they also show
signs of changing their current business practices.
6. M. Porter
Diamond
Model
 FACTOR CONDITIONS
NATURAL RESOURCES:
The fabrics, the natural and synthetic rubber, the textiles and leathers. These aspects of the Nike´s products made it successful
by offering a different and better-quality products compared to its competitors ones. Also, by innovating with the designs and
adapting in the best way to the customer needs.

CAPITAL RESOURCES:
Nike got successful thanks to the capital invested on the company. It could be divided into factories, transportation, designing
equipment, manufacturing equipment, other equipment and money.

HUMAN RESOURCES:
The company was created by Bill Bowerman and Phil Knight with the goal of creating superior running shoes for track
competitors. Nike continues to focus heavily on improving its running shoes. While paying attention to their customers and
focusing on the Nike App, a platform for digitally driven innovation, design and personalized services. Nike, like its origin al
inventors in the HR department, is trying to create innovative product designs that specifically address athlete -related
challenges. So, what Nike differentiated itself early on, and continues to differentiate itself today, is a fully customer-centric HR.

INFRASTRUCTURE:
Nike, whose products account for around 88% of revenues, doesn't own any factories for producing its goods. Due to the cost
advantages, they outsource the production of their clothing and footwear to third-party contract manufacturers.
 DEMAND CONDITIONS
1. SIZE OF THE DOMESTIC MARKET:
Nike has taken the size of the home market into account while developing its internationalization and growth strategy. There are
primarily two reasons for this. First off, firms must be aware of the dynamics that apply to larger markets in order to plan their
strategies and operations successfully because local markets and domestic consumers have risen in size.
Nike has been able to assess, pinpoint, and manage its own growth-related strengths and weaknesses as a result of the bigger
market and domestic rivals. Second, a bigger market is essential for motivating a business or brand to look into the prospects
of entering other markets.

2. LOCAL DEMAND FOR THE PRODUCTS

Jordans and Air Max sneakers from Nike would be considered inelastic products. Nikes have unmatched customer appeal over
the years and are extremely well-liked. Nike's advertising and athlete partnerships have made its shoes a highly sought-after
item. Customers wait in line to get a new pair of Jordans because they sell out so quickly. Given the lower demand and the
impact of price adjustments, a generic pair of Nikes would likely be an elastic product.
The process of purchasing and reselling footwear, like Jordans, is one indicator of how consumers feel about them. Customers
will buy fashionable or limited-edition shoes just to resale them at a large markup. Due to this, some things are in great demand
since there is a large gap between supply and demand.
 RELATED AND SUPPORTING INDUSTRY

PRESENCE OF RELATED INDUSTRIES:

In terms of Nike's expansion and globalization, the existence of associated sectors in domestic and foreign markets has
also been a source of growth and development. This is due to the fact that associated sectors have supported Nike's
business operations by providing the necessary ingredients for operational excellence. For instance, Nike has been
able to find raw materials and packaging locally in various consumer areas, which has assisted it in reducing prices and
expenses and achieving economies of scale.

PRESENCE OF SUPPORTING INDUSTRIES:

Nike's ability to grow and extend its business is facilitated by the existence of supporting industries. This holds true for
both domestic and foreign markets that include supporting industries. Supporting industries have contributed to the
growth of the total market in domestic markets, which has helped companies like Nike advance and expand in
company operations, draw customers, and raise awareness in client markets for product awareness and recognition.
 FIRM STRATEGY, STRUCTURE AND RIVARLY
STRATEGY STRUCTURE RIVARLY
Excellent Marketing The organizational structure of Nike is
Nike´s success among
largely responsible for its success. Within
Establishment of their Brand and Logo its competitors its
an organization, task delegation and the
through extensive marketing investment mainly thanks to the
development of line authority are defined
by the organizational structure. existence of its
Selling the "Emotional Benefits" of their
competitors, and they
Product The hierarchical structure of Nike is a are able to stay ahead
matrix. Different kinds of organizational of them in terms of
New Technologies
systems are assembled into a matrix
technology and
Provide a wide variety of products to a large structure.
Marketing.
number of sports to capture greater market
The authority moves both vertically and
share They also use
horizontally in a matrix system. To better
Focus on product quality and creating serve clients in various locations, Nike emotional branding as
products that help athletes perform better uses a geographical divisional structure. well as the co-branding
The product is specifically designed to with different sports
Buying out competing sport product brands meet their needs. and athlets.
 7. SWOT
ANALYSIS
 1. Strong Brand Image: Nike is one of the most
recognizable brands in the world. It has a powerful brand
image, which is associated with quality, performance,
innovation, and style.

2. Global Presence: Nike has a strong presence in more

than 170 countries and territories around the world. This
gives them access to a large global market and allows
STRENGHTS them to reach a wider customer base.

3. High-Quality Products: Nike is known for producing

high-quality products that are designed to meet the
needs of their customers. Their products are made with
premium materials and are designed to last longer.

4. Extensive Marketing: Nike invests heavily in

marketing and advertising, which helps them reach more
customers and increase brand awareness.
 1. High Prices: Nike’s products are
known to be pricey, which can be a
turn-off for some customers.

2. Slow to Adapt: Nike has been slow

WEAKNESSES to adapt to changes in the market, such
as the shift towards online shopping.

3. Poor Customer Service: Nike has

been criticized for its lack of customer
service and responsiveness.
 1. Online Expansion: Nike has the
opportunity to expand its online presence
and reach more customers.

2. Product Innovation: Nike could continue

to innovate its products to stay ahead of the
OPPORTUNITIES:
competition.

3. Expansion into New Markets: Nike could

explore new markets and develop products
specifically tailored to those markets.
 1. Competition: Nike faces a high level of competition from
other well-known sportswear companies such as Adidas,
Puma, and Under Armour. This competitive pressure could
lead to a decrease in market share and revenue.
2. Supply Chain Disruptions: Nike relies on efficient global
supply chains to manufacture its products. Disruptions to the
supply chain, such as natural disasters or trade disputes,
could affect the availability of key materials and components.
3. Counterfeiting: The prevalence of counterfeit Nike
THREATS: products is a major concern for the company. Counterfeit
products are usually of inferior quality and can damage Nike’s
brand reputation.
4. Changes in Consumer Preferences: Nike needs to stay on
top of changes in consumer preferences in order to remain
competitive. If consumers shift away from Nike’s products, the
company could see its sales and profits decline.
5. Government Regulations: Nike must comply with
numerous government regulations in the countries in which it
does business. Any changes to these regulations could have
an impact on Nike’s bottom line.
8. TOWS ANALYSIS AND NEW STRATEGY SUGGESTIONS
TOWS ANALYSIS STRENGHTS (S) WEAKNESSES (W)

SO WO
OPPORTUNITIES (O) Using strengths to capitalize Overcome weaknesses to
on available opportunities capitalize on opportunities

WT
ST
THREATS (T) Reduce weaknesses to avoid
Use strengths to avoid threats
threats
 SO
Given its robust financial position, Nike is able to increase its investments in
digitization and product innovation. This will enable it to broaden its product
offering and design while also expanding its e-commerce into other nations.
Nike can achieve greater growth in the Asian markets, notably China and Asia, which
are expanding at the fastest rate in the globe thanks to excellent marketing tactics.
Nike is a financially robust brand, so I can buy new companies in adjacent industries
and also some of its supply chain to lessen its reliance on independent producers.
 ST

Nike must make advantage of its marketing and innovation skills to manage the
competitive strain.
Due to its sound financial position, it can continue to spend money on marketing,
R&D, and human resources.
Utilizing internal compliance teams to manage legal and regulatory demands, it
must keep compliance as its top priority.
 WO

Nike may grow more quickly in foreign markets by increasing its investment there.
New revenue streams will become available as its reliance on the US market is
lessened.
Spending on innovation and digitization will be made possible by managing
operational costs.
 WT

HR and operational costs can be reduced by reducing reliance on US markets and

expanding into new ones, including Asian markets.
By keeping operational costs under control, it will be able to spend more on
marketing and expand its brand more quickly.
9. STAKEHOLDERS
MAP
10. RESOURCES
& CAPABILITIES
ANALYSIS
RESOURCES & CAPABILITIES SCARCITY RELEVANCE DURABILITY TRANSFERABILITY IMITABILITY SUBSTITUTABILTY COMPLEMENTARITY

TANGIBLES

MATERIAL

MANUFACTURING MATERIALS HIGH HIGH LOW MEDIUM HIGH LOW HIGH

OFFICE MATERIALS LOW LOW LOW HIGH HIGH HIGH HIGH

PROPERTIES MEDIUM LOW MEDIUM HIGH HIGH HIGH HIGH

EQUIPMENT LOW HIGH MEDIUM HIGH HIGH HIGH HIGH

INVENTORY HIGH HIGH MEDIUM MEDIUM HIGH LOW HIGH

FINANCIAL

GREAT CREDIT HISTORY HIGH LOW MEDIUM LOW LOW LOW MEDIUM

ECONOMIES OF SCALE LOW MEDIUM MEDIUM LOW LOW LOW HIGH

GREAT MARGINS HIGH MEDIUM MEDIUM LOW LOW LOW HIGH

PRICING POWER LOW MEDIUM LOW LOW MEDIUM LOW HIGH

RESOURCES & CAPABILITIES SCARCITY RELEVANCE DURABILITY TRANSFERABILITY IMITABILITY SUBSTITUTABILTY COMPLEMENTARITY

INTANGIBLES

NON HUMAN

ORGANISATIONAL

BRAND HIGH HIGH HIGH LOW MEDIUM LOW HIGH

LOGO HIGH HIGH HIGH LOW MEDIUM LOW HIGH

PRESTIGE MÉDIUM HIGH MEDIUM LOW LOW MEDIUM HIGH

REPUTATION MEDIUM HIGH MEDIUM MEDIUM LOW LOW HIGH

CUSTOMER PORTFOLIO MEDIUM HIGH MEDIUM MEDIUM MEDIUM MEDIUM HIGH

TECHNOLOGICAL

PATENTS HIGH HIGH HIGH HIGH LOW LOW HIGH

DESIGNS HIGH HIGH HIGH HIGH HIGH LOW HIGH

DATABASES HIGH HIGH MEDIUM MEDIUM HIGH LOW HIGH

HUMAN

EDUCATION MEDIUM MÉDIUM HIGH LOS MEDIUM MEDIUM MEDIUM

TRAINING MEDIUM HIGH MEDIUM MEDIUM MEDIUM MEDIUM HIGH

INTELLIGENCE MEDIUM HIGH MEDIUM MEDIUM LOW LOW HIGH

SKILLS MEDIUM HIGH HIGH LOW LOW LOW HIGH

HEALTH MEDIUM MEDIUM LOW LOW LOW MEDIUM HIGH

11. PORTER'S
FIVE FORCES
 INTENSITY OF RIVALRY AMONG STABLISHED COMPETITORS

The sales growth data has been on a saturation trajectory, which can be blamed on the
market's escalating competitiveness. Nike's growth has stalled as a result of the high market
penetration that the rival company caused and the general market saturation. It is
considerably more challenging for Nike to repeat its historical growth due to the aggression
of its rival companies. It is challenging for the brand to gain traction in the market because
the competitors have been pouring large sums of money into their marketing campaigns.
The competitive rivalry is a powerful factor in this situation even though there aren't many
direct rivals of Nike.
 THREAT OF NEW ENTRANTS

Nike faces tough competition from regional brands with little influence outside of their home
market. However, due to Nike's Economies of Scale, these small businesses will be unable to
compete with Nike. By lowering its retail price and offering extra perks with its product, the
firm can always draw customers. But due of the operating expenses involved in establishing
and starting their business, the new competitors will never be able to do so. In addition, if the
new competitors want to handle their supply chain and logistics online, they will encounter
many difficulties. In comparison to the company's established sales and distribution network,
they will be completely uncomparable.
 THREAT OF SUBSTITUTE PRODUCTS
Since Nike is a well-known brand with great R&D capabilities, there are no prospects for a
rival to replace it. The best research and development staff in the business has long been at
Nike. In addition, the company holds more global patents than any other sporting brand,
totaling more than 25,000. But one factor that causes issues for Nike is the increase in
imitation goods that look like genuine shoes. A new danger to the company's sales has
emerged as a result of recent improvements in the functionality supplied by the counterfeit
goods. However, when it comes to Nike, the danger of alternatives is a weak one.
 BARGAINING POWER OF SUPPLIERS

There are several suppliers worldwide who provide athletic brands with materials like rubber,
cotton, Eva, synthetic leather, etc. The industry's suppliers' total ability to negotiate is
reduced as a result. Since Nike is a well-known brand, there is goodwill attached to it that the
suppliers look forward to sharing. The suppliers that Nike works with are reasonably large,
thus they don't have a stronger negotiating position with Nike. In order to lower the overall
cost of the raw materials, the company has a practice of collaborating with the local
producers. The majority of them are MSMEs with a focus on a particular region, with Nike as
their sole big customer. As they are easily replaceable, they lack the negotiating leverage.
 BARGAINING POWER OF CUSTOMERS

The cheaper switching cost for customers is the main factor giving them the upper hand.
They can readily switch to the competing brand and doing so requires little expense and
effort. However, given that each customer's contribution is so negligible, this can be readily
overcome. Customers are at a disadvantage due to the small pool of suppliers; thus, it is
reasonable to infer that the force of bargaining is of moderate strength. Although some
customers are price conscious and prefer to shop for less expensive options, Nike's premium
cost is justified by the brand's reputation for quality, assurance, and goodwill. Additionally, a
rise in the number of educated people with more discretionary income helps Nike. As a
result, clients have a moderate amount of bargaining power.
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