Nike, Inc. Business Strategy Analysis

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DUTA WACANA CHRISTIAN UNIVERSITY
|
NIKE, Inc. Business Strategy Analysis|
Issues in Strategic Information Management|
BIS301
|
Elia Sagita Wijaya
E1000235|

Table of Contents
I.Executive Summary2
II.Background and Assumptions2
III.Mission Statement, Goals and Objectives2
IV.Remote Environment3
A.Economic Factors3
B.Social Factors3
C.Political and Legal Factors4
V.Porter’s Five Forces4
A.Bargaining Power of Suppliers4
B.Bargaining Power of Customers4
C.Threat of Substitute Products5
D.Threat of New Entrants5
E.Rivalry within Industry (High)6
VI.SWOT Analysis6
A.Strengths6
B.Weaknesses8
C.Opportunities9
D.Threats10
VII.Alternate Strategic Approaches11
VIII.Competitive Advantages11
IX.Conclusion13
A.Nike’s Remote Environment13
B.Porter’s Five Forces13
C.SWOT Analysis13
D.Alternate Strategic Approach14
E.Competitive Advantage14
X.Bibliography14

Executive Summary
Nike, Inc. was founded by Bill Bowerman and Phil Knight under the name of Blue Ribbon Sports back in 1964. It is founded only on a handshake, $500 of investment, and mutual trust. By 1971, the company changed its name to Nike and invented their infamous “Swoosh” brand. As for today, Nike has been a major player in sportswear industry with a 16% growing revenue to $24,128 million in 2012 fiscal year (ended at 31 May 2012), their fastest growth in 15 years. Not stopping on that phase, Nike already made a target to achieve a significant growth next year. Background and Assumptions

Nike is a major player in sportswear industry alongside Adidas, Reebok, Puma, etc. In fact, some source even stated that Nike is topping any other sportswear company, which made them the number one sportswear brand on the globe. Speaking about Nike, we must not forget about their fascinating research facilities which resulted in superb yet extremely comfortable products. Thus, in my assumptions supported both Nike’s supreme profit growth and their environmental friendly production policy. Mission Statement, Goals and Objectives

Nike’s vision is “To bring inspiration and innovation to every athlete in the world”. A very strong statement followed by an inspiring definition of the word “athlete”. Their definition of athlete is quoted from Bill Bowerman’s quote “If you have a body, you are an athlete”. Thus, Nike definition of athlete is everyone who has a body, revealing that Nike not only normal people but also supports those who have some disability. Along a vision there will always be a mission. And here are Nike’s mission statements, “Nike aims to lead in corporate citizenship through proactive programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services to Nike.” Beside of its mission, Nike also has some other objectives. One of their objectives as stated in their website is to envision a future in which we would see the world changing from industrial economy to sustainable economy. It is a world where renewable sources of energy flourish, water is borrowed responsibly and returned clean to communities, waste is a new asset, workers across the industry are consistently valued and environmental impact will be a critical metric of success. To achieve those objectives, Nike has stated two ways in which its objectives will be delivered. Those two ways are: 1. Make today better.

Nike has declared its commitments in transforming itself to be a sustainable company for the good of the world where we live. Stated below are some points in which Nike will have more focus while trying to realize their commitments. a. Cut energy.

b. Slash water use.
c. Empower workers.
d. Reject toxics.
e. Reduce waste.
f. Support communities.
2. Design the future.
While Nike is committed to be a sustainable company, they also want to be as innovative as never...
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