TableofContents

Preface
1
Company
Profile2
Nike Shareholder Information..
.4
Backgroundon7S
Strategy
.6
Structure
7
Shared
Values9
Skills
.10
Staff..
11
Systems
12
Style..
.13

NikePortersFiveForcesModelofCompetition
Supplier
Power...................14

Buyer
Power....15
Threat

of

Entry...16

New

Competitive Rivalry
17
Threat

Substitution.19

of

NikeS.W.O.T.
Strength.
20
Weakness...
21
Opportunities....................22
Threats..
.23
RecommendationsforHigherProfit....24
Works Cited..
27

Preface:
AspartofthenewemployeeprogramatNikeInc.,groupWentworthisinrotationand
assignedtotheStrategicPlanningDepartmentsector.TheobjectiveofgroupWentworthisto
findwaystoincreaseNikesprofit.Indoingthis,thegroupistoperformathoroughanalysis
thatincorporatestheusesofMcKinseys7SFramework,PortersFiveForcesModel,SWOT
analysis and anything else deemed necessary. Group Wentworth is to compile a
comprehensivereport,andsubmitittotheproperexecutives.

ExecutiveSummary:
Foundedin1962byPhilKnightandBillBowerman,NikeInc.hasevolvedintooneofthe
mostrecognizablebrandsintheworld.Owning80%ofthecurrentmarketshareinathletic
apparel,whilealsosponsoringthemostpowerfulathletes,teamsandiconsintheworld
makesthemtheclearcutproductleader.FY2011reportsshowthatNikeInc.revenueswere
accountedforat$5.8billion,andnetincomeat$594million.NikeInc.hasover47,000
branchesinover100differentcountriesacrosstheworld,duetotheirhandsstretchingout
wideduetoownershipsofColeHaan,Umbro,Converse,andmanymore.NikeInc.plansto
dominate the competition and athletic industry by using its differential advantage and
continuingtobeapioneerinallfacetsofsportsindustry.

NIKESHAREHOLDERINFORMATION

StockInformation:

IncomeStatement:

BACKGROUNDON7SFRAMEWORKS:

The7SFrameworkhasbeenusedforgenerationstointernallyanalyzecompanies.
The7sarestrategy,structure,system,sharedvalues,style,staff,andskills.Thestrategyofa
company is the plan devised to maintain and build competitive advantage over the
competition.Thewaytheorganizationisstructuredandwhoreportstowhomcangoalong
wayanddevelopsgoodcommunication.Thesystemofanycompanyisthedailyactivities
andprocedures thatstaffmembersengageintogetthejobdone.Acompanyhasaset
amountofsharedvaluesorsuperordinategoalswhenthemodelwasfirstdeveloped,these
arethecorevaluesofthecompanythatareevidencedinthecorporatecultureandthegeneral
workethic.Thestyleofleadershipadoptedandtheemployeesandourgeneralcapabilities
sumupstyleandstaff.Finally,themostimportantpartofthisanalysisiswhatskillsthe
companypossessesinordertokeepthecompanysuccessful.Themodelisbasedonthe
theorythat,foranorganizationtoperformwell,thesesevenelementsneedtobealignedand
mutuallyreinforcing.Themodelcanalsobeusedtohelpidentifywhatneedstoberealigned
toimproveperformanceortoduringtypesofchange.

THESEVENSFRAMEWORKS(INTERNALANAYLSIS)

Strategy:

Nikeusesthereathletesassponsorstoadvertiseourproducts.Theycreateproducts
thatwillappealtoaswideofanaudienceaspossiblewhileusingthecelebrityathletesto
endorsethem.NikestartedasashoecompanyandourAirJordanshoelineisnowoneofthe
mostpopularbrandsforyoungadults.FeaturingMichaelJordan,thebestbasketballplayerof
alltime, young athletes want to wear Air Jordan shoes while playing basketball and to
hopefullyplaylikeMichaelJordan.Inaddition,wepromotemorethanjustshoes;athletic
apparelandequipmenthaveallbeenselectedincertaincommercialswherespecificathletes
promotetheNikeBrand.Moreimportantly,NikecreatesourtrendyproductsinChinain
ordertogetabiggerreturnonprofitssincelaborandmaterialcostsareextremelycheap
outsidetheUnitedStates.
Niketendstocoordinateourproductwiththeaudience.Inordertosurviveyou
needtohavetheabilitytochangeandexpandyourcompany.Granted,Nikewasasuperior
shoecompany,butexpandingandbroadeningourproductrangetoapparelandequipment
hasmadeNikeintoapowerfulinternationalconglomerate.However,thebiggestwayNike
intendstoachieveourobjectiveisbyhavingthemostwellknownathletespromotingour
products.
Reebok, Adidas, and New Balance are the main competitors against Nike.
However, since we have created a unique strategy, there differential advantage has
separatedusfromallothercompetitors.OurnewdevelopmentofNikeID,whereyoucan

customizeyourownpersonalshirts,shorts,andshoesonline,hasseparatedusfromour
competitorsbygivingthe

customers the ability to design the product. Also, expanding and providing excellent
servicestocustomersallowsNiketoimplementourstrategytomakeasubstantialprofit.
ThecustomerdemandsarewhatNikethriveson.CustomersfeedbackonNikes
productsallowsustofurthercreatemoreconsumerappealingproducts.Ontheotherhand,
sincewehaveathletespromotingourproducts,peoplebelievethatsincethecelebritiesare
wearingthem,theyshouldtoo.So,customersrarelycomplainaboutcertainNikeproducts
andwiththearrivalofNikeID,customerscannowcreateunique,customizableproducts.
Nikesenvironmenthasitsstrengthsandweaknesses,buthasgottenbadpublicityfor
ourlaborrelationsandfactoryconditionsoverseas.However,Nikesmarketingresearchhas
madethemintothecompanytheyaretoday.Asaresultofproductandpricingresearch,
Nikehasfocusedonthehighendmarketwhileincreasingitsmarketshareinthemiddleand
lowprice
rangesinanattempttobroadenNikesproductspectrum.

Structure:
Nikehasover47,000branchesinover100differentcountriesacrosstheworldand
themainfacilityislocatedinBeaverton,Oregon.Sinceweareworldwide,ourspecific
branchescanattendtocustomerproblemseasierandordersonlinecanbedeliveredina
timelyfashion.
Inordertomaintainpropermanagementandorganizationinanycompanythereneedsto
behierarchy.Eachbranchhasitsownmanagerandfinancialteamlikeeveryothercompanyin
thebusiness.However,Nikesresearchanddevelopmentteamhasastrongimpactandsince
Nikehasmergedwithsomemanydifferentcompanies,theCEOandDirectorofOperationshave

tocoordinatewitheachdepartmenttoeffectivelysucceed.Finally,managementsendsweekly

Works Cited

emailstoupdateemployeesontherecentsuccessesofNikesponsoredathletes,andoften
hostsspokespeopletomotivateandthankitsstaffforcontributionstothesportsworld.
NotonlydoesNikehavevariousdepartmentsfordifferentproducts,wehaveactual
companiesthatweboughtoutandnowmanage.Normally,meetingsandstatusreportson
howeachdivisionanddepartmentisperformingiskeytoanalysisanddeterminehowto
coordinate activities. In addition, Nikes technology has been upgraded therefore; the
activitieswithinthebranchitselfcanimprove.Nikesleadershipstyleischaracterizedasa
team management approach. Our upper management consists of executives with vast
experienceandknowledge.ThroughoutNike,weareateamorientedorganizationthatisalso
capableofworkindependentlyrecognizingthecommonstakethateachplaceholdswithin
Nike.
NikehashadspecialpromotionswhereaverageAmericancitizenscustomizetheir
ownshoeandthebestonewasturnedintoanactualproduct.Decentralizingourdecision
makingis agreatwaytomakesurethecustomers likewhatNikedelivers.Inaddition,
sponsoredathleteshaveagoodsayonwhetherthewillwearthenewproductbecauseif
customers see the athlete wearing it, the products stock and value increases. However,
havingadecentralizedcompanyworkswellfortheproductsbutmostownershipdecisions
andmergerswithinthecompanycomefromcorporate.
NikessloganJustDoIthasbeenthelabelforthecompanysince1988.Through
itsJustDoItcampaign,Nikewasabletotapintothefitnesscrazeofthe1980s.While,
Reebokwassweepingtheaerobicsraceandgaininghugemarketshares,Nikecontradicted
thisbythelaunchofthiscampaign.WithReebokscomfortableandmuchcheapershoesit
washardforNiketocompete.However,Nikerespondedbyreleasingatough,strongad

campaign that seamlessly forced people into exercising, but more importantly, to buy
Nikes.Notonlyhasthe

campaigntakenoffsincethen,theexplicitmessagethatNikeconveyedtransformed
thecompanyintowhatitistoday.

SharedValues:

Nikesmissionstatementistobeacompanythatsurpassesallothersintheathletic
industry.Inordertodothis Nikeneeds tomaintainourpositionbyprovidingquality
footwear,apparelandequipmenttoinstitutionsandindividualconsumersofallagesand
lifestyles.Nikepledgestomakeourproductseasyavailableworldwidethroughtheuseof
retailoutlets,mail
2

orders,andourcompanyswebsite .Nikesmanagementbelievesthatoursuccessliesinthe
handsofourteammates,customers,shareholdersandthecommunitiesinwhichweoperate.We
vowtokeepthisinmindwiththeexecutionofeverydecisionwithinourcompany.Inorderto

maintainthesevalues,Nikewantstobeknownasarespectedandprofessionalcompany.

Inaddition,Nikewantstobuildrelationshipsaroundtrustandrespect.Thecompany
culturelendsahandtothefactthattopmanagementsteamworkstylehasspreadthroughoutthe
organization.Thecorevaluesincethebeginninghasalwaysbeenestablishingacompanythat
produces top quality athletic footwear and apparel. Nikes devotion to the research and
development of its products has made it the largest market share and the leader of quality
products.SincebecomingaworldwidecompanyNikehasbeenstrivingtowardsaninnerculture
thatreflectsthismantra.Employeesaregivenanhourandahalfforlunchtoplaysportsor
simplyworkout.ThenewNikeisnotjustabouttheproducts,butaboutpromotingalifestyle.All
newemployeesviewavideoofsportshighlightsaccompaniedbyasoundtrackthatdiscussesthe

2
3

Works Cited
Works Cited

athletescompetitivespirit.Thishelpstheemployeesrelaxandmakethemcomfortable
andhappycomingintowork.SimilartoGoogle,Nikehasbroughtahomeandfun
feelingtotheworkplace.

Skills:

Nikesstrongestskillistoadvertiseandmarketourproductsaboveandbeyondthe
competition. Acquiring the best athletes to promote and wear certain products on
commercialsgivesNiketheedgeoverallothercompanies.Inaddition,ourabilitytoexpand
awayfromjustshoesaswellasexpandinternationallyincreasedourmarketshareandprofits
dramatically;nowhavingnetrevenueinexcessof$13billion.Followingthat,Nikehas
mergedwithothercompaniessuchasLivestrong,Converse,Umbro,andColeHaantoname
a few to further promote the company. These companies help Nike reach out to more
customersseekingdifferentstylesandproducts.AnotherwayNikeoutcompetestherestof
ourcompetitorsissimplycreatingabetterproduct.TheNFLrecentlyleftReeboktosigna
newdealwithNiketocreatenewuniforms whichwillbringinupwardsof350million
dollars annually. Nike has been actively involved in providing college uniforms to top
collegesaroundthenationwhichcaughttheNFLseyes.Overall,Nikehasrevolutionized
notonlytheshoemarketbutalltypeofathleticapparelandequipment.
NikehasupgradedallourstoresandbranchestoPCbasedsystemsrunningthemore
sophisticatedWindowsNToperatingsystem.Thishasallowedemployeestheabilitytokeep
trackofsalesandinventorydataeffectivelyandhascutdownonmistakes.Inaddition,Nikehas
improvedoverseafactoryconditionsinordertocoverthemfromthebadmediacoveragethey

facedinthelate90s.Thishasincludedincreasingtheminimumageofworkto18,
buildingeducationprogramsforworkers,andevengivingloanstolowincomefamilies
inAsia.
4

Generally,mostemployeesonalllevelshavetheabilityandcapabilitytoperformthejob .

Staff:

OneofNikesstrongspecializedteammemberisCofounder,PhilipH.Knight,has
beenwithNikesinceitsinception.Asaresult,hehasmuchknowledgeandexperienceabout
thecompanyandtheindustriesinwhichitcompetes.Knightsstrategicplanningmanagerial
is both risky and conservative decisions based on careful thought and analysis. His
participativedecisionmakingstylecanalsobeviewedasawillingnesstolistentoothersto
generateideas.
Hedoesnotlimitthecompanysoptionstoonesidedideasanddecisions.

NikewillbehavingmajorchangeswithinourBoardofDirectors.Theaverageageof
Nikesboardisaround62.Thisconstitutesapossibleproblemwiththelackofyouthwho
couldservetobringanewperspectivetothecompanyandassistinachievingNikesgoals.
However,Nikehasconsistentlybeensuccessfulandincreasingprofitsthroughoutthepast
years.

Systems:

ThemainsystemsthatrunNikeareourResearchandDevelopmentandAdvertising

campaigns.Havingagoodproductcanonlybenefitthecompanyifyoucanpromoteit.Nikes
advertisingisglobalsendingoutthemessagethatNikeisTHEbrandtowear.Controlling80%
4
5

Works Cited
Works Cited

of the market for all sports apparel, our cutting edge products allow them to sell our
products above market value and get a greater return. Over the years Nikes Human
ResourceshascontrolledallincidentsincludingthelabordisputeinAsianandhasbeena
strongaspectofthecompany.Asforfinancialstatus,thepast5yearstheyhaveincreased
ourtotalrevenueover4millionandourprofitby2.5million.

Style:

Over the past decade Nikes management wants to implement a lifestyle to

employees. Making it a comfortable coming into work and promoting team building.
Obviously, our profits proved that our leadership and management styles are effective.
Incorporatingsportsintotheworkplaceisalwaysagreatwaytoimplementacompetitive
spirittoemployees.Overall,Nikehasbecomethebestsportsdistributorthepasttwenty
yearsandwillcontinuetogrowandexpand.

PortersFiveForcesModelofCompetition

SuppliersPower:
NIKE has stores located in 45 different countries and has over 700 shops
throughout the world. This means NIKE has a variety of different suppliers, from
different countries, to handle the massive amount of apparel demanded by their
customers.Theadvantageofhavingawidespreadofdifferentsupplierscreatesequal
sourcingbetweenthevariousmerchants.Ourmanufacturesareallwhollyowned

businessesofNIKE,andsomeindependentcontractorsinChinaandTaiwan.Theprincipal
materialsusedinourapparelproductsarenaturalandsyntheticfabricsandthreads,plastic
andmetalhardware,andspecializedperformancefabricsdesignedtorepelrain,retainheat,
orefficientlytransportbodymoisture.NIKEscontractorsandsuppliersbuyrawmaterialsin
bulk.Mostrawmaterialsareavailableinthecountrieswheremanufacturingtakesplace.We
havethusfarexperiencedlittledifficultyinsatisfyingourrawmaterialrequirements.Dueto
theyearsinbusinesswithoursuppliers,NIKEhasprovidedahealthyrelationshipwithits
manyofthemwhichguaranteesusanadvantageoverallofourothercompetitors.

BuyerPower:

NIKEsawarenessofitscustomersattributesiswhatkeepsusaheadofourcompetitors
andasacustomerfavorite.Extensiveresearchisdonebyourcompanyeachandeveryyearto
figureoutwhatourcustomerspreferencesinstyle,comfort,andpricemaybe.Thisresearch
gives our company a competitive advantage over our competition because it allows us to
estimatethevolumeofrawmaterialswemustpurchaseandforwhatbrand.Duetoourtop
qualityandhightechapparelincombinationwiththestyleandavailabilityofabrand,buyers
seekoutandtakeadvantageofwhatNIKEcontinuestodobestwhichisproducethebest
athletic footwear in the world. Companies such as AdidasReebok, Puma and UnderArmor
wouldbeclassifiedassubstitutesforourcustomersifsuchthingsaspriceorstyledidnotsatisfy
theirtaste.Priceissueswouldprobablybeourmainconcernforcustomersubstitution.Concerns
asfarasbuyersor

entrepreneurscopyingourproductsandsellthemforcheaperpricesareplausibleandshould
not be over looked. It would be a difficult task to achieve due to the popularity and
familiarityofourproducts.NIKEalsohasafootuponthenewentrepreneursthankstothe
cuttingedgetechnologyweuseandcontinuouslyupdate.NIKEBrandrecognitioncanbe
identifiedbycountlessamountsofpeoplearoundtheworldthankstothebrilliantmarketing
of famous athletes wearing and promoting our products. Not only does NIKE have the
worldstopathleticbrands,butwehavealsogivensomeofthetopathletesintheworldtheir
ownbrandsunderourcompanynamesuchasAirJordans.Intheordinarybuyersmind
NIKEsticksoutasthetopcompetitorinathleticapparel.

ThreatofNewEntrant:

NIKE is the #1 leading competitor in athletic footwear and apparel in the entire
world.ThismeansourcompanyhassecuredIntellectualPropertyinitsstreamlineproducts
suchasAirJordans,NIKE+iPodandNIKEAirMax.Thisdoesnotexcludethefactthat
ourcompetitorsmaymimicourproductsbyputtingitsowntwistonourideas.Anexample
of this would be what AdidasReebok, Pumas, and NIKE all done in the barefoot
technology department. Once one brand proves to be a success, other competitors will
followtotryandgainaprofit.Toavoidlosingthatcustomersinasituationsuchasthat,we
musttryandstayaheadofthecurvebyconstantlyupdatingthatproductandlisteningtoour
customers construction criticism. Our companys edge over new entrants is that NIKE
associatesitselfwithsporticons asLeBronJames,KobeBryant,TigerWoods,Michael
Jordanandmanymore.WeconstantlyareplayingTVads

allovertheworld;generatinganaveragecommercialapprovalratingofover75%ofviewer.
Sportingeventsandprimetimeprogramsaresomeoftheotherexamplewhyitwouldbe
hardfornewentrantstocompetewithourcompany.Intermsofmoneyandtimeitwould
takeforentrepreneurstoenterourindustryofsportingapparel,timewouldbethemost
difficultfactorduetoNIKEhavingthehighestrecognitionintheindustry.

CompetitiveRivalry:

Competitiverivalryiswhatdrivesourcompanytokeepstrivingtowardsbeingthevery
bestinourindustry.NIKEsadvantagesoverourcompetitorscanbesummedupusingone
strategy, differentiation strategy. This requires our firm to create something about our
product or service that is perceived as unique throughout the industry. This can be
accomplishedbymanystrategiessuchas:ourwarranties,brandimage,technology,features,
services,quality/valueandmore.Byalwaysbeingawareofwherenewrevenuestreamswill
popupisabigadvantageinourindustrybecausethefirsttopatentanewstyleorproduct
willbethecompanythatsticksinthemindsofourcustomers.KnowingNIKEsstrengthand
weaknessesisimportantforustostayontop,butknowingcompetitorattributesandhow
muchtheyearnfromwhat,isjustasprudent.Listedbelowareourtopthreecompetitors,
theirtopsellingproducts,andhowmuchincomethatmerchandiseprovides:

AdidasReebok:TheTorsionisastabilitytechnologylocatedinthemidsoleofthe
shoe;itismeanttoprovidenaturalrotationbetweentheforefootandtheheel,

ultimately allowing forbetter supportin the midfoot. adiPRENE is a neoprenelike

materialthatfeelssomewhatlike"nerfgun";itismostoftenusedintheheelofashoe.
adiPRENEisquitedurable,andismeanttorespondtothecushioningneedsofactive
feet.Theseuniquefeaturegenerate$11.7Billion

Puma:HashighpopularityintheKingwhichbecamepopularafter
Portuguese footballerEsuebio, shot 42goals withthe Kingmodel ofboots in1968,
winningtheGoldenBootAwardasEurope'sleadingscorer.TheKingmodelalsowasthe
favorite shoe of players like Pel, Mario Kempes, Rudi Vller, Lothar Matthus,
MassimoOddoandDiegoMaradona.Pumahavecontinuedtoreleasenewversionsof
theKingrange,andreleasedaversionin2009tocelebratethehistoryofItaliansoccer,
andinparticulardoubleWorldCupwinningcoachVittorioPozzo,thePumaKingXL
Italia.Productssuchasthishavegeneratedayearlyincomeof$3.6BillionforPuma.

UnderArmor: Products such as UnderArmor athletic tshirts is there most popular

product. This compression shirt is what helped start the company and has been the
companysbestsellingitem.UnderArmorasof2010hasagrossincomeof$530.51
Millionannually.

ThreatsofSubstitution:

NIKEproductsarehighqualityandcommandhigherprices,makingusvulnerablefor
substitutionwithourcompetition.Ourbuyers,sometimes,donotagreewiththepriceswe
have chosen for a certain brand. Depending on the type of product and its quality, we
sometimeshavenochoicebuttoraisethepricetoallowourselvesanykindofprofit.This
may be associated with the cost of the raw materials to make a particular brand are
expensive.Apossiblesolutionourcompanycouldbetoincorporateaproductthatislower
qualitythanourtypicalstandard.AnotheroptioncouldbethatNIKEcanincorporatemore
salesanddealsforourcustomers.Thatwaywedonothavetolowerstandardsandcustomer
approvalratingswillincreaseduetopopularproductsbeingeasilyaffordablethroughoutthe
year. The levels of substitution available for the products are high due to our many
competitorssellingqualityproductsatlowprices.Thatiswhyourcompanymustalways
researchourmarketbeforedevelopingmerchandisethatistooexpensivetoturnaprofit.If
oneofourcommoditieshappenstogetsubstitutedwitharivalproduct,ourplanofactionis
toperformaSWOTanalysisonthatproducttofigureoutabettersolution,whileputtingour
ownspinonit.

NikeS.W.O.T.

Strengths
NikeisagloballyrecognizedforbeingthenumberonesportswearbrandintheWorld.

DuringtheAtlantaOlympics,Nike,acompetitiveorganization,hadahealthycompetition
with Reebok who Nike expensed on sponsoring the games. Nike sponsored top athletes

whichgavethemvaluablecoverage.

Nikeusescontractfactoriestogetworkdonebecausetheydonothavetheirown.This
allowsNiketobeanefficientorganization.Ithascontractswithabove700shopsgloballyin
about45differentcountries.

Nikeisconstantlytryingtoimproveitsproductwithconstantresearchanddevelopment.It
isquiteevidentregardingitsevolvingandinnovativeproductrange.

Theymanufacturehighqualityatthelowestpossibleprice.Ifpricesriseduetopricehike
thentheproductionprocessismadecheaperbychangingtheplaceofproduction.
ItbelongstotheFortune500Companylist.
Nikeemploysaboutmorethan30,000peopleworldwide.
Sponsorstopathletestohelpincreasetheirmarketing.

Ituseslunarlitefoamandflywirematerialsinordertomakethemanufacturedshoeslighter
andmorecontrollable.

Weaknesses

Nikeisstillheavilydependentonitsshareofthefootwearmarket,evenwithitswiderange
ofsportswear.IfsomethingeverhappenedtothefootwearmarketthiswouldleaveNike
vulnerable.

Theretailsectorispricesensitive.Retailersoftentrytooffercustomersandequalproduct
butcheaperinpricewhichpushesthelowpricecompetitionontoNike.

Nikewasforquitesometimeunwillingtodiscloseanytypeofinformationconcerningits
partneringcompanies.

ItwaschargedwiththeviolationofovertimeandminimumwageratesinVietnam,1996,
thatwasseenashavingpoorworkingconditions,andthatitwasalsochargedforexploiting
cheapworkforceoverseas.
ReportssayNikewasusingchildlaborinCambodiaandPakistantoproducesoccerballs.

Opportunities

AlthoughtheownersofNikebelieveitisnotafashionbrand,largenumberofconsumers
looksatNikeasafashiontrendeveniftheydonotparticipateinasport.Itismostlyargued
thatinyouthculture,NikeisafashionbrandwhichalsocreatesopportunitiesforNikesince
itsproductswouldbecomeoutdatedbeforeeventheproductwearsout.ForexampleNike
customersoftenfeeltheneedtoownthelatestandgreatestproductevenifthereareolder
productsonthemarket.

Hastheopportunitytotapintoseveralinternationalregionsthathavetherightamountof
moneytospendhighendsportinggoods.Nikesimpressiveglobalbrandrecognitionalso
helpsinthisaspect.

Nikeusesitssponsorshipagreementsandpromotionofcorporatebrandinordertobenefit
thecorporatemarketingofthecompany.

Threats

Nike is exposed to the international nature of trade so it sells its product in different
currencieswhichdestabilizesthecostsandmarginsforprofitsoverlongperiodsoftime.
ThistypeofexposuremaycauseNiketobemanufacturingand/orsellingataloss,although
thatisnotthecaseforagiantasitself.

Thecompetitionwithsportswearandsportsshoesisalwaysontherise.Competitorsare
alwaystryingtodevelopnewbrandsandtechniquesthatwillminimizeNikesmarketshare.
ArecessionmayleadtojobshortagesinmostofNikesworldwidebranches.

Nikeisconstantlytryingtoimprovetheirproducttobecomemoregreen,becauseofthe
textileindustrydisturbingtheenvironment.

Nikeoftenisfacedwiththethreatofconsumersconstantlyshoppingaroundforbetterdeals
involvingthesamequalityofgoodforacheaperprice.Thisspecificpricesensitivityisa
majorthreattoNike.

Being such a heavily talked about company and having such a widespread advertising
market,Nikeoftenexperiencesharshpublicityfeedback.

RecommendationsforHigherProfit:
AfterthegroupcompiledinformationonNikeInc.itwastimetoamassalistofwayto
producemorerevenueandprofitforanalreadydominantcompany.Thelistisasfollows:

Create specialized stores. The group brainstormed that Nike can have individual
storesthataremainlyfocusedonaspecificsportthattargetstheareademographic.A
fewexampleswediscussedwastohavetheNikeBauerHockeystoreinBoston,
whichisabighockeycity;orhaveaNikeBasketballstore,orNikeBaseball,andso
on. This will highlight Nikes specific products and isolate the swoosh and the
productsthatwedesignspecificallyforathletestobeatthetopoftheirgame.

NikeInc.mustlookoutwardandcontinuetobroadenitsweb.Thisdoesntjustgofor
athleticapparel,buteverytypeofapparel.TakinginColeHaanwasamajorstepinthe
process,butmorecanbedone.BuyingoutcompaniessuchasUnderArmorandAdidas
areoutofthequestion.

NikeInc.mustcontinuetooutsourceandremainethicalwhiledoingso.Resourcesand
materialsmustcontinuetobedevelopedandcreatedinChina,buttherateandamount
shouldincrease.NikehasleftanimprintinChinabotheconomically,andathleticallyand
shouldlooktodothesameinotherhighlypopulatedcountries.Nikemustlooktowards
India,Brazil,andalongthePacificIslandstonotonlybeabletomakemoreproduct
quicker,butexposetheareatoNikeInc.athleticsandtheiconsthatarewithit.

NikeInc.muststayoutofnegativenews.Itmustdoeverythinginitspowertonotdeal
withissuessuchaschildlaborandwagelaws.Ethicalbehaviorandoperationsmust
remainkey,andbeasignificantideology.NikeInc.mustalsobeverythoroughonwho
issignedtorepresenttheirbrand.CaseandpointwithTigerWoods;theendorserand
endorseemustknoweverysinglefactaboutoneanother.

NikeInc.mustcontinuetostretchbeyondthefootwearsales.Therearehundredsofshoe
manufacturers,alllookingtosellshoes,becausetheydonothavetheabilitytodomore
becauseoftheirlackofoverallinfluence.NikeInc.mustusetheirinfluencefully,and
gainasmuchcapitalonitemsotherthanshoes,butwhilealsocreatingthebestshoeson
themarket.

NikeInc.hasextendeditsrightstosupplythe4majorsportsinAmerica,butmust

continuetoextendthereach.NikeInc.willbecometheofficialsupplierofapparelofthe

NFLstartinginAprilof2012,butmustcontinuetowork.Wemustworkhardtooutbid,
andoutdoAdidaswhenthenextNBAsponsorshipcomesalong.NikeInc.alreadyhas
contracteddealswithabouthalfofMajorLeagueBaseball,andover60NationalHockey
Leagueplayers.NikeInc.shouldcontinuetoworkthoserelationships,anddoasmuchas
possibletobetheofficialsupplierofallleagues.

NikeInc.mustgettothelargestathleticeventsintheworldandsetupshop.Wemustget
ourproductoutthereandmakeitconsumerfriendly.SomeeventsincludetheSuper
Bowl,Olympics,WorldCup,WorldSeries,NBAFinals,StanleyCup,MLSCup,etc.

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Group1KimEnderleDanHirschLisaMickaBrianSavingSheetalShahTatianaSzerwinski,
First.

Strategic Analysis of Nike Inc.. . Seton Hall, Web.

<http://condor.depaul.edu/aalmaney/StrategicAnalysisofNike.htm>. Group 1 Kim Enderle Dan

HirschLisaMickaBrianSavingSheetalShahTatianaSzerwinski,First. StrategicAnalysisof
NikeInc...SetonHall,Web.<http://condor.depaul.edu/aalmaney/StrategicAnalysisofNike.htm>.

MSN,Money."Nike."MSNFinace.MSNFinance,05122011.Web.5Dec2011.
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<http://www.nikebiz.com/crreport/content/strategy/211corporateresponsibility
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