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Nike Case Study

1642 words - 7 pages

In this Case Study Analyses, an objective SWOT Analyses will be done to help identify potential strengths, weaknesses, opportunities, and threats within the Nike Corporation.

It will look at the role of promotions as a consumer product company, offer possible promotional objectives, and consider other promotional methods the Nike Corporation may wish to implement in its quest to remain the market leader.

History, Development, and Growth

From their marketing strategies to their selling philosophies, Nike has developed one of the most recognizable and demanded name and logo tandems ever created.

A former University of Oregon track team member, Phil Knight, created Blue Ribbon ...view middle of the document...

Pretty soon Nike began to notice a market that they previously avoided; that of the every day athlete. Co-founder Bill Bowerman once said, “If you have a body, you’re an athlete!” In 1985, Michael Jordan, then just a rookie, joined forces with Nike and began to market a new line of shoes and apparel with the name AIR JORDAN.

This was the beginning of the JORDAN brand and featured on each AIR JORDAN product was the Nike insignia, the swoosh. It just so happened that Jordan came to Nike at a time when the NBA was gaining marketability with the public, which gave Nike the perfect opportunity to capitalize on its marketing and promotion strategies.

Because of Michael Jordan, Nike was able to launch new lines of basketball shoes, the AIR FORCE and AIR FLIGHT, as well as a new line of apparel. Using technology to its advantage (by placing a cushion of air in its shoes) gave Nike the preferential advantage needed to maintain its market share.

Soon, Nike began marketing to “athletes of all ages”, bringing in new products aimed at every generation from infants to old age. Michael Jordan took Nike to a whole new level because of his popularity and image.

Nike executives continue to use top name athletes in their marketing efforts to promote each of their lines of shoes, apparel, and products. They have used highly recognizable names is sports as diverse as gold (Tiger Woods), football (Randy Moss), and boxing (Roy Jones, Jr.).

Nike continues to market itself to athletes of every age who wish to be active and still comfortable and can easily count on the Nike name promoting itself. They continue to produce innovative ideas as well, which have been productive and entertaining promotional tools.

Internal Environment (Strengths and Weaknesses)


· Nike is a very competitive organization. Founder and CEO Phil Knight is often quoted as saying, “business is war without bullets”. Nike has a healthy dislike of its competitors. At the Atlanta Olympics, Reebok went through great expense to sponsor the games. Nike did not, however, Nike sponsored the top athletes and gained valuable coverage as a result.
· Nike has no factories. It does not tie up cash in buildings or labor. This makes it a very lean organization, resulting in higher profits.
· Nike is a leader in research and development, as evidenced by its evolving and innovative product range.
· Nike moves its production to where it can produce the highest quality product at the lowest possible cost.
· Nike is a global brand. It is the number one sports brand in the world. Its famous “swoosh” logo is instantly recognized everywhere.


· Although the company has a large product mix, its revenues are still heavily dependent on its share of the footwear market. This may leave it vulnerable if, for any reason, the market share erodes.
· The retail sector is very price sensitive. Nike has it’s own retailer in Nike Town but most of its...

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