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Semelhante a Nike, Inc by Karan shah (20)
Nike, Inc by Karan shah
- 3. 3©Karan Shah
1. Overview
2. Challenges
3. Expansion of Nike
4. Industry and business situations
5. Competitors & Market Share
6. Competitive Advantage
7. 4P’s of Marketing Strategy
8. Porter’s 5 Forces
9. SWOT Analysis
10.Recommendation
11.Conclusion
12.References
- 4. 4©Karan Shah
Nike, Inc. is the world’s leading innovator in athletic footwear, apparel, equipment and
accessories.
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.
The company takes its name from Nike, the Greek goddess of victory.
The company is headquartered near Beaverton ,Oregon, USA.
Area served – Worldwide more then 160 countries.
With revenue in excess of US$27.1 billion. As of 2013, it employed more than 44,000
people worldwide.
Nike operated 690 retail stores worldwide and managed 23,000 retail account in US.
Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air
Jordan, Air Force 1, Nike Dunk, Nike Skateboarding, and subsidiaries including Brand
Jordan, Hurley International LLC and Converse inc.
Website launched in 1998 with Nike.com
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Nike’s Mission –
Nike aims to lead in corporate citizenship through proactive program
that reflect caring for the world family of nike ,our teammates, our
customers ,and those who provide service to Nike
Nike’s Vision -
“TO BRING INSPIRATION AND INNOVATION TO EVERY ATHLETE* IN
THE WORLD.IF YOU HAVE A BODY,YOU ARE AN ATHELETE.
Nike’s Slogan –
JUST Do IT…
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Tightening competition – growth of Adidas, New Balance, Marketing
expenditures are growing steadily.
Losing market share in China.
Nike’s premium and high quality brand image doesn’t sync with the
expectations of the customer.
Nike is heavily dependent on information technology systems across its
supply chain.
2. Nike challenges
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NIKE+ allows us to connect the physical world of sport with the social elements of
digital to create a better sport experience for every athlete. It’s about much more
than a shoe. It represent a shift for NIKE from product, to Product+ experience.
- Mark parker , Nike CEO
Founded in 2010, with joint venture with Apple , INC after the initial digital and
social success in Soccer and running ,The Nike digital Sport division , based in Jerry
Rice Building at Nike ‘s headquaters in beaverton, Oregon.
Nike+ was made up of censor placed inside running shoes that monitored the
runner’s speed ,distance and calories burned and transmitted that information to
the ipod, which receive and stored data.
The censor is 30$ and running shoes averaged 80$.
In 2010, Nike increased fuctionalality by adding the Nike+ GPS app and Nike + GPS
SportsWatch .
In January 2012, Nike + FuelBand costing 149$ , the FuelBand was a wristband that
track the wearer’s movement through the day.
In February 2012 , Nike+ Basketball and Nike+ Training connected new footware,
which featured digital sensors with wireless communication capabilities with the
nike + interactive mobile platform. The Sensors collect information about the user’s
movement and transmitted the data to a smartphone.
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4. Industry Revenue Growth & Market Price Of Nike
As we can see the
continuity in growth
Nike has made the
Nike, Inc reached Fiscal
2014 revenues from
continuing operations
up 10 percent to $27.8
billion.
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5.Competitors , Key Customer & Market Share
ADIDAS AG: 2013 revenues - $14.49 billion. It competes in the overall
sporting goods market.
PUMA: 2013 revenue - $3.5 billion. Puma AG is a Germany-based competitor
in the sells sports footwear, apparel, accessories, and equipment.
UNDER ARMOUR: 2013 revenue - $856.4 million. Its products, which are
designed with microfibers intended to wick away perspiration, extend across
the sporting goods, outdoor, and active lifestyle markets.
In addition to Nike's footwear competitors, the company also competes with
other makers of outdoor apparel, such as V.F. Corporation, Columbia
Sportswear and Quicksilver.
KEY Customers
• Women
• Men
• Girls and Boys
3 – 36 month
3 – 8 Years
8 – 15 Years
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6. Competitive Advantage
Technology in Products
Nike technology allows consumers to connect their iPod devices to sensors
inside the shoes to record time, distance, pace, and calories burned.
Manufacturing Skills
Due to cheap labor in foreign countries, Nike outsources virtually all production
to other areas of the world.
Strength of Patents
One of Nike’s most revolutionary technologies comes through its footwear
cushioning. Competitors have tried to match rival Nike’s cushioning systems, but
none have matched their success
Economies of Scale
Nike is the single largest producer of athletic footwear and apparel, allowing
them large cost advantages over competition.
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- Offers a diverse range of high quality sporting goods and apparel.
- Product mix width consist of athletic shoes , apparel and sports
equipment.
4 P’s
Marketing Strategy
Product
- A premium product commands a premium price, at e same
time as the company also compete heavily with their main
rival Adidas.
- Uses market skimming pricing strategy.
- Product line pricing.
Price
Promotion
Place
- The business has a rich history and bright future using
sponsorship to generate brand authenticity in their markets.
- Direct Marketing (through e-Shop).
- Public personal relations and also with Social Media .
- Mass Advertising.
- Nike is truly global corporation seeking to further segments its
current markets and increase its impact in China, Russia , brazil and
INDIA in particular through independent distributors , licenses ,
subsidiaries.
- Sells product in approximately 160 countries around the world.
- 16. 16©Karan Shah
Threats of Potential Entrants (LOW)
Barriers to entry in the athletic footwear industry are high due to
several factors:
It is as very capital intensive industry.
Economies of scale
The industry itself is in a consolidation phase and only the big ones will
survive.
Bargainng power of Buyers (VERY HIGH)
Customers more affected by price.
There has been and increase in women purchasing the shoes.
The buyers for this industry are retailers and end users. .
Threats of Substitutes Products (LOW)
They are an attractive alternative product or service, which customers
can easily shift to if there are low switching costs
The availability of substitutes invites customers to make price, quality
and performance comparisons.
Buyer’s propensity to substitute is low.
PORTAR 5’s Forces
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Suppliers (LOW)
The suppliers do not have the power to bargain the price of their
product, since there are numerous suppliers.
Using production facilities in the Far East has give Nike
economies of scale.
Competitive Rivalry(HIGH)
Reebok, offering more choice of shoe
Acquisition between Adidas and Rebook .
PORTAR’s 5 Forces
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STRENGHT
WEEKNESS
• Nike is strong at research and development.
• Offers their product worldwide.
• Nike is globally recognized
• Nike has no factories
• It has a strong sense of marketing strategy
• Strong financial position
• Reported to have applied child labor in pakistan.
• Accusations of poor conditions in the work place.
• History of violations of over time laws
• Searching for cheap labour
• Income of the business is still heavly dependent
upon its share of the footware.
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OPPORTUNITY
Product development that changes as the trends change.
Diversification in product range
Expansion in the global markets
Make Efforts to reduce the pollution generated from Nike
manufacturing factors.
Reduce prices in Asia and third world countries.
Expansion in Sport sunglasses and jewelry lines
THREATS
• Currency value fluctuations that can lead to losses.
• Competition is strong among athletic footwear.
• Managing the financial conditions in the economy.
• Maintaining the reputation of being eco –friendly.
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Improve its marketing plan including advertising.
SIMPLFY ITS WEB SITE.
Focus on setting up a reliable Information system.
Nike should focus more on its labor working conditions and
wages.
Increase its market share in the middle-east.
Increase its acquisition due to increasing the threat from
adidas and rebook merger.
More emphasis on women Athletic.
Design shoes for elderly women and pregnant women.
10. Recommendation
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11. Conclusion
To summarize the presentation, I would conclude that
nike has done pretty good in this financial crisis.
Providing excellent services in the foot wear industry.
Still to Date they are the market leader within the
industry.
Entry barrier for other competitors in the industry is still
very high to compete with Nike.
