MM 522 – Keller Gratudate School of Management
NIKE, Inc. (NIKE, NASD: NKE) was founded in 1972 by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon Sports. Back then, the modest goal 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 2012, NIKE not only manufactures and distributes athletic shoes at every marketable price point to a global market, but over 40% of 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). NIKE utilizes over 20,000 retailers, NIKE factory stores, NIKE stores, NikeTowns, Cole Haan stores, and internet-based websites to sell various sports and leisure products. They dominate sales in the athletic footwear industry with a 33% global market share. They have also been able to attain this premier position through "quality production, innovative products, and aggressive marketing." (NIKE 2012) NIKE is now ready to take it to the next level. Over the decades, NIKE has positioned themselves with optional strengths and opportunities, enabling them to enter new market ventures. NIKE has solid brand equity, economies of scale, aggressive marking strategies, and the existing infrastructure to manufacture and distribute. Leveraging these strengths, NIKE will enter and dominate the sports drink industry in 2013 with a new product called, “NIKE Refuel”. This new energy sports drink will target NIKE’s existing natural target market segments. Currently, there are not a lot of competitors who offer energy sports drinks as a premium product. Not to mention the other value propositions of nutrimental, low calorie, great tasting, and made with all natural and quality ingredients. This new sports drink will also enable NIKE to continue to promote their changes in their outlook on social responsibilities and more importantly, improve the bottom line revenue for the company. NIKE Company Description
Nike, pronounced NI-KEY, is technically the winged goddess of victory according to Greek mythology. She sat at the side of Zeus, the ruler of the Olympic pantheon, in Olympus. A mystical presence, symbolizing victorious encounters, Nike presided over history's earliest battlefields. A Greek would say, "When we go to battle and win, we say it is Nike." Synonymous with honored conquest, NIKE is the twentieth century footwear that lifts the world's greatest athletes to new levels of mastery and achievement. NIKE’s co-founder Bill Bowerman made an important observation many years ago in 1972; he was defining how he viewed the endless possibilities for human potential in sports. He set the tone and direction for a young company called NIKE, and today those same words inspire a new generation of NIKE employees. Today, NIKE is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. They are also a seller of athletic footwear and athletic apparel worldwide. The Company sells its products to retail accounts, through NIKE-owned retail stores and Internet sales, and through a mix of independent distributors and licensees, in approximately 190 countries around the world (NIKE 2012). The Company focuses its...