BUSINESS PLAN

Business Plan for Launching a New Store of NIKE in UK



Business Plan for Launching a New Store of NIKE in UK

Section A: Business and Products

Nike Incorporation

Nike is a manufacturing company that is involved in designing, developing, globally promoting and trading of footwear, clothing, accessories and equipment. It is operating across the world. Its main headquarter is located in Beaverton, America. It specializes in supplying world's best quality sporty footwear and clothes. It is one of the largest sports' kit producers. It accounted for earning about US$24.1 billion profit in 2012. There are about 44000 people working in Nike Inc. globally. The chain of stores that Nike runs are named as Niketown (www.nikeinc.com, 2012).

It has contracts with about 700 suppliers and contractors outside the USA. There are about 45 offices of Nike situated in countries other than USA. Majority of its manufacturing factories are placed and operated in Asian countries such as China, Indonesia, Taiwan, India, Pakistan, Thailand, Vietnam, Malaysia, and Philippines (www.nikeinc.com, 2012).

Business Products

The main products offered by Nike worldwide are sport shoes such as track running shoes, clothing's like jersey jackets, shorts, base layers. Accessories and equipment may include All of these are complementary products and are offered alike at all the available chain of stores under Nike Brand name (www.nikeinc.com, 2012). These items can be broadly divided into three main products sportswear shoes, and clothing line items and associated accessories and equipment (www.nikeinc.com, 2012).

Current pricing trends

As per analysis of market, the general prices of manufactured goods sold in UK are exhibited by price index of output goods and input goods used in production. As per Statistical Bulletin for June 2012 in UK, the price index of output goods increased by 2% in June as compared to 2.3% in previous month. On the other hand the price index for input goods decreased by 2.3% as compare to stable movement in previous month. The prices of goods associated to clothes, textiles and leather increased by 1.8% up till June 2012. Price of sport goods rose by 5% in 2012. The prices of wearable clothes rose by 2.8% and the prices of raw material used in production of clothes rose by 1% in June 2012. Therefore, it is suggested that price of targeted goods would increase over time.

The prices of Nike products offered in UK range from £350 to £40 for men footwear, £593 to £5 for clothing, and £150 to £1 for equipment. For women clothing prices vary from £290 to £5 and shoes prices range from £235 to £50 (www.nikeinc.com, 2012).

Major competitors of Nike are Adidas, Reebok, Puma and UnderArmor. Therefore, prices can be estimated by analysing the prices of major competitor such as Adidas operating in UK. The prices of men footwear offered by Adidas range from £350 to £4, clothing ranges from £400 to £11 and accessories range from £200 to £3. Whereas, prices of women shoes range from £210 to £12, clothing range from £400 to £10, and accessories range from £140 to £4 ...