NIKE Nick Bevilacqua Nick Cometa Ryan Delgado Shaun

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

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

Agenda Current State of Nike 7 S 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

Nike’s Dominance 28 Contracted Entities Own 80% of sports apparel market Nike Shares = $95. 58 Adidas = $34. 08

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7 S Framework The 7’s are strategy, structure, system, shared values, style, staff, and skills. The model is based on 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.

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

Structure Over 47, 000 branches in over 100 different countries across the world Beaverton, Oregon CEO and Director of Operations coordinate Nike. ID personalization Decentralizing decision making ensures customer satisfaction “Just Do It” was incepted in 1988. Fitness craze of the 80 s

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

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

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

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 million in one FY

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

5 Forces Model

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

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

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+ i. Pod Nike. Air Max. Mimics TV ads generate approval rating of +75% of viewer.

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

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.

SWOT Analysis

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

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

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

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

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

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 Nike. ID options

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