NIKE, Inc. , together with its subsidiaries, engages in the design, development, marketing, and sale of footwear, apparel, equipment, and accessories for men, women, and children worldwide. The company offers products in seven categories, including running, basketball, football, men? s training, women? s training, NIKE sportswear, and action sports. It also markets products designed for kids, as well as for other athletic and recreational uses, such as baseball, cricket, golf, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling.
In addition, the company sells sports apparel and accessories, and athletic bags and accessory items, as well as markets apparel with licensed college and professional team and league logos. Further, it sells a range of performance equipment, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, golf clubs, and other equipment for sports activities under the NIKE Brand name; and various plastic products to other manufacturers.
Additionally, the company has license agreements that enable unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment designed for sports activities. It also designs, distributes, and licenses athletic and casual footwear, apparel and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks; and designs and distributes various action sports and youth lifestyle apparel and accessories under the Hurley trademark.
The company sells its products to through its retail stores and Internet sales, as well as independent distributors, licensees, and sales representatives NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon. VISION STATEMENT OF NIKE “To bring inspiration and innovation to every athlete in the world” MISSION STATEMENT Nike is the "largest seller of athletic footwear and athletic apparel in the world. Performance and reliability of shoes, apparel, and equipment, new product development, price, product identity through marketing and
promotion, and customer support and service are important aspects of competition in the athletic footwear, apparel, and equipment industry. We believe we are competitive in all of these areas. " The company aims to " lead in corporate citizenship through proactive programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services to Nike. " History: Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of Oregon track athlete Philip Knight and his coach Bill Bowerman in January 1964.
The company initially operated as a distributor for Japanese shoe maker Onitsuka Tiger (now ASICS), making most sales at track meets out of Knight's automobile. In 1966, BRS opened its first retail store, located at 3107 Pico Boulevard in Santa Monica, California. By 1971, the relationship between BRS and Onitsuka Tiger was nearing an end. BRS prepared to launch its own line of footwear, which would bear the Swoosh newly designed by Carolyn Davidson. The Swoosh was first used by Nike on June 18, 1971, and was registered with the U. S. Patent and Trademark Office on January 22, 1974.
In 1976, the company hired John Brown and Partners, based in Seattle, as its first advertising agency. The following year, the agency created the first "brand ad" for Nike, called "There is no finish line," in which no Nike product was shown. By 1980, Nike had attained a 50% market share in the U. S. athletic shoe market, and the company went public in December of that year. Together, Nike and Wieden+Kennedy have created many print and television advertisements, and Wieden+Kennedy remains Nike's primary ad agency. It was agency co-founder Dan who coined the now-famous slogan "Just Do It" for a 1988 Nike ad campaign.
Throughout the 1980s, Nike expanded its product line to encompass many sports and regions throughout the world. Nike Facts * Nike first went under the name “Blue Ribbon Sports”. * The name “Nike” comes from the Greek goddess of victory. * Ilie Nastase, a tennis star, was the first pro athlete to sign with Nike. * Nike has many marketing names, such as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, Team Starter, and subsidiaries like Bauer, Cole Haan, Hurley International, Umbro and Converse. * Nike has factories in 45 countries around the world.
* Nike’s first self-designed product was based on Bowerman’s “waffle” design in which the sole of the shoe was made by the pattern of a waffle iron. * Nike has a history of using inhumane labor practices to produce their products. * Nike has acknowledged these labor problems in the past and has promised to change * Nike factories violated local minimum wage laws, payed subsistence wages and illegally forced massive overtime. * Nike factories subjected workers (90% young women and girls) to criminally dangerous, brutal sweatshops. * Nike supported military dictatorships that crush labor unions and worker protest.
* Nike FY06 revenues were approximately $15 billion. They are the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. * Nike produces approximately 50,000 product styles per year. * Nike sells products in more than 160 countries. * Nike has approximately 28,000 employees worldwide. * Almost 800,000 workers are employed in contracted factories around the world making Nike-branded products. * Nike operations (owned and not directly owned) contribute to approximately 1. 36 million tonnes of CO2 annually.
Brand Portfolio & Acquisitions As of September 2012, Nike, Inc. owns four key subsidiaries: * Cole Haan, designs and distributes dress and casual footwear, apparel, and accessories for men and women * Converse Inc. , offers a diverse portfolio including premium lifestyle men's and women's footwear and apparel. * Hurley International LLC. , designs and distributes a line of action sports apparel for surfing, skateboarding and snowboarding, and youth lifestyle apparel and footwear * NIKE Golf, designs and markets golf equipment, apparel, balls, footwear, bags and accessories worldwide. * Umbro. Ltd.
, designs, distributes, and licenses athletic and casual footwear, apparel and equipment, primarily for the sport of football (soccer) * Nike id, NikeID is a service provided by Nike allowing customers to personalize and design their own Nike merchandise. They offer online services as well as physical NikeID studios in different countries around the world, including: United Kingdom, France, Spain, Germany, China and the USA. Products: Nike produces a wide range of sports equipment. Their first products were track running shoes. They currently also make shoes, jerseys, shorts, base layers, etc.
for a wide range of sports, including track and field, baseball, ice hockey, tennis, association football (soccer), lacrosse, basketball, and cricket. Nike Air Max is a line of shoes first released by Nike, Inc. in 1987. The most recent additions to their line are the Nike 6. 0, Nike NYX, and Nike SB shoes, designed for skateboarding. Nike has recently introduced cricket shoes called Air Zoom Yorker, designed to be 30% lighter than their competitors' In 2008, Nike introduced the Air Jordan XX3, a high-performance basketball shoe designed with the environment in mind.
Nike is well known and popular in youth culture, chav culture and hip hop culture for their supplying of urban fashion clothing. Nike recently teamed up with Apple Inc. to produce the Nike+ product that monitors a runner's performance via a radio device in the shoe that links to the iPod nano. In 2004, Nike launched the SPARQ Training Program/Division. Some of Nike's newest shoes contain Fly wire and Linarite Foam to reduce weight. Organizational Structure Structure Nike has a matrix structure; it is a combination between the functional and the divisional structure.
Nike consists of 5 departments: HR, Marketing & Sale, Accounting, Production, and Design & Development that cooperate with each others very well. Nike does not manufacture its own products; Nike signed contracts with the factories to produce their products. In Vietnam, Nike signed contract with 12 factories to produce for them and to control the production process, Nike has many production teams and each team is responsible for 1 factory. Each production team include of a team leader, quality staff, quantity staff, technical staff and scheduling staff.
Information Flow Nike operates efficiency due to having a smoothly information flow within the company. Information can be divided into 2 kinds: general information and technical information. General Information: is information about administration, about the general working of the whole company or an announcement from the CEO. Those types of information usually flow from top to bottom, from the CEO, vice presidents to the operational employees. General information is usually connection between the departments in the company.
Nike also has an intranet and a mail system to ensure the information flow smoothly inside the company. Technical information: is information regarding to the products. It flows sideways; it can flow horizontally or vertically within the organization. This kind of information usually comes from the Design & Development or Production department and then it flow back to the top and flow throughout the departments. It also flows through the intranet and mail system however this kind of information is used only by certain group of users who are involved with the products.
Competitors of Nike and There Market Share: Nike currently enjoys a 47% market share of the domestic footwear industry, with sales of $3. 77 billion. Nike has been manufacturing throughout the Asian region for over twenty-five years, and there are over 500,000 people today directly engaged in the production of their products. They utilize an outsourcing strategy, using only subcontractors throughout the globe. Their majority of their output today is produced in factories in China, Indonesia, and Vietnam, but they also have factories in Italy, the Philippines, Taiwan, and South Korea.
These factories are 100% owned by subcontractors, with the majority of their output consisting solely of Nike products. However, Nike does employ teams of four expatriates per each of the big three countries (China, Indonesia, Vietnam), that focus on both quality of product and quality of working conditions, visiting the factories weekly. Reebok, as the second leading manufacturer of footwear, has domestic revenues of $1. 28 billion and a market share of 16%. Similar to Nike, they also utilize a 100% outsourcing strategy and manufacture their products throughout Asia.
Adidas is currently enjoying the fastest growth of any brand domestically, with a market share of 6% and revenues of $500 million. They have adjusted their manufacturing strategy, from a vertical operation in Germany in the 60’s and 70’s, to an outsourcing focus today throughout Asia. Unlike the big two, they do not have a code of conduct, and their factories are considered to be the worst in the industry. Converse with a market share of 3% and revenues of $280 million, Converse manufactures their products both domestically and internationally.