Strategic Analysis Nike
STRATEGIC MANAGEMENT ASSIGNMENT
NIKE: Strategic Analysis
SUBMITTED TO:
AMIT SINHA
SUBMITTED BY:
Varun Bhatia
191181
FMG 19C
Nike’s Global Business Strategy
When first founded in 1962 under the name of Blue Ribbon Sports, the strategy was “to distribute low-cost, high-quality Japanese athletic shoes to American consumers in an attempt to break Germany’s domination of the domestic industry.”
Today Nike offers athletic shoes at every marketable price point to a global market. Nike sustains its leading position through emphasizing quality products, constant innovation, and aggressive marketing. Nike sells its products in more than 180 countries under not only its namesake brand but brands such as Cole Haan, Converse, Hurley International, and Umbro Inc. It uses distribution channels such as company-owned stores and websites or sports retailers, such as Foot Locker.
As mentioned earlier, Nike is a truly global company, which means that its success story is transferrable over borders. It divides its sales into four main regions- the US, Europe, Middle East and Africa (EMEA), Asia Pacific, and Central and South America. For 2009 each of these regions accounted respectively for 34.1%, 28.7%, 17.3%, and 6.7% of total revenue.
Segmentation Strategy:
Nike realizes that in order to be number one they need to offer a wide range of products to be able to develop a culture and fulfill their loyal customers’ needs. Nike’s strategy in terms of segmentation is excellent. Their core product is footwear but they also manufacture apparel and equipment and thus, they spread their influence in other sport-related markets. Nike also has several sub-brands to grasp different consumer groups.
Nike’s main source of revenue is athletic footwear, which is also its core competency. It accounts for 54% of total revenues. It is designated for running, cross-training, basketball, soccer and it includes even a casual footwear line. Sales in this segment increased by 14% in
NIKE: Strategic Analysis
SUBMITTED TO:
AMIT SINHA
SUBMITTED BY:
Varun Bhatia
191181
FMG 19C
Nike’s Global Business Strategy
When first founded in 1962 under the name of Blue Ribbon Sports, the strategy was “to distribute low-cost, high-quality Japanese athletic shoes to American consumers in an attempt to break Germany’s domination of the domestic industry.”
Today Nike offers athletic shoes at every marketable price point to a global market. Nike sustains its leading position through emphasizing quality products, constant innovation, and aggressive marketing. Nike sells its products in more than 180 countries under not only its namesake brand but brands such as Cole Haan, Converse, Hurley International, and Umbro Inc. It uses distribution channels such as company-owned stores and websites or sports retailers, such as Foot Locker.
As mentioned earlier, Nike is a truly global company, which means that its success story is transferrable over borders. It divides its sales into four main regions- the US, Europe, Middle East and Africa (EMEA), Asia Pacific, and Central and South America. For 2009 each of these regions accounted respectively for 34.1%, 28.7%, 17.3%, and 6.7% of total revenue.
Segmentation Strategy:
Nike realizes that in order to be number one they need to offer a wide range of products to be able to develop a culture and fulfill their loyal customers’ needs. Nike’s strategy in terms of segmentation is excellent. Their core product is footwear but they also manufacture apparel and equipment and thus, they spread their influence in other sport-related markets. Nike also has several sub-brands to grasp different consumer groups.
Nike’s main source of revenue is athletic footwear, which is also its core competency. It accounts for 54% of total revenues. It is designated for running, cross-training, basketball, soccer and it includes even a casual footwear line. Sales in this segment increased by 14% in