Strategy of Nike (2008)

Abstract

Nike is an American multinational, currently established internationally. Its activity is specialized in clothing, shoes and sports material. This company has been in competition for several years with large companies such as Adidas, Asics, and Reebok, and was unique with its perpetual capacity to innovate and adapt to various markets. This company was also made known by its inimitable logo: recognizable among many other brands. However known and recognized throughout the world, this logo was created by a young woman, for the moderate amount of 35 dollars. This sum appears certainly ridiculous in comparison with the fortune which Nike represents currently.

The name of this company is directly related to sports: Indeed, it is inspired by the Greek goddess Nike, which means Victory. The winged goddess is believed capable of moving at high speed.

Nike was founded in 1950 by Bill Bowerman. The establishment of the company was a slow process, in fact, the founders first had the idea of importing Japanese athletic footwear which were inexpensive and highly technical. Phil Knight, Bill Bowerman's partner, once said, "We fought a monopoly, and the exploitation of Athletic sponsors by cynics. We live the authenticity of sports." Their first company Blue Ribbon Sports began to sell shoes in Japan. Since its inception, the Nike headquarters has been located in Beaverton, Oregon. Bowerman, in the mid-60s, decided to create his own models of shoes. He was joined by Johnson, who opened the first company store in Santa Monica, United States, it was then renamed as the company as we know it today: Nike.

In the 70s, Nike created its first models, which came up as a revolution in the sports world. Indeed, Nike now produces shoes with soles that can absorb shocks and help in rebounds. Nike has always been targeted to improve comforts in sportswear: Nike was first devoted to athletics and has developed its concept with a multitude of sport brands.

In the 80s, the brand began to make itself known, and entered into the first contracts with major sports celebrities of the moment. In addition, for communication, the approach of Nike advertising expanded with the creation of a slogan: "Just do it." Its rise continued with time and in 1981, Nike became the number one shoe manufacturer in the US, the company then entered the stock market. It was also the time when Nike exported its products worldwide, and adapted its products by region.

In 2008, Nike achieved revenues of $18.6 billion. That same year, Nike employed 30,000 people. In addition, its market value amounted to 18.627 billion dollars. Today, Nike has signed a contract with more than 700 stores worldwide, and has stores in 160 countries and factories in 45 countries outside the United States. Most plants are located in Asia: Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines and Malaysia. Nike is now a company active in three different markets, the market for sports shoes, textiles, and the equipment and sports equipment.