Nike Organization Essay example

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NIKE ORGANIZATION

Overview
As the world’s leading athletic footwear, apparel and equipment company, NIKE, Inc. is dedicated to inspiring every athlete to reach their full potential. NIKE co-founder
Bill Bowerman saw endless possibilities for human achievement through sport. His philosophy still guides our mission today:
“To bring inspiration and innovation to every athlete in the world.” We believe if you have a body, you are an athlete

Products


NIKE, Inc. includes five distinct brands, each with a powerful connection to its customers: NIKE Brand designs, develops and sells high-quality athletic performance gear and sport-inspired lifestyle products, including footwear, apparel, equipment and accessories
Converse, Inc. designs, markets, licenses and sells casual sneakers, apparel and accessories Hurley
International LLC designs, markets and distributes surf and youth lifestyle footwear, apparel and accessories
Jordan Brand designs and markets premium footwear, apparel and accessories inspired by the dynamic legacy, vision and direct involvement of Michael Jordan
NIKE Golf designs and markets golf equipment, apparel, balls, footwear, bags and accessories

SWOT ANALYSIS
Strengths.
Nike is a very competitive organization.
Phil Knight (Founder and CEO) is often quoted as saying that ‘Business is war without bullets.’ Nike has a healthy dislike of is competitors. At the Atlanta Olympics,
Reebok went to the expense of sponsoring the games. Nike did not. However Nike sponsored the top athletes and gained valuable coverage

Threats.
Nike is exposed to the international nature of trade. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. Such an exposure could mean that Nike may be manufacturing and/or selling at a loss. This is an issue that faces all global brands

The market for sports shoes and garments is very competitive. The model developed by Phil Knight in his Stamford Business
School days (high value branded product manufactured at a low cost) is now commonly used and to an extent is no longer a basis for sustainable competitive advantage. Competitors are developing alternative brands to take away Nike’s market share.

Weaknesses.
The organization does have a diversified range of sports products. However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes.

Opportunities.
Product development offers Nike many opportunities. The brand is fiercely defended by its owners whom truly believe that Nike is not a fashion brand. However, like it or not, consumers that wear Nike product do not always buy it to participate in sport. Some would argue that in youth culture especially, Nike is a fashion brand.
This creates its own opportunities, since product could become unfashionable before it wears out
i.e. consumers need to replace shoes.

Porters Model
Competitive Rivalry Within The Industry – Intense competition from established and upcoming rivals could threaten Nike’s market share growth The global market for athletic footwear, apparel and equipment is characterized by intense competition, with presence of a large number of players such as Puma, Adidas, V.F Corporation, Asics, etc.
The global athletic products industry is exposed to continuous changes in consumer preferences and technology; if Nike is unable to adapt to these changes quickly, it could suffer losses in its market share. Rising competition from emerging players such as Under Armour and
Lululemon Athletica, which focus on niche market segments such as performance apparel and yoga-focused apparel, also pose a threat to
Nike’s share of selected markets.
Nike also faces rising competition from local players in emerging markets, who are increasingly improving their product quality.

Bargaining Power Of Suppliers
Nike’s footwear and apparel products are manufactured by third-party contract
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