Analysis Report on Nike



Analysis Report on Nike

Introduction

Nike Inc. is a popular multi-national company, based in the United States of America. The company is among the two Fortune 500 companies, which have their head quarters in Oregon. The organization is a popular manufacturer of sports goods including athletic shoes & clothing. The company designs, produces, markets, and sells the footwear & other sports accessories. In the fiscal year 2012, Nike Inc earned revenue of US$ 24 billion. The organization is spread across different countries. The company employs around 44,000 employees all over the world. Nike Inc. has a sports brand image. The company has a respectable name in the sports business. They manufacture high quality footwear including athletic shoes, sports trainers, snicker, and slippers. Also, they manufacture apparel for different sports like basketball, football, tennis, ice hockey etc.

In this report, the discussion presents the analysis of the Nike's Business strategy. The report presents a SWOT analysis, in order to identify the strengths against the threats. Further, the report makes recommendations for improvement.

Strategic Goals

Nike Inc. presents a simple mission which states the revolutionary efforts for facilitating the Athletes, around the world. The company has a strong commitment towards bringing innovation in its offerings. Nike Inc. has outlined the Global Growth Strategy for 2015. It includes financial objectives along with production innovation. The company has set the revenue of $27 billion as a financial goal for the year 2015. Figure 1 illustrates the revenue growth from 2007 to 2011. Further, the company has focused its strategic efforts on developing a customer-focused strategy. The company has partnered with brand families like Cole, Umbro, and Jordan brand. However, the NIKE brand accounts for 85% of the total revenue (Nike, 2011).

Figure 1: Nike's Revenue Performance (Source: Nike Inc; Business Sustainability Report:2012)

The company's competitive goal is to enhance their portfolio of products. For this reason, the company continues to penetrate into new markets. Nike Inc. has got the world's best athletes & teams, which is their primary strategic goal for brand promotion. The market goals include establishing 250-300 NIKE stores worldwide (Nike, 2010). Also, they seek to expand their retail partners for deeper penetration into the target markets.

Business Strategy

In the following sections, the discussion explores Nike's business strategy. The business strategies are classified into customer targeting, product positioning, and market access functions. In the business strategic analysis, the customer targeting strategy has significant value.

Customer targeting strategy

Nike targets the customer base of athletics or sports personals. They serve as the primary target market for the company. Nike serves all kinds of sports including tennis, football, and basket ball. Nike targets distinct segments of its customers by different brand names:

Nike Brand targets the customer base, which is formed by athletes. The brand designs sports-inspired products like footwear, apparel, and other accessories.

Cole Haan distributes luxury items including outerwear, handbags, and other luxurious accessories.

Nike Golf targets the requirements of the Golf players by offering gold equipments & apparels.

Umbro exploits the target market of ...