Description and Analysis of Nike

Descriptionand Analysis of Nike

Nike,Inc typically develops markets and sells equipment, apparel,footwear, accessories and services. The company started in 1964 anindustry for footwear used by athletes and other sportsmen. Thecompany has experienced a tremendous growth since it was founded.This includes the diversification of the services they offer to theircustomers (Ramaswamy,2008).Nike has expanded both internally and externally since it has had tocapture the new customers so that they can make more sells.Internally, the company has become complex in its structure ofmanagement and also in some of its production processes. It is alsocrucial to note that Nike is one of the leading companies in theproduction of the products used by the sportsmen, and they includeshoes, apparel, socks, bags and many other products.

Theprimary purpose of this report is to present the results of ananalysis of the Nike Company that will be crucial for other leadersin various organizations. As earlier mentioned, this company hasexperienced tremendous growth in most of its processes. Therefore, myresearch aims at understanding the major ways that the management ofthe company adjusted to these changes. One of the major things tonote is the decision-making that the management is involved in. Myresearch on this organization will help other leaders to improvetheir decision-making skills that will help their companies to moveto greater levels (Kytle,et al. 2005).


Asearlier mentioned, Nike’s major business is the selling thesportswear and apparel. The company started its business by simplyselling the sportswear to a smaller number of people since they had asmall target on their market. Nike has experienced a tremendousadvancement in the in the kind of products that they produce thusimproving the business of the company.

Thereare various external environment factors that have greatly impactedthe company both internally and externally. One of the major externalfactors driving the company’s growth is the robust growth inbasketball, running and soccer activities. The strong growths inthese sports are fueling the demand for the products that areproduced by Nike. Additionally, the strategy of Nike has been tofocus on the discrete categories that have also played a crucial rolein its sales (Stonehouse,et al. 2009).Another crucial factor is the strong growth of the emerging marketsin North America and Eastern Europe. It has been noted that Nike’sbrand revenues in these locations have rose by 12%, 16%, and 18%.According to the research, North America continues to be strongergrowth and developed market for Nike on the account of its categoryoffense, strong marketing, superior innovation, and premiumdistribution. However, one of the major external barriers that thecompany has experienced is the threats from newer companies. Newercompanies such as Lululemon Athletica and Under Armour that targetniche market segments like the performance apparel. Since thesecompanies have experienced a significant growth in the recent years,they have posed a great threat to the growth of Nike. Therefore, thegrowth of other companies producing the same products has posed a bigthreat to the expansion of the company to access new markets(Stonehouse,et al. 1999).


Tobegin with, the management of Nike believes in potentials and notlimits. For instance, they work as per the past philosophies such asnobody cleared 29 feet in the long jump until Bob Beamon came intoexistence. In turn, nobody would beat Bob Beamon until MichaelPowell, and that is how Nike is, they believe (Ricceri,2008).The company’s primary goal, therefore, was to reach $23 billion inrevenue by the fiscal year 2011. Typically, their major concern isthe strength of the Nike brand since it plays a crucial role toprofit that the company will make (Jackson,et al. 1993).

Thebusiness processes of Nike entail various steps ranging fromproduction to marketing of their products. Both of these businessprocesses have experienced a tremendous advancement as an adjustmentto the growth that the company is going through (Schaltegger,2011).For instance, the company has had to strategize regarding theirmanufacturing processes so that it can suit the growing demand forthe company’s products. Also, the company management has had toplan for newer ways of marketing their products so that they can makemore sales to their customers in all markets around the world.Typically, the company has had to revise most of their businessprocesses so that they can satisfy the growing needs of theircustomers (Galy,1998).

Mostof these are linked to the innovative product portfolio. Nike has astrong track of introducing newer products that give the company acompetitive advantage. Some of these new technologies include NikeAir, Lunar, Flyknit, Dri-Fit, and Free to boost its sales in thefuture (Katz,1994).

Itis also important to note that in strategizing, the company has hadto consider the cultural issues that might drag behind the growth oftheir company. Therefore, they have made sure that their products aresimple, and they do not contain any symbols that will show thecompany supports or rejects a certain culture (Locke,2003).


Galy,P. (1998).&nbspU.S.Patent No. D398,681.Washington, DC: U.S. Patent and Trademark Office.

Jackson,J. E., &amp Schantz, W. T. (1993). Crisis management lessons: Whenpush shoved Nike.&nbspBusinessHorizons,&nbsp36(1),27-35.

Katz,D. R. (1994).&nbspJustdo it: The Nike spirit in the corporate world.Random House (NY).

Kytle,B., &amp Ruggie, J. G. (2005). Corporate social responsibility asrisk management: A model for multinationals.

Locke,R. M. (2003). The promise and perils of globalization: The case ofNike.Management:Inventing and delivering its future,&nbsp39,40.

Locke,R. M., Qin, F., &amp Brause, A. (2007). Does monitoring improvelabor standards? Lessons from Nike.&nbspIndustrial&amp Labor Relations Review,&nbsp61(1),3-31.

Ramaswamy,V. (2008). Co-creating value through customers` experiences: the Nikecase.&nbspStrategy&amp Leadership,&nbsp36(5),9-14.

Ricceri,F. (2008).&nbspIntellectualCapital and Knowledge Management: strategic management of knowledgeresources.Routledge.

Schaltegger,S. (2011). Sustainability as a driver for corporate economic success:Consequences for the development of sustainability managementcontrol.&nbspSocietyand Economy,&nbsp33(1),15-28.

Stonehouse,G. H., &amp Pemberton, J. D. (1999). Learning and knowledgemanagement in the intelligent organisation.&nbspParticipationand Empowerment: An International Journal,&nbsp7(5),131-144.

Stonehouse,G., Campbell, D., Hamill, J., &amp Purdie, T. (2009).&nbspGlobaland transnational business: strategy and management.John Wiley &amp Sons.