The Global Strategy of Nikes Industry - 3113 Words

• Introduction Nike was found by Bill Bowerman, the legendary University of Oregon track field coach together with Phil Knight, a University of Oregon business student and middle-distance runner under Bowerman. At the beginning Nike was found in January 1964 with the name of Blue Ribbon Sport (BRS). The first-year sales totaled was $ 8.000. In 1972, Nike was introduced by BRS as the new brand of athletic footwear, the name was for the Greek winged goddess of victory. The Nikes mission is To bring Inspirations and innovation to every athlete* in the world. *If you have a body, you are an athlete. The asterisk quote is taken from Bill Bowerman which was the legendary track and field coach for the University of Oregon and the†¦show more content†¦Combined, these factories employ 550,821 workers. Nike has 13 branch offices and subsidiaries in the Asia Pacific region: Australia, China, Hong Kong, India, , Japan, Korea, New Zealand, Southeast Asia (Indonesia, Singapore, Malaysia, Philipp ines, Thailand), Sri Lanka, Taiwan and Vietnam. Revenue for the year 2006 was $2.1 billion, up 8 percent from year 2005. Of these revenues, approximately $1.0 billion were from footwear sales, $815.6 million from apparel sales and $194.1 million from equipment sales. • Americas Region (North and South America excluding the United States): Canada has been the first foreign market for Nike. It started in 1972 and started expanding to the South of America in 1978. There are approximately 1,076 employees are based in the Americas Region with the total of 137 contract factories and the factories employ 44,568 workers. Nike branch offices and subsidiaries are located in five countries in the Americas region: Canada, Mexico, Brazil, Argentina, and Chile. Nike operations in all other countries in the Americas region are managed through partner organizations based in Panama, Ecuador and Paraguay. Revenue for the year 2006 was $236.0 million, up 17 percent from FY05. Of these revenues, approximately $635.3 million were from footwear sales, $201.8 million from apparel sales and $67.8 million from equipment sales. • Strategic Direction Nike sees four key issues whereShow MoreRelatedBusiness Strategy Concepts Nike Inc.1034 Words   |  5 Pages1. Business Strategy Concepts amp; Nike Inc. Nike generic strategy for competitive advantage emphasizes product mix diversity. Nike analyzes what products should be handled and what characteristics should meet to aim success. When applying a competitive strategy, the product plays a role as a link between supply and demand, so the success is determined by the ability of the company to overtake the competition and of course, by the quality of the product from the client’s perspective. Nike adaptsRead MoreNike’s Business-Level Strategies: How They Have Changed the Nature of Industry Competition995 Words   |  4 PagesBusiness level strategies are plans that a firm forms to describe and project how it intends to build a sustainable competitive advantage, over its competitors in a discrete market (Furrer, 2010, p. 1). These strategies have changed the nature of competition in industries, and paved way for further developments in product quality and cost. Business level strategies employed by Nike work mainly in two forms, that is, competitive strategies and corporative strategies (Furner, 2010, p. 1). By lookingRead MoreNike Case Study1112 Words   |  5 PagesCase Study- Nike 1. Discuss how Nikes growth can be attributed to its targeting of diverse market global segments. In the 1960’s Nike was only making running shoes. At this point in time not many people knew of Nike or the Nike swoosh. In order to increase brand awareness, they started paying athletes to wear their shoes. However, very soon Nike learnt that in order to be a global brand they needed to appeal to different market segments, not just athletes. Hence, they then decided to tapRead MoreCurrent Issue Of Sport : Globalization1307 Words   |  6 Pages Globalization has become a serious problem today for all sport-related industries in the United States. As the same as other firms, sport corporates are also facing the fact that the North American markets are becoming saturated, thus they have to shifting their focus to the global markets as well as other companies. However, to open the global markets is not as simple as produce and deliver the goods, the sport industries’ managers should also concern about the cultural differences and the demandRead MoreNike Case Study1104 W ords   |  5 PagesCase Study- Nike 1. Discuss how Nikes growth can be attributed to its targeting of diverse market global segments. In the 1960’s Nike was only making running shoes. At this point in time not many people knew of Nike or the Nike swoosh. In order to increase brand awareness, they started paying athletes to wear their shoes. However, very soon Nike learnt that in order to be a global brand they needed to appeal to different market segments, not just athletes. Hence, they then decided to tap moreRead MoreNikes Approach To Compete International Case Study1234 Words   |  5 PagesNike’s Approach to Compete Internationally Nike’s founders, Bill Bowerman and Phil Knight started a shoe business named â€Å"Blue Ribbon Sports†, in 1962, at that time they were distributing running shoes for a company in Japan. (Nike, 2015). One could say they were ahead of their time and true visionaries; moreover, they were doing business with a foreign country and would soon branch out to Asia. They designed and tested their shoes in America; however, they soon realized the value in overseas manufacturingRead More Nike1698 Words   |  7 Pages SHORT CASE SUMMARY Nike, Inc. (503-671-6453, www.nike.com) is the worlds #1 athletic shoe and apparel seller. Nike currently employs 20,700 employees, with total sales of $8.78 billion. Nike and the athletic shoe industry have evolved into one of the most competitive market in recent years. But, analysts believe that athletic shoe sales will slow down over the next few years. The slowdown will come with the change in consumer trends. For instance, the younger market is beginning to buy more casualRead MoreHistory Of Nike Inc. ( Nke )1709 Words   |  7 Pagesas Blue Ribbon Sports in 1962, and in 1967, the company rebranded as Nike. Positioned as the worldwide leading brand in the sports apparel industry, Nike’s primary business activity is â€Å"the design, development and worldwide marketing and selling of athletic footwear, apparel, equipment, accessories and services† (Nike Inc., 2016). Products and Services Nike’s portfolio offering encompasses four brands: Nike, Jordan, Hurley, and Converse. These brands have helped Nike establish a dominant retailRead MoreCompany Overview: Nike, INC1106 Words   |  4 Pagesemerging markets. NIKE is a consumer products company who specializes in the fast paced industry of athletic footwear, apparel, and equipment. This industry is keenly competitive which exposes NIKE to the risk of falling behind or not meeting the innovation standards of customers. To stay on top of customer demand, NIKE must continue to innovate and anticipate consumer preferences. Companies in the industry rely on a strong reputation and brand image for worldwide recognition. If the NIKE BrandRead MoreStrategic Analysis Nike1619 Words   |  7 Pages SUBMITTED TO: AMIT SINHA SUBMITTED BY: Varun Bhatia 191181 FMG 19C Nike’s Global Business Strategy When first founded in 1962 under the name of Blue Ribbon Sports, the strategy was â€Å"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 Nike offers athletic shoes at every marketable price point to a global market. Nike sustains its leading position through emphasizing quality products