Strategic Analysis of Nike, Inc. Our modest goal then was 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 inNike Inc. Nike maintains traditional and non-traditional distribution channels in more than countries targeting its primary market regions: United States, Europe, Asia Pacific, and the Americas not including the United States.

We utilize over 20, retailers, Nike factory stores, Nike stores, NikeTowns, Cole Haan stores, and internet-based Web sites to sell our sports and leisure products. We also sell athletic apparel carrying the same trademarks and brand names as many of our footwear lines.

Among our newer product offerings, we sell a line of performance equipment under the Nike brand name that includes sport balls, timepieces, eyewear, skates, bats, and other equipment designed for sports activities. In addition, we utilize the following wholly-owned subsidiaries to sell additional sports-related merchandise and raw materials: Cole Haan Holdings Inc. Our most popular product categories include the following:.

As illustrated in the graph below, this marked the first time since that revenues have declined. Regardless of this year's decline, Nike Inc. As the graph below illustrates, net income has been volatile in the latter half of the 90's. Sharp decreases in and net income were due to restructuring charges.

If these charges had not been incurred, income would have been flat for both years. Efficiency in cost control and inventory management has allowed net income to increase while revenues decreased in Our greatest challenge in will be to maintain the operational and financial initiatives we worked so hard to implement in and We must maintain our inventory levels low enough that will allow us to adapt to quickly changing market trends.

Financially, we must remain conservative in our cost structure. With the gradual economic recovery in the Asia Pacific region, we can capitalize on customers who are financially stronger. Our sponsorship of the Olympic Games in Sydney, Australia, and the World Cup in Japan and Korea will be the start of many opportunities to bring sports events into the mainstream for regional and global markets.

With added exposure, we are challenged to respond to a market demand for fashionable athletic footwear and apparel. In this quest, we will succeed if we keep quality and performance at the core of our business. The Internet is a rapidly changing medium.

As the first company in our industry to offer e-commerce capabilities, we must proceed with caution and stealth in order to select an enduring strategy that will complement our existing distribution channels. Bill Bowerman and Phil Knight founded Nike Inc. While attending Stanford University, Knight wrote a paper about breaking the German dominance of the U.

In an attempt to realize his theory, Knight visited Japan and engineered an agreement with the Onitsuka Tiger company, a manufacturer of quality athletic shoes, to be their sole distributor in the United States.

InBowerman, who had previously designed shoes for his university athletes, worked with Tiger to design the Cortez running shoe. The shoe was a worldwide success for the Onitsuka Tiger Company and was sold at the first BRS store.

InBRS, with creditor support, started manufacturing their own line of shoes. Later that year, the first BRS shoe was introduced. The shoe was a soccer shoe that bore the Nike brand name, referring to the Greek Goddess of Victory, and the Swoosh trademark. The Swoosh was meant to symbolize a wing of the Greek Goddess. BRS soon changed its name to Nike, Inc. InSteve Prefontaine was the first prominent track star to wear Nike shoes. A year later with 2, employees, Nike went public selling 2 million shares on the New York Stock Exchange.

Nike also expanded its product line to include specialty apparel for a variety of sports. In addition, we opened the Nike World Campus in Beaverton, Oregon. These revenues grew based on improvements in shoe technology and successful marketing campaigns. Such growth continued throughout the 's as we continued to focus our marketing efforts on major sporting events like the World Cup, and the next generation of celebrity endorsers, such as Tiger Woods, Lance Armstrong, and the players of women's professional basketball WNBA.

Knight, Chairman and Chief Executive Officer, is the co-founder of Nike, Inc. He has been the driving force behind our company's success since its inception in under the name Blue Ribbon Sports. Knight is 61 years of age and holds an undergraduate degree from the University of Oregon and an MBA from Stanford University.

Knight practiced as a CPA and taught at Portland State University prior to founding the company known today as Nike. He has been an innovative visionary in the industry of athletic footwear and apparel. His efforts have helped to establish Nike as an industry leader in both national and international markets. Knight's managerial mode is one that is characterized by strategic planning. This mode is representative of an open-minded CEO, one willing to take calculated risks and make conservative decisions based on careful analysis of external and internal environments.

Knight's decision-making style favors the participative approach. He is not hesitant to make unilateral decisions, but prefers to look to his trusted management team for their insight and ideas before choosing a course of action. Reebok, in terms of their products, is not entirely different from Nike.

Reebok is involved in the design and marketing of both athletic and non-athletic footwear and apparel, as well as other various fitness projects. This is evident in their declining stock price, which has fallen by over 80 percent in the last four years.

In general, consumers are spending less worldwide for athletic footwear. The current domestic industry focus is on casual and comfortable shoes. Although athletic footwear sales appear to be recovering, demand is still leaning toward the "brown shoe" casual footwear with a comfortable and rugged design.

This switch is due to the increasing number of workplaces adopting casual dress codes. The athletic footwear industry is a challenging and saturated market.

Intense competition, fashion trends, and price conscious consumers have slowed growth in this industry. Manufacturers are combating sluggish sales with radical new styles, along with offering more styles at lower price points. Companies are looking for new ways to boost sales by capitalizing on direct Internet sales to consumers. Many companies are also increasing profitability by transferring production to cheaper offshore facilities.

This segment has reached a point of maturity in the domestic market and can look forward to only modest sales growth for the long term. However, sales are improving slightly, especially in the areas of running shoes, cross-trainers and basketball shoes.

Therefore, companies with strong brands will increasingly turn to international markets for growth. Overall, sales in the athletic footwear industry remain stable throughout the year. The global variance in our market balances the seasonal fluctuations. Typical trends in seasonality appear for spring apparel, the back-to-school season, and the Christmas holiday season. In fiscal yearthe economy was relatively favorable for footwear manufacturers.

The footwear industry and its profitability are closely tied to economic cycles. Modest inflation, low unemployment, and a booming stock market will all contribute to healthy consumer spending.

The theory behind the slowdown in sales is that growth in athletic footwear and apparel is cyclically sensitive to the Olympics.

Historically, years of the Olympic Games have demonstrated surges in growth followed by difficult sales periods. The outlook for increased sales trends is optimistic due to the upcoming Olympic Games slated for this year. Nike can also look forward to a boost in demand from the World Cup events. The athletic footwear industry is a very competitive and mature market.

The leaders of this industry are very well established. Leaders like Nike and Reebok have made the industry what it is today. Consequently, long-time competitors like Saucony and K-Swiss have been struggling for years just to keep their brands alive.

This cutthroat environment has hindered the entry of new competitors. Economies of scale also contribute to the lack of newcomers into this market. In order to have an edge over the leaders, companies must be able to compete at all levels such as reasonable pricing, efficient production, and high product quality.

These things are difficult to achieve without the resources of an established manufacturer. Another key barrier to entry is the access of traditional distribution channels. When combing the shelves at stores like Sports Authority and FootLocker, it is evident that the leaders dominate the shelves. Lesser-known brands are viewed by retailers as being too risky to replace an established brand name like Nike or Reebok on the shelf.

These walls seem to be breaking down with the help of the Internet. The costs of overhead that come along with traditional brick and mortar retail distributors are being significantly diminished. New entrants are now able to slide into markets without these high startup costs, making it more profitable to begin production.

When a company decides to exit from this industry it must be aware of things such as indebtedness and its ability to meet those obligations. A company must also be cognizant of lawsuits filed by its stakeholders and claims made on any residual assets. The combination of these two types of directors benefits Nike in that there is a presence of those directly involved with Nike as well as others indirectly involved who bring outside experience, provide another frame of reference and can assist the overall board in thinking "outside the box.

Assistant Secretary, Nike, Inc. Knight, has been with Nike since its inception. As a result, he has much knowledge and experience about the company and the industries in which it competes. His participative decision-making style can also be viewed as a strength such that Knight is willing to listen to others to generate ideas. While the mission does broadly identify the business we are in, namely the sports and fitness industry, it is not specific as to what products and services we provide.

The mission statement also omits any mention of distribution channels and customers. Nike has no published corporate objectives in relation to the overall company.

This lack of corporate objectives represents a weakness. Nike has established corporate objectives in relation to our perceived corporate responsibility. Our objective is to "lead in corporate citizenship through programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services to Nike.

For our grand strategy, Nike utilizes innovation to produce top quality athletic footwear and apparel. As a result of devoting vast resources to the research and development of its products, Nike has captured the largest market share in the athletic footwear and apparel industry and continues to be the leader of quality products. The competitive strategy that Nike introduced at the end of the 's concentrates on honing the focus of our marketing strategies and product offerings through product differentiation.

We realize that the team-mentality that captured the spirit of athletics in the late 's and early 's has been replaced by a sense of individualism. We are responding to this movement in a number of ways. While retaining our company's long-standing tradition of placing performance through new-product development as a top priority, a never-before seen element of fashion will receive a second-place priority built into our products and image.

For the back-to-school season, we conducted fashion shows in twelve U. In addition, an element of individualism is most obvious in our Web site. Customers can select the color and design a monogrammed heel-insignia for our made-to-order athletic shoes.

Nike has created a corporate culture rich with employee loyalty and team spirit. Red "Swooshes" float across everything from screen savers to coffee cups at the company's headquarters in Beaverton, Oregon. The company chooses to call its headquarters a "campus" instead of an office. Employees are called "players," supervisors are "coaches" and meetings are "huddles. Inthirteen years after the company was founded, Nike was blindsided when Reebok developed its multicolored aerobic shoes.

It was then that we decided to reinvent our business and culture, becoming highly motivated about selling sports and a "Nike way-of-life. Since then, Nike has been striving towards an inner culture that reflects this mantra. Employees are given an hour and a half for lunch to play sports or simply workout.

The new Nike is not just about shoes and slam-dunks, but about promoting a lifestyle. All new employees view a video of sports highlights accompanied by a soundtrack that discusses the soul of the athlete and the competitive spirit.

In addition, management sends weekly emails to update employees on the recent successes of Nike-sponsored athletes, and often hosts spokespeople to motivate and thank its staff for contributions to the sports world. It is not surprising that an athletic background helps a prospective employee. In keeping with its sports approach Nike asks its players to work by two principals above all others -- "Honesty first, and competition second. Compete with yourself not your colleagues.

Nelson Ferris, a 47 year-old head of its corporate education department states that, "The Swoosh represents something other than just a company. It represents a whole value system. In late spring ofNike Retail, Nike's subsidiary consisting of the Nike Town shops and employee stores around the world, upgraded their hardware and software.

We have upgraded to PC-based systems running the more sophisticated Windows NT operating system. The software we have been using for the past few years called, Connect: Remote, made by Sterling Commerce Inc. Corporate office communications capabilities with these branch locations will be improved dramatically. Sales and inventory data can be monitored in real-time. Electronic journaling, credit authorization, and sales reconciliation processing-efficiency will increase due to the addition of in-store databases.

Modems transmitting data at 56K BPS, or even with digital technology, will replace the BPS modems and provide for quicker processing times. All of these innovations will allow executives at the corporate office and in other branches to better manage operations. Top management consists of a equity stock brokers uganda ltd group of executives all bringing together vast experience and knowledge.

The group is team oriented, but is capable and does work independently recognizing the common stake that each places in Nike. This style of leadership leads to relationships of trust and respect. While Nike employees have been loyal and committed workers, after earn money paidverts cost-reductions that took place in the fourth quarter of resulting in a reduction of the number of employees, we have had to place greater emphasis on motivation among the retained employees.

Morale also fell as a result of bad media coverage over reports of substandard working conditions for our Asian factory workers. While initiatives nike employee stock options been set to increase overall employee morale, this area remains a challenge to the company. A comprehensive establishment of profitability standards has assisted Nike in our evaluation of individual performance as well as a comparison to other competitors.

Nike utilizes standards such as net profit, earnings per share, return on investment, return on equity, sales growth and asset growth. Performance standards are also established and checked regularly.

Nike thoroughly examines and compares the aforementioned performance standards to the actual results that have occurred as nike employee stock options result of implementing strategies to meet or exceed performance standards. These standards are important to Nike as a comparison netdania forex & stocks past performance to present performance as well as in our attempt to forecast future results in these areas.

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Though Nike has established profitability and performance standards, correction of discovered deviations has been a slower and less timely process. While in general this is a good policy to abide by, at times Nike would be better served by a management team that can react more quickly to given information. Despite a slight decline from prior years, Nike continues to have the greatest market share in the U. Inthe closest competitor, Adidas, held Speedskating team in the Winter Olympics in Salt Lake City, Utah.

Nike has taken the lead in e-commerce by being the first to market with its e-commerce web-site. Nike launched its e-commerce site in April remington model 710 parts schematic offering 65 styles of shoes to the U. Nike increased its e-commerce presence by launching NIKEiD in November NIKEiD enables online consumers to design key elements of the shoes they purchase.

The program represents the first time a company has offered mass customization of footwear. By being the first to market, Nike enables itself to become established while competitors rush to join us. This brand power translates into bottom-line revenues. The Nike name and associated trademarks have appeared everywhere from players' shirts, pants, and hats to stadium banners and walls.

Aggressive advertising campaigns, celebrity endorsements, and quality products enhance the brand. Some examples are our sponsorship of the Women's World Cup Soccer Tournament and our sponsorship of the U.

Speedskating team in the upcoming Winter Olympics. Though Nike leads the make money scamming people division among industry competitors, Nike has not claimed to be leading the race among the apparel industry as a whole.

Due to increased emphasis by consumers on fashion in relation to sportswear, we have had to make strides to appeal to a fashion savvy market. Continuous marketing research could prove to be key in assessing the market.

Nike is planning on initiating bounty hunters make money much structures within the apparel division to focus on the following areas:. We are also spending more time on continuing to support and develop programs to gain a better understanding what our customers would like to see in the market.

Nike has had much success as a result of collaborating with other companies within the sports and fitness industry. However, at times we expanded into markets for which we were not strategically suited. An example is the decrease in nse option trading rules made available due to declining sales of in-line skating and roller hockey products at Bauer Nike Hockey. As a result, we have had to exit two manufacturing operations at our Bauer Nike subsidiary.

We had to terminate 51 employees. Had we anticipated the decline sooner, perhaps gradual changes could have been stockcharts market profile so that the end result may not have been as finite in nature.

The desire to prevent situations such as these from continuing to occur, we have initiated a more aggressive program to review product collaborations that are outside of our core basis of products. While the prices are realistic given the nature of the products we offer to our consumers, at times our consumers may not agree.

This presents a weakness. Despite the fact that in the past we may have overlooked the mid- to lower-price-point products, presenting another weakness with room for improvement, we are dedicating our time and money to better develop our competitive position at all price points to build strengths at each of these levels.

We see much potential in the lower price points and plan to meet the needs of those markets. Because of such research, we have decided to revamp fibonacci in forex market apparel division, an area in which we can still greatly improve.

Nike will be organizing the internal business by gender as opposed to sport category and conducting increasing amounts of research addressing the buying habits of men, who invest stock market game to sonic r forex strategy item-driven, and women, who tend to be collection-driven, with specifically targeted product lines.

The locations are geographically dispersed which works well in our mission to is it a good time to buy coal stocks a truly global company.

The production facilities are located close to raw materials and cheap labor sources.

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They have been strategically placed in their locations for just this purpose. In general, the facilities are located further from most customers, resulting in higher distribution costs. However, the cost savings due to the placement of our production facilities allows for cheaper production of our products despite the higher costs of transporting our products. As Nike continues to expand in the global economy and increase its market throughout the world, these dispersed facilities will prove to be beneficial.

Our facilities abroad have attracted bad publicity in recent years. Though our facilities comply with local labor standards, generally, they have not met U. We want to be a leader and set a responsible corporate example for other businesses to follow. While establishing these policies is a step in the right direction for Nike, the difficult task at hand will be the implementation of the aforementioned goals to ensure the success of the program.

Although Nike conducts continuous, basic research that benefits numerous facets of the sports and fitness industry, our primary focus is directed towards applied research. Applied research focuses on short-term initiatives such as successfully developing new product lines.

This proves to be a strength in that this method of research is less costly than basic research, and less risky due to the short-term nature. Successful projects can realize immediate profitability while unsuccessful projects may be discontinued without enduring materially large losses.

Focusing on applied research can be a weakness as well. Many new, innovative ideas come into existence as a result of basic, unspecific research. Though more risky and expensive, Nike would benefit from increasing the amount of basic research we conduct with hopes of uncovering potential opportunities of which Nike could take advantage.

Our posture is primarily innovative, while at times adjusting to a protective position, and other times a catch-up stance. Binary options arbitrage strategy prides itself on being a premiere provider of high quality sports footwear and apparel. Innovation has been the key to aiding Nike in securing its position as the leader in the market.

Due to the lead Nike possesses in the industry, we can afford to look long-term and place a greater emphasis on innovation as opposed to other companies with a short-term outlook attempting to improve upon existing products and services. At times, we need to adjust our posture in relation to a particular product line or area of products. In these instances, Nike may choose a defensive strategy to remedy the current situation.

We may also choose a catch-up strategy and mimic what is working well for other companies in the industry.

No successful company can exist and succeed without utilizing its human capital. While Nike has had various policies in place, weaknesses still exist in regards to labor policies in overseas locations. We received much bad publicity as well as experienced a decrease in sales as a result of poor labor policies and lack of policies established best ways to make money f2p osrs. Increasing the minimum age of footwear factory workers to 18, and minimum age for all other light-manufacturing workers apparel, accessories, equipment to 16.

Expanding education programs, including junior and forecasts rates to binary options school equivalency courses, for ks1 money lesson ideas in all Nike footwear factories. Increasing support of its current micro-enterprise loan program to 1, families each in Vietnam, Indonesia, Pakistan, and Thailand.

While establishing these policies is a step in ford motor company stocks yahoo right direction for Nike, the difficult task at hand will be the implementation money xango juice make the aforementioned goals of the new labor initiative to ensure the success of the program.

InUnited States President, Bill Clinton, promised to keep the embargo in place until the U. White House documents have revealed large donations to the Democratic National Committee by companies with an interest in seeing the embargo lifted.

While the worst is over, Nike is still working on initiatives to change the current situations throughout factories. Whether true or not, the company still suffers from this unethical image and must sway the minds of the consumer and give them a renewed faith in the ocbc singapore foreign currency fixed deposit rates of Nike.

In response to accusations by consumer groups over unfair labor practices, Nike has developed a Corporate Responsibility Policy that discusses how we will improve working conditions for our international employees. The Policy outlined on our web-site has the following mission, "To lead in corporate citizenship through operations that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services to Nike.

The current ratio, while not a major stock option expense income statement, shows that Nike is inline with the industry concerning ease of converting assets to cash to cover short-term obligations.

The quick ratio of 1. Being slightly above the industry indicates that we could sell less of our inventory stocks to buy under $15 what other companies in the industry would have to sell to meet current obligations.

Neither the current or quick etf call options trading exceeds the industry average substantially enough to be considered a true strength. The fact that we are not leaders is ultimately a weakness.

Reducing inventory best emerging stocks to buy was forex trading course in pakistan key initiative for Nike in fiscal year Due to our ability stock market intel quickly turnover inventory, Nike benefits from greater cash flows, reduced storage costs, and less spoilage.

Company management stated, "We put a considerable amount of effort into improving product buying power patterns and as a result the composition and levels of inventory resulted in improved gross margins relative to online forex broker indian year ago.

Nike does permit sales in cash, cash equivalents and on credit. Our collection procedures have been lax compared to others in the industry resulting in slow payers and defaulting customers. Our collection period calculates to Steps are being make money moderating forums to alleviate the problem of list of legitimate binary option brokers accounts receivable in a more timely fashion.

We have just recently changed our collection period from 90 days to 60 days as an attempt to encourage faster payment. Our debt-to-total-assets ratio is Nike is not as leveraged as competitors in the industry and uses less debt financing to finance firm operations. This can be interpreted woolworths trading hours easter qld a strength as we do not rely as heavily as our competitors on debt financing.

However, our highly liquid position gives us the ability to increase debt financing should buying property in lund sweden need or desire additional capital for company operations, research and development, or other changes as top management sees fit.

Despite the lower percentage of assets that are borrowed to finance Nike, our times interest earned ratio is weaker than the industry average. Our ratio of The industry average of Our profit margin of 5. Our return on equity of Collection period Accounts Rec. While the reasons that Nike is successful in marketing our products are numerous, this key distinctive competency towers over our competitors.

Catch phrases like, "Just Do It," and symbols like the Nike "Swoosh," couple with sports icons to serve as instant reminders of the Nike empire. Two key attributes of a distinctive competency are its inability to be easily replicated and the value or benefit it offers to consumers. As Nike jpm emerging markets share price a more integrated part of American and world culture, our brand power becomes increasingly difficult to replicate.

Nike is able to capitalize on its unique identity due to our industry-leading financial strength. Nike reaches millions of consumers through large-scale marketing campaigns made possible by significant budgetary appropriations. Few companies have such a recognizable image and the resources to promote it. This ultimately translates into added value for consumers. For decades, consumers have come to associate the Nike image with quality products. By associating star athletes and motivational slogans like, "Just Do It," with marketing campaigns that emphasize fitness, competition, and sportsmanship, consumers identify their purchases with the prospect of achieving greatness.

Younger consumers especially benefit from this positive influence. This image is something that competing companies can not easily duplicate by simply enhancing the physical characteristics of their products. The key weakness of Nike, Inc. While we are not in financial trouble, we recognize that strengthening the financial well being of the company can only assist our company in the short- and long-run. We have many areas challenging our continued success such as increasing our profitability and bettering our management of cash, accounts receivable, and debt.

Nike suffered a blow to sales and revenue sparked by bad publicity in about our international labor policies. Since then, we have attempted to overcome the bad press by raising and enforcing minimum age requirements for employees in overseas factories. Duringthe company made some changes in its products and deeply cut costs. These initiatives, in addition to the stabilization in the Asian financial picture, will combine to fuel the recovery that Nike expects in the near future. Nike's recent alliance with Fogdog Sports, an Internet sporting goods retailer, and our presence in the Sydney Olympic games will also aid in sales growth.

In fiscal yearthe company incurred a one-time restructuring charge to better align our overall cost structure and planned revenue levels. As noted above, the labor controversy has been the biggest factor in the changes shown. Competitors can exploit our financial weakness by emphasizing their own individual strengths and attempting to gain greater shares in the market while we are revamping processes from within.

This could be a key time during which other companies in sound financial condition, such as Adidas, could utilize their resources in an attempt to overshadow our existing and new product lines. Despite the tough times Reebok has recently come upon, reasons for optimism remain. Yes, Reebok can use their distinctive competency to wound our company.

If Reebok can expand their appeal to incorporate female consumers who are not currently Reebok customers, Reebok could expand their market share and take customers away from Nike products. Yes, we can protect our market share among female consumers within the industry by targeting some of our promotions to female consumers.

While other athletic shoe companies bombard the airwaves with commercials pushing their product lines, Reebok remains out of sight and out of mind. For Reebok to rebound from their current economic woes, they will have to improve the quality of their overall marketing operations.

Continuing our successful marketing programs should allow Nike to court the customers Reebok fails to draw in with their weak marketing initiatives. Nike's once loyal market is currently aging. This means that our customers are not as athletic as they may have been in the past. However, this poses as an opportunity for Nike because they have the ability to influence the next generation of Nike customers. The older generation of Nike brand purchasers have the power to influence their children - part of the next generation of Nike loyalists.

In addition, by marketing different types of shoes to this market, these existing customers will continue to be loyal to Nike. The phenomenon of the aging of our most loyal market segment questions whether there is a threat that the new generation will not be exclusively loyal to Nike. In the current market there are a number of other competitors that are not mainly athletically oriented. Examples include such manufacturer-retailers as The Gap and Old Navy.

Their clothing and shoes are competing with Nike's. In addition, Nike is not keeping up with the latest trends and styles like some of its competitors have been. For that reason, the newer generation is attracted by Adidas and Tommy Hilfiger. An opportunity produced by pressure groups is the ability to react in a positive manner to concerns of the public as well as customers.

Consumer watch groups are paying especially close attention to Nike's use of sweatshops and child labor to produce our products. Nike's opportunity lies in being able to show the consumer force that we are indeed taking steps to reduce and eventually eliminate sweatshops and child labor through new policies and strict implementation procedures.

Also, by responding to such consumer activism, we are portraying a positive image in that we are promoting ethics even while we are trying to be efficient and economical. In the same manner, not responding to these consumer activist groups poses a threat to Nike. The negative publicity that Nike has received thus far has lowered its image to that of being an ethical company.

Such publicity has the potential to ruin a company permanently. By disregarding the voice of concerned citizens, we are disregarding our customers, one of our most important stakeholders. The key opportunity for Nike, Inc. Currently the company has the ability and the resources to exploit this opportunity. Nike has capitalized on the recent economic boom with higher sales and income.

However, we are not using our resources to the fullest degree. There are currently many areas in which Nike is not paying attention. We have not catered to a large portion of the new generation that demand the latest trends and styles. Also, Nike must take into account the changing demographics in this country.

There is a much higher proportion of Hispanics, Asians, and African Americans than there was before. These groups have somewhat different tastes that Nike should be able to satisfy. To exploit this opportunity, Nike needs to focus on who the next generation of loyal customers will be and cater to their needs. In addition, the world economy is recovering currently, which allows Nike to make an impression in foreign markets as well.

Nike is strong in many foreign countries, but we need to focus on the younger market of consumers. Nike has been doing a great deal of research and development, but if we want to keep the lead in market share, we must look at trends while maintaining our high standards of quality. The key threat for Nike, Inc. The problem is that the athletic shoe market is already full of different brands and companies.

Now, there is very little room for new companies. There is also very little room for new product innovation and growth of market share for companies like Nike, Inc. Since Nike is currently holding the lead in the market as far as market share, there is little room for them to expand. In fact, we must hold onto our market share because if anything it is ours to lose. If all of these other companies merely gain a small percentage of the market, Nike will be one of the main companies to start losing market share.

In response to this threat, we would focus on keeping our market share and making sure that competitors like Old Nay do not steal away our market share. We will do this by focusing our efforts on a broader market. This would include the younger generation that is interested in sports as well as extreme sports. We need to make sure that we not only stay abreast of the athletic shoes market but also are competitive in the athletic apparel market.

Loss in market share for shoes and apparel to non-traditional athletic companies e. We choose finance as our major problem because continuing success for Nike is based on our ability to generate future cash flows by producing higher revenues and net income. Additionally, financial performance effects the public perception of Nike in the marketplace. For these reasons, we chose finance as our major problem.

Evaluation Criteria Weight Ranking Weighted Score Industry Growth. Our mission at Nike is to be a company that surpasses all others in the athletic industry. We will maintain our position by providing quality footwear, apparel and equipment to institutions and individual consumers of all ages and lifestyles.

We pledge to make our products easy available worldwide through the use of retail outlets, mail order and our company web site. We vow to keep this in mind with the execution of every decision within our company. Nike will focus its commitment to all stakeholders by continuing to make strides towards being a company that sets the precedents in social responsibility. Nike is continuously making efforts to ensure that all employees and members of its surrounding communities are treated in a manner that is inline with our mission.

Nike has made many alliances with human rights organizations in an attempt to ensure labor rights for employees of the industry overseas. We are committed to treating our employees with the utmost respect, which is reflected in our compensation and human resource policies. We are also committed to making sound decisions in regards to our environment, resources, and the fight against pollution. At Nike, our vision is to remain the leader in our industry. We will continue to produce the quality products that we have provided in the past.

Most importantly, we will continue to meet the ever-changing needs of our customers, through product innovation. The table below concludes that focusing on product development will allow Nike to continue to build upon our founding tenant that has secured us a position that borders on leverage and maintenance within the athletic footwear, apparel, and accessories markets.

Because Nike has such a strong history of effective marketing in key global regions, concentration is an alternate strategy. Market development is a third strategy for consideration due to Nike's ability to geographically expand our product offerings. The three strategies are very closely linked. To determine which would prevail as our overriding strategic position, four evaluation criteria were weighted according to each strategy: With a total weighted score of 4.

Producing merchandise that is high in quality, technologically advanced, and fashionable will allow us to achieve our corporate objectives of profitability and shareholder value. Utilizing this strategy will also allow us to capitalize on our key opportunity. The global economy is becoming so strong that by improving our products in order to extend their life cycle we will be making a long-term investment in this financial boom.

Our products will be able to better withstand the risk of passing fads. Incorporating fashion into our products is one way to achieve this strategy.

The two alternate marketing strategies will be just as necessary in order to incorporate our products into the shopping habits of consumers. In the past, our company has utilized product differentiation as our competitive strategy. As our reputation dictates, we will continue to place our emphasis in this area. Nike has built its business on providing products that rise above all others; it has made us the success that we are today.

Nike is known for its technologically advanced products. We are the leaders in this area, which allows our products to stand out from the rest. Our focus also allows us to maintain a somewhat narrow niche that enables us to effectively capture the needs and wants of our consumers. Nike will also focus on making a strong effort in price leadership. Our products in the past have been concentrated in the higher end of the pricing category.

We will now make an entrance into lower price categories with our quality products. This will enable us to capture an even greater hold on market share. Exhibit 10 Short-Term Strategy. Decrease our cost of sales from Exhibit 11 Short-Term Strategy. Exhibit 12 Short-Term Strategy. Increase availability of educational assistance programs for world-wide manufacturing.

Exhibit 13 Short-Term Strategy. Exhibit 14 Short-Term Strategy. From equipping athletes with the finest sports equipment in the world to continuously improving our own financial performance, Nike dominates its competitors. They did know that product quality and innovation would help athletes to achieve greater goals. Nike still operates on this philosophy today. It is one that has helped athletes and stakeholders alike to realize athletic and financial greatness.

Despite a changing marketplace for athletic footwear, we will continue to expand our product lines and marketing reach to become a more powerful global brand.

President and Chief Operating Officer, Nike, Inc. Visiting Scholar, Massachusetts Institute of Technology, Boston, MA. President, Harbor Point Associates, Inc. Vice Chairman of the Board, Lowell, Massachusetts Delbert J. Chairman of the Board and Chief Executive Officer, Nike, Inc. Dean, Graduate School of Business, Stanford University, Palo Alto, CA. Former Head Coach, Georgetown University, Washington, D. Debt to total assets. Facilities location and newness.

Caliber of top management. Market Research Hire a market research firm familiar with Asia, specifically the booming market of Japan, to study the buying habits of Asian consumers.

Determine what factors motivate their athletic footwear and apparel purchases. Conduct focus groups in Asia to get feedback on our existing products, as well as our prototypes. Pricing Determine price points for our Asian product offerings that are properly adjusted for regional buying power, competition, and currency valuation.

Advertising and Promotion Sponsor regional sporting events for professional, amateur, and collegiate teams. Include sponsorship of the World Cup in Korea and Japan. Run advertisements in the most popular forms of regional media: Offer rebates and discounts for certain late-model shoes to encourage sales and inventory turnover.

Conduct fashion shows at top retail venues to display our latest merchandise offerings to consumers and the media. Location, Newness, and Layout of Facilities Hire independent industrial engineers and analysts to work with manufacturing facilities in order to maximize efficiency of operations: Inventory Reduce inventory at all levels of production: Work with 3 rd party shipping agents to manage the flow of orders from factories to distribution centers.

Work with suppliers to implement the next generation of electronic data interchange EDI technology in an attempt to achieve just-in-time inventory. Focus Shift funding to applied research in "up-and-coming" sports. Experiment with cutting-edge fashion. Budget Infuse new funding, in addition to shifting current budgetary allocations, for researching sports that could be popular in the future. Human Resource Objectives Long-Term: Recruitment and Selection Hire factory workers who express an interest in educational programs.

These employees would achieve the maximum benefit from educational assistance programs by being more loyal and productive. Training and Development Offer general education classes for factory workers who want to learn how to read, write, or fill any gaps in their childhood education.

Conduct seminars and workshops for supervisors in factories so that they may improve their production and management skills. Compensation Increase salaries of factory workers who are promoted as a result of completing our educational assistance programs. Management of Accounts Receivable Implement stricter credit terms with retailers to minimize bad debt expense.

Hire 10 additional employees in the corporate Accounts Receivable Department to maintain and collect aging accounts. Management of Total Assets Sell non-productive equipment or buildings to reduce depreciation and maintenance expenses.