Nike Factsheet: Nike's Business Model and Stakeholder Relationships

This report provides a detailed factsheet on Nike, a multinational corporation specializing in footwear, apparel, and sports equipment. It outlines the company's background, including its origins as Blue Ribbon Sports and its founders, Phil Knight and Bill Bowerman. The report details Nike's products and services, which range from sports apparel and equipment to street fashion items, highlighting the brand's significant presence in the sports and urban fashion markets. It also covers the company's size and scope, noting its leading position in the UK sports market with a 38.23% market share and its substantial revenue of $44.538 billion in 2021. The factsheet describes Nike's vision, mission, and objectives, emphasizing its commitment to inspiring athletes and promoting sports as a daily habit. Furthermore, it explains Nike's corporate ownership structure and its adherence to international and local laws. Finally, the report includes a stakeholder analysis matrix, categorizing stakeholders based on their power and interest levels, identifying key stakeholders such as the government, shareholders, employees, and customers.

FACTSHEET
Background
Nike is a multinational company having American origin and
deals in footwear, accessories, apparel, services and
equipment products. It is involved in design, developing,
manufacturing and selling & marketing of these products
worldwide including UK. The company is the largest
supplier of athletic shoes in the world. It is significant
producer of equipment for sports in terms of revenue it earns.
The initial name of the company was Blue Ribbon Sports and
its founders are Phil Knight and Bill Bower man.
Vision, Mission and Objective
◦ Nike operates with the vision of bringing
inspiration in the life of every athlete and making sport
a daily habit among people.
◦ The mission of the company is to bring
innovation & Inspiration to every athlete. Company
considers that everyone who is having body is an
athlete.
◦ Increase the market share and inspiring people
for sports is the main objective behind the company’s
operations.
Products and Services
The products of the company are its sports apparel,
street fashion and collectibles. A range of sports
apparel and equipment are produced by Nike. It started
producing such products with the track running shoes.
Nike Air Max and Nike SB are two such examples. In
the world of Hip Hop and Urban Fashion the unique
logo of Nike has become a status symbol. The street
fashion products by Nike examples are baseball caps,
Air Jordans, Air Max, etc.
Size and Scope
Nike leads in UK sports market with 38.23 % of the total
market share which is growing constantly each year. In the
financial year of 2021 Nike had earned a revenue of $
44.538 B. The company falls under the category of a large
sized organization and also its horizons are expanding
gradually. The online customer base of the company is also
increasing at an increasing rate. There are over 76000 people
employed by the company worldwide.
Legal Structure
Nike falls under the corporate ownership meaning that it can
be owned by ant number of individuals, making it a
corporation. The company is having its separate legal
identity which gives it many rights and responsibilities. The
organization has to comply with all the international laws
and also the laws of the countries with respect to
environment, labour, business, consumers, in which it
operates.
High Government
Shareholders
Investors
Employees
Communities
Interest
Groups Customers
Low
Low High
The above stakeholder analysis matrix represents
stakeholder of Nike in red and green colours. Red colour
stakeholders are the primary stakeholders, having largest
power and are most important for the company. The
secondary stakeholders are presented in green, these are
having power and hence slightly less important.
Stakeholder’s Analysis
Power
Interest
References
Li, J. Y., Kim, J. K. and Alharbi, K., 2022. Exploring the role of
issue involvement and brand attachment in shaping
consumer response toward corporate social advocacy
(CSA) initiatives: The case of Nike’s Colin Kaepernick
campaign. International Journal of Advertising. 41(2).
pp.233-257.
Åsberg, P. and Uggla, H., 2019. Introducing multi-dimensional
brand architecture: Taking structure, market orientation
and stakeholder alignment into account. Journal of Brand
Management. 26(5). pp.483-496.
Freeman, R. E., Harrison, J. S. and Zyglidopoulos, S.,
2018. Stakeholder theory: Concepts and strategies.
Cambridge University Press.