NIKE
Nick Bevilacqua, Nick
Cometa, Ryan Delgado,
Shaun Jameson
To bring inspiration and innovation to every
athlete in the world.
"If you have a body, you are an athlete."
- Bill Bowerman
Agenda
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Current State of Nike
7S Framework
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Porter’s 5 Forces Model
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Supplier Power
Buyer Power
Threat of New Entry
Competitive
Threat of Substitution
SWOT Analysis
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Strategy
Structure
Shared Values
Skills
Staff
Systems
Style
Strength
Weakness
Opportunities
Threats
Ways to Increase Profit
Nike’s Dominance
 28
Contracted Entities
 Own 80% of sports apparel market
 Nike Shares = $95.58 Adidas = $34.08
Stock
7S Framework
 The
7’s are strategy, structure, system,
shared values, style, staff, and skills.
 The model is based on the theory that, for
an organization to perform well, these
seven elements need to be aligned and
mutually reinforcing. The model can also
be used to help identify what needs to be
realigned to improve performance or to
during types of change.
Strategy
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Air Jordan shoe featuring Michael Jordan
Creating “trendy” products overseas
NikeID customization
Nike Focus:
High end market
 Increasing middle market share
 Low price range
 Broaden spectrum
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Structure
 Over
47,000 branches in
over 100 different countries
across the world
 Beaverton, Oregon
 CEO and Director of
Operations coordinate
 NikeID personalization
 Decentralizing decision
making ensures customer
satisfaction
 “Just Do It” was incepted
in1988.
 Fitness
craze of the 80s
Shared Values
 Mission
statement
 Nike wants to build relationships around
trust and respect
 Employees are given an hour and a half
for lunch to play sports
 Promoting a lifestyle
Skills
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Strongest skill is to advertise and
market our products
Merged with other companies such
as
Livestrong
 Converse
 Umbro
 Cole Haan
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NFL recently signed with Nike to be
their official apparel provider
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Bring in upwards of $350 million
annually
Nike has improved oversea factory
conditions
Staff
 One
of Nike’s strong
specialized team
member is Cofounder, Philip H.
Knight, has been
with Nike since its
inception.
 Board of Directors
overhaul
Systems
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Research and
Development
& Advertising
Nike is THE
brand to wear
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Controlling
80% of the
market
Increased
total revenue
over 4 million
and profit by
2.5 million in
one FY
Style
 Come
into work and
promoting team
building
 Incorporate sports to
implement
competitive spirit for
employees
5 Forces Model
Supplier Powers
 Stores
located in 45 different countries &
over 700 shops throughout the world.
 Worldwide spread creates equal sourcing
between the merchants
 Manufactures are wholly-owned
businesses of NIKE, with independent
contractors in China and Taiwan.
 Materials used in our apparel products
are:
 Natural
and synthetic fabrics and threads,
 Plastic and metal hardware,
 Specialized performance fabrics
Buyer Power
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Extensive research done to
figure out what our
customer’s preferences in
style, comfort, and price
Buyers chose due to top
quality and high tech
apparel in combination with
the style and availability
Foot-up on the new
entrepreneurs
Brand recognition
Top athletes in the world
wear brands
Threat of New Entrant
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#1 leading competitor in athletic and
apparel
Secured Intellectual Property in its stream line
products such as :
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Air Jordan’s
Nike+ iPod
NikeAir Max.
Mimics
TV ads generate approval rating of +75% of
viewer.
Competitive Rivalry
 Differentiation
strategy
 Strategies:
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 Must
Warranties
Brand image,
technology,
features,
services,
quality/ value
know
competitor
attributes and how
much they earn
Threats of Substitution
 High
quality = Higher prices,
 Associated with cost of the raw materials
 Possible Solutions:
 Incorporate
a product that is lower quality
than standard.
 Incorporate more sales and deals for
customers.
SWOT Analysis
Strengths
 #1
sportswear brand in the world
 Employ about more than 30,000 people
world-wide
 Strong sense of marketing campaign by
sponsoring top athletes
Weakness
 Income
of business is
heavily depended on
footwear market
 Charged with
violations of overtime
and minimum wage
rates at overseas
workforces
 Alleged child labor in
Cambodia and
Pakistan to produce
soccer balls
Opportunities
 Several
see it as a fashion brand rather
than just a sportswear
 Many international regions that could be
tapped into and make great profit
 Spread their brand through top athletes
and big corporations
Threats
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Competition for
sports shoes and
sportswear is always
increasing
Experiences harsh
publicity feedbacks
due to its wide
spread advertising
Consumers are
constantly shopping
around for a better
deal with equivalent
quality
Profit and Industry Report
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2 major
competitors
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2 major
competitors
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Highest quality
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Little to no entry
barriers
Able to price
high
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No quality like
Nike
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No prestige like
Nike
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No entrants
High
Profits
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No substitutes
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Customer base
increasing daily
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Customers in no
shortage
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Suppliers
Increasing
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Dozens of sports
and icons
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More owned
companies
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Adidas is only
worry
Lower
Profits
Group Ideas for Profit
 Create
specialized stores
 Broaden range of products
 Outsource ethically
 Stay in positive news
 Expand beyond footwear sales
 Work closer with 4 major sports
 Get brand at the major sports events
 Give more NikeID options
Strategic Planning Department
Revision for Higer Profits
NIKE, Inc.
One Bowerman Drive
Beaverton, OR 97005
December 8, 2011