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NIKE, Inc. Introduces 2015 Global Growth Strategy

NIKE, Inc. Introduces 2015 Global Growth Strategy. Brandon Armatas Billy Lane Brandon Rice. Company Background. Established in Eugene, Oregon in 1964 as Blue Ribbon Sports Became Nike in 1978, HQ in Beaverton Founded by Phil Knight and Bill Bowerman

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NIKE, Inc. Introduces 2015 Global Growth Strategy

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  1. NIKE, Inc. Introduces 2015 Global Growth Strategy Brandon Armatas Billy Lane Brandon Rice

  2. Company Background • Established in Eugene, Oregon in 1964 as Blue Ribbon Sports • Became Nike in 1978, HQ in Beaverton • Founded by Phil Knight and Bill Bowerman • Sell high-quality sports equipment, apparel, and shoes across numerous categories • Nike owns Converse, Hurley, Umbro, and Jordan brands • Named after Greek goddess of victory

  3. Financials • 2009 net income of $1.49 billion • 2009 gross revenue of $19.2 billion • Pursue both organic and external growth • Nike brand accounts for 85% of revenue

  4. Revenues by Category • Action Sports - $390 million • Athletic Training - $1.4 billion • Basketball - $1.7 billion • Football - $1.7 billion • Running – $2.1 billion • Sportswear - $4.9 billion • Women’s Training - $740 million

  5. Marketing Strategies • Excellent marketing campaigns featuring popular athletes • Positioned themselves as a premium brand • Popular slogans and trademarks eg. “Just Do It”, Nike swoosh, and Nike Air

  6. Strengths: Strong Brand Loyalty Strong Brand Equity Effective Advertising Product Development + Innovation Opportunities: R & D Fashion Potential Global Markets New Categories SWOT Analysis Weaknesses: • Bad Publicity • Human Rights Concerns • Most Market Share from Footwear • Highest Prices in Cost-Sensitive Sector Threats: • Consumer Spending Down • Emergence of Competitors • Piracy and Counterfeiting

  7. Article • Nike plans for significant growth by 2015 • Investing $500 million to develop direct-to-consumer business • 250-300 new niche-specific Nike stores, smaller than Niketowns • Grow/develop all geographic regions • Grow all non-Nike brands by $1.5-2 billion

  8. References • http://www.marketwatch.com/story/nike-inc-introduces-2015-global-growth-strategy-2010-05-05?reflink=MW_news_stmp • The internet

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