Nike Case Study
Introduction:
This paper is a case study of Nike Inc. I will give a brief overview of the history, products, company goals, company challenges, financial report and sourcing strategies. My main sources of information are internet databases, company annual reports, and financial articles.
Company Overview: Nike
Nike incorporated, the world's leading designer and marketer of authentic athletic footwear, apparel, equipment, and accessories for a wide variety of sports and fitness activities, was formed in Oregon in 1968 as the successor to a partnership organized in 1964. This partnership was formed when Philip Knight, who had just graduated for Stanford with a degree in business, contacted Bill Bowerman, his track coach at the University of Oregon, about starting a company to sell well- designed running shoes made in Japan. The company did well, and in 1972 began to produce its own shoes and market them under the Nike name. The success of the shoes and the running craze of the 1970s led Nike to design new products, and business grew rapidly.
The company began to offer public stock in 1980. Phillip Knight remained CEO until 2004, where he stepped down but still continues as chairman. Knight started a two-man operation importing Japanese running shoes and turned it into a multibillion-dollar corporation. Nike great success is mainly due to Nike's understanding of the power of imagery and how to market those images.
In 1987, Knight began to reorganize Nike by splitting the footwear division into units focused on individual sports. He also linked the units through a team system with production, sales, and advertising. Another of Nike's strengths is its inventory control system. Nike forces its retailers to order up to eighty percent of their purchases six to eight months in advance, in return for guaranteed delivery and end up to ten percent discounts. This method nearly eliminates excess inventories. Although Nike's competitors practice this same
This paper is a case study of Nike Inc. I will give a brief overview of the history, products, company goals, company challenges, financial report and sourcing strategies. My main sources of information are internet databases, company annual reports, and financial articles.
Company Overview: Nike
Nike incorporated, the world's leading designer and marketer of authentic athletic footwear, apparel, equipment, and accessories for a wide variety of sports and fitness activities, was formed in Oregon in 1968 as the successor to a partnership organized in 1964. This partnership was formed when Philip Knight, who had just graduated for Stanford with a degree in business, contacted Bill Bowerman, his track coach at the University of Oregon, about starting a company to sell well- designed running shoes made in Japan. The company did well, and in 1972 began to produce its own shoes and market them under the Nike name. The success of the shoes and the running craze of the 1970s led Nike to design new products, and business grew rapidly.
The company began to offer public stock in 1980. Phillip Knight remained CEO until 2004, where he stepped down but still continues as chairman. Knight started a two-man operation importing Japanese running shoes and turned it into a multibillion-dollar corporation. Nike great success is mainly due to Nike's understanding of the power of imagery and how to market those images.
In 1987, Knight began to reorganize Nike by splitting the footwear division into units focused on individual sports. He also linked the units through a team system with production, sales, and advertising. Another of Nike's strengths is its inventory control system. Nike forces its retailers to order up to eighty percent of their purchases six to eight months in advance, in return for guaranteed delivery and end up to ten percent discounts. This method nearly eliminates excess inventories. Although Nike's competitors practice this same