Nike - Business Plan

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  • Topic: Strategic management, Marketing, Management
  • Pages : 6 (1871 words )
  • Download(s) : 1640
  • Published : July 13, 2006
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This paper endeavors to recommend a viable marketing plan for the footwear giant, Nike. The plan has been adequately substantiated with thorough research on different factors affecting the firm along with various ways of addressing future challenges. This research paper highlights that Nike is confronted with multifarious issues which need to be negotiated amicably. Result of the study concludes that there is still a world waiting for the Nike to be exploited, outsmarting its competitors employing its innovative and creative business strategy.


In 1962, two individuals from the University of Oregon established a small company with the name of Blue Ribbon Sports (BRS). In 1972, the company was renamed to Nike, the name adopted from the Greek goddess of victory. At present, Nike owns facilities in Oregon, Tennessee, North Carolina and The Netherlands. It also operates leased facilities for 15 Nike-towns, over 80 Nike Factory Stores, 2 NIKEgoddess boutiques and over 100 sales and administrative offices. There are approximately 23,000 people employed by the Nike, worldwide. The company's first year sales did not cross $ 10,000 however, its present revenues exceed well over $ 10 billion. [Facts,, page 3] The Nike mission is "To bring inspiration and innovation to every athlete in the world". [, page 4] Nike research lab is constantly pursuing innovation in the field of sports. The research work in the lab is distributed into three categories including biomechanics, physiology and sensory/perceptual attributes. The research mainly focuses on differentiating factors like geography, gender, age and skill level. [Product Technology,, page 6] Products of Nike can broadly be distributed into two categories as footwear and equipment. The footwear has been sub categorized into various product lines including sports culture, running, basketball, soccer, women fitness, baseball, football, track and field and kids. The equipment products comprise of bags, golf items and timing tools. [All products,]

Nike is the top shoe manufacturer and holds major chunk of the US athletic shoe market. It has 36 competitors of which top three include Reebok, Adidas, and Fila. [Catherine Colbert,] The industry is faced with multiple challenges like decreasing demand and increasing popularity of alternative footwear. Nike currently enjoys 47 % of market share with Reebok following with 16 % and Adidas having 6 %. [Steven Van Dusen, Nike vs. the Competition, web-link] With the merger of Reebok and Adidas, Nike is likely to confront a tough future. SWOT ANALYSIS

Nike's SWOT analysis in brief is as following. [SWOT,] 1)Nike derives its strength from its strong research and development capability. It is constantly evolving innovative products of high quality with comparatively low price. 2)Nike's major weakness lies in her heavily reliance on footwear. This makes her exposed considerably to market fluctuations. More-so, Nike has very little share of retailing its own products hence the low price pressure is often passed on to the company by the retailers who refuse to lower their own profit margins. 3)Nike owns a globally recognized brand name. It has a great opportunity of developing products in footwear in addition to that of its already existing product line. The Nike should also seriously think of other avenues like fashion clothing, sports wear and jewelry. 4)The market is very competitive for Nike. To sell high quality products at low prices pose a serious threat to its profit earning which in any case has to be shared with stock holders. Nike's competitor's are exerting in other fields too and hence taking away her share of the market.

The concept of cross channel marketing emerged last year and focuses on utilizing different...
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