Nike- Managerial Case Study

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NIKE

Business Case Study
Management Theory
(BUS830-13)
Submitted to:
Dr. J. Saleeby
Done by:
Rola El Cheikh
201005281
Thursday, December 23, 2010

Executive Summary
Nike hit the ground running in 1962. Originally known as Blue Ribbon Sports, the company focused on providing high quality running shoes designed especially for athletes by athletes, at competitive prices. Today, Nike is the world's leading maker of athletic shoes, equipment and apparel. Nike has invested highly on marketing. It has signed exclusive and expensive marketing deals with some of the world's top athletes to promote its products. Nike’s marketing campaigns featured winning athletes as spokespeople, and winning teams as an indication of Nike success. Nike enjoys a strong competitive position. It is always innovative and produces high quality products with superior technology. Nike products are sold in about 110 countries worldwide. The manufacturing process of Nike is done by independent contractors, primarily located overseas. The company enjoys a strong competitive position, but it cannot continue at its current pace, it has to adjust to the external environment threats and opportunities in order to remain competitive.

Table of Contents
Nike’s history and Growth:1
Nike’s internal environment2
Management philosophy2
Strengths3
Weaknesses4
Nike’s external environment5
Rivalry5
Barriers to Entry5
Opportunities5
Threats6
Conclusion of SWOT analysis7
Corporate Level strategy8
Vision8
Mission8
Goals9
Corporate-level strategy9
Subsidiaries9
Business-level strategy10
Compensation Programs and Social Responsibility10
Ethical Conduct11
Recommendations12
References13

Nike’s history and Growth:
In 1962, Blue Ribbon Sports was founded by Philip Knight and his coach Bill Bowerman as an importer of Japanese shoes. Primarily, the company operated as a distributor for Japanese shoe maker Onitsuka Tiger, now ASICS. The founder, Philip knight, believed that high tech shoes for runners could be manufactured at competitive prices if imported from abroad. Philip H. Knight was a Stanford University business graduate and he was a member of the track team as an undergraduate at the University of Oregon. After he finished up his bachelor degree in business, he travelled to Japan, and he got in touch with the Onitsuka Tiger Co, a Japanese firm that made athletic shoes, and arranged to import some of its products to the United States on a small scale. Knight was convinced that Japanese running shoes could become significant competitors for the German products that they were dominant in the American market. In order to set his agreement with Onitsuka Tiger, Knight invented the “Blue Ribbon Sports” to satisfy his Japanese partner's expectations that he represented an actual company, and this hypothetical firm eventually grew to become Nike, Inc. The company's profits grew quickly, and in 1966, BRS opened its first retail store in California. The relationship between BRS and Onitsuka Tiger was reaching an end by 1971. Then BRS prepared to launch its own line of footwear, which would bear the newly designed Swoosh by Carolyn Davidson. The Swoosh was first used by Nike in June 1971, and was registered with the U.S. Patent and Trademark Office on January 22, 1974. In 1972, BRS changed its name to Nike Inc. which was derived from the Greek goddess of victory. By 1980, Nike became number one athletic shoe company by reaching a 50% market share in the U.S. athletic shoe market; the company went public in December of that year. Its growth was due largely to 'word-of-foot' advertising. Throughout the 1980s, Nike expanded its product line to include many other sports and regions throughout the world. From the start, Nike’s marketing campaigns featured winning athletes as spokespeople. The company signed on its first spokesperson, runner Steve Perfontaine, in 1973. The use of professional athletes...
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