Introduction

1962, Nike was started as blue ribbon sports by Phil Knight and Bill Bowerman. In 1967, Bowerman developed the first running shoe made with nylon upper(marathon). In 1971, Knight decided to manufacture own line of shoes. In early 1980s it faced stiff competition with Reebok.

Nikes Hedgehog Concept

What you Can be the best in the world at

What drives your Economic Engine

Challenges faced by Nike

They went through image crisis in the year 1997. In the year 1997 Nike s booming business were stalled in Asia as the economy were collapsed and left Nike facing cancellation of orders from retailers every where in Asia. The advertisement which was used by the company for the promotion of its products in the year 1996 i.e Nike vs Evil had also failed. The company had also faced problems in portraying the brand image in the market as the Nike was known for its athletic shoes and superior quality. But it lacked style. So the company found it hard to reach out to the customers.

Change made by Nike

Installation of new ventilation system. Enforcement of 60 labor per week. Workers enjoyed a higher remuneration than the national average. Even in 1998 they formally announced the implementation of new global labor standards.

Sports and Nike

Running Basketball Cross-Training Outdoor Activities Tennis Golf Soccer Baseball Football Bicycling Volleyball Wrestling Cheerleading Aquatic Activities Auto Racing Other athletic and recreational uses

Swot analysis
Strength :

Nike is a worldwide recognized to be the number one sportswear brand in the World. Nike being a competitive organization has a healthy aversion towards its competitors that is during Atlanta Olympics, Reebok expensed on sponsoring the games; Nike however sponsored the top athletes and due to this step, it gained valuable exposure. Nike has no factories; rather it uses contract factories to get the work done which makes it quite a lean organization. It has contracts with above 705 shops globally in about 46 different countries. Nike is quite strong regarding its research and development; quite evident regarding its evolving and innovative product range. It has employs about more than 30 thousand people all over the world.

Weakness :

Although it has a expand range for sportswear, however it is still heavily reliant upon its share of the footwear market which leaves it at a quite defenseless place if for any reason its market share corrode. Every business retail sector is price sensitive that means trader usually have a propensity to offer a very similar know-how to the customers with a new cheaper product. Nike was for pretty some time loath to reveal any type of information relating to its colleague companies. Anti-globalization groups due to its unruly and exploited manner that was quite a disaster for its reputation positioned.

Opportunities :

A large number of customers put on Nike product just because they develop a fashion style rather than to take part in any type of sport. It is mostly seems in young generation. Nike is a trendy brand, which also provides chances for Nike since its products would become old-fashioned before even the product wears out that is consumers, will sense the need to replace the item with a newer fashion. Nike through the advertisement of corporate brand and sponsorship agreements give a bunch of effort on its business marketing. Ex. China apparel market, dominated by sportswear brand and local casual clothing brands , is expected to triple in size to more than $201 billion in next 10 yrs.(Boston Consultancy Group)

Threats :

Adidas purchased Reebok. There are heavy competitors of Nike in the market that always seeking the way to overtake it by applying new techniques. A slump in international economy may lead to job scarcity in most of Nikes worldwide shops. Clients which are always shopping around for a better deal that express a good quality & if one store takes higher price for the products, the buyer would try to seek a better deal of the same product in any other place that convey the same value but cheaper. Due to atmospheric pollution, Nike is careworn to maintain its ecological reputation in the whole world. Due to its extensive advertisement this association is experiencing many unpleasant promotion feedbacks.

Nike and USA

Paid atheletes to wear Nike shoes. In 1974,knight understood pyramid of influence. Trickle down effect. Strategies to capture market from Reebok.

Nike In Europe

It focused on developing links in track and field. Nike sought ex runners with the same devotion and intensity to the sport who would help to develop Nike as a brand. Nike restricted its product line to primarily high end, higher priced shoes as Nikes penetration in the European market was regarded as insignificant. In 1987 who was heading David Kottkamp who was heading the operations focused on brand building and decided to t take greater control on advertising and product strategies. David Kottkamp also decided to focus on repurchasing licensing rights to Nike products from their licensed distributors in Europe.

Nike in Asia

In the year 1992Japan imported $100 worth Nike products. In the year 1997 Nike had surpassed Japanese brands Asics and Mizuno to occupy the market leader position. China received much of the advertising attention since its population of 1 billion spent over $2 billion annually on sneakers . Nike s Asian ads celebrated local athletes as heroes with hopes to improve the local perception of its brand. Japan was Nikes second largest market.

Thank U