Strategic Management

Project

By: Kalpesh D. Rathod

Roll No : 86
 Introduction

 Nike, Inc.  NYSE:NKE is a major publicly traded sportswear

and equipment supplier based in the United States.
 The is headquartered near Beaverton, Oregon, which is
part of the Portland metropolitan area.
It is the world's leading supplier of athletic
shoes and apparel and a major manufacturer of sports
equipment with revenue in excess of $18.6 billion USD in its
fiscal year 2008.
It has 30,000 employees world wide.
It ranks 153 in fortune 500 companies list.  
 History
1962: Phillip Knight, a Stanford University business graduate and former
member of the track team, arranges to import athletic shoes from
Japan and sell them in the U.S.. Knight created Blue Ribbon Sports as
a cover name for his small-scale shoe-selling operations
1964: Bill Bowerman becomes a partner by matching Knight's
investment of $500.
1965: Hires a full time employee, and annual sales reach $2,000.
1966: Blue Ribbon Sports, also known as BRS, rents its first retail space;
employees can now stop selling shoes from their cars.
1969: It now has several stores and 20 employees; sales are close to
$300,000.
1971: Nike, capitalizing on the Greek goddess of victory. The first Nike
product sold with the new symbol is a soccer shoe.
 Cont…
1976: The popularity of jogging increases revenue to $14
million.
1978: The company changes its name to Nike.
1980: Nike goes public, offering 2 million shares of stock.
1997: Feb., Stocks reaches a high of $76 per share.
1998: Sept., Stocks tumbles to $31 per share.
2003: Nike purchases Converse Inc. for US$ 305 million.
2008: Nike acquired sports apparel supplier Umbro, known as
the manufacturers of the England national football
team's kits, in a deal said to be
worth £285 million (about US$600 million).
 Background
 The company was founded in January 1964 as Blue
Ribbon Sports by Bill Bowerman and Philip Knight,

(Philip Knight) (Bill Bowerman)

 Cont…..

 The current chairman is Mr. Philip Knight

 The current CEO and President is Mark Parker

(Mark Parker)
 As of November 2008, Nike, Inc. owns four key
subsidiaries: Cole Haan, Hurley International, Converse Inc. and Umbro
 Products
Athletic shoes
Apparel
Sports equipment
Accessories
 BCG Matrix

Question marks
Stars

Cash-Cow Dogs
 Types Of Strategy

Integration Intensive Diversification Defensive Generic

Strategy Strategy Strategy Strategy Strategy

Cost
Horizontal Product Concentric
Downsizing leadership
Integration Development Diversification
 Conclusion
 Through advertising, and endorsements by star
athletes, Nike tries to create an image of quality. I do
believe that the company has a commitment to
quality.
 Recommendation’s

 Heavy dependence on footwear.

 Prices