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INTRODUCTION
Nike is the topic which I have chosen.
In nowadays world everybody knows
the brand nike as it has made a big
name in the world. But many of us
don’t know the meaning of nike and
how the word nike came into
existence. The nike was first inspired by
the Winged Goddess of Victory. Did
you know that before nike the name
which it has now was first named blue
ribbon sports Now I will be explaining
in details about Nike. Nike is an
American multinational corporation
that is engaged in the design,
development, manufacturing, and
worldwide marketing and sales of
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footwear,apparel,equipment,
accessories, and services.

The company has its headquartered

near Beaverton, Oregon, in the
Portland metropolitan area.[3] It is the
world's largest supplier of athletic
shoes and apparel and a major
manufacturer of sports equipment,
with revenue in excess of US$37.4
billion in its fiscal year 2020 (ending
May 31, 2020).[4] As of 2020, it
employed 76,700 people worldwide.[5]
In 2020, the brand alone was valued in
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excess of $32 billion, making it the
most valuable brand among sports
businesses.[6] Previously, in 2017, the
Nike brand was valued at $29.6 billion.
[7] Nike ranked 89th in the 2018
Fortune 500 list of the largest United
States corporations by total revenue.

The company was founded on January

25, 1964, as "Blue Ribbon Sports", by
Bill Bowerman and Phil Knight, and
officially became Nike, Inc. on May 30,
1971. The company takes its name
from Nike, the Greek goddess of
victory.[9] Nike markets its products
under its own brand, as well as Nike
Golf, Nike Pro, Nike+, Air Jordan, Nike

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Blazers, Air Force 1, Nike Dunk, Air
Max, Foamposite, Nike Skateboarding,
Nike CR7,[10] and subsidiaries
including Air Jordan and Converse. Nike
also owned Bauer Hockey from 1995 to
2008, and previously owned Cole Haan,
Umbro, and Hurley International. [11]
In addition to manufacturing
sportswear and equipment, the
company operates retail stores under
the Nike town name. Nike sponsors
many high-profile athletes and sports
teams around the world, with the
highly recognized trademarks of "Just
Do It" and the Swoosh logo.
Nike timeline

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The following is a timeline of notable
events in the history of Nike, Inc.

Contents
1 The 1960s
2 The 1970s
3 The 1980s
4 The 1990s
5 The 2000s
6 The 2010s
7 References

The 1960s

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Established as "Blue Ribbon Sports" by

University of Oregon track athlete Phil
Knight and his coach, Bill Bowerman,
on January 25, 1964.[1] The company
initially operated in Eugene, Oregon as
a distributor for Japanese shoe maker
Onitsuka Tiger, making most sales at
track meets out of Knight's automobile.
[2] In its first year in business, BRS sold
1,300 pairs of Japanese running shoes
grossing $8,000.[citation needed] By

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1965, sales had reached $20,000. In
1966, BRS opened its first retail store at
3107 Pico Boulevard in Santa Monica,
California. In 1967, due to increasing
sales, BRS expanded retail and
distribution operations on the East
Coast, in Wellesley, Massachusetts

The 1970s

1970 - 1971

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Graphic designer Carolyn Davidson
created the famous Nike 'Swoosh' logo
and sold it to the company for
US$35.00.[4]
Renamed from Blue Ribbon Sports, and
debuted the waffle iron trainers
invented by Bill Bowerman

The 1978s – 1989s

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1983
Nike introduces the Pegasus, the first
edition of a successful line of running
shoes that continues to this day.[6]
Nike also starts making clothing

1984
Air Jordan’s were first introduced in
1984 exclusively for Michael Jordan.
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They were released to the public in
April 1985.

1988

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The 1990s
The first Nike store opens in downtown
Portland.
Nike opens its world headquarters in
unincorporated Washington County,
just west of Portland, on 74 acres (0.3
km²) of land.
1993
Nike introduces Reuse-A-Shoe, which
collects athletic shoes,
Nike wins Advertiser of the Year at the
Cannes Advertising Festival.
Nike enters the ice hockey market after
acquiring Can star, the parent company
of hockey equipment manufacturer
Bauer Hockey. Nike had only made
hockey jerseys, specifically those of the
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Edmonton Oilers at the height of
Wayne Gretzky-mania, but now began
to make all equipment.
Nike moves into English football,
signing a kit (uniform/apparel) deal
with Arsenal.
1995
Nike signs long-term partnerships with
the Brazilian and United States soccer
teams.
1996
Nike signs Tiger Woods soon after he
gives up his amateur golf status.
Nike causes controversy with its
advertising campaign during the
Summer Olympics in Atlanta which
features the slogan, "You Don't Win
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Silver — You Lose Gold." Nike's use of
this slogan draws harsh criticism from
many sources, including - not
surprisingly - several former Olympic
silver and bronze medalists.
Nike town Los Angeles opens in Beverly
Hills.
1997
Nike signs several hockey stars,
including Sergei Fedorov and Jeremy
Roe nick, to endorsement deals to
wear their new line of skates, which
are noticeably different due to their
unique colors and design. Fedorov
especially became known for his
unique "all-white" Nike skates, which
were radically different from the
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normally black standard hockey skates.
Although Wayne Gretzky would
eventually wear the all-white Nike
skates in his final season, Nike decided
to make more traditional skates for
their next product line.
1998
Phil Knight commits Nike to standards
for its affiliated manufacturing
facilities, including: minimum wage; air
quality; education programs; expansion
of microloan program; factory
monitoring; and enhanced
transparency of Nike's corporate social
responsibility practices.

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Nike Introduces the first "tennis shoe"
style golf shoe into the market. The
trend of comfortable golf shoes starts.
Introduction of the first Nike golf balls.
1999
Bill Bowerman, co-founder of Nike, dies
on Dec. 24 at age 88.
The 2000s
2000
Nike Shox cushioning/support system is
introduced, initially worn by Vince
Carter and others on the US Olympic
basketball team.
2002

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Nike purchases Hurley International, an
action sports clothing company, for an
undisclosed amount.
Nike GO launches, a grassroots
initiative to increase physical activity
among youths aged 9–15.
Nike become the apparel sponsor of
Manchester United until 2010.
Nike SB, Nike's Skateboarding line,
debuts.
Introduction of the first Nike golf clubs.
2003
Nike acquires once-bankrupt rival
Converse for $305 million on July 9.

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For the first time in the company's
history, international sales exceed USA
sales.
Nike is again (also in 1994) named
"Advertiser of the Year" by the Cannes
Advertising Festival.

Nike signs NBA player LeBron James

with an unprecedented $87 million
endorsement contract. Nike Zoom
generation first shoe
2004
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Phil Knight steps down as the CEO and
President of Nike, but continues as
chairman. Knight is replaced by William
D. Perez as CEO of Nike, effective Dec.
28.
Nike creates the Exeter Brands Group,
a wholly owned subsidiary for athletic
footwear and apparel brands for lower
price points. Brands include Starter,
Team Starter, Asphalt, Shaq, and Dunk
man.
Annual revenues exceed $12.25 billion
2005
Nike reports annual revenue for fiscal
year 2005 (ending May 31) of $13.74
billion, a 12% increase over the
previous fiscal year.
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Nike Signs Tennis Pro Rafael Nadal.
Nike introduces Nike Free.
2007
Nike enters the cricket market with a 5-
year sponsorship of the Indian cricket
team for US$43m.
CEO William Perez leaves Nike on
January 23, 2006. Perez said in the
statement that he and Knight "weren't
entirely aligned on some aspects of
how to best lead the company's long-
term growth. It became obvious to me
that the long-term interests of the
company would be best served by my
resignation."

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Mark Parker replaces Perez as CEO.

Parker had been brand co-president of
the company, and joined Nike in 1979.
Nike and Apple release the Nike iPod
sports kit, enabling runners to log and
monitor their runs via iTunes and the
Nike+ website.

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Nike reports annual revenue for fiscal
year 2006 (ending May 31) of $15
billion.
2007
Nike introduces the Second Coming, a
group of NBA basketball players who
best represent the Nike Basketball.

Nike introduces AF25, after 25 years of

Air Force shoe line.
2009

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Nike sells its Nike Bauer hockey
equipment division.
Nike introduces shoes featuring new
Fly wire and Lunar lite Foam materials.
Fly wire is a new technology made up
of thin wires of veteran fibers, which
are 5 times stronger than steel and
never lose strength. Lunar Foam is a
material developed by NASA that gives
the shoe excellent shock absorption
and a great feel with minimal weight.
Nike reports annual revenue for fiscal
year 2008 (ending May 31) of $18.6
billion, a 14% increase over the
previous fiscal year
2009

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Dwyane Wade moves from one Nike
subsidiary to another, switching from
Converse to Jordan Brand.
The 2010s
2012
Nike introduces Fly knit,[7] a threading
technology allowing lighter and more
breathable shoe upper.
2016

Nike exits the golf equipment market.

2017

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Nike introduces the Hyper Adapt 1.0

which were inspired from the Air Mags
in the Back to the Future Part II movie.
The Vapor fly 4% running shoe was
introduced, inspired by the Breaking2
attempt to break the 2-hour marathon
barrier. This shoe main feature is a
carbon fiber plate in the midsole for
improved propulsion and energy
return.

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Nike has also has a major popular shoe
in the market that is Nike airmax 2017
which is very popular among
youngsters which is manufactured in
the year 2017 and 2017.5 which many
people don’t know but are just
manufactured after this model

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AIMS AND OBJECTIVES
As I explained above what Nike
means here I will be explaining its basic
aims and objectives. As we all know
Nike is a big multinational company
which has made its name all thought
the world by having proper aims and
objectives in order to make its business
flourish in the market. So, its first
objective is to make immeasurable
profits to the company for the
shareholders.
So, in order to meet the first
objective of the company. Nike has to
acknowledge a number of smaller aims
and objectives in order to do so. These
include manufacturing top of the chain

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quality products and also maintaining
the integrity of a global brand product.
And also generating creative and
innovative ideas in the area of
designing a product So we all know like
any other company it is also a profit
driven company with a number of
social and sustainable aims including
cutting water use, reducing waste and
strengthening communities.
Now here ill be explaining on how
Nike got its main objective and aims
from it was from the company’s co-
founder bill Bowerman who made this
observation of discoveries many years
ago, as he defined there are endless
possibilities for human potential in
sports so he was the main person who
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toned the company for what it is today
which inspired new generation of Nike
employees.
So, Nike goal after the cofounder
passing away is too keep his legacy of
innovative ideas going. To help every
athletes of every level of ability to
reach their potential, or to create many
business opportunities’ that makes
Nike apart from the competition and
value from the shareholders.
Nike is the company who’s
believe/objective is to unleash the
power of sport and potential. That’s
why Nike is going to be investing a
minimum of $315 million in grants,
product donations and in-kind support

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through 2011 to give excluded youth
greater access to sport.
This year, they helped to bring sport to
a Somalian girl growing up as a refugee
in Kenya, to a young homeless man
from Scotland with a passion for
football, and to kids in New Orleans
who are rebuilding their communities.
We’ll provide Nike product, resurface
old playing fields, fund community-
based programs and help young people
create their own communities. These
impacts came as they evolved how the
company frame, define and approach
corporate responsibility. The company
looks after the corporate responsibility
as an integral part of how the company
can use the power of Nikes brand, the
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energy and passion of our people, and
the scale of our business to create
meaningful change. So, the company
has set aggressive business targets that
embed the corporate responsibility
goals into the company’s long-term
growth and innovation strategies
because the company believe there’s
no better way to achieve them than to
tie them directly to Nikes corporate
business
So, with this we come to know that
Nike not only having to carry the legacy
of its cofounder but it also tries to take
a responsible goal/objective in order to
help every athlete who can’t afford it
and even helping them to unleash the

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full power of athlete’s and even create
various business opportunities’
Here ill be explaining another
one of Nike goals here Nike tries to
bring various types of inspirations and
innovation to every kind of athlete in
the world. They believe that if you have
a body then you too are an athlete it
means that anyone and everyone can
be an athlete as long as they work hard
in order to achieve it. They try to help
help every athlete by continual
progress for athletes and sport by
taking the necessary action which is
required for every athlete in order for
them to reach their full potential. So,
every job at Nike, is grounded in a
team with having only one mindset
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that is to cultivate a culture of
innovation and a shared purpose to
leave an enduring impact
Their purpose is to move the world
forward. By taking corrective action by
building community, protecting our
planet and increase the access to sport.

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Now ill be explaining on Nike, FY21
impact report his NIKE Impact Report
represents the first year of
performance against our 2025 Purpose
targets. This set of 29 enterprise
targets, plus the corporate
commitments with a longer time frame
– like our Science-Based Carbon Target
(2030) and Net Zero Target (2050) –
form an aggregated view of NIKE’s
long-term goals and public
commitments to meet stakeholder
expectations and align with NIKE’s
business priorities. This report covers
NIKE’s fiscal year 2021 (June 1, 2020,
through May 31, 2021).

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Nike, Inc. is working to build a more
diverse, inclusive team that reflects the
athletes* and communities where we
live, work and play

Here Nikes main aim is to make women

take initiative in sports in order to do
so some steps are taken
43%
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of NIKE’s leadership positions are held
by women.
$197M
spent with diverse suppliers.
30.3%
of Director level and above employees
in the U.S. are from racial and ethnic
minority groups, a 4.1-percentage
point increase from FY20 to FY21.
cumulative spend on diverse suppliers
by 2025.

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Building and Investing in Teams in

order to men and women take the
initiative to take part in sports.

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The company’s main approach is also

to do business growth which is fueled
by the belief that diversity—in all its
forms—fosters creativity and
accelerates innovation. They also know
that leveraging different perspectives,
experiences and backgrounds
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generates unique ideas and makes our
value chain stronger. To enable this
work, so the company continues to
build a roster of suppliers who can
actively support our business
requirements, while also sharing the
company’s commitment to diversity,
equity, and inclusion.

SCOPE OF NIKE
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Nike Business Model

The Nike Business Model is based on

producing and selling athletic and
sports products, including footwear,
clothing, equipment — and also some
services. Everything is under one of the
most famous brands in the world. Let’s
take a closer look at how and why Nike
company has become so relevant in
the business world.

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Now ill be explaining on how Nike
makes money and I’ll be explaining it
with the help of the segment
breakdown

is the largest footwear and apparel

seller in the world, and its revenue is

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generated mainly from these sales.
Although its footwear items are
designed especially for athletic
purposes, with massive investment in
innovation and high-quality products,
most of them are usually worn on a
daily basis, for leisure times
Nike also sells sports equipment
and accessories, such as balls, eyewear,
bags, gloves, digital devices, and more,
as well as recreational articles for many
physical and outdoor activities. The
company targets men, women, young
athletes, and kids — in order of
revenue. And Nike’s product subdivides
into six categories: Running, Basketball,
Jordan Brand, Soccer, Training, and
Sportswear (lifestyle products), being
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Running, Jordan, and Sportswear are
the strongest ones in revenue.
Nike’s Outsourcing
Nike doesn’t actually produce the
items it sells. Its manufacturing is all
outsourced, mostly outside the United
States. They are more than 300
external independent suppliers, in over
35 countries, such as Vietnam, China,
Indonesia, and Thailand.
Manufacturers in India,
Argentina, Italy, Mexico, and Brazil are
also contracted to produce for local
markets. In spite of its large supply
chain and manufacturing network, Nike
still focuses on maintaining the quality
and innovative character of its
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products, investing heavily in research
and development.
Now ill be explaining on what
challenges the company will be facing
in this modern world
Nike’s Business Model challenges

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Competition: Sports articles and
apparel market is marked by massive
competition, not only in the USA but all
over the globe, both in marketing and
supply chain — because the number of
suppliers for high-quality raw materials
is limited. This competition leads to a
great investment in research and
development and in marketing and
sales, in order to stand out;
Trends: Nike’s success relies on
anticipating customers’ demands. But
these changing preferences are not
always easy to predict. So, there is no
certainty that every new product will
gain the expected acceptance in the
market. Therefore, it requires a great
expenditure in adjusting the mix to
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keep profitable. Moreover, Nike relies
on experts in several areas in order to
produce innovative articles, such as
engineers, physiologists, designers,
biochemists, chemists, orthopedists,
coaches, etc.;
Global risks: Some global conditions
and changes can have either positive or
negative impacts on sales, such as
economic crises or recessions
(especially in emerging nations),
environmental policies, trade
regulations, data security and privacy,
and more.

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Nike’s Cost Structure
The largest expenses for Nike are the
costs of sales (mostly inventory and
warehousing), that account for more
than $21 billion per year. Additionally,
around $3 billion is for marketing,
including advertising and promotion
costs, sponsorship, media, brand
events, and retail brand presentation.
Other general and administrative
expenses cost over $500 million a year.

Nike’s Revenue Streams

The revenue streams of the company
are the sales of its products: footwear,
apparel, equipment, and accessories.

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The total revenue reached $39,117
million, in 2019.

Lastly ill be explaining the the swot

analysis on Nike which it gives a
detailed information or u can say the

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scope on what the company can
operate or not

Production costs: Since Nike’s business

model outsources almost all its
production, the company has reduced
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its operational costs, significantly, and
focused its efforts and capital on
marketing and sales. However, that
doesn’t mean Nike has lost control
over production quality. It only relies
on suppliers that can support the
brand’s standards;
Minor sales variations: The demand for
Nike’s products doesn’t fluctuate a lot
during the year. The sales of fashion
products and apparel usually remain
equivalent all throughout the months.
Due to some major campaigns, the
company sometimes experiences a
sudden rise. But, in these cases, there
have been many studies, and it is ready
to meet the demand;

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Quality: As Nike produces higher
quality products, compared to most of
its competitors, the company is also
able to raise prices. This works out
precisely because the quality has made
the brand achieve a strong and reliable
reputation, resulting in market-leading;
Speed: For sales to succeed, the
companies must transform ideas into
products on the shelves as fast as
possible. Nike, through its processes,
has accomplished this efficiency,
keeping its audience engaged and
avoiding losses.

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LIMATATIONS OF NIKE

Nike Latest moves on social media

towards its hi-tech innovation of Nike +
Fuel Band is dangerous and challenging
its marketing strategies since the idea
of sharing information can be at odds
with the individualism of Nike Brand.
Nike Brand identity has always been
associated with individualism,
performance, and empowerment as a
way of differentiating themselves from
its competitors. However, the company
as well cannot ignore its social media’s
fans and ends up not embracing their
brand’s individualism in the process.
The stress on using social media as a
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platform where the company can
celebrate individual achievement is the
right way to go without compromising
the company’s brand

Additionally, since Nike’s core

strategies depend on a group of
athletes to promote their products, the
same athletes that are caught in drug
addictions and any immoral attitude
affects customers not to buy their
products hence affecting their sales

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and revenue.

One of the best examples is that

one player named Sharapova has been
tested positive who is a promoter for
Nike and who has helped the company
to sell their company products

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Nike's move is understandable, but it

also puts into question their motives
for dropping and backing athletes. Just
last year, Nike offered twice-banned
American sprinter Justin Gatlin a new
contract, despite Gatlin showing no
remorse for his past actions.
From a business point of view it makes
little sense too - Gatlin isn't the big
name Sharapova is, and as the world's
highest-earning female athlete she

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made $24 million in endorsements in
2014 and $23 million in 2015.

The only logic behind it could be the PR

reaction to Sharapova's announcement
and Nike doing their best to show
themselves as being strictly anti-drugs
in light of last year's revelations by
WADA - however given their deliberate
lack of action over less prominent
stars, the only thing that seems to
provoke Nike (and other sponsors) into
action is the amount of media coverage
a drug violation gets.
Additionally, Nike’s marketing
strategies are considered costly which
has incurred high cost in producing and
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further promoting its products.
Moreover, the cost has increased due
to other expenses such as handling
inventory and designing cost. Thus, for
the company to deal with high cost of
marketing, they need to improve their
product's prices and reduce its
marketing budget
Due to its high pricing many
sneakerheads are not buying many
sneakers as Sept 28 (Reuters) -
Sneakerheads are thinking twice before
splurging on the newest set of kicks as
the rising cost of living takes a toll on
consumer spending, setting the stage
for a potential slowdown in sales for
Nike Inc (NKE.N) in coming months.

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At least eight brokerages have cut their
price targets on Nike in the two weeks
ahead of the company's first-quarter
results on Thursday as inflation-hit U.S.
consumers increasingly scrimp on
discretionary items, adding more
pressure on the athletic gear maker
that is reeling from a slowdown in
China.
The sneaker giant's hot-selling
Jordan, a brand that has grown its
annual revenue by nearly 42% over the
past two years to $5.1 billion and sees
its $200 sneakers sell out in minutes, is
also currently experiencing a downturn
in enthusiasm around new styles,
according to Wedbush analysts.

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Due to this Nike sales has been
showing downslide as many of them
are not willing to pay for the product as
shown in below revenue graph as they
are highly priced
So as shown in below diagram Nike
Has been having it fair decline in
Sales.

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Research methodology
Research comprise defining and
redefining problems, formulating
hypothesis or suggested solutions;
collecting organizing and evaluating
data; making deduction are reaching
conclusions; and at last carefully
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testing the conclusion to determine
whether they fit the formulating
hypothesis.
Research

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