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MeaningoftheNameandtheLogo1971Thecompanyprofile&historyDefinition:TheU.S-basedmanufacturerofathleticshoes,apparelandsportsequipment.Stocksymbol:NIKEAnnualrevenue(2008):morethan$18billionFounders:BillBowerman,PhilipKnightYearestablished:1964(predecessorasBlueRibbonSports)Industry:Sportswear/equipmentCEO:MarkParkerStaff:30,200Products:shoes,apparelandsportsequipment,accessoriesSlogan:JustDoIt!WHATWOULDWEDO?HOWDOWEDOIT?PESTELAnalysisKeyIssuesStrengthsContractswithabout700shopsworldwide,runsofficesin45countries;managesfactoriesinlowcostcountries(China,Indonesia,Taiwan,Thailand,India,Vietnam,Philippines,Pakistan,andMalaysia);BelongstoFortune500companieswhich2008totalrevenueexceeded19billionUSD;Employsmorethan30.000peopleworldwide;Strongmarketingstrategy(cooperatewithNBA,sponsorsportstar);Strongbrandrecognition(No.25intherankingofInterbrand);MarketValuein2008:morethan6billionUSDMarketSize(2010):thirdlargestmarketintheworld(behindUSandWesternEurope)MarketGrowthRate:morethan10%since2000(except2009and2010)AdvertisingstrategyNikefollowsa100%outsourcingstrategy.Nikedoesn’townfactories,buttheycooperatewithlocalsuppliersandmanagedthesefactories.Inthisway,NikehasverylowmanufacturingcostMostcompetitorsfollowtheoutsourcingstrategy.Itprovethisstrategyissuccessful,Nikedoesn'tworryaboutthisandcangoonfollowthisstrategy.FocusonTechnologyandInnovation.Theproductdesignandinnovationformsthebackboneofthecompany,15–20%ofrevenuesneedtobespentonthis.Decouplingcheapandlowcostsportswearfromflagshipitems.CheapandlowcostsportswearshouldbedecoupledfromtheexistingNikebrand.Theymightbesoldunderadifferentname,butnotNikeFollowbothDifferentiationandPricingbasedstrategy.InChina,insomeareas,themarketgrowswithapricecompetitionandinanothersithasalreadytransformedintoahighqualitybasedmarketwithnon-pricecompetition.
