Nike: A Powerhouse
Nike: A Powerhouse Case Analysis
Introduction
Nike is a US based company founded in 1964 by Phil Knight and Bill Bowerman. Originally it was named as “Blue Ribbon Shoe” company, but in 1972 the founders changed the name to “Nike”. Now “Nike” is world’s number 1 supplier of athletic footwear, sportswear, apparel, accessories and etc. Its slogan “Just does it” and “Swoosh” are one of the most recognizable slogans and logos of the world. Finally, the brand “Nike” is 24th valuable brand in the world; it is worth 18.2 billion dollars1.
1. The success of Nike was strictly fortuitous and had little to do with great decision making. Evaluate this statement.
As far as I am concerned, I completely disagree with this statement and my claim has firm grounds. The reasons for holding this view are as follows. First and foremost, Nike had a huge success due to founders’ hard work and endless devotion to their company. Knight and Bowerman spared no effort to do their best, in order to satisfy their costumers’ needs. Phil Knight (CEO and cofounder of the company) was former athlete and knew what runners want and need from their shoes and due to this knowledge and excellent managerial skills he shaped a strategy addressed to their targeted customers. The main goal of this strategy was to make products that meet their consumers needs best. The vivid example of management team’s diligence and vigilance was that they were able to regain the first place in the market very quickly during harsh competition with Reebok.
To my deep conviction, management team’s great decision making ability and historical decisions made by them were the pledge of the company’s success. The first important decision I would emphasize, was arrangement of their production in emerging or non developed countries. That decision helped
Introduction
Nike is a US based company founded in 1964 by Phil Knight and Bill Bowerman. Originally it was named as “Blue Ribbon Shoe” company, but in 1972 the founders changed the name to “Nike”. Now “Nike” is world’s number 1 supplier of athletic footwear, sportswear, apparel, accessories and etc. Its slogan “Just does it” and “Swoosh” are one of the most recognizable slogans and logos of the world. Finally, the brand “Nike” is 24th valuable brand in the world; it is worth 18.2 billion dollars1.
1. The success of Nike was strictly fortuitous and had little to do with great decision making. Evaluate this statement.
As far as I am concerned, I completely disagree with this statement and my claim has firm grounds. The reasons for holding this view are as follows. First and foremost, Nike had a huge success due to founders’ hard work and endless devotion to their company. Knight and Bowerman spared no effort to do their best, in order to satisfy their costumers’ needs. Phil Knight (CEO and cofounder of the company) was former athlete and knew what runners want and need from their shoes and due to this knowledge and excellent managerial skills he shaped a strategy addressed to their targeted customers. The main goal of this strategy was to make products that meet their consumers needs best. The vivid example of management team’s diligence and vigilance was that they were able to regain the first place in the market very quickly during harsh competition with Reebok.
To my deep conviction, management team’s great decision making ability and historical decisions made by them were the pledge of the company’s success. The first important decision I would emphasize, was arrangement of their production in emerging or non developed countries. That decision helped