NIKE, Inc. Introduces 2015
Global Growth Strategy
Brandon Armatas
Billy Lane
Brandon Rice
Company Background
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Established in Eugene, Oregon in 1964 as
Blue Ribbon Sports
Became Nike in 1978, HQ in Beaverton
Founded by Phil Knight and Bill Bowerman
Sell high-quality sports equipment, apparel,
and shoes across numerous categories
Nike owns Converse, Hurley, Umbro, and
Jordan brands
Named after Greek goddess of victory
Financials
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2009 net income of $1.49 billion
2009 gross revenue of $19.2 billion
Pursue both organic and external growth
Nike brand accounts for 85% of revenue
Revenues by Category
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Action Sports - $390 million
Athletic Training - $1.4 billion
Basketball - $1.7 billion
Football - $1.7 billion
Running – $2.1 billion
Sportswear - $4.9 billion
Women’s Training - $740 million
Marketing Strategies
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Excellent marketing campaigns featuring
popular athletes
Positioned themselves as a premium brand
Popular slogans and trademarks eg. “Just Do
It”, Nike swoosh, and Nike Air
SWOT Analysis
Strengths:
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Strong Brand Loyalty
Strong Brand Equity
Effective Advertising
Product Development +
Innovation
Weaknesses:
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Bad Publicity
Human Rights Concerns
Most Market Share from
Footwear
Highest Prices in CostSensitive Sector
Opportunities:
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R&D
Fashion Potential
Global Markets
New Categories
Threats:
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Consumer Spending Down
Emergence of Competitors
Piracy and Counterfeiting
Article
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Nike plans for significant growth by 2015
Investing $500 million to develop direct-toconsumer business
250-300 new niche-specific Nike stores,
smaller than Niketowns
Grow/develop all geographic regions
Grow all non-Nike brands by $1.5-2 billion
References
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http://www.marketwatch.com/story/nike-incintroduces-2015-global-growth-strategy2010-05-05?reflink=MW_news_stmp
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