This website uses cookies to ensure you have the best experience. Learn more

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)

Strengths

· 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.

Weaknesses

· 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...

Other Essays Like Nike Case Study

Nike Case Study

894 words - 4 pages Nike was founded by Philip Knight in 1962 originally known as Blue Ribbon Sports mainly dealing in sportswear, footwear and sports equipment’s for basketball, football, tennis and golf to name a few, based in the US. Nike believed in designing innovative footwear for serious athletes, which helped in building the brand among the US consumers. It also believed in “Pyramid of Influence” that the preferences of a small percentage of top athletes

Nike Case Study

1111 words - 5 pages Nike Promotion Strategy The Nike Corporation has become one of the most successful and recognizable brands in the world. Nike specializes in manufacturing and selling a wide variety of athletic apparel, footwear, and sports equipment. Nike offers their merchandise through retail and outlet stores, internet sales, partnerships with retailers, and other independent distributers. Created in 1972, the company continues to follow their mission

Nike: Cost of Capital Case Study

1820 words - 8 pages decrease in market sales and prices of stocks, management presented its plans to improve and perform better. Generally, the case issue is to examine if the share price of Nike is undervalue or overvalue for guide investors to buy or not and the common stock of Nike Inc should be added to the North Point Group’s Mutual Fund Portfolio or not. What is WACC? And why is it important to estimate a firm’s cost of capital? The weighted

Nike Sweatshop Debate

787 words - 4 pages Case Study: “Nike: The Sweatshop Debate” Global Business Strategies - MGT 448 Introduction This document will explain the difficulties in the legal, social, as well as ethical area which the Nike Corporation had encountered because of carrying out international business in Vietnam government. This document prosecutes the strategically as well as operational problems which make part of Nike and equally demonstrates the part of Nike in

Nike Swot Analysis

1037 words - 5 pages the cheaper of the two. Such consumer price sensitivity is a potential external threat to Nike. 'If you have a body, you are an athlete' - Bill Bowerman said this a couple of decades ago. The guy was right. It defines how he viewed the world, and it defines how Nike pursues its destiny. Ours is a language of sports, a universally understood lexicon of passion and competition. A lot has happened at Nike in the 30 years. Read more... Disclaimer: This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.

Nike Outstanding Performance

1927 words - 8 pages % | |Return on Equity |20.12% |21.10% | (2005. Nike vs Adidas, market and comprehensive competition analysis and case study. Taken from  http://www.echeat.com/essay.php?t=27606) After a study taken during the year 1998 from Cornell University which was about the distribution of market shares in the U.S. and foreign markets, research

How Nike Is Building Brand Equity

3650 words - 15 pages . Two key indicators of a brand’s ability to earn economic profits over the long run are brand loyalty and the ability to command a price premium (i.e., a price-cost differential above “normal”). 3. How brand create Equity: a case study of Nike 4.1. Company’s Profile Nike Corporation was incorporated in 1968 with the name of Blue Ribbon Sports. And in 1978 it became Nike. In their thirty-four year history, Nike has primarily been in the

Nike Case

346 words - 2 pages Financial Analysis - Income Statement Data Nike In Thousands 2007 2008 2009 16,325,900$ 18,627,000$ 19,176,100$ 16,325,900 18,627,000 19,176,100 9,165,400 10,239,600 10,571,700 7,160,500 8,387,400 8,604,400 - - 596,300 5,028,700 5,953,700 6,149,600 2,131,800 2,433,700 1,858,500 2,131,800 2,433,700 1,858,500 68,100 69,200 98,000 - 2,199,900 2,502,900 1,956,500 708,400 619,500 469,800 1,491,500$ 1,883,400$ 1,486,700$ #DIV/0! #DIV/0! #DIV/0

Nike Case

602 words - 3 pages In this day of how business is conducted it becomes hard to come across a company or any manufacturing business that makes their product from the ground up, without outsourcing for all or part of its product. Nike is no exception this American business trait of conducting business. Nike has multiple manufacturing facilities throughout the world (primarily Asian countries). Nike was one of the first major global foreign companies who was widely

Marketing of Nike Case

848 words - 4 pages Discuss the key marketing strategy of Nike In recent decades, we have witnessed a high performance marketing of Nike which make its brand name is well-known all around the world. My belief is that Nike not only is a marketing-oriented company but also has used 3Ps out of 4Ps marketing mix model effectively, including product, place and promotion. Firstly, when it comes to product, Nike considers its wide range of products as its one of most

Nike Case 14

828 words - 4 pages According to Ms. Cohen’s analysis, the weighted average cost of capital is 8.4% for Nike. This WACC calculation was based on the book value cost of debt of 2.7% and the market value cost of equity of 10.3%. The weight of debt was 27% and weight of equity of 73%, calculated based on the book value as well. We disagree with Ms. Cohen's WACC calculation, however, since we found numerous errors in the calculations. As we recalculated the WACC, 9.25

Related Papers

Nike Case Study

547 words - 3 pages Case study: Nike’s CSR Challenge After the widespread report on the workers of Nike in the plantation in 2005, Nike worked on the reports of social and environmental practices. Nike needs to consider the welfare of the workers and the profits they are earning. Nike’s future depends on the reconstructing the information that are being sent to customers, suppliers, investors, so that company is sustainable as well as profitable. Changing the

Case Study "Nike: The Sweatshop Debate"

1175 words - 5 pages Case Study "Nike: The Sweatshop Debate" Sarah Martin MGT 448 July 27, 2011 Kenneth Peter Case Study "Nike: The Sweatshop Debate" “We’ve run the course – from establishing codes of conduct and pulling together an internal team to enforce it, to working external bodies to monitor factories and engaging with stakeholders” (Nikebiz, para. 2). The creation of this code of conduct came after serious allegations of using sweatshops with women

Nike Case Study/3 Segments Promotion

1129 words - 5 pages . Consumer behaviour, segmentation by sex,age and other parameters is more difficult issue as it is not widely published and these pieces of information are provided as a part of market report by marketing research companies. We used “Key notes” reports which are available for the students registered at UWIC website. Case study The case provided by Harvard business school is entitled as “Nike Football: World Cup 2010 South Africa”. It covered

Nike Case Study 1132 Words

1132 words - 5 pages The World of Media and the everyday communication in a couple’s relationship 4 Factors Associated with Relationship Satisfaction: Importance of Communication Skills 4 Communication and Relationship Management 4 Being a couple in a media world: The mediatization of everyday communication in couple relationships Christine Linke Factors Associated with Relationship Satisfaction: Importance of Communication Skills I.S. Egeci.T