Business Analysis
Table of Context
Executive Summary
Introduction
The company was founded in 1964 by a student of Phil Knight, middle-distance runner at the University of Oregon team, and his coach Bill Bowerman. Initially it was called Blue Ribbon Sports and specialized in the order of athletic footwear in Asian countries and resell them in the U.S. market. Upon graduating Knight wrote a paper that proposed quality running shoes could be manufactured in Japan. But his letters to manufacturers in Japan and Asia have gone unanswered. In January 1964 Knight and Bowerman having invested in the business by $ 500, ordered 300 pairs of running shoes from a Japanese company Onitsuka Co. The first retail Nike location was opened in 1966, in Santa Monica, California. Nike officially became a hit and went public in 1978. Nowdays Nike's main headquarters is located in Beaverton, Oregon. Footwear and apparel products are produced outside the United States, while equipment products are produced both in the United States and abroad. (Nike Annual Report 2009)
The research draw intention that Nike already gained 31% market share globally from their annual report on 2011 (Bloomberg.com, 2011). From that report Nike also expected higher number of total market share globally. the company also boosting forecast of the revenues in some specific area like China, Russia, and also North America.
Nike use the strategies like celebrity endorsement by using some iconic athletes to be the icon or brand ambassador of their current product, for example, in 1985 when Nike signed up Nike signed up then-rookie guard Michael Jordan as a spokesperson. Jordan was still an up-and comer, but he personified superior performance. Nike’s bet paid off—the Air Jordan line of basketball shoes flew off the shelves and revenues hit over $100 million in the first year alone (CNBC.com, 2010).
Competitive analysis
Porter five forces analysis
Industries differ widely in their business makeup, competitive
Executive Summary
Introduction
The company was founded in 1964 by a student of Phil Knight, middle-distance runner at the University of Oregon team, and his coach Bill Bowerman. Initially it was called Blue Ribbon Sports and specialized in the order of athletic footwear in Asian countries and resell them in the U.S. market. Upon graduating Knight wrote a paper that proposed quality running shoes could be manufactured in Japan. But his letters to manufacturers in Japan and Asia have gone unanswered. In January 1964 Knight and Bowerman having invested in the business by $ 500, ordered 300 pairs of running shoes from a Japanese company Onitsuka Co. The first retail Nike location was opened in 1966, in Santa Monica, California. Nike officially became a hit and went public in 1978. Nowdays Nike's main headquarters is located in Beaverton, Oregon. Footwear and apparel products are produced outside the United States, while equipment products are produced both in the United States and abroad. (Nike Annual Report 2009)
The research draw intention that Nike already gained 31% market share globally from their annual report on 2011 (Bloomberg.com, 2011). From that report Nike also expected higher number of total market share globally. the company also boosting forecast of the revenues in some specific area like China, Russia, and also North America.
Nike use the strategies like celebrity endorsement by using some iconic athletes to be the icon or brand ambassador of their current product, for example, in 1985 when Nike signed up Nike signed up then-rookie guard Michael Jordan as a spokesperson. Jordan was still an up-and comer, but he personified superior performance. Nike’s bet paid off—the Air Jordan line of basketball shoes flew off the shelves and revenues hit over $100 million in the first year alone (CNBC.com, 2010).
Competitive analysis
Porter five forces analysis
Industries differ widely in their business makeup, competitive