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GROUP MEMBERS

GROUP MEMBERS: PIYU AGRAWAL RAUNAQ BHATIA FRANCINA DAVID TEJAS GANGAR AASTHA JAGAD BHAGYASHREE KEDIA PARIDHI KOTHARI DIVYA MODY ROLL NO. 4 11 18 25 32 39 46 53

NIKE FACTS

Nike is distributed in over 160countries around the world: (Asia, Australia, Cananda ) Nike is the largest seller of athletic footwear& athletic apparel in the world Founders: Bill Bowerman, Philip Knight Year established:1964(as Blue Ribbon Sports) Industry: Sportswear/equipment President/CEO: Mark Parker Staff: 34,400 (May 2010) Product: shoes apparel and sports equipment, accessories Slogan: Just Do It! Logo: Swoosh

VISION SATATEMENT: To bring inspiration and innovation to every athlete in the world. If you have a body, you are athlete -Bill Bowerman

MISSION STATEMENT To carry on the legacy of innovative thinking whether to develop products that help athletes of every level to reach their potential.

GOALS & OBJECTIVES


No published corporate objectives in relation to overall company. Corporate social responsibility "lead in corporate citizenship through programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services to Nike."

BUSINESS DEFINITION
Served Customer Groups Served Customer Functions Technologies Utilized-

Business model
Shoe manufacturing and assembling Sporting goods, department and shoe stores customers

Product devlopment

Online, catlog and other retail

Customer needs/wants feedback

Nike branded stores

THE SWOOSH
Origin of the name NIKE The SWOOSH -simple ,fluid and fast

CHANGE IN LOGO
Swoosh Logo Over the years

STRENGTH
Very competitive organization Worlds number one shoe maker Very strong at R&D and covers a vast area Nike has no factories Strong marketing campaigns

WEAKNESS
It does not have a unrelated diversified range of products. Retail store is very price sensitive Expensive as compared to competitors Recession in Asia

OPPORTUNITIES
Opportunity to develop products such as sunglasses and jewellery. The business could also be developed in growing, building upon its strong global brand recognition. Global events

THREATS
Intense competition Cost and margins are not stable Decline in online retail Recession of economy

Diversification strategy
Related diversification. Falls into category of related constraint. Builds upon or extend its core competency and resources/capabilities to create value. E.g. Cole Haan line of luxury footwear and Bauer Hockey utilize cost savings from capabilities and competencies that were developed in one of its businesses, Nike and used in the others.

Various areas and lines of diversification


Beach style sport clothing- Hurley Hockey market- Bauer Golf market Other top selling categories of are Shoes for men, women and children, basketball and cross training etc.

Objectives of Diversification Strategy


Reduce the companies dependence on the Swoosh brand. Internal incentive- lower the firms risk. External incentive- greater profits.

International strategy
Nike is Desirable Brand. Uses Transnational Strategy e.g. In Holland Bleed Orange Strategy & In India Bleed Blue Strategy. Global Strategy by using same Slogan and Logo. Multidomestic Strategy. Flexibility and global integration.

COOPERATION STRATEGY
A key area for Nike is forming STRATEGIC ALLIANCES EG. American Skiing Company, Royal Philips Electronics , Nike+Ipod with Apple,etc. Benefits Helped to compete fiercely in different facets of the sporting goods industry. ( eg. mountain biking, snowboarding) Helps wherever the company does not have the muscle and brand to infiltrate unrelated markets. Reduces and spreads the risk of fully entering new markets.

Acquisitions
It prefers

Horizontal & Related acquisitions

CASE STUDY OF BAUER BENEFITS Helped Nike smoothly enter the market with low

barriers, as bauer was an established market player. Bauers, popular name helped Nike gain market share among Canadians & hockey fans world over. This proved be less costly , quicker to enter the hockey equipment market. Aided Diversification , helped increase portfolio.

Nike Bleed Blue- Brand Star of World Cup 2011

Why this strategy?


Nike being a sports brand Cricket- Religion in India Covers larger target audience

What worked for us


1. The Mantra: Simple, yet evocative 2. Product integration: Not just a support for India cause but the product was at the centre

3. Aiding consumer participation: Mantri Square in Bangalore Creating your own ad Expressing your love creatively Hand print counters- 11 million handprints via an innovative digital and events campaign

4. Scale of publicity: Aside from all this the campaign was helped by its scale both of imagination and execution. The concept became viral Continue to Bleed Blue- Interviews through Nikes YouTube channel

Drawbacks
Success dependent on the victory of the team Even Sri Lanka had blue jerseys.

How it helped us
1. Marketing of Team India merchandise 2. The only brand authorized to sell Team India ODI (one-day international) merchandise

3. Interact with athletes and get valuable feedback 4. The sale of our replica jerseys and other cricket-related products has been phenomenal

Competitors Strategy
Main competitors are Adidas, Reebok, Puma. Adidas strategy of acquiring Reebok. Adidas-Reebok combine could now give a tough competition to heavyweight Nike. Adidas technology with Reebok design. Adidas global strength and Reebok U.S. strength. Joint Research and Development will provide cutting edge technology.

Adidas sponsoring FIFA World Cup 2010


Benefits of this Strategy: Increase in the sale of Merchandise e.g.: Footballs, Jersey, Shoes. Increase in Brand Recognition.

Recommendations
Penetrate and market aggressively in growing economies. Continue to innovate and be the path breakers. Change image of producing sweatshop factories. Concentrate more on other subsidaries as well.

THANK YOU