NIKE

1. NIKE Nick Bevilacqua, Nick Cometa, Ryan Delgado, Shaun Jameson

2. To bring inspiration and innovation to every athlete in the world."If you have a body, you are an athlete." -Bill Bowerman

3. Agenda • Current State of Nike • 7S Framework • Strategy • Structure • Shared Values • Skills • Staff • Systems • Style • Porter’s 5 Forces Model • Supplier Power • Buyer Power • Threat of New Entry • Competitive • Threat of Substitution • SWOT Analysis • Strength • Weakness • Opportunities • Threats • Ways to Increase Profit

4. Nike’s Dominance • 28 Contracted Entities • Own 80% of sports apparel market • Nike Shares = $95.58 Adidas = $34.08

5. Stock

6. 7S Framework • The 7’s are strategy, structure, system, shared values, style, staff, and skills. • The model is based on the theory that, for an organization to perform well, these seven elements need to be aligned and mutually reinforcing. The model can also be used to help identify what needs to be realigned to improve performance or to during types of change.

7. Strategy • Air Jordan shoe featuring Michael Jordan • Creating “trendy” products overseas • NikeIDcustomization • Nike Focus: • High end market • Increasing middle market share • Low price range • Broaden spectrum

8. Structure • Over 47,000 branches in over 100 different countries across the world • Beaverton, Oregon • CEO and Director of Operations coordinate • NikeID personalization • Decentralizing decision making ensures customer satisfaction • “Just Do It” was incepted in1988. • Fitness craze of the 80s

9. Shared Values • Mission statement • Nike wants to build relationships around trust and respect • Employees are given an hour and a half for lunch to play sports • Promoting a lifestyle

10. Skills • Strongest skill is to advertise and market our products • Merged with other companies such as • Livestrong • Converse • Umbro • Cole Haan • NFL recently signed with Nike to be their official apparel provider • Bring in upwards of $350 million annually • Nike has improved oversea factory conditions

11. Staff • One of Nike’s strong specialized team member is Co-founder, Philip H. Knight, has been with Nike since its inception. • Board of Directors overhaul

12. Systems • Research and Development & Advertising • Nike is THE brand to wear • Controlling 80% of the market • Increased total revenue over 4 million and profit by 2.5 millionin one FY

13. Style • Come into work and promoting team building • Incorporate sports to implement competitive spirit for employees

14. 5 Forces Model

15. Supplier Powers • Stores located in 45 different countries & over 700 shops throughout the world. • Worldwide spread creates equal sourcing between the merchants • Manufactures are wholly-owned businesses of NIKE, with independent contractors in China and Taiwan. • Materials used in our apparel products are: • Natural and synthetic fabrics and threads, • Plastic and metal hardware, • Specialized performance fabrics

16. Buyer Power • Extensive research done to figure out what our customer’s preferences in style, comfort, and price • Buyers chose due to top quality and high tech apparel in combination with the style and availability • Foot-up on the new entrepreneurs • Brand recognition • Top athletes in the world wear brands

17. Threat of New Entrant • #1 leading competitor in athletic and apparel • Secured Intellectual Property in its stream line products such as : • Air Jordan’s • Nike+ iPod • NikeAir Max. • Mimics • TV ads generate approval rating of +75% of viewer.

18. Competitive Rivalry • Differentiation strategy • Strategies: • Warranties • Brand image, • technology, features, • services, • quality/ value • Must know competitor attributes and how much they earn

19. Threats of Substitution • High quality = Higher prices, • Associated with cost of the raw materials • Possible Solutions: • Incorporate a product that is lower quality than standard. • Incorporate more sales and deals for customers.

20. SWOT Analysis

21. Strengths • #1 sportswear brand in the world • Employ about more than 30,000 people world-wide • Strong sense of marketing campaign by sponsoring top athletes

22. Weakness • Income of business is heavily depended on footwear market • Charged with violations of overtime and minimum wage rates at overseas workforces • Alleged child labor in Cambodia and Pakistan to produce soccer balls

23. Opportunities • Several see it as a fashion brand rather than just a sportswear • Many international regions that could be tapped into and make great profit • Spread their brand through top athletes and big corporations

24. Threats • Competition for sports shoes and sportswear is always increasing • Experiences harsh publicity feedbacks due to its wide spread advertising • Consumers are constantly shopping around for a better deal with equivalent quality

25. Profit and Industry Report • 2 major competitors • Highest quality • Little to no entry barriers • No entrants • No substitutes • Customer base increasing daily • Suppliers Increasing • More owned companies • 2 major competitors • Able to price high • No quality like Nike • No prestige like Nike • Customers in no shortage • Dozens of sports and icons • Adidas is only worry High Profits Lower Profits

26. Group Ideas for Profit • Create specialized stores • Broaden range of products • Outsource ethically • Stay in positive news • Expand beyond footwear sales • Work closer with 4 major sports • Get brand at the major sports events • Give more NikeID options

29. Strategic Planning Department Revision for Higer Profits NIKE, Inc. One Bowerman Drive Beaverton, OR 97005 December 8, 2011