University Strategic Management and Marketing Report: Nike Inc.

This report provides a comprehensive analysis of Nike, Inc.'s strategic management and marketing strategies. It begins with an executive summary outlining the report's structure, followed by an exploration of Nike's background, current business performance, mission and vision statements, management structure, products, and future plans. The report then delves into a PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors influencing Nike's business. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. Porter's Five Forces are also evaluated to understand the competitive landscape. Key strategic issues are analyzed, and recommendations are provided to help Nike sustain its successful business performance, including suggestions for technological advancements and effective business strategies.

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Strategic Management & Marketing: NIKE
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STRATEGIC MANAGEMENT & MARKETING
Executive Summary
This report tries to analyze the management and marketing strategies of the leading footwear
company Nike, Inc. in the initial part the report tries to explore the background and existing
business performance of the company based on their current strategies. Then the report explores
its mission, vision statement, products, management structure and future plans in order to
understand how the management strategies work within the organizational structure of Nike.
Next part explores the SWOT, PESTLE and Five Porter Forces of the company that highlights
the various factors that influence the company’s business strategies. The key strategic issues are
explored and analyzed. The recommendation part suggested how the company by implementing
certain technological and effective business strategies can sustain their successful business
performance.

STRATEGIC MANAGEMENT & MARKETING
Table of Contents
Introduction......................................................................................................................................4
Strategic Foundations......................................................................................................................5
Mission Statement.......................................................................................................................5
Vision Statement..........................................................................................................................5
Strategic Managers......................................................................................................................6
Products.......................................................................................................................................6
Future plan...................................................................................................................................7
PESTLE analysis of Nike................................................................................................................8
Political Factors...........................................................................................................................8
Economic Factors........................................................................................................................8
Social factors...............................................................................................................................9
Technological factors...................................................................................................................9
Legal aspects..............................................................................................................................10
Environmental factors................................................................................................................10
SWOT Analysis of Nike, Inc.........................................................................................................11
Strength......................................................................................................................................11
Weakness...................................................................................................................................11

STRATEGIC MANAGEMENT & MARKETING
Opportunities.............................................................................................................................12
Threats.......................................................................................................................................12
Five Porter Forces for Nike, Inc....................................................................................................13
Suppliers’ bargaining power......................................................................................................13
Buyer’s bargaining power..........................................................................................................14
Threat of substitute....................................................................................................................14
Threat of new entrants...............................................................................................................14
Competition Rivalry..................................................................................................................14
Key Strategic Issues.......................................................................................................................15
Struggling Apparel Business.....................................................................................................15
Losing demand for certain products..........................................................................................15
Woman products market............................................................................................................15
Recommendation and conclusion..................................................................................................16
Non footwear products and manufacturing casual footwear along..........................................16
Building professional relationship............................................................................................16
Internet and social media...........................................................................................................16
Remuneration and rewards........................................................................................................16
Reference.......................................................................................................................................18

STRATEGIC MANAGEMENT & MARKETING
Introduction
Nike, Inc. is an American footwear manufacturing company that does business
worldwide. 47% of the global sports shoes market is covered by the company and it is at the top
of its business. The company generated 6% more revenue in 2016 than 2015 as total amount of
32.4 billion dollars were earned from worldwide revenue. In 1964 Phil Knight and Bill
Bowerman founded the Blue Ribbon Sports that transformed into Nike in 1972 (Gibson, 2012).
The company effectively promotes a strategic management and marketing campaign that
primarily focuses on innovating and inspiring athletes’ shoes (About.nike.com, 2017). The
organization operates in 700 stores in 45 countries outside USA. Their marketing strategies
focus on maximizing the number of buyers so they offer various ranges of products for diverse
number of people of different ages and background. Though the company promotes that
everyone is an athlete and their products are suitable for everyone but the price ranges mostly
highlights that the company aims for the high income groups. Reebok and Adidas are two main
competitors in the footwear market that demonstrates high competition for the company (Team,
2017).

STRATEGIC MANAGEMENT & MARKETING
Strategic Foundations
Mission Statement
Nike, Inc. is leading the global corporate market in the footwear manufacturing area
through their programs that are values their service providers, stakeholders, employees and
customers. Nike claims to be the biggest seller of sports footwear in the world (Kell, 2016). The
company acts as competitive enough in all the necessary areas footwear competition like
reliability, price, product, quality, marketing, promotion, customer- employee support and
performance. The mission statement of Nike says "To bring inspiration and innovation to every
athlete in the world."The mission statement echoes what the founder Bill Bowerman said “If you
have a body, you are an athlete.” The strategic goal of the company is well reflected by their
mission statement as it aims to reach out to maximum number of global consumers with their
sports apparel, shoes and equipments (Brohi et al., 2016). The analysis of the mission statement
highlights that the main three components of the mission statement are innovation, inspiration
and satisfying every athletes in the world. The management leadership sets a winner mindset for
all the team members through their inspirational goal that reflects the slogan “Just Do It”
(Anegon, 2014). Company strategic management involves continuous improvement of their
service through applying innovative technologies and bringing new products at regular intervals.
Vision Statement
The company is also careful about its corporate social responsibilities as the CRS vision
highlights that Nike is working in order to develop a sustainable economy that keeps the balance
among the profit, people and planet (Newell, 2015). The company highlights that in the process
of achieving desired sustainable profit the consumers takes a major role. The vision statement

STRATEGIC MANAGEMENT & MARKETING
can be broken down in three parts where the initial part focuses on the consumer importance and
satisfaction, then the stress is on the sustainable economy and third part is keeping the balance in
the business (Teckchandani & Schultz, 2014). The company ensures that it is not just the
company that benefits from the business but everyone gets the benefits as well.
Strategic Managers
Nike, Inc’s Board of Directors includes multiple internal and independent directors like
Philip Knight as chairman, Mark Parker as CEO and other independent directors like Timothy
Cook and John Donahoe (Investors.nike.com, 2016). There are both independent directors and
management directors present in the board of directors of Nike, Inc. the combination of both
kinds of director helps the company to gain internal and external experiences (Burgelman, 2015).
The outside helps the company to implement experiment and encourages the management to
think outside the box. In the formulation and implementation of the designed and proposed
strategies the board of directors plays the most significant role.
Products
Nike, Inc. produces various sports foot wears, sports related lifestyle apparel and other
sports equipments. The initial product was just the running shoes but now the company makes
shoes, shorts, and jerseys for various sports like Cricket, Football, Basket Ball, base ball and
Hockey. Few most popular products by the company are Nike 6.0, Nike Air Max, Air Jordon and
many others (Store.nike.com, 2017). The brand related itself with premium performance. Nike,
Inc owns various other important companies like Converse, Hurley X, Jordon, Cole Haan and
Bauer Hockey they together cover a significant part of the company annual revenue.

STRATEGIC MANAGEMENT & MARKETING
Future plan
By 2020 the company aims to generate 50 billion of revenue. In last 5 years Nike, Inc has
increased its sales revenue by 18 billion as it reached to 30 billion in 2015, therefore almost 4
billion sales increase in each year (Forbes.com, 2017). The company had set their goal of 36
billion revenue for the year 2017 which is about to get fulfilled as predicted by the market
analysts. The management has employed Adam Sussman as their first CDO or Chief Digital
Officer who the company expects that will help to increase the revenue in e-commerce by 6
billion by 2020 (GalbRaith, 2014). The company has designed various apps like Nike+ and other
fuel band apps that will help them to maximize the customer satisfaction through measuring it
properly. The women’s apparel is another area where the company aims to grow to 11 billion
within coming 4 years.
Figure: Nike’s financial growth (Source: Sec.gov, 2014)

STRATEGIC MANAGEMENT & MARKETING
PESTLE analysis of Nike
The macro environment which is external to any organizational structure is evaluated and
scanned through the PESTLE framework (Gillam & Siriwardena, 2013). Factors like political,
social, economic, technological, environmental and legal form the PESTLE framework.
Political Factors
For any large organization the political factors play signification role in their survival and
performance. The home country of the company that is USA government has always engaged in
growth oriented policies that helped the company to get benefitted from the nation’s market. The
American Government incorporates tax arrangements that are suitable for international
competitive market, stability in currency exchange and the effective low interest rates
(Whitehead, 2012). The government support is ever improving and supporting the organizational
infrastructure. The free trade policies are expanding as well that helps the company to utilize the
opportunity well (Houlihan, 2013). Most major markets where the company operates are
politically stable that helps the company to business smoothly. However as Nike manufactures
and sells physical materials, the changes in manufacturing or related tax laws are capable of
affecting the business. The rising political conflicts in certain countries affect the process of
importing and exporting difficult.
Economic Factors
The business performance of Nike, Inc. largely depends on the economic stability of the
business location. There are three aspects of the economic domain that influence the company’s
performance. The developed market like the economy of USA provides the company with
economic stability that develops a sustainable economic opportunity for the company (Summers,
2014). The developing countries like India is growing rapidly that creates opportunity for the

STRATEGIC MANAGEMENT & MARKETING
company financial benefits as well (Maddison, 2013). However the Chinese economy’s
fluctuation proves the company to become a threat for the company (Lu, Liu & Rahman, 2017).
The company utilizes the ever growing consumer demand through establishing brand equity. The
local labors are given financial opportunities in underdeveloped nations by providing job
opportunities and maintaining corporate social responsibilities (Whitehead, 2012).
Social factors
The world wide social awareness regarding health consciousness ensures the demand for
the sports foot wears are ever increasing (Tilman & Clark, 2014). The public wealth is expanding
in the developing countries which are creating great opportunities for the company. In the Asia
Pacific regions the company has exported most of its manufacturing. The use of labors with
minimum wages including children affected the company reputation and CSR (Plambeck &
Taylor, 2015). To resolve and minimize such issues the company has engaged itself in greater
transparency in keeping the manufacturing and human resource records and provides certain
facilities to the manufacturers of certain locations. Also the company had published
“Memorandum of Understanding” that clarifies its objectives and conducts to its subcontractors
and suppliers (Child, Rodrigues & Tse, 2012). In the modern globalized era of internet any
wrong doing or ethical misconduct is likely to reach global public rapidly.
Technological factors
Nike, Inc. is incorporating innovative technologies in their marketing activities in order to
ensure the sustainability of the good performance. The website like Nike iD assist the consumers
with the opportunity to compare the foot wears at various prices and help them to choose the
most suitable one (Yu & Park, 2014). The website has proved to be the top personalization
website in the sports wear industry (Nike.com, 2017). As the world has transformed itself into a

STRATEGIC MANAGEMENT & MARKETING
more digital based system so the online payment system via mobile phones, help the company to
achieve more customers (Purkayastha & Rao, 2015). The digitalization enhances the work speed
but also capable of reducing the employment and deteriorating the organizational work force.
Legal aspects
In countries like USA or UK the legislative framework is common for the whole nation
so the organization has to face less intervention from the government in their organizational
activities. However in countries like France or Germany the states operate in code based legal
systems so the organization there has to consider interests of wider stakeholders (Legendre &
Coderre, 2012). The health-safety regulations and the consumer laws are expanding in the
developing countries that are creating better opportunity for the company to perform better in the
developing countries. The legal challenges from the past help the company to analyze certain
situation and take precaution from any legal damages (Jennings, 2015).
Environmental factors
Most European countries and USA and in countries like Japan the environmental
consciousness is really high. Nike, Inc. appointed multiple sustainability champions who are
responsible to monitor the elimination of wastes and carbon emission in their projects in the
home country and in the overseas (Kaplan & Montiel, 2016). Most countries where the company
is operating are improving and expanding their environmental laws that create huge opportunities
for Nike. The climate changes also affect the lifestyle of the people that is potential to increase
the demand of the company’s products.

STRATEGIC MANAGEMENT & MARKETING
SWOT Analysis of Nike, Inc.
Strength
Nike has always proved to be a highly competitive organization with their innovative
management and marketing strategies. The “just do it” slogan is reflects their strong attitude
towards the business for maximizing the profit (About.nike.com, 2017). The company does not
own any manufacturing unit as it outsource all its manufacturing activities overseas that helps
them to gain maximum human and material resources at the cheapest price. By saving the high
labor cost the management focuses more on the research and development for innovating and
improving new services. The brand of Nike is globally recognized which proves to be a great
strength for the company. The consumers trust easily on the brand so do the stakeholders. The
resilience and quality of the Nike products is well known to the athletes and to the common man.
When its competitors suffer from the market fragmentation the Unique Selling Proposition of the
company helps it to race ahead of its competitors.
Weakness
The company majorly depends on the footwear this might prove to be problematic for the
companies as dependence on limited service makes the options for revenue generation are
limited. The outsourcing of manufacturing is strength for the company, but Nike, Inc has often
being criticized because of its labor management in foreign countries (Baldassarre & Campo,
2014). The sweatshops or the sweat labors have criticized by the global media that affected the
companies brand image. The company has not included retailers that are exclusive as their
business strategy but the retailers play major role in the business so the exclusivity might get
sacrificed. The products are often been criticized as too premium or expensive.