MANAGERIAL

ECONOMICS
NIKE , INC COMPANY PROFILE

SUBMITTED BY: VAISHNAVI B

I MBA , A
SUBMITTED TO: DR. VIDYAVATHI K
PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
INTRODUCTION TO NIKE, INC.

• An American multinational that is engaged in the design ,

manufacturing, and worldwide marketing and sales of footwear,
apparel, equipment, accessories, and services.
• Ranked No. 90 in Fortune 500 list, 2019.
• Nike sponsors many high-profile athletes and sports teams around the
world, with the highly recognized trademarks of "Just Do It" and
the Swoosh logo.
• Recognized as athletic shoe and apparel(clothing) brand especially
meant for soccer.
• World’s Largest supplier for Athletic shoe and apparel.
HISTORY

• Company was founded as Blue Ribbon Sports (BRS) in1964, by

university of Oregon track Athlete Philip Knight and his coach Bill
Bower Man.
• Initially Operated as shoe distributor of Japanese shoemaker Onitsuka
Tiger selling 1300 pairs of shoes making gross of $8000 for the first
year.
• First Retail Shop Opened by BRS in 1966, selling Onitsuka Tiger Shoes
located at 3107 Pico Boulevard in Santa Monica, California.
• In 1967, due to rapidly increasing sales, BRS expanded retail and
distribution operations on the East Coast, in Wellesley, Massachusetts.
• In 1971, BRS ended their relationship with Onitsuka Tiger, and Started
their on shoe line with renaming BRS to Nike on 30 th May 1971
• The company takes its name from Nike, the Greek
goddess of victory.
• From 1971 to 1980’s the company expanded globally
due to its booming sales.
• In 1976, the company hired John Brown and Partners,
based in Seattle, as its first advertising agency.
• First acquisition being a footwear company named Cole
Haan in 1988
• In 1990, Nike moved into its eight-building World
Headquarters campus in Beaverton, Oregon and opened
its first retail store “NIKETOWN” in downtown Portland.
• Acquired Bauer Hockey in 1994. In 2002, Nike bought
surf apparel company Hurley International from
founder Bob Hurley. In 2003, Nike Converse, makers of
the Chuck Taylor All-Stars line of sneakers. The company
acquired Starter in 2004 and Umbro, known as the
manufacturers of the England national football team’s
kit, in 2008.
BOARD OF DIRECTORS
Mark Parker - President and CEO, NIKE, Inc. (Soon to Be replaced by former
CEO of eBay John Donahoe)
Charlie Denson - President, Nike Brand, NIKE, Inc.
Maria Eitel - President and CEO, Nike Foundation
Howard Taylor - Managing Director, Nike Foundation
Collette Hemmings - Chief Operating Officer, Nike Foundation
Caroline Whaley - General Manager, Creative Development, Nike Foundation
Stuart Hogue - General Manager, Girl Hub, Nike Foundation
Don Blair - Executive VP and CFO, NIKE, Inc.
Jennifer Buffett - Co-Chair, NoVo Foundation
Peter Buffett - Co-Chair, NoVo Foundation
Gary DeStefano - President, Global Operations, NIKE, Inc.
Trevor Edwards - Executive VP, Global Brand & Category Management, NIKE,
Inc.
Hannah Jones - VP, Sustainable Business & Innovation, NIKE, Inc.
Hilary Krane - Executive VP, Legal and Corporate Affairs, NIKE, Inc.
TAGLINE AND LOGO

TAGLINE
In 1977 the ad agency created the first "brand ad" for Nike, called with
tagline being "There is no finish line", in which no Nike product was shown.
It was agency co-founder Dan Wieden who coined the now-famous slogan
"Just Do It" for a 1988 Nike ad campaign, which was chosen by Advertising
Age as one of the top five ad slogans of the 20th century and enshrined in
the Smithsonian Institution.
LOGO
The logo is not a tick mark but SWOOSH which represents motion and
speed.
VISION AND MISSION

VISION
“TO BRING INSPIRATION AND INNOVATION TO EVERY
ATHLETE IN THE
WORLD”
MISSION
“INNOVATE WORLD FOR BETTER”
SUPPLY CHAIN

• Currently Nike operates 3 distribution center just for its footwear, and
21 distribution center internationally in Europe, Africa, Canada,
Australia, Asia and America and more than 50 local distribution center
• Sells their product through Retail Distribution, Wholesale Distribution,
Licensed Distribution and Online Distribution like Nike Town, Nike
Stores, Multi-brand stores, Departmental Stores, Factory Outlet Stores,
Nike Online Stores and Other Online Portals like Flipkart, Amazon etc.
• There are over 83000 employees at average per distribution center
and 180000 employees in the main 3 distribution center.
• The aim at opening more distribution center on renewable energy
source in order to reduce to operational cost, and increase the
productivity of the company.
• There are wagon ships and trains bought by Nike just to carry out
supply of product overseas .
FINANCES
• Nike bought back $8 billion of Nike's class B stock in four years after the current $5 billion
buyback program was completed in the second quarter of fiscal year 2013. Up to September
2012, Nike Inc. has bought back $10 billion of stock.
• Nike was made a member of the Dow Jones Industrial Average in 2013.
• On December 19, 2013, Nike's quarterly profit rose due to a 13% increase in global orders
for merchandise since April of that year. Future orders of shoes or clothes for delivery
between December and April, rose to $10.4 billion. Nike shares (NKE) rose 0.6 percent to
$78.75 in extended trading.
• In November 2015, Nike announced it would initiate a $12 billion share buyback, as well as a
two-for-one stock split, with shares to begin trading at the decreased price on December 24.
• In June 2018, Nike announced it would initiate a $15 billion share buyback over four years, to
begin in 2019 upon completion of the previous buyback program.
• For the fiscal year 2018, Nike reported earnings of US$1.933 billion, with an annual revenue
of US$36.397 billion, an increase of 6.0% over the previous fiscal cycle. Nike's shares traded
at over $72 per share, and its market capitalization was valued at over US$114.5 billion in
October 2018.
STRATEGIES USED

• Target segment is young shoppers since they are more

focused in health and wellness.
• More competitions is leading to better quality products.
• Making people comfortable and growing brand loyalty.
• Athletic Apparel and Shoes globalized.
• Investment of money to hold most iconic athletes to be the
face of brand.
 PRODUCT AND SERVICE

FOOTWEAR EQUIPMENT
 BALL
 BOOTS AND  BAGS
STRIKERS  WATCHES
 MID FIELDERS  DUMBELLS
 DEFENDERS  NATIONAL TEAM GEAR
 SNEAKERS BEING JERSEY FOR
 FLIP FLOPS ENGLAND,BRAZIL ETC.
 SANDALS  CLUB JERSEYS LIKE MAN
 RUNNERS U, REAL MADRID ETC,

APPAREL SERVICES
 HEADWEAR  FITNESS APP SERVICE
 TOPS/POLO  PERSONAL STYLIST
 JERSEY  NIKE WOMEN
 JACKETS
 SHORTS
 SOCKS
 SHOCKS
 ACTIVE SPORTS LINE
 BANDS
COLLABORATION AND TIE UPS

• COLLABORATION AND TIE UPS ARE DONE WITH SPORT

PERSONALITY, YOUTUBERS, BLOGGERS AND ACTORS.