Strategic Analysis Of The Firm, Nike Inc

5893 words - 24 pages

Strategic Analysis of Nike, Inc.Submitted to: Fuad May 15, 2007Submitted by: Nargiz Akbarova Gunel Rafiyeva Nadi GhulamTABLE OF CONTENTSIntroductionIndustry analysisFirm Analysis a) History and Background b) SWOT AnalysisCompetition AnalysisMarket PositionResources and CapabilitiesCurrent StrategyConclusionReferencesIntroductionNike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon Sports. Our modest goal then was to distribute low-cost, high-quality Japanese athletic shoes to American consumers in an attempt to break Germany's domination of the domestic industry. Today in 2006, Nike Inc. not only manufactures and distributes athletic shoes at every marketable price point to a global market, but over 40% of our sales come from athletic apparel, sports equipment, and subsidiary ventures. Nike maintains traditional and non-traditional distribution channels in more than 100 countries targeting its primary market regions: United States, Europe, Asia Pacific, and the Americas (not including the United States). Nike utilizes over 20,000 retailers, Nike factory stores, Nike stores, NikeTowns, Cole Haan stores, and internet-based Web sites to sell their sports and leisure products. Nike dominates sales in the athletic footwear industry with a 33% global market share. Nike Inc. has been able to attain this premier position through "quality production, innovative products, and aggressive marketing." Nike owns facilities in Oregon, Tennessee, North Carolina and The Netherlands, and operates leased facilities for Niketown and NikeWomen retail stores, over 200 Nike Factory Stores and over 100 sales and administrative offices.As a result, for the fiscal year end 2006, Nike reported net revenues of $15.0 billion, a 9 percent increase from FY05. Nike employs approximately 25,000 people worldwide. In addition, approximately 650,000 workers are employed in Nike contracted factories around the globe.ProductsNike's primary product focus is athletic footwear designed for specific-sport and/or leisure use(s). Nike also sell athletic apparel carrying the same trademarks and brand names as many of its footwear lines. Among Nike's newer product offerings, it sell a line of performance equipment under the Nike brand name that includes sport balls, timepieces, eyewear, skates, bats, and other equipment designed for sports activities. In addition, Nike utilizes the following wholly-owned subsidiaries to sell additional sports-related merchandise and raw materials: Cole Haan Holdings Inc., Nike Team Sports, Inc., Nike IHM, Inc., and Bauer Nike Hockey Inc. Nike's most popular product categories include the following:RunningBasketballCross-TrainingOutdoor ActivitiesTennisGolfSoccerBaseballFootballBicyclingVolleyballWrestlingCheerleadingAquatic ActivitiesAuto RacingOther athletic and recreational usesINDUSTRY ANALYSISNike experience moderate fluctuations in aggregate sales volume during the year. Historically, revenues in the...

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