Nike Nature Of The Business Marketing Essay

Nike Nature Of The Business Marketing Essay Nike Incorporation is the worlds leading sporting goods manufacturer. The company produces the sports goods all-encompassing: clothing, footwear, sports equipment and so on. The company headquartered in Beaverton, Oregon. Nike with its impressive performance impresses its founder; Bill Bowerman once said the sentence: As long as you have a body, you are world athletes, and Nike will continue to develop grow. Before the company became Nike, the original name of the company is Blue Ribbon Sports on January 25, 1964. The company then officially became Nike Inc. on May 30, 1978. Nike has been provided the best products to every athlete around the world. The language of movement is the Nike language. The company committed always to create every chance to show themselves after three years. Nike knows: The best products are only produced by the use of advanced technology. So, by the way, Nike put a lot of manpower and material resources for the research and development of new products.   Years ago, a lot of high potential athletes and sports teams around the world have been sponsored by Nike. The Swoosh logo and trademarks of Just Do It are highly recognized. Nike Nature of the Business NIKE, Inc. is a worldwide marketing which engaged in development and design for footwear, equipment and accessory products. It is approximately 18,000 retail accounts by sells its products in the United States. Nearly 200 countries are through a combination of independent distributors, licensees and subsidiaries. Although a few of the products are worn for leisure purposes, NIKEs athletic footwear products are still in specific designed for athletic use. All equipments for men, women and children have been designed and created by the company. Either is indoor or outdoor activities, NIKE have a good market shoes or clothes such as tennis, golf, football, volleyball, wrestling, aquatic activities, hiking and others. Active sports apparel like most of these categories are sold by NIKE, for athletically lifestyle inspired apparel. Objective of the Nike Nikes main objective is to build up all athletes of every different of level of ability to their potential with advance the products. Indeed, it is to create job chances for provide value in its shareholders apart from the competition. Besides that, their aim also is to maintain the costs down which driven by the intense competition. By the way, a lot of other companies also operate these low-wage countries within the athletics industry according on cost reason. Because of difficulty due to less developed countries, their ability is easily moved to become economically dependent on the corporations. Strategies of Nike There are four main categories of strategies of Nike to continue develop growth in this along the years. They are financial perspective, customer perspective, internal perspective, and learning growth perspective. Financial Perspective Growth strategy Focus on Emerging Markets (i.e. BRIC) Products in new niche activities New customer segments Productivity strategy Increase Asset Utilization : increase employee by 5% Reduce Operational Cost Customer Perspective Maintain Product Leadership Provide high quality innovative products Improve Customer Relationship and Service Launch 250-300 Nike retail outlets in next three years Improve image Nike Community for welfare manufacturing workers Align incentives of workers Internal Perspective Follow Cost Out strategy Reduce marketing spent 11% of revenue only, focus on local sport heroes Integrate New Segments Markets and their attributes with current processes like customer Improve Innovation Cycle With smarter and more intelligent customer feedback mechanisms through e-channels Implement CSR Expand its alliance with other non-profit organizations to work together Learning Growth Perspective Retain and Train key employees Ensure attrition rate is between 2-3% Improve IT Assets Enhance CRM, e-channel, social media platform Invests 2-2.5% Rev in IT Systems Create a customer centric culture Executive team to provide a strong and visionary leadership Targeting Market Nikes targeting market is for those who like the higher quality sporting goods, especially footwear. Therefore, Nike focuses on creating premium consumer experiences on product innovation, brand leadership and elevated retail presence. Nike also target market for their shoes, clothes, and other accessories are males and females, especially among 18 and 35 years old. Nike Company has expanded and dominated in the international market. Size of Nike The size or range of the Nike Company is increases throughout the years. The total number of employees of Nike Company is about 38000 people around the world. In 2009, the  company  had a net income of around $1.49 billion. They have offices in 45 different countries. Besides that, the number of Nike stores globally is 700 around the world. Types of products sold Nike Company has a wide range of sports equipment. The first products that Nike produce is track running shoes. Besides that, Nike also offers a range of shoes for sports like, tennis, golf, soccer, baseball, football, bicycling, volleyball, cheerleading, hiking and others. They manufacture  casual clothes, running clothes, yoga clothes, tennis clothes (dresses and skirts),  thongs, socks, caps, aquatic gear, duffel bags, sunglasses, skates, bats, gloves, womens sport bras, ice skates, roller blades, roller skates, protective gear, hockey sticks, hockey jerseys and many more small accessories. http://upload.wikimedia.org/wikipedia/commons/thumb/1/17/Zoom_elite_2.png/220px-Zoom_elite_2.png Nike Pro Core Compression Nike brand, athletic shoes Nike brand, Tennis(Girls shorts) Services Nike Company has a great service which known as NIKEiD. It is a service that allowing customers to customize the products purchased from Nike. It must be through the online purchased. Besides that, The NIKEiD studios give customers have a great personal experience to work with. For iPhone and iPod Touch was released from the NIKEiD App on the iTunes App Store on 14 October 2009 to allow users to search products. Nike PhotoiD service is by taking picture or image with their mobile and sends to Nike so that new software designed will analyze the image, and then based on it designing a shoe. After that, an image of their desired shoe will be received by the customer. Lastly, they can choose to save the image or purchase the new design. Strengths and weaknesses of Nike Strengths Weaknesses Brand recognition High product quality Effective marketing strategy Capacity of innovation Strong distribution chain Strong RD Strong customer relationship Overseas manufacturing dependency Decreasing United States market share High product price compared to Adidas Currency exposure Medium retail presence Competitors Adidas is the major competitor to Nike Company. Adidas is about to launch a new innovative campaign praising the Team Spirit in sports. Any company that produces athletic footwear or athletic apparel is a  competitor  to  Nike such as Puma, Reebok(now is owned by Adidas), Asics, Under Armour, and so on. However, according to graph below, Nike Company is the best sells compete with others. http://cstl.syr.edu/fipse/TabBar/BldCirc/circlgif/fig17.gif Financial Model of Nike Since year 1997, Nike Companys revenues had plateaued at around $9 billion. Net income had fallen from almost $800 million to 580 million. However, market share in US athletic shoes had fallen from 48%, in 1997, to 42% in year 2000. It adverse effect of a strong dollar had negatively affected revenue. The management is concerned about the top-line growth and operating performance. To boost revenue, the company would develop more athletic-shoe products in the mod-priced segment- a segment that Nike had overlooked on the recent years. The company has also planned to push its apparel line. The company has planned to exert more effort on the expense control. Long term revenue growth target is 8%-10%. Earnings growth target is 15%.