2. HISTORY SNAPSHOT
Bill bowerman and phil knight founded the company “BLUE RIBBON
SPORTS” in 1964.
Contributed usd 500 to the partnership and managed to sell 300 pairs of tiger
running shoes within three weeks
8 years later, they introduced a novel brand of athlet-ic footwear called
“Nike”, named after the greek goddess of victory.
In 1980 the company went public and within the following year nike became
the predominant brand of the company
In 1986, corporate revenues surpassed USD 1 billion for the first time.
Nike underwent a period of substantial expansion in the 1990 starting with the
acquisition of cole haan, an american luxury brand.
The company is headquartered near Beaverton, Oregon, in the Portland metropolitan
Employs more then 10,79,139 world wide ,and also Employs 64300 supply chain
Contract suppliers in china, Vietnam, Indonesia and Thailand manufactured 97% of
total NIKE brand footwear, respectively.
930 factories in 50 countries .
The principal materials used in our footwear products are natural and synthetic
rubber, plastic compounds, foam cushioning materials, nylon, leather, canvas and
5. INSIDE THE NIKE MATRIX
Nike inc. Comprises 44 wholly-owned
subsidiaries of which seven are U.S.-Based.
6. KEY REGIONS
A Geographical breakdown of Nike’s revenues shows that the majority of
revenues are made outside the U.S. market
In fiscal 2013, non-U.S. sales (including non-U.S. sales of Cole Haan,
Converse, Exeter Brands Group, Hurley, NIKE Bauer Hockey, Umbro,
and NIKE Golf) accounted for 57 % of total revenues .
In 2013, with USD 6,378 million accounting for 40 % of Nike’s total sales,
the U.S. was Nike’s single most important market.
USD 5,620.4 million or 35 % of its global revenues were achieved in the
The Asia-Pacific region recorded sales of USD2,881.7 million or 18 % of
Nike’s global sales
Nike’s global sales were approximately USD 18 billion in fiscal 2013, up by
14 % compared to the previous year.
8. OPERATIONAL STRATEGY
Is the development of a long term plan for using the major resources of the
firm for a high degree of compatibility between these resources
NIKE unveiled one of its strategies & key initiatives to achieve
sustainable, long term growth across its global portfolio of brands &
Their plan consists of a revenue target of 27 billion by the end of 2015 and
over 12 billion of free cash flow from operations through 2015
NIKE also uses an outsourcing strategy, where they have subcontractors
scattered throughout the globe
Imitative strategies generally relies on following or imitating other
companies, while having predictable demand, are efficient and have a low
cost supply chain