Strategic Analysis Of Nike Inc

TABLE OF CONTENTS

Executive Summary...........................................................................................p.4

History.............................................................................................................p.6

Profile of CEO...................................................................................................p.7

Competitor's Profile............................................................................................p.7

Industry Profile..................................................................................................p.8

Company Analysis.............................................................................................p.9

Industry Analysis................................................................................................p.24

Top Competitor Analysis.....................................................................................p.25

Other External Forces........................................................................................p.26

Key Opportunity................................................................................................p.27

Key Threat......................................................................................................p.27

Major and Subordinate Problems.........................................................................p.28

Strategic Match................................................................................................p.29

Primary Strategic Match Position.........................................................................p.30

Strategic Plan..................................................................................................p.33

Conclusion......................................................................................................p.38

LIST OF EXHIBITS

Sales Trends Graph.......................................................................................p.5

Net Income Trends Graph...............................................................................p.5

Nike Board of Directors Table...........................................................................p.11

Table of Key Financial Ratios...........................................................................p.22

Net Income Trend Graph.................................................................................p.24

Primary Strategic Match Position Chart..............................................................p.30

Industry Attractiveness Matrix..........................................................................p.31

Business Strength/Competitive Position Chart.....................................................p.32

Grand Strategy Chart.................................................................................... p.34

Marketing Short-term Strategy Chart.................................................................p.35

Production Short-term Strategy Chart................................................................p.36

Research and Development Short-term Strategy Chart.........................................p.37

Human Resources Short-term Strategy Chart......................................................p.37

Finance Short-term Strategy Chart....................................................................p.38

EXECUTIVE SUMMARY

Nike 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 2000, 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). We utilize over 20,000 retailers, Nike factory stores, Nike stores, NikeTowns, Cole Haan stores, and internet-based Web sites to sell our sports and leisure products. We dominate 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." As a result, for the fiscal year end 1999, Nike's 20,700 employees generated almost $8.8 billion in revenue.1

Products

Our primary product focus is athletic footwear designed for specific-sport and/or leisure use(s). We also sell athletic apparel carrying the same trademarks and brand names as many of our footwear lines. Among our newer product offerings, we 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, we utilize 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. Our most popular product categories include the following:

Running

Basketball

Cross-Training