Nike - changing business environment

NIKE Inc. CHANGING BUSINESS ENVIRONMENT

Writer: JULIANA CASTELLANOS

Recipient: ROGER FULFORD

COLLEGE OF TECHNOLOGY LONDON 26 APRIL 2010

TABLE OF CONTENTS

1. Executive Summary 2. Introduction 3. Nike Inc. 3.1. Company 3.2. Products 3.3. Other information 4. SWOT Analysis 4.1. Strengths 4.2. Weaknesses 4.3. Opportunities 4.4. Threats 5. Recommendation 6. Conclusion 7. References1. EXECUTIVE SUMMARY Nike is an incorporated company of athletic footwear, apparel and equipement. This organization employs more than 34,000 people globally, sells products in more than 180 countries including North America, Europe, Greater China, Japan and Emerging markets and reported revenues of U$19.2 billion for the fiscal year ending May 31, 2009 (Nike, 2009). Innovation is at the heart ofNIKE, Inc.'s business growth strategy. The following report presents an analysis of Nike´s business environment and was performed based on the company´s background. Additionally, Nike strengths, weakness, opportunities and threats were conducted to get a better understanding of its position in the market. The SWOT analysis has leaded to conclude that Nike should try to introduce new lines ofproducts to other countries where still has no presence and also, continuing diversifying and introducing new products in different sports. It is important to take into account the relevance of the SWOT analysis for a business, in this case for Nike, as knowing these factors, an action plan can be determinate to face the issues detected.

2. INTRODUCTION

Nike is a company that has had a constantgrowth since it started. It is an exemplar company which has based its expansion on several factors which will be studied in the present report. Although Nike is a successful company, the author considers it is thoroughly interesting to evaluate its changing business over the last five years, through one tool learnt in The Business Environment course. The theory through which Nike will beanalysed is the SWOT analysis. Nike has a complete and reliable source that was the main source used in the present report which is its corporate web site www.nikebiz.com, where the principal references were the Forms K-10 of the last five years. The form K-10 is an annual business report required for the U.S. Securities and Exchange Commission (SEC) that “provides a comprehensive overview of thecompany's business and financial condition and includes audited financial statements” (SEC, 2010)

3. NIKE Inc. 3.1. COMPANY In 1962, it was Blue Ribbon Sports. In 1972, the name was changed to NIKE Inc, which was originated from a Greek goddess. The marathon runners at Olympic Trails were convinced to wear NIKE shoes and this gave as a result a strong advertising, above all when several runners weresome of the top finishers. Since there, Nike has been growing, continually participating in diverse events, supporting and sponsoring different well-known athletes, creating a reliable brand through its famous slogan “Just do it” and its logo, swoosh sign. Furthermore, Nike Inc. has acquired some subsidiaries as Cole Haan, Converse Inc., Hurley International LLC and Umbro. The main Nike’s businessactivity is the design, development and worldwide marketing of high quality footwear, apparel, equipment, and accessory products. NIKE is one of the largest sellers, if not the largest, of athletic footwear and athletic apparel in the world. NIKE sells products to retail accounts, through NIKE-owned retail including stores and internet sales, and through a mix of independent distributors andlicensees, in over 170 countries around the world. Virtually all of its products are manufactured by independent contractors. Practically all footwear and apparel products are produced outside the United States, while equipment products are produced both in the United States and abroad. (Nike, 2009). 3.2. PRODUCTS NIKE’s athletic footwear products are designed primarily for specific athletic use,...