Professional Documents
Culture Documents
PRESENTED BY:
MOHIT BIHANI
18PGDM136
COMPANY HISTORY
• Nike, Inc. is an American multinational corporation that is engaged in the design,
development, manufacturing, and worldwide marketing and sales of footwear, apparel,
equipment, accessories, and services.
• The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill
Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971.
• They opened their first retail outlet in 1966.
• By the early 21st century, Nike had retail outlets and distributors in more than 170 countries,
and its logo—a curved check mark called the “swoosh”—was recognized throughout the
world.
• Part of Nike’s success is owed to endorsements by such athletes as Michael Jordan, Roger
Federer, Cristiano Ronaldo and Tiger Woods.
• Nike sponsors many high-profile sports teams around the world, with the highly recognized
trademarks of "Just Do It” and the “swoosh” logo.
PRESENT SCENARIO
• As of 2018, Nike was the most valuable global apparel brand, with a brand value of 28
billion U.S.
• The company has a very strong financial record, generating over 30 billion U.S. dollars
in revenue each of the last four fiscal years.
• Nike has three main business segments: footwear, apparel, and equipment. In 2018,
footwear led the way in terms of sales revenues, bringing in over 22.2 billion U.S. dollars
in 2018
• The company employed about 73,100 people worldwide in 2017.
• The North American region of Nike generated the largest portion of the company's
revenue with approximately 14.9 billion U.S. dollars in 2018.
• The United States is a core market for Nike, with the company generating
approximately 42 percent of their overall revenue there in 2018.
SWOT ANALYSIS
STRENGTH WEAKNESS
• Nike uses a “Make to Stock” customer order which provides a • The income of the business is still heavily dependent
fast service to customers from available stock. upon its share of the footwear market. This may leave it
• Nike is strong at research and development, as is evidenced by vulnerable if for any reason its market share erodes.
its evolving and innovative product range. They then • The retail sector is very price sensitive. However, most
manufacture wherever they can produce high quality product of its income is derived from selling into
at the lowest possible price. retailers. Retailers tend to offer a very similar
• Nike is a global brand. It is the number one sports brand in the experience to the consumer. So margins tend to get
World. Its famous ‘Swoosh’ is instantly recognizable, and Phil squeezed as retailers try to pass some of the low price
Knight (Founder and CEO) even has it tattooed on his ankle competition. pressure onto Nike.
OPPURTUNITIES THREATS
• The biggest opportunity for Nike is from the emerging markets • Nike is exposed to the international nature of trade. It
of China and India where consumers are aspiring to western buys and sells in different currencies and so costs and
lifestyles which means that they would be more receptive to margins are not stable over long periods of time. Such
brands like Nike. an exposure could mean that Nike may be
• The emphasis on design of higher end footwear seems to be manufacturing and/or selling at a loss. This is an issue
paying off for Nike that is increasingly being seen as a must that faces all global brands.
have product. • The market for sports shoes and garments is
• In recent years, Nike has begun to diversify into accessories very competitive. Competitors are developing
and premium products apart its signature footwear segment. alternative brands to take away Nike’s market share.
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