Nike, corporate strategy management

CORPORATE STRATEGY MANAGMENT

Professor : Cunyu Xing

Abdelkrim CHRAIBI

Student Number : 51400253

Moroccan

[pic 1]

Introduction & History 

1. The organization of the company

1. Organizational structure analysis
2. Organizational Culture Analysis

1. Strategy

1. Nike’s generic strategy and intensive strategy
2. Marketing strategy

1. Vision Statement and Mission Statement

1. Internal and External Analysis

1. SWOT
2. PESTE
3. Five force Porter
4. Financial Analysis

Conclusion

References  

Nike is an American company created in 1971 specialized in sporting product like shoes, clothes and sport material.

The nike name is inspired by the geek goddess of victory Niké able to moove at high speed. The brand has ensured its notoriety by a simple and quickly recognizable logo. The name of this logo is « the swoosh », a comma placed upside down and horizontally. It was created by Carolyn Davidson in 1971 like a representation of the wing of the goddess for only 35 dollars.

The company is currently the largest sport equipment supplier in the world and the first in football in front of adidas since 2014.

The story start when Bill Bowerman, athletic coach in Oregon and Philip Knight accounting student and rider, decided in 1950 to import cheap and high-tech shoes from Japan. In this period Adidas and Puma was the leader on the market.

In 1973 the company launched start to sell the famous basket « Waffle ». It was revolutionnary at the time because it had a sole capable of cushionung shocks and helping to bounce back.

In 1978 the « Tailwind » with the new « air » technology. Pockets filled with gas are includes in the sole to improve the confort of the rider

In 1981, Nike became the number one sport shoes in the United States, and took the opportunity to enter on the stock market.

In 1982, the company start to sell the « Air Force One », a basketball shoes. And in 1984, basketball became the flagship sport of the brand with the signature of the player Michael Jordan and they created the « Nike Air Jordan »

In 1988 the brand logo received a slogan « Just do it » and start to sign with a lot of famous people on the sport world like Lebron James, Tiger Woods, Roger Federer, Rafael Nadal, Cristiano Ronaldo and others.

In 2003, Nike bought its rival Converse Shoes for $ 305 million.

In 2007, Nike bought Umbro for 409 million euros

In 2009, nike announces that it has a filed a patent for the creation of shoes with automatic lacing like on the movie « Back on the Future 2 ». The brand waiting for this patent since 1989.

On June 2012, Nike launched a new advertising concept with the Nike Barber Shop, a haidressing salon in the stye of the 1920.

After releasinf the « Lunar Flyknit », « Foamposite », « air force 1 » in collaboration

with Supreme, Nike released a new pair, the « Air Maw 98 » on April 2016.

Nike wants to satisfy their customers by creating new style with their different contracts with the biggest stars of the sport and her policy sponsoring.

Today you can see this brand in any competition.

1. The Organizational of the Company

1. Organizational structure analysis

The organizational structure makes it possible to specify the levels of responsability and channels of communication.

A strong organizational structure is prerequisite for the health of an organization. That means with this you can easily attain a goal.

It’s really important for Nike because they use this for to stay connected with the different regional market. The company put a structure organizational that also can to adapt to the regional variation. This is why nike has a geographic divisional structure because they can be easily respons consumer preferences about any product.

The company’s operations are divided into segments based on regional market in North America, Western Europe, Central&eastern Europe, China, Japan and Emerging Market. Each regional division’s managers optimize operations in the regional sports shoes, apparel and equipment market.

Moreover Nike have a global corporate leadership and some corporate managers which have offices headquarters of the company in USA.

This makes it easier to make an important decision for all the company all around the world.

This is how the structure organizational looks : [pic 2]

Like we can see the proximity that the president has with its leaders allows to have a control over the whole organization. Which promotes growth and stability

1. Organizational culture analysis

Organizational culture is the combination of traditions, habits, values, and behavioral expectations among employees.

The employees have a lot of rules on how to do their jobs because it’s important for nike to maintain its culture. And the culture strengthens the skills.

When a person decides to work for the brand, she recieve a special formation to maintain the corporate culture that harmonize with the brand so as to respons the goals

Nike’s organizational culture is centered on creativity and innovation to provide products that suit current consumer preferences.

For Nike culture means :

- Talented

- Diversity

Talented because Nike use some formation to maitain employees talent. The company also has coaching and mentoring programs. The purpose of this characteristic of Nike’s corporate culture is to sustain talent and infrastructure necessary for producing some of the world’s most popular athletic shoes, equipment and apparel

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