Nike

1. Nike Fred Lizotte

2. Mission and Vision • Nike's Corporate Mission Statement: • To be the world's leading sports and fitness company.

3. History • 1962: Philip H. Knight founds Blue Ribbon Sports (BRS) to import Japanese running shoes. • 1963: BRS takes its first delivery of 200 shoes from Onitsuka Tiger Co. • 1964: BRS becomes partnership between Knight and William Bowerman. • 1966: The company's first retail outlet opens. • 1968: Company is incorporated; the Bowerman-designed Cortez shoe becomes a big seller.

4. History cont. • 1971: BRS begins manufacturing its own products overseas, through subcontractors; the Swoosh trademark and the Nike brand are introduced. • 1972: At the 1972 U.S. Olympic Trials, the Nike brand is promoted for the first time; company enters its first foreign market, Canada. • 1978: Company changes its name to Nike, Inc. • 1979: First line of clothing is launched and the Nike Air shoe cushioning device debuts. • 1980: Nike goes public.

5. History cont. • 1981: Nike International, Ltd. is created to spearhead overseas push. • 1985: Company signs Michael Jordan to endorse a version of its Air shoe--the 'Air Jordan.‘ • 1988: Cole Haan, maker of casual and dress shoes, is acquired; 'Just Do It' slogan debuts. • 1990: First NikeTown retail outlet opens in Portland, Oregon.

6. History Cont. • 1991: Revenues reach $3 billion. • 1994: Company acquires Canstar Sports Inc., the leading maker of skates and hockey equipment in the world, later renamed Bauer Nike Hockey Inc. • 1995: Company signs golfer Tiger Woods to a 20-year, $40 million endorsement deal. • 1996: The Nike equipment division is created. • 1996: Nike Launched its website to provide information and entertaining content. • 1999: Company begins selling its products directly to consumers via its web site.

7. History Cont. • 2007: On 23rd October 2007, it was announced that the sports apparel supplier Umbro, known as the manufacturers of the England national football team's kits, had agreed to be bought by Nike in a deal said to be worth £285 million.

8. Management Team • Philip H. Knight • Mark G. Parker • Charlie Denson • Donald W. Blair

9. Philip Knight • Chairman of the Board of Directors • Stepped down as CEO and President in 2004 being replaced by William Perez, then replaced by Mark Parker in 2006 • Age: 69

10. Mark G. Parker • CEO/President/Director • Mr. Parker, has been President and Chief Executive Officer and a director since January 2006. He has been employed by NIKE since 1979 with primary responsibilities in product research, design and development, marketing, and brand management. Mr. Parker was appointed divisional Vice President in charge of development in 1987, corporate Vice President in 1989, General Manager in 1993, Vice President of Global Footwear in 1998, and President of the NIKE Brand in 2001. • Age: 51

11. Charlie Denson • Divisional President atNike, Incorporated Shares- B • Age: 51 • Mr. Denson, has been employed by NIKE since 1979. Mr. Denson held several management positions within the Company, including his appointments as Director of USA Apparel Sales in 1994, divisional Vice President, U.S. Sales in 1994, divisional Vice President European Sales in 1997, divisional Vice President and General Manager, NIKE Europe in 1998, Vice President and General Manager of NIKE USA in 2000, and President of the NIKE Brand in 2001

12. Donald W. Blair • Chief Financial Officer, Vice President, Member of Disclosure Committee and Member of Retirement Committee, Nike Inc. • Age: 48 • Donald (Don) W. Blair serves as Chief Financial Officer of Nike Inc. and his responsibilities include accounting and reporting, financial planning, budgeting and forecasting, treasury and foreign exchange management, tax planning and compliance, risk management, internal audits and investor relations. Previously, Mr. Blair served as Vice President and Chief Financial Officer of Nike Inc. since 1999. He joined Nike Inc. in November 1999.

13. Important Stakeholders • Fogdog Deal • 1999 Nike signed a deal with Fogdog to only allow them to sell their entire Nike product line for 6 months. • Top Accounts including The Athlete’s Foot. • UPS for pick, pack, and ship.

14. Goals and Strategies • Nike wanted to go online, but very cautiously as to not ruin the company. • They took baby steps and eventually sold its products online. • Nike had a problem with the pricing model online. They did not want to offer different prices online for a few reasons. • If Nike offered lower prices online, companies that buy shoes from Nike would now compete with Nike. • They decided to offer the same prices online as they would of offline.

15. Goals and Strategies cont. • Nike did not want to allow everyone to sell their shoes online, and risk possibly ruining the Nike brand. • The deal with FogDog allowed them to sell their shoes online, and no one else.

16. E-Commerce opportunities • Nike could now benefit selling its products at retail prices and not only wholesale prices. Higher Profits. • Nike could directly collect information about its end customers, in turn increasing the effectiveness of its marketing.

17. Prospective analysis • The Case perspective is Creating and Capturing value in the supply chain.

18. Why? • Nike was already established and well branded in the offline world. • They faced the Internet as a new channel. • They needed to figure out how to make this new channel work with their existing offline channel, and offer the same experience online as offline.

19. Why cont. • Pricing is a big problem that Nike was going through, they offered their products for sale online. This made Nike a competitor for retailers so Nike sold their shoes online for retail prices as not to cause too much competition. • There has to be a change in their supply chain. They now sold to customers directly, making it possible to collect information about the customer and their habits. This helped Nike find out what the customer wanted, allowing them to be more efficient in manufacturing different types of shoes to the customer.

20. DSIR • DSIR does work for this company. • If you go and buy a Nike shoe, you in turn become an advertiser for Nike. • As more people buy Nike shoes, more people will want Nike shoes. • As we see the network grow, people see a switching cost of not following the norm. • There is not really a switching cost as in you have to learn how to use a new shoe, but maybe you have to settle with a shoe that people are going to make fun of you wearing.

21. Competitive risks • Had little experience selling directly to customers • The competition was going online just as fast or faster than Nike, offering some product lines. • The competition was more willing to have retailers sell their products online.

22. Competition • Adidas • Converse • Reebok • New Balance

23. Missed opportunities • This is a successful business in the offline world. They cautiously went online which was a good thing for them, as to not cause other retailers to see them as a competition.They offered the FogDog full and sole access to sell online, which may have not been the best idea, because then the retailers got mad. Nike should of offered a select few retailers and not go into a contract that would not allow Nike to sell to other online retailers.