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
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Corporation Case Study: Nike What is it? NIKE‚ Inc. is the world’s leading innovator in athletic footwear‚ apparel‚ equipment and accessories. Before there was the Swoosh‚ before there was Nike‚ there were two visionary men who pioneered a revolution in athletic footwear that redefined the industry. Nike Employees Nike Employee Networks are designed to help Nike move toward greater diversity. In the U.S.‚ six employee networks focus attention on important communities within Nike. The intended role
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analysis Strengths: y y y y y y y y y y y y y Nike is a globally recognized for being the number one sportswear brand in the World. Nike being a competitive organization has a healthy aver sion towards its competitors i.e. during Atlanta Olympics‚ Reebok expensed on sponsoring the games; Nike however sponsored the top athletes and due to this step‚ it gained valuable coverage. Nike has no factories; rather it uses contract factories to get the work done which
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whether to buy Nike’s Stock Nike’s net income has fallen from $800 million to $580 million since 1997. Also its profit and market share have declines significantly from 48% to 42% (Shoe products market share) from 1997 to 2000 To counter this down fall Nike has decided to develop more athletic shoe products in mid-priced segment and also to push their apparel line. It has also decided to cut down expenses Analyst reactions are mixed – Lehman Brothers report a recommended “Strong Buy” whereas UBS Warburg
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Nike Debate Business Aspect: ⦁ Nike is a business and their priority is to minimize cost and maximize revenue for its public shareholders ⦁ COUNTER AGRUMENT: Instead of attacking Nike‚ protest against taxes and regulations that lower the firms return on invested capital‚ leading to lower wages for the employees? (mise.org) ⦁ COUNTER AGRUMENT:Why dont we make Nike shoes in America? Shoe business in the U.S. has been non profitable since 1984. Nike had two factories in Maine and New Hampshire but
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for each of them. Wet Shoes - A baby born to a young couple. She is unable to speak except to the reflection that she sees in The River. Loyal to the one who protects her from the cruelty of the outside world. A person who can keep a secret. The River - The one thing or person that can bring Wet Shoes to talk. WhetherThe River is human or a sprit living within the water‚ he protects her until he is no longer needed. We don’t know who or what The River is‚ only Wet Shoes knows his secret. The
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As I walk in my comfortable well-fitted Nike shoe‚ I lack the knowledge behind the journey of the shoe’s existence. The Nike brand‚ better recognized as the swoosh logo or slogan of “Just Do It”‚ is also the violator of several labour practices. To begin‚ the creation of Nike shoes is accomplished in sweatshops in Indonesia‚ China‚ and Vietnam (Global Exchange‚ n.d.). On a typical day in Vietnam‚ Nike shoes are manufactured in a factory where human dignity is nonexistence. These violating practices
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ignored.) C8: Using CAPM: KE’=3.2%+0.91*5.5%=8.21% C9: Using DGM formula: P’=D1/ (KE’-g) =1.06*(1+8%)/(8.21%-8%)=$545 In Nike’s case‚ when Joanna Cohen calculated the WACC of Nike‚ she made several mistakes and led to a wrong estimate of the cost of capital. The first mistake comes to the book value of equity used in calculating WD. Nike became a publicly traded company since December 2‚ 1980‚ the share price has changed significantly during 20-year’s time. So‚ the market value of equity should be used
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Jordans vs. Nikes Once Michael Jordan wore the famous Jordan shoes‚ every person who played basketball wanted them. There’s no competition when you compare Jordan shoes with others‚ not even Nike can compete against Jordan. Even though Nike throughout the Years has made some great quality shoes‚ shoe fanatics have wanted Jordan shoes more than ever since Michael Jordan flew from free-throw line with his own pair of Jordan retro 3’s. The different attributes that Nike and Jordan have are material
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strategy of Nike In recent decades‚ we have witnessed a high performance marketing of Nike which make its brand name is well-known all around the world. My belief is that Nike not only is a marketing-oriented company but also has used 3Ps out of 4Ps marketing mix model effectively‚ including product‚ place and promotion. Firstly‚ when it comes to product‚ Nike considers its wide range of products as its one of most important marketing tool. In the beginning‚ Nike only focused on running shoes‚ but‚ you
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