assignment on nike company

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Nike analysis: a comprehensive guide for business students, dr. wilson mn.

• June 28, 2023
• Business StudyingHq , Essay Topics and Ideas , How to Guides

If you are studying business, you need to learn how to do a company analysis. Nike is a great company to use as a case study for this kind of analysis. In this guide on Nike Analysis, we’ll tell you everything you need to know about Nike, including its history, mission, products, market position, and main rivals.

Nike is one of the largest companies in the world that makes athletic shoes and clothes. Bill Bowerman and Phil Knight started it in 1964 as Blue Ribbon Sports. In 1971, the name was changed to Nike. Nike is a global brand that can be found in more than 190 countries around the world .

Understanding company analysis is important for business students because it lets them figure out a company’s strengths and weaknesses, find possible opportunities and threats, and learn more about how the company works and what strategies it uses. By looking at a successful company like Nike, students can learn a lot about how to do marketing, come up with new ideas, and be good corporate citizens.

What You'll Learn

Company Profile

A. company history.

Nike was founded in 1964 by Bill Bowerman and Phil Knight, who were both track and field coaches at the University of Oregon. Originally named Blue Ribbon Sports, the company initially operated as a distributor for the Japanese shoemaker Onitsuka Tiger (now ASICS). In 1971, the company officially became Nike and began designing and manufacturing its own shoes.

Over the years, Nike has become synonymous with athletic footwear and apparel, and its iconic “swoosh” logo is recognized around the world. The company has grown through a combination of innovative product design , savvy marketing, and strategic partnerships with athletes and sports teams.

B. Vision, Mission, and Core Values

Nike’s mission is to “bring inspiration and innovation to every athlete* in the world.” The company’s vision is to “remain the most authentic, connected, and distinctive brand.” Nike’s core values include innovation, sustainability, and diversity and inclusion.

C. Products and Services

Nike produces a wide range of athletic footwear and apparel for various sports, including basketball, football, soccer, and running. The company also offers accessories such as bags, socks, and hats. In addition to its core products, Nike has expanded into other areas, such as digital fitness tracking and smart clothing.

D. Industry and Market Position

Nike operates in the highly competitive athletic footwear and apparel industry, which includes companies such as Adidas, Under Armour, and Puma. Despite intense competition, Nike has maintained a dominant market position and is consistently ranked as one of the most valuable brands in the world.

One of Nike’s key strengths is its ability to innovate and stay ahead of trends in the industry. The company is known for its cutting-edge product design and technology , such as its Flyknit shoes and Nike+ digital platform. Nike has also been recognized for its commitment to sustainability and ethical business practices .

E. Key Competitors

Nike’s key competitors include Adidas , Under Armour, Puma, and New Balance. Adidas is Nike’s biggest rival, and the two companies often compete head-to-head for market share in key categories such as basketball and soccer footwear.

SWOT Analysis

To gain a deeper understanding of Nike’s strengths, weaknesses, opportunities, and threats, we’ll conduct a SWOT analysis .

A. Strengths

Nike’s strengths include:

• Strong brand recognition and reputation
• Innovative product design and technology
• Extensive distribution network
• Effective marketing and advertising campaigns
• Commitment to sustainability and ethical business practices

B. Weaknesses

Nike’s weaknesses include:

• Dependence on a few key product categories , such as basketball footwear
• Vulnerability to economic downturns and shifts in consumer preferences
• Criticism for labor practices and working conditions in overseas factories

C. Opportunities

Nike’s opportunities include:

• Expansion into new markets, such as China and India
• Expansion into new product categories, such as smart clothing and wearable technology
• Growth potential in the women’s athletic apparel market

Nike’s threats include:

• Intense competition from rivals, particularly Adidas
• Fluctuations in foreign currency exchange rates
• Increasing scrutiny of environmental and social impacts of athletic footwear and apparel manufacturing

Noteworthy Research Papers on Nike

There have been several noteworthy research papers published on Nike over the years. Here are a few that provide valuable insights into the company’s operations and strategies:

A. Noteworthy Research Papers on Nike

• “ Nike’s Global Women’s Fitness Business: Driving Strategic Integration and Operational Efficiency ” by Michael E. Porter and Elizabeth Kind (2018). This paper examines Nike’s approach to the women’s athletic apparel market and its strategies for driving growth and profitability.
• “ Nike’s Sustainable Innovation Journey: New Frontiers in Nike’s Business Model Innovation ” by Stefan Gold and Florian Lüdeke-Freund (2019). This paper explores Nike’s sustainability initiatives and how they have been integrated into the company’s business model .
• “ Nike’s Global Labor Practices: A Case Study in Supplier Relationship Management ” by Richard M. Locke and Fei Qin (2007). This paper provides a critical analysis of Nike’s labor practices and supply chain management , and offers recommendations for improvement.
• The impact of Nike’s marketing and advertising on consumer behavior
• Nike’s approach to innovation and product design in the athletic footwear and apparel industry
• Nike’s supply chain management practices and efforts to improve labor conditions in overseas factories
• The impact of Nike’s sustainability initiatives on its brand reputation and financial performance
• The competitive landscape of the athletic footwear and apparel industry and Nike’s strategies for maintaining market leadership

 Essay Titles on Nike

• “The Evolution of Nike: From Blue Ribbon Sports to Global Athletic Brand”
• “Marketing Strategies of Nike: How the Swoosh Became a Global Icon
• An Analysis of Nike’s Sustainable Business Practices
• “Nike’s Impact on the Athletic Footwear and Apparel Industry”
• “The Role of Innovation in Nike’s Success”
• Nike’s Approach to Corporate Social Responsibility”
• “The Power of Branding: How Nike Built a Global Empire”
• “A Critical Look at Nike’s Labor Practices and Supply Chain Management”
• “Nike’s Investment in Women’s Sports: A Strategic Move or a Social Responsibility?”
• “The Nike-Adidas Rivalry: A Battle for Athletic Footwear Supremacy”

Research Topics on Nike

• The impact of Nike’s marketing campaigns on consumer behavior
• Nike’s partnerships with athletes and sports teams and their impact on brand image and sales
• The role of digital technology in Nike’s marketing and distribution strategies
• Nike’s expansion into new markets and product categories and their potential for growth and profitability
• An analysis of Nike’s financial performance and its position in the global market
• Nike’s response to criticism and controversy, such as the Colin Kaepernick ad campaign and allegations of labor abuses in its supply chain.

Frequently Asked Questions on Nike

1.   when was nike founded.

Nike was founded in 1964 as Blue Ribbon Sports, before officially becoming Nike in 1971.

2.   Who are the founders of Nike?

Nike was founded by Bill Bowerman and Phil Knight.

3.   What does Nike’s “swoosh” logo represent?

The “swoosh” logo was designed by Carolyn Davidson in 1971 and represents the wing of the Greek goddess Nike, who was the goddess of victory.

4.   What is Nike’s mission statement?

Nike’s mission statement is to “bring inspiration and innovation to every athlete* in the world.

5.   What are Nike’s core values?

Nike’s core values include innovation, sustainability, and diversity and inclusion.

6.   What products does Nike sell?

Nike sells a wide range of athletic footwear and apparel for various sports, including basketball, football, soccer, and running. The company also offers accessories such as bags, socks, and hats.

7.   Who are Nike’s key competitors?

Nike’s key competitors include Adidas, Under Armour, Puma, and New Balance.

8.   Where is Nike headquartered?

Nike is headquartered in Beaverton, Oregon, USA.

9.   How many employees does Nike have?

As of 2021, Nike has approximately 75,000 employees worldwide.

10.               What is Nike’s stance on sustainability?

Nike has made a commitment to sustainability and ethical business practices, and has set ambitious goals for reducing its environmental impact and promoting social responsibility. The company has launched initiatives such as the “Move to Zero” campaign, which aims to create zero waste and carbon emissions in its supply chain by 2030.

In summary, Nike is a global brand with a rich history , a dominant market position, and a commitment to innovation, sustainability, and corporate social responsibility. Through our analysis of Nike’s company profile , SWOT analysis, research papers, essay titles, and frequently asked questions, we have gained valuable insights into the company’s operations, strategies, and impact on the athletic footwear and apparel industry.

For business students, understanding how to conduct a company analysis is a critical skill to develop. By studying successful companies like Nike and conducting in-depth research on their operations, strategies, and impact, students can learn valuable lessons on best practices for marketing, innovation, and social responsibility. They can also gain insights into the competitive landscape of the global market and develop the analytical skills necessary to make informed business decisions.

 Further Reading

Recommended sources on nike:.

• “ Shoe Dog: A Memoir by the Creator of Nike ” by Phil Knight
• “ Just Do It: The Nike Spirit in the Corporate World ” by Donald Katz
• “ The Nike Controversy ” by Ballinger, J.
• “ Sustainability at Nike ” by Andrew Winston
• “T he Power of Nike’s Brand Image ” by Emily Delbridge

External links to reputable sources:

• Nike’s official website
• Nike’s sustainability report
• Nike’s investor relations page
• Forbes article on Nike’s marketing strategy
• Harvard Business Review case study on Nike’s digital strategy

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Nike Marketing Strategy: How Nike became a market leader and you can "just do it" too!

Learn about nike's iconic marketing strategy and advertising campaigns. read how nike aces the 4ps of marketing mix - product, price, promotion & placement..

• overview#goto" data-overview-topic-param="history">Revolutionary history
• overview#goto" data-overview-topic-param="first">Nike's First Shoes
• overview#goto" data-overview-topic-param="mix">Nike's Marketing Mix
• overview#goto" data-overview-topic-param="strategy">Nike's Marketing Strategy
• overview#goto" data-overview-topic-param="noteworthy">Noteworthy Marketing Campaigns
• overview#goto" data-overview-topic-param="key">Key Takeaways

When you hear the word Nike, it’s impossible that you don’t see the Swoosh logo right in front of your eyes along with the words “Just Do It”. This is the result of Nike’s exemplary marketing and brand positioning since its inception in 1964. Today, Nike has established itself as the undisputed leader in the sportswear industry.

Being a consumer brand, Nike has managed to develop a competitive advantage of customer loyalty and strong brand recognition. What marketing strategy did Nike use to be the top-valued brand worth USD 176 billion in the sportswear industry? Let's find out!

Revolutionary history and innovation of the first Nike shoes

Inspiration and innovation are Nike’s deeply rooted core values. To understand this better, we need to know Nike’s history to understand why it is the way it is.

Foundation of Nike as a company

Nike Inc, previously known as Blue Ribbon Sports, was founded in the year 1964 by Bill Bowerman and Phil Knight. Nike is an American sportswear company headquartered in Oregon.

Fun Fact - Bill Bowerman was a track and field coach at the University of Oregon, and Phil Knight was his former student.

Source - Business insider

The jogging revolution

Jogging wasn’t mainstream in the early 1960s. It was believed to be only for athletes. 

On a trip to New Zealand in 1962, Bill discovered jogging and its benefits. He published a pamphlet on jogging in 1966, which was then turned into a book the next year. Bill is credited for bringing the jogging craze which swept America in the late 1960s. Jogging was then seen as a means to maintain a healthy lifestyle.

First shoes by Nike – Waffle Trainer

Nike’s first retail outlet was opened in 1966. Once, while having breakfast, Bill looked at the waffle and said the top part would be perfect for the track field. He got the materials for making the shoe soles and poured them into the waffle iron. This is how Nike created its first shoe, Waffle Trainers. Nike launched them in 1973.

Where did Nike derive its name and logo from?

Blue Ribbon Sports was renamed Nike Inc in 1979 and went public in December 1980. Nike derived its name from the name of the Greek Winged Goddess of Victory. The logo represents the wings, symbolising motion and speed.

Nike’s first content marketing strategy

In Nike’s case, content marketing came before the product. The customer base was built before the idea of the product was even thought of. Which marketing strategy did Nike use in its initial days?

Customer awareness

In the 1960s, people were unaware of the benefits of jogging. Selling shoes in a market that didn’t know it needed them would have been a fool’s act. Nike sold shoes only when customer awareness was shifted from Unaware to Solution aware.

Existing pain point 

Nike solved an existing problem which is ‘how to get fit’. It didn’t try to solve a non-existing pain point. 

You must develop products keeping your customers in mind.

Benefit-centric marketing

Nike shoes were sold as a means to support a healthy and sporty lifestyle. It didn’t boast about its product features. It used a benefit-centric marketing plan instead of a product-centric one.

Sell products you believe in

Bill Bowerman invented shoes that were lighter and faster. This shows how passionate he was about them. Nike’s belief in providing the highest customer value originates from its founders themselves. Nike truly believes in its products. This reflects in Nike’s customer perception as well.

Nike Marketing Mix - The four P’s of marketing

Nike uses its marketing mix to determine the strategies to be applied to execute its marketing plan. Nike’s marketing mix focuses on high-quality sportswear sold through online or offline mediums at a premium price while using customer-centric promotion strategies.

Nike Product Strategy

Although Nike shoes are the MVP, it’s a sportswear brand. Nike's products range from sports shoes, clothes, backpacks, sports equipment, and accessories. 

Nike has positioned itself as a leader in the sportswear industry. It focuses on high-quality products that are durable, visually appealing, and trendy. 

Nike produces distinct shoes for different sports like running shoes, basketball shoes, tennis shoes and ice hockey skates. Air Jordan is the most valued Nike shoe brand. Modern technology and innovation are the core elements of the creation process of Nike products.

Nike’s Pricing Strategy

Nike charges a premium price for its product quality, the value it provides, and the intensive technology investment.

Nike's strategy consists of the below two pricing plans:

Value-based pricing strategy

In this pricing strategy , Nike analyses the consumer perception that is the maximum price the consumers are ready to pay for its products and charges value-based prices.

Premium pricing strategy

Nike charges premium prices to establish itself as a premium brand amongst its competitors. Premium branding is done by partnering with high-profile sports celebrities and sponsoring them as brand ambassadors as well as being a sponsor of sports events like being an Olympic sponsor. This establishes Nike as a brand with premium products.

Nike’s Distribution channels

Nike sells its products through online and offline mediums for higher market reach.

Retail stores

Nike uses retail stores to sell its products to a wider target market without spending extra costs on infrastructure. These are strategically located to be easily accessible to consumers. This includes local stores as well as shopping malls. 

Online store

Nike’s online store website offers a wider range of choices along with the convenience of place and time. It offers an effortless and fun user experience through vibrant pictures, detailed filters, and smart product recommendations. Online store product prices are lower because other than delivery and manufacturing cost, there isn’t any added cost.

Nike-owned retail stores

Nike-owned retail outlets are called NikeTown. In these stores, only Nike athletic footwear, apparel, and accessories are sold. This allows them to control the sales process and provide customers with a brand-focused user experience. As of May 2022, Nike owns 1,046 retail stores all over the world. 

Source - Nike Website

Nike Promotion Marketing Strategy

Nike uses a highly influential promotion marketing strategy to maintain a strong brand image and bring in maximum sales.

It uses every possible marketing trick in the book to amp up its reach like Banner Advertising, placing a sales team for personal selling through retail outlets and direct marketing via website, emails, and social media networks. Nike also spends a ton of money on sales promotions by offering discount codes. It's also heavy with its Public Relations activities and ads via digital marketing strategy to improve its brand value.

As of 2022, Nike's global ad spending amount to USD 3.22 billion alone, minting them USD 46 billion in revenues!

Nike's Marketing Strategy

Nike has adapted well to the ever-changing trends and dynamic technology without losing its core identity, brand message, and voice. Their approach is still consumer-centric and benefit-driven. Even in a fiercely competitive market, Nike manages to be the talk of the town with below methods:

Brand positioning

The Nike marketing strategy operates in a focused target market which is the sporting goods industry. Nike’s target audience is professional athletes, sportspersons, and people who want a healthy and sporty lifestyle.

Focused marketing helps the Nike company be at the top of the mind of its consumers. When people think of sportswear, they automatically think of Nike. 

It uses a customer-centric approach. Instead of boasting about the product and its features, Nike focuses on their consumer’s pains and problems and how a Nike product can solve them. Few companies are doing it like Nike.

As a brand, you must  define your ideal customers and serve only them. If your marketing message doesn’t target a specific group of people, or you are serving multiple vertical markets, you are writing your doom. 

Your consumers don’t care about the brand-new features of your product. They care about how it can make their life easier. Don’t sell products, sell benefits.

Emotional storytelling 

Nike is the ace of brand storytelling. Through Nike’s ‘Just Do It’ campaign, it tells stories to encourage and inspire people to achieve their fitness and sports goals.

Authentic stories build trust and a strong connection with the brand. Nike helps people to dream big and customers feel like they belong. This builds a strong community and unshakable consumer loyalty, which is rare to find in other brands.

Nike’s very first commercial shows a shirtless 80-year-old man running across the Golden Gate Bridge. He runs 17 miles every morning. The core message is, if an 80-year-old can do it, you can too!

Nike - Just Do It (1988) - Very first commercial

Nike’s Find Your Greatness campaign conveyed the message that greatness isn’t for a select few. It’s in every single one of us. This ad shows people from various parts of the world and ages overcoming their fears and achieving greatness.

Nike: Find Your Greatness

By taking inspiration from the Nike marketing strategy, you must use storytelling in your content marketing strategy. Take your potential customers on a Hero’s journey where they are the protagonist fighting their way through obstacles and achieving victory.

The Nike social media strategy

Nike’s consumers are the younger generation between the ages of 15 and 45.

The company depends on this data to find out on which social media platforms Nike users hang out and develops a marketing plan to provide value to them on those platforms.

Social media marketing channels help Nike improve its brand recognition and be at the top of its target customers’ minds.

Nike differentiates itself based on the value it provides instead of price or any other factor.

Nike’s social media content types include:

Sports celebrity endorsements

Nike collaborates with high-profile faces in the sports industry and uses emotional marketing and storytelling to celebrate their achievements and talk about their failures.

Endorsements by famous athletes like Michael Jordan, Kobe Bryant, Ronaldo, Serena Williams, LeBron James, and many more establishes Nike as a premium brand.

In this Instagram post, Olympian and gold medallist Simone talks about how becoming the first Black swimmer to win gold impacted the future of the next generation of Black swimmers.

https://www.instagram.com/p/ClboXHrrVMj/

Joining customer’s social conversations

Nike joins existing customers' conversations on social media where it is mentioned. This ensures direct communication with Nike customers. Nike’s audience feels heard and valued, further solidifying its relationship with its customers.

Source - Twitter

Affiliate marketing by influencers

Nike developed an affiliate marketing program through which influencers can earn commission by promoting the line of products Nike sells. This enables the brand to earn mentions across various social media channels in the form of product unboxing, reviews, or use case videos. Nike reaps the benefits of influencer marketing without spending extra costs on advertisements.

Nike’s Email marketing strategies

Email marketing is at the core of the Nike marketing strategy. Nike sends 3 - 4 emails every week to its customers to keep them engaged and eager for more.

The emails are automated responses to various touchpoints like signing up, leaving reviews, successful purchases, product delivery, and newsletters. Their email marketing strategy enables them to be in direct contact with their target consumers and stay consistently connected.

4. Ensuring a simple, fun, and hassle-free online shopping experience

Nike ensures a smooth user experience for online shopping through its strategic eCommerce marketing strategy

Nike website theme - bold, vibrant, and youthful

Nike uses youthful, fearless, bold, and athletic pictures on its website to align with its brand image. Nike positions itself as a sports brand that is unique, youthful, and vibrant.

Source - Nike website

The detailed product filtering process

Customers can filter products on the basis of type, gender, price, colour, brand, sport, athletes, weather, and collaborator. This detailed filtering helps customers to find exactly what they want, fast!

Product recommendations

Nike's website recommends relevant products to the product the user is viewing. This makes the buying process easy, quick, and effortless for the buyer.

Nike membership

Nike membership provides members exclusive products, Nike by you customization, and special offers to its members.

5. High-quality, unique and innovative products

Nike puts its customers first. It collects data on its target customer behavior to optimize its products and services to meet its needs.

Nike uses advanced and innovative technology for constant improvement in its products.

One of the most innovative Nike products is HyperAdapt 1.0. A Shoe with adaptive lacing technology that laces itself when you put your heel in.

Source - Amazon Website

Noteworthy Nike Marketing Campaigns

Nike’s creative advertisements are at the centre of the Nike marketing strategy. They deliver impactful messages that stay with the viewer long after seeing them. Nike is well known for its campaign ‘Just Do It’ which encourages people to go after their dreams and just do it! 

Ten of Nike’s most noteworthy advertising campaigns:

I am not a role model - Charles Barkley, 1993

Nike’s controversial ad sparked an uproar about whether   athletes   should be looked at as role models.

Nike "I Am Not a Role Model" commercial w/Charles Barkley - 1993

Hello World - Tiger Woods, 1996

This advertisement introduced Woods to the world when he was just starting his career in golf. Nike claimed Woods will be influential in the future, and its predictions came true.

Failure - Michael Jordan, 1997

In this Nike ad, Michael Jordan talks about his failures. This is a retrospective ad on his Basketball career.

Love me or hate me - Kobe Bryant, 2006

This ad was crucial because it was Nike’s first ad with Kobe Bryant after he was faced with sexual misconduct allegations. While others didn’t want anything to do with him, Nike stood their ground and supported him.

I feel pretty - Maria Sharapova, 2006

This ad was aimed at eliminating the “Pretty Girl” label Maria was given despite taking the tennis world by storm.

No excuses - Matt Scott, 2007

Matt Scott, an American wheelchair basketball player, points out excuses people use to not do something in this powerful ad.

Bottled Courage - Olympics, 2008

This Nike ad’s message is that the courage you are seeking on the outside is already within you.

Equality - 2017

Nike aimed at fighting the prejudice and discrimination against Black people with this ad.

What are girls made of? - 2017

This stunning Nike ad starts with the girl stating the general stereotypes about girls and then goes on to share that girls are made of iron, resilience, dreams, and dedication.

One day we won’t need this day - 2020 

On International Women's Day in 2020, Nike honoured women’s achievements by featuring women athletes in its ad, hoping that someday we won’t need a day to celebrate women.

Key takeaways from the Nike Marketing strategy for entrepreneurs 

Nike’s marketing strategy is a gold mine to learn from and grow your brand. These are the key takeaways you must apply to your brand to see exponential growth.

Identify what your target customers want from you

Nike identified its target customer’s need to become fit. It smartly positions itself as a brand that helps its customers reach their fitness and sports goals.

Identify your target customer’s problems, pains, concerns, fears, and doubts and help them overcome them. You can build brand authority by answering your target customer’s most prominent concerns. Provide them value instead of boasting about your product and being salesy.

Instead of putting all your focus on product features and competitor strategy, identify what your customers want from you and give them that. 

Research the best medium to reach your customer

Determine your target customer, know where they hang out and how best you can reach them. 

Don’t be on a platform just because everyone else is. If your target audience is below 25, they will be hanging out on Instagram way more than on Facebook. If you are on Facebook instead of Instagram, then you are doing it wrong. Create content with your audience in mind and share them on the right platform at the right time.

Bonus tip: Provide consistent value to stay on the top of your target audience’s mind.

Create customer-centric content

Whatever form of content you create - blog, social media posts, videos, white papers, they should all be customer-centric. That is, they must provide the best content to solve your customer’s problems.

If you provide high-quality content, then you’ll be seen as a market leader. Your content will be widely shared and spread.

The biggest key takeaway from the Nike marketing strategy is that your customer must be your hero and included in your brand image . Everything you create and share must be done keeping them in mind. If you're building a retail product, we would also recommend you read our marketing case study on Jockey which also uses similar product-focused marketing tricks.

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Nike Target Market Segmentation – Customer Analysis & Marketing Goals for 2022

Over five decades, Nike has built itself into one of the most iconic global brands, instantly recognized by its ‘Just do it’ tagline and ‘swoosh’ symbol. The company is the world’s leading sportswear brand, edging out competitors like Adidas, Puma, and Under Armour.

Nike achieved its legendary status through innovative product development and marketing tactics, emotion-based messaging, celebrity endorsements and sports sponsorships.

The brand also invests heavily in advertising. Since 2014, Nike global ad spend has reached over $3 billion annually, with $3.11 billion invested in advertising and promotions in 2021.

Source – Statista

Adidas Group , one of Nike’s toughest competitors, spent $688 million on US-based advertising in 2019. By comparison, Nike ad spend in the US that year was over double the amount, reaching nearly $1.5 billion.

Most of Nike’s ads don’t explicitly focus on a product; the Nike target audience responds most effectively to emotive advertising . This strategy helps create a brand image that reflects the aspirations of Nike customers, increasing brand loyalty, engagement and sales.

So, who are the Nike demographics? What are their aspirations and how has the brand succeeded in building such a loyal fan base? Let’s begin with a Nike customer analysis and find out.

Want to learn more?

Who is the target market for nike.

The Nike target market is located worldwide, and the Nike age range is broad, from young teens through middle age . While the brand has a strong focus on marketing to athletes and sports enthusiasts, Nike’s strategy has expanded in recent years to attract several specific market segmentations, such as women, young athletes, and runners .

Even so, the men’s customer segment remains the largest by far: in 2021, sales of men’s Nike products accounted for over half of wholesale revenue worldwide.

Nike positions itself as a brand for athletes but pulls every consumer into the fold with its fundamental pitch: if you have a body, you are an athlete. This has led to Nike’s outstanding financial success, generating over $44.5 billion in worldwide sales 2021 .

Nike Target Market Segmentation and Marketing

The key component for any advertising or marketing strategy is a thorough customer segmentation, including demographic, geographic, behavioral, and psychographic attributes. Let’s explore the Nike target market profile from each of these viewpoints.

Nike Demographic Segmentation 

Nike demographics include a wide range of users, aged roughly from 15 to 45 years . By spanning the generations, Nike taps middle-aged consumers who have disposable income and develops its relationship with younger audiences to ensure future growth and build life-long brand enthusiasts. 

The company targets both male and female consumers, however, it continues to make significant investments in its women’s line , focusing on leggings, sports bras and ‘athleisure’. 

Nike also strongly targets the youth demographic, noted as the favorite footwear and apparel brand for teens in 2019 in the US . 

Nike Geographic Segmentation

The target market for Nike is located worldwide, mostly in urban centers. Nike consistently generates more revenue from North America than any other region.

In 2021, 39%, or $17.2 billion, came from North America, while revenue from the EMEA region totaled $11.5. Nike earned $8.3 billion from Greater China, $8.3 billion, and $5.3 billion from the LATAM and APAC regions.

Nike Behavioral Segmentation

The Nike target audience tends to be from the higher-income socio-economic group , reflected in the premium brand image and pricing of Nike products. The average Nike customer is a sports enthusiast, interested in leading an active and healthy lifestyle.

Besides the sporty behavioral traits of the Nike audience, they are also image-conscious and tech savvy, looking to be ahead of the trends and up-to-date with the latest in fitness fashion and footwear technology.

Nike Psychographic Segmentation

As part of a strategy to widen its target market, Nike often focuses on breakout psychographic segments . These include ‘weekend runners’, who enjoy keeping fit on weekends and even training for a half marathon, and ‘style shoppers’, 20-something women who want to wear the latest sports fashion trends before, during and after workouts.

All Nike consumer segments are made up of ‘aspirers’ and ‘succeeders’, people who are motivated to be fit and stay on trend.

Nike Marketing Strategy

Beyond the sports clothing and footwear market, Nike is in fact the world’s leading apparel brand, with a brand value of $33.18 billion . When considering how to create a successful marketing strategy, look no further than Nike.

The STP of Nike informs a wide-ranging set of marketing goals and objectives. For example, Nike leverages behavioral segmentation to build brand affinity and loyalty with consumers.

This can be seen in their personalized email and social media campaigns. When people engage with and show ongoing interest in the brand on any platform, Nike retargets them on other channels.

Here’s a look at how they connect with the two most dominant age groups (18-24 and 25-34) on Instagram:

Although Nike targets a global audience, it uses geographic segmentation for its product lines and marketing campaigns, adapting for local cultural and weather trends that impact consumer behavior. For example, the brand’s warmest winter items aren’t available in countries with more moderate temperatures. 

Another example of how the brand connects with different geographic regions can be seen in the athletes featured in ad campaigns. In the US, for example, the Nike “Stopocalypse” ad features American sportspeople and celebrities, such as Kobe Bryant, Kevin Hart and Simone Biles:

In the UK, the well-received ‘Nothing Beats a Londoner’ campaign targeted the hyper-local London youth market, featuring upcoming London athletes and real-life citizens.

The campaign combined user-generated social media content, local events, swag and more, to encourage young audiences to become involved in sports and realize their potential.

Product innovation and a show-stopping approach to marketing sets the Nike brand apart from the competition in all regions. Check out the remarkable OOH 3D billboard promoting Nike Air Max in Japan:  

The Nike company markets at a grass-roots level with a wide range of corporate responsibility  programs and charitable activities.  In 2019, Nike contributed close to $82 million towards community development, including women’s empowerment, sustainability and diversity initiatives.

Sports Enthusiasts in United States

US-based consumers who fall into the Sports Enthusiasts category share many of the traits of the Nike target market. Like Nike, the demographics represent both sexes, with men outranking women 67% to 33%.

The Nike target market age group is also similar to the Sports Enthusiasts segment, of which 84.5% of consumers are between 18 and 44. 

Although Nike hasn’t released data around its device targeting segmentation, Start.io insights reveal that among consumers identified as Sports or Running Enthusiasts , there is an overwhelming preference for Android devices. 

For a marketing campaign to be successful, it must reach the right audiences. For companies marketing to sports enthusiasts, understanding the Nike target audience is a big step in fine-tuning campaign messaging and targeting to get the best results.

For these kinds of data-driven insights for Sports Enthusiasts, Runners, and 500+ other consumer segments and audience locations around the world, visit the Consumer Insights and Audiences Hub.

What demographic buys the most sneakers?

Data shows that the target market for Nike shoes includes Millennials (24–39-year-olds) and Gen Z (9–24-year-olds). Presumably, many Millennials are buying sneakers for their young children. Men still buy more sneakers than women, but the gap is closing.

What demographic buys the most Nike products?

Consumers between the ages of 15-40 buy the most Nike products, including sneakers, apparel, and sporting goods.

Who is Nike's competition?

Nike’s biggest competitor is Adidas, but others include Asics, Puna, Under Armour, Fila, New Balance, and Sketchers. In terms of athletic apparel, Nike’s competition includes Lululemon, Athletica, and VF Corporation.

Who makes more sales Nike or Adidas?

Nike generates more sales than Adidas. In 2020, Nike was valued at $34.4 billion, while Adidas was valued at $12.07 billion.

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Nike Strategic Management: The Case Study Essay

Introduction, marketing environment and success strategy, drivers to superior performance, strategic management tools, marketing strategy and international markets, competitive advantage and value creation.

Nike Inc. is an international company based in the United States, which deals with sportswear and other apparels. The company is ranked as the top seller of sports shoe and clothing. Nike was started in 1964 by Bill Bowerman and was originally called Blue Ribbon Sports, but was later changed to Nike in 1978. During that time, its main goal was to produce low cost, high quality shoes for Americans to break Germans control over domestic trade (Nike, Inc., 2009).

Today, Nike not only distributes its products domestically, but also all around the globe. It has market regions in continents such as Asia, Europe, and United States. Besides, Nike has produced many brands such as Nike Skateboarding and Nike Pro. This paper focuses on the Nike Company and the strategic methods and tools that have led to its superior performance.

According to Peters (2009), Nike produces a wide range of products, which are categorized according to their relevant sports. Nike’s first products were track shoes, which were meant for running: the company has managed to design and produce shoes for different games such as baseball, hockey, football, basketball and Cricket.

This is due to the ever-increasing number of customers favoring the company’s products. The latest product that has been produced is the Cricket shoe named as air zoom Yorker (Nike, Inc., 2009). Air Zoom Yorker is better because it is 30% lighter as compared to the one designed by Reebok. Another new product is air Jordan XX3, which is meant for basketball.

Additionally, as a company that relies on collaborative marketing, Nike together with Apple Inc. has designed a product that is able to check runner’s performance through a radio device, which is placed inside the shoe and is connected with the iPod nano. Nike has also produced shoes that contain flywire and lunarlite foam meant to make the shoe lighter.

The Nike+sports brand records the mileage, lost calories, and time used. According to Mintzberg, Ahlstrand, and Lampel (2005), product differentiation and market segmentation form the basis for strategic management in marketing. In this light, meeting customers’ demands has been the strategic objective in Nike’s plan.

Dess and Alan (2006) affirm that the marketing strategy used by Nike is an essential element for its success. It has enticed its customers through advertising with a slogan ‘Just Do It’. Nike has also teamed up with athlete celebrities through sponsorship agreements. It has many elements of advertising such as advertising through television.

The first advert was created by Wieden and Kennedy at New York marathons. Similarly, Nike has also won Emmy Awards for commercial advert. The advert that won the award was based on what an athlete could face if there was Y2K realization on 1 January 2000.

The second commercial advert was called ‘move’, which marked the famous athletes. In product promotions, Nike pays players to wear their products such as t-shirts, shoes and shorts in order to advertise them. Such players include Michael Jordan, and through him, the promotion has boosted Nike’s publicity and sales. It also sponsors many football clubs in Brazil, Netherlands and United States.

Golf players like Tiger Woods and Michelle Wie have also benefited from the sponsorships. Nike also sponsors high school basketball and has developed websites for various sports such as nikerunning.com (Johnson & Scholes, 2008).

However, Nike has faced a tough competition in the market with companies such as Reebok and Adidas, which sell the same products as it does. Reebok has many female consumers, but has a weakness of poor marketing as compared to Nike. It does not always advertise its products on Televisions as compared to other Companies. Nike has tried to capture a big market share of female customers by sponsoring Women’s world cup football, which was held in 1999.

Nike has used the five forces model of competition that determines the industry structure. This model has helped it to deal with external forces such as, new entrants in the market, alternative products or services, bargaining influence of suppliers and buyers and competition and enmity among other competitors (Berman & Evans, 2006).

Onkvisit and Shaw (2004) argues that the risk of new entrants has been a threat to Nike since there are other firms in the clothing and shoe industry that have a potential to produce sportswear shoes and clothes if given a choice. Entry of new entrants has affected the prices because Nike has lowered some of its product costs.

However, the threat has been minimized by government regulations and brand loyalty. Further, Nike avoids extreme rivalry among other competitors because it is a risk to profitability rates. Nike, Inc. considers the bargaining power of the buyers as a threat because strong buyers have the power to lower the products prices and hence raise costs. The buyers are capable of buying in huge quantities and therefore getting a lot of profit while the firm suffers loss (Lynch, 2006).

The company has balanced its products productions and costs to minimize the bargaining power of buyers. Nike has also been able to cope with the bargaining power of suppliers, which poses a threat because the suppliers have power to increase the prices on raw materials. Nike has reliable suppliers who inform the management first upon the increase of costs of raw materials.

Nike has common drivers that produce superior performance. These drivers include people management, which entails realization of the potential of the employees either in groups or in an individual level. The company has come up with a strategy of upholding fairness among the employees, communication and caring for employees (Nike, Inc. 2009).

Through communication, the company ensures that there is a flow of information between the top, middle and higher levels to ensure that every employee’s contribution is taken into consideration. Nike, Inc. also motivates the employees by giving them incentives and rewards to build commitment to promote the organization.

People development enables employees to utilize their potentials and fully contribute to the organization’s goal realization. Rewards and recognitions motivate employees to give their best performance and strive to excel through continuous improvement (Berman & Evans, 2006). Furthermore, Nike has authorized the customer liaison manager to replace customer’s products in case of a complaint. The manager can make decisions without consulting the management.

Johnson and Scholes (2008) assert that leadership is another driver to superior performance, and it entails transforming the organizations direction and instigating others to follow. Leadership is paramount in Nike’s strategic management. Leaders have a stake in realization of the vision, mission and objectives of an organization because they ensure that other employees follow the organizations values. Leadership is developed at top, middle and lower levels in the organization.

Continuous improvement is another driver, which is activated by both customers and employees. In this case, there is feedback from the customers and from the employees and hence customer’s needs are met. Organizations’ processes are improved because customers provide their needs and the employees act and produce products according to customer’s specifications – all the stakeholders gain improvement benefits (Joshi, 2005).

Similarly, customer focus is a driver where a relationship with customers is an important issue. This entails assessing customer’s perceptions about products and acting on their response as soon as they raise an issue of concern about a product. Close relationships with customers benefits all the stakeholders involved. Nike has also employed process focus as a driver for performance improvement. The system performance has to meet the set objectives since it is a key technique (Nike, Inc., 2009).

Another important driver to performance is collaborating with suppliers. This entails relationships between the organization and the suppliers (Lynch, 2006). Nike has recognized suppliers as key for the organization to achieve shared goals while also sharing expertise and knowledge.

Improving on processes allows working with suppliers to share resources and improve performance. Nike applies various communication strategies within all its stakeholders to encourage openness and reliance. When communication flows through all the levels in the organization, it makes it easy for the employee’s ideas to be taken into consideration.

Stimulating innovation and creativity is another driver that has supported Nike to build up competitive products and services. This has been achieved by modifying the organization structure and being involved with product improvement activities. Nike has also managed its assets and resources to improve the effectiveness and efficiency of the organization. Protection of its properties maximizes customer’s value (Mark, 2000).

Onkvisit and Shaw (2004) concurs that measuring performance and benchmarking is another driver that Nike uses for superior performance. By utilizing a balanced score card, it has been able to measure process improvements alongside with the organizations objectives.

The company also monitors performance in other organizations and collect information from existing and future stakeholders. It uses the information to plan for the future, set targets to be achieved within a certain period, and get unique ideas on improvements from other organizations.

Furthermore, Nike employs corporate social responsibility as a driver to superior performance as well as interacting with the society representative. A good example of this is boosting children’s games in the community by sponsoring their sports and provision of uniforms that has Nike’s logo (Nike, Inc., 2009).

Strategic management is a technique that Nike, Inc. has been able to apply to determine how it is performing in its current position and how its future should be. This has greatly helped the managers to lay a plan for the organization and take it where they want it to be. The management employs strategic management components such as vision, environmental analysis, strategy creation, strategy implementation, and strategy assessment (Nike, Inc., 2009).

Nike has set business plans through strategic management in order to assess its business areas. It is a process which managers build strategies to get better results in performance. This involves studying the competitors’ techniques, both in the current and future. The Company has utilized strategic management tools which have supported it to examine itself in the present and perceive how its future will be. Strategic management acts as a road map to show managers the best direction to follow for the organization to be where it is supposed to be (Lynch, 2006). The tools employed for strategic management include mission statement, SWOT analysis, SMART goals and benchmarking.

Mission statements help to make clear how the organization is observed and how it will be perceived in the future. The organization reflects on how it will be different from other competitors like Reebok in the market place. SWOT analysis has been applied to find out the organizations strengths, weaknesses, prospects and risks.

Berman and Evans (2006) affirm that this has supported the organization to take advantage of its strengths and reduce the impact of its weaknesses. SWOT analysis has assisted the management to consider other external factors such as new openings and risks to be avoided.

SMART goals ensure that the goals and objectives laid down are specific, assessable, achievable, appropriate, and timely. SMART goals are essential for Nike’s management because they have enabled the company to get rid of frustrations due to unrealistic goals. The management has been specific to establish whether the set goals have been met.

Measuring enables the management team to gauge whether they are about to reach their goals and if not close to the goals, how much time and work is remaining in order to get there (Mintzberg, Ahlstrand, & Lampel, 2005).

Benchmarking is another tool that is employed to scrutinize and adapt to the best processes from other organizations around the globe. As explained earlier, managers have been able to improve the organizations performance to meet its goals and to be at the competitive edge over its competitors.

Other techniques that have been used in project management include program evaluations; this helps the company to evaluate a project from start to end. This has supported the management to ascertain the time left to for the completion of the projects. Nike utilizes these projects and programs to reach its goals and achieve its objectives.

The Company uses break even analysis technique to decide on the number of products to sell to break even and grow to be profitable. Lynch (2006) says that game theory is applied in the market to conclude how the customers will react and it does this either through increase in prices or introduction of new products.

Financial control techniques like budgets, audits, and financial breakdown are efficient in controlling and balancing the cost of business. Budgets are employed to manage the organizations income and expenditure as well as allocation of resources to different activities and projects.

Nike has many strategic management techniques organized in steps to achieve the laid down goals and objectives. First, environmental scanning is a process that the company employs to collect information from both internal and external environments that has power to influence the organization. This is meant for improving the processes through analyzing competitors, employees, products, and suppliers (Mark, 2000).

After analyzing the environment, strategy formulation is the next step where Nike management takes the best plan among many to accomplish organizational goals and objectives. Through this stage the managers set strategies for business and functional policies. Strategy implementation is taking the best plan and implementing it (Berman & Evans, 2006). Organization structure is devised in this step together with the allocation of resources, hiring of human resource and coming up with a clear decision making process.

Strategy evaluation is the last step where the strategy implemented is assessed to determine whether it is performing well and if it has deviated, and that the best corrective actions are taken. The purpose for the evaluation is to make sure that that the organization goals are met.

In light of this, Nike has been on the global market and has gained competitive advantage on the market. Its marketing managers keep on analyzing the global industries and how competition keeps changing. Trade is increasingly becoming global because of improvement in transport and communication. Nike’s consumers have been able to have access to a wide range of products in their countries. Nike started exporting its products in small amounts, but later increased and reached the export stage. It got more and more foreign orders until it was able to export its products all over the world (Nike, Inc., 2009).

Nike has stayed at international market for a long time and it applies many techniques such as adding new brands. Nike keeps on adding new products such as sports shoe and clothes. The information about the new product is posted on the website (nike.com) where consumers can read. Joshi (2005) asserts that through advertising of the new product, Nike gains an increase in sales because this has brought in new customers who have never bought the current products.

The existing customers have had a variety of the products to choose. Nike combines the new brand and the old ones into an exceptional package as an offer. Nike has also become a valuable resource to its customers by giving them free information about the products. They have assisted their customers to easily get services, fast deliveries, and at low costs.

The company is unique since it produces exclusive and best quality products. They have also promoted the end result of products by telling the consumers about the benefits they will get when they choose to use the products. Nike keeps on changing its marketing strategies due to other aggressive and innovative rivals like Puma, Reebok, and Adidas (Peters, 2009).

Nike’s brands have turn out to be to be very strong as compared to others such as Reebok and Puma. Their secret is brand management because despite selling their products at a higher price, consumers are still willing to pay more money for its brands which are believed to be of high quality with different styles. Due to the strong brand competitive advantage, Nike has been able to increase its market share all over the globe. Its prices are a bit high as compared to other competitors but it has made many sales than those of its competitors.

Nike, Inc. has gained a competitive advantage over its rivals. This is achieved through giving consumers a greater value and offering high quality products. The company has devised superior value over other competitors. Nike, Inc. uses Michael Porters strategies for competitive advantage such as cost leadership, focus, and differentiation (Johnson & Scholes, 2008).

The reason why Nike, Inc. has gained a competitive advantage over other companies is that it undertakes an evaluation process, which involves evaluation of resources, clarification of goals, defining customers and examining competitors.

In evaluation of resources, the company relies on the resources available and plans on how to use them through product offering and resources. In goals clarification, Nike plans on how to achieve its goals and objectives. Defining customer’s strategy entails looking at the products and services that the plans to develop, and is not provided by the other competitors.

This assists Nike, Inc. to determine and communicate to its customers in order to understand their needs and get additional suggestions from them. Examination of competitors helps to identify other ventures targeting a particular market. Through this, Nike compares its strengths and weaknesses with the other competitors (Nike, Inc., 2009).

In this regard, there are many techniques used to achieve a competitive advantage. These techniques include product differentiation, service differentiation, people differentiation, image differentiation, quality differentiation, and innovation differentiation (Lynch, 2006). Product differentiation implies that Nike has a wide range of products. Other competitors have tried to imitate its products but it remains upfront due to its quality and the products are different in styles and consistency.

Peters (2009) argues that in service differentiation, Nike, Inc. offers additional services such as delivery and product return services. This extra service is the one that consumers are after. Information and other instructions about the products are also extra services that attract customers.

People differentiation entails hiring result oriented employees who are better than those in other rival companies. Because employees are intangibles, it is difficult to imitate them as in the case of tangibles. Training employees and paying attention to their needs gives Nike Inc. a competitive advantage.

Employees such as production staff produce quality products, and it is hard for the competitor to know that the competitive advantage is due to employees’ improvement. The competitor may think that the competitive advantage is due to equipments and materials. People differentiation is essential when customers are directly served by the employees. The way employees handle a customer at first time determines whether he will return another time (Berman & Evans, 2006).

Image differentiation is another technique that has been applied by Nike to differentiate its brand image from other competitors. A negative image can destroy the company’s image within a short time. As Nike undertakes many activities, it supports its image because the “Nike” mark symbolizes good, and it is easy to identify. In quality differentiation, Nike sells high quality products to its customers. Innovation differentiation entails process innovation.

Process innovations reduce the costs of production and the competitors may take time to discover what the company is doing to gain competitive advantage (Nike, Inc., 2009). Nike strives to sustain its competitive advantage because it is not long lasting. This sustainability is achieved through giving value to customers, creation of non-imitable products, which may not be copied by its rivals, and production of products that cannot customers cannot substitute easily.

In selecting a competitive advantage, Nike, Inc. selects ways of making products that competitors cannot imitate easily because the management understands what its customers needs are.

The company has realized that variety is totally different from differentiation. Nike has strived to stay at the competitive edge because of its efforts and strategies. It has faced many challenges since other competitors have tried to copy it through successful advantages for their business in the dynamic market place. Thus, establishing the market edge is important as well as maintaining it (Mark, 2000).

There are many ways that Nike has attracted its customers for value creation. Customer incentive programs are one of the successful programs within the organisation (Nike, Inc., 2009). Nike offers give away to customers, tickets, sales, sponsorships and discounts. Nike sponsors many players in different sports.

Such players who have benefited from sponsorships include; James Blake and Roger Federer. It also sponsored Indian cricket team for a period of five years and national soccer clubs in countries like India, Netherlands and Malaysia. Top golfers like Tiger woods and Lucas Glover has also benefited from Nike’s sponsorships.

Moreover, Nike has retained both traditional and non-traditional methods of distribution in over 100 companies, but it focuses more on its primary market regions. Apart from product diversification, Nike has diversified supply chain and manufacturing due to international economic crises and other risks. It has many contracted suppliers outside the United States, including Vietnam and Thailand. There are other contractors who manufacture its products in over 35 countries.

In the year 2003, China manufactured 38%, Indonesia 27%, Vietnam 18% and Thailand 16%, while the rest was manufactured by other countries. This has enabled Nike to make large amount of sales. Supplier diversity has also increased its competitiveness in the market and it continues to contract more suppliers in many countries because it believes that supplier relationship is vital.

Nike Inc has also employed value creation as a management goal. Creating value for consumers has increased sales as well as the shareholders through the increase in stock price. Value creation is characterized by brands, people and innovation (Mintzberg, Ahlstrand, & Lampel, 2005). Nike, Inc. has prioritized value creation in its decision-making. This has helped the managers to know where and how to build the companies capability to attain profitable and lasting growth.

Mark (2000) agrees that through value creation, the company has been able to understand the basis and drivers of value creation in the business and market place. They have realized that the consumers value high quality and timely delivery of products and so the processes that lead to the delivery of high quality products are greatly valued. Some of the customers have valued innovation and so the processes involved in creation of new products are also highly valued.

Value creation also entails product and process innovation as well as knowing the consumers needs. Nike, Inc. has also realized that value for employees is essential since they feel motivated and work hard to produce better results. Therefore, proper treatment of the employees and involving them in decision-making creates value.

Nike has awarded and promoted managers who have defeated the other competitors like Puma in value creation. In this case the managers have positioned capital better than the other competitors. Nike has gained an advantage in developing the organizations ability to get more profits and future growth.

Other companies that have achieved the benefits of value creation are Coca-Cola and the Lloyds banks. These companies applied value creation as a technique and have realized growth and increase in their profitability. In acquisitions, Nike has acquired Upscale Footwear Company, surf apparel company, Hurley international and converse Inc. It has sold some of its subsidiaries such as Bauer Hockey and Starter (Nike, Inc., 2009).

Nike, Inc. has achieved its superior performance, mostly through competitive positioning and value creation. This has been achieved through advertising, brand name recognition, product innovation, and striving to be at the competitive edge despite having a stiff competition.

Nike employs many strategies and techniques such as strategic management tools and models, product differentiation, and proper distribution channels. Many consumers have realized the uniqueness of their products and recognize them through the trade name ‘Just Do it’ and Swoosh Logo. They have maintained customers because of their high quality products and unique marketing strategies.

Berman, B. and Evans, J. (2006), Retail Management, A strategic Approach , London: Prentice Hall.

Dess, G. L. and Alan, B. E. (2006), Strategic Management: Text and Cases. Boston: McGraw-Hill Irwin.

Johnson, G. and Scholes, K, (2008), Exploring Corporate Strategy , (8th edn), London: Prentice Hall.

Joshi, R. M. (2005), International Marketing , New York: Oxford University Press

Lynch, R. (2006), Corporate Strategy , (4 th edn) London: Prentice Hall.

Mark, M. H. (2000), Creating Public Value: Strategic Management in Government, Cambridge: Harvard University Press.

Mintzberg, H., Ahlstrand, B. and Lampel, J. (2005), Strategy Safari: A Guided Tour Through the Wilds of Strategic Management , London: Prentice Hall 11.

Nike, Inc. (2009), Annual Report on Form 10-K , [pdf]. Available at: < http://media.corporate-ir.net/media_files/irol/10/100529/AnnualReport/nike-sh09-rev2/docs/Nike_2009_10-K.pdf > .

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Nike Company: Marketing Principles and Concepts

This sample paper focuses on the marketing concept of Nike. Here, you’ll find Nike’s marketing principles and concepts, branding, organizational culture, and other information that might be useful for your essay writing.

Organisational Culture

Product strategy, promotional strategy, nike marketing concept, strategies, programmes, and ethical considerations, relationships between nike marketing department and other departments, reference list.

Nike is an American multinational corporation founded in 1964 as Blue Ribbon Sports and later changed its name to Nike Inc. in 1971. The company’s core business activities are designing, developing, manufacturing, selling, and marketing sportswear, apparel, and accessories. As of 2014, Nike was ranked the most valuable sports brand in the United States. This report will discuss the marketing concepts used by Nike. It will also identify the role of marketing strategies in realizing Nike’s objectives. The report will culminate by discussing the correlation between the marketing department and other departments at Nike.

In the corporate world, success hardly lasts, but innovation helps entrepreneurs find ways to stabilize their businesses when challenged. Nike is not an exception and has been affected by numerous brand-related challenges. Customers do not prefer repetitiveness, and there are various times when competitors’ brands sell more than Nike’s in the United States. In 1998, Nike’s brand became too familiar in the market, and customers needed a different experience. Interestingly, sometimes customers tend to value changes more than the quality of products (Pitts & Stotlar, 2013). In such situations, a business has to reinvent its brand to reclaim lost customers.

Nike restructured its branding strategy by developing sub-brands. Some sub-brands preserved the name Nike but tailored for particular sports, such as Nike Golf, Nike Dunk, Nike+, Nike Blazers, Nike Pro, and Nike Skateboarding. Others did not bear the name of the company. They include Air Jordan and Air Max. Today, Nike runs numerous subsidiaries, which include Brand Jordan, Hurley International, and Converse. Branding strategies helped the company to regain dominance in the American sports apparel market.

Nike has a distinctive organizational culture. Initially, it was founded as a sports business, but it shifted its attention to other equipment and non-sporting products through competition, innovation, and customer preferences changes. The apparatus includes sunglasses, watches, and apparel for casual wear purposes. Business-minded persons view the idea as a marketing tool intended to reach out to sports fans and make them part of a business that sponsors significant sports events and endorses the best athletes.

Nike executes internal marketing among the forty thousand employees scattered across its subsidiaries. The company uses internal marketing as a promotional strategy. The management appreciates that employees are the business’s most effective marketing tool and must be motivated to give their best. The workers wear branded uniforms, which resemble the sportswear, and enjoy packages premised on the concept of Nike being a kind and caring company. As aforementioned, Nike is successful because of its branding and marketing strategies. In marketing, an entrepreneur ought to distinguish between customers’ needs and wants for the business to be successful. Nike separates needs from wants and focuses on the former. That has been the secret behind the spirit of its branding (Pitts & Stotlar, 2013).

Nike is a multinational corporation with various products designed for different market segments. The company has a prudent product portfolio management system that protects the business from drifting from its success path. This efficient method has enabled the company to open worldwide subsidiaries specializing in producing different products. For instance, the company has subsidiaries in China and Indonesia that focus on producing apparel (Pitts & Stotlar, 2013). Nike values the development of superior products and has invested in research and development. The company has a research facility in the United States, which designs products based on consumer needs. The facility also researches how to enhance the sportswear to guarantee comfort.

Nike ensures that all its products bear the Swoosh logo. However, the slogan ‘Just Do It’ is not written on most products nowadays. That shows the high level of confidence that the company has in its brand. Nike sells its products through major retail sports shops, online marketing, and direct sales in promotional events. Retail stores allow the company to strategize and enhance competitive advantages by comparing its sales to that of competitors. The company has major retail sports shops under the subsidiary Niketown, which exclusively sells Nike products. In the contemporary world, large businesses cannot survive without an effective marketing strategy.

They face various threats, and only effective marketing strategies can guarantee their survival and success. Ironically, the size syndrome is a significant risk, which, if mismanaged, could cause irreversible havoc. By the time a big business realizes the damages attributed to size, the recovery process would take years and a lot of money. Nike uses a marketing strategy to achieve various objectives, which include brand popularisation, market growth, and boosting sales volume.

Therefore, for Nike to survive in the sportswear industry, it must develop efficient marketing strategies. Currently, the company uses celebrity endorsement to enhance brand popularity. The company understands that many customers prefer to associate with renowned personalities. It underlines why Nike uses athletes like Michael Jordan, Tiger Woods, and Michael Johnson, among others. The company makes customers believe they share their experiences with these personalities (Wen & Yazdanifard, 2015). The use of celebrity endorsement has made the brand popular, particularly in the United States and European markets.

Whenever people hear about sports shoes, the brand that comes to their mind is Nike. Indeed, today, over 60% of athletes use Nike sportswear across the globe. The application of celebrity endorsement has contributed to the popularity of the Nike brand in golf sports. Jackson (2013) alleges that apart from celebrity endorsement, Nike uses event sponsorship to promote its brand and boost its market share. Even though the major sports events are capital-intensive, they offer a perfect opportunity for Nike to communicate with its target consumers (Jackson, 2013).

Market Diversification

Nike endeavors to meet all consumer needs. The strategy has helped it to increase its sales volume. Today, the company serves 47% of the American market. Moreover, its sales volume continues to grow annually. Mahdi et al. (2015) argue that Nike has ventured into market diversification to boost its sales volume. The company is investing in foreign markets. Nike Inc. has focused on athletics for many years. Currently, the company is diversifying into other sports, such as soccer. The strategy is intended to boost the company’s sales volume and cushion it from competition (Pitts & Stotlar, 2013).

Ethical Considerations

Ethical considerations are at the core of running a business. Nike ensures that its products meet the required standards. It helps boost the company’s sales volume and guarantees the safety of individuals who use the products. The company demands that celebrities observe high integrity and discipline to safeguard its image. Moreover, the company is cautious of the language it uses for advertising and public relation activities.

Moreover, the company ensures that its subsidiaries do not mistreat their employees. For instance, the company has a department focused on enhancing employee working conditions. The company also discloses the names of all its contract factories.

Marketing Principles and Concepts

Nike is a multinational corporation founded on robust marketing strategies. The marketing concepts and principles that drive the company include the marketing mix, segmentation, targeting and positioning model, marketing survey, and research. These ideas contribute to the enterprise’s competitive edge. The marketing department is actively involved in the development of plans and the identification of opportunities. Cooperation between the marketing department and the management team facilitates efficient decision-making processes. The marketing department advises the management on existing and potential business opportunities. Moreover, it helps the management make appropriate marketing strategy changes to boost sales volume.

Marketing Mix

The company’s marketing mix follows the 7ps principle, representing the product, price, place, promotion, physical evidence, people, and processes. Nike has invested heavily in its product mix.

The company manufactures shoes, apparel, and accessories. Jackson (2013) avers that the business offers various shoes ranging from tennis shoes to running shoes. It also sells an assortment of apparel that includes shorts and jerseys. The accessories include socks, bags, gloves, and golf clubs, among others. The product mix enables the company to meet the needs of numerous market segments.

Nike uses multiple outlets to distribute its products. The company has sweatshops in different countries across the globe. Additionally, it has various retail stores in the United States, China, Japan, and other nations. Kotler and Armstrong (2017) maintain that the company has an official online store facilitating merchandise distribution. Furthermore, it has numerous outlets dubbed Niketown that deals with Nike products exclusively.

Nike uses numerous approaches to promote its products. They include personal selling, advertising, sales promotion, public relations, and direct marketing, among others. The company depends mainly on advertising, using notable celebrities to popularize its brand. Additionally, the company has salespersons who interact with potential clients and persuade them to purchase its products. At times, the company uses special offers and discounts to attract customers and boost sales volume.

The company utilizes a value-based approach to set prices for its products. Kotler and Armstrong (2017) allege that Nike sets prices based on consumers’ perceptions regarding the quality of its products. Many customers prefer Nike due to its honesty in setting prices and failure to apply price discrimination methods. Niketown retail shops help to keep the market prices at reasonable levels.

Physical Evidence

Marketing mix demands that there must be physical evidence of the product regarding packaging and contact persons where direct marketing is applied. Otherwise, the marketing cannot be successful since potential customers need to see a product and talk to a person with adequate information about the merchandise. Nike uses branding strategy and establishment of Niketown outlets as physical evidence.

Whenever customers think of sports, the first brand that comes to their mind is Nike. The company has hired experienced workers who help in the manufacture of products as well as their distribution. The employees contribute to identifying customers who trust Nike’s products.

Nike outsources a majority of its functions to foreign subsidiaries. However, the company coordinates operations within the subsidiaries to guarantee the timely delivery of goods to the market.

Nike applies marketing segmentation, targeting, and positioning model in its marketing activities. The company has segmented its market based on consumer needs and purchasing power. Additionally, it used demographic factors to identify the target market. Today, the company manufactures an assortment of sportswear for different sports. Additionally, it has training kits for children and adults. Recently, the company established a new market segment that comprises women only. 

Targeting is mainly considered at the initial stages of business development when a product is at the design stage. However, Nike keeps innovating new methods of improving its products and meeting the needs of its target markets. The company serves numerous categories of customers. They include high-income earners, sports enthusiasts, and fitness-centric clients. Nike has training kits for fitness-centric clients. Additionally, the company manufactures an array of sportswear for sports fans. Some products are sold at high prices to target high-income earners.

Positioning

Nike uses the slogan “for serious athletes” to position itself. The leadership of Nike positions the company as one that caters to the interests of athletes by manufacturing sportswear that suits their various needs (Armstrong et al., 2013). The company’s primary customers comprise athletes and individuals serious about physical exercise.

Market Research

The company has invested in research and development, intending to develop superior sportswear that corresponds to changes in sports activities. Recently, the company acquired sports shoes, which rival companies claimed gave athletes an advantage over their counterparts. The development of sophisticated sportswear aligns with the company’s objective of serving serious sportspersons.

Nike is actively involved in market research to facilitate the identification of new business opportunities and the development of novel products. Nike specializes in the sales of sportswear. Thus, its primary market is the sports industry. Currently, the company is analyzing the potential of the soccer industry, intending to venture into the business. The company has marketing representatives who help to research and identify new markets.

Currently, Nike is in the process of establishing subsidiaries in Africa and Asia (Proctor, 2014). The company’s marketing department conducts research to build efficient strategies that can help boost its competitive advantages. Market research helps Nike analyze rival companies’ performance and devise mechanisms to outdo them in the sports industry. It also enables the company to identify customer behaviors, tastes, and preferences and respond accordingly (Kotler & Armstrong, 2017).

Successful organizations do not tolerate division in their management operations. They succeed by embracing teamwork and effective competition among different players and departments within the organization. The marketing department is responsible for marketing functions in most corporations. Nike has strong interdepartmental relations, which promote teamwork and facilitate organizational growth.

Jackson (2013) alleges that the relationship between different functional areas is crucial as it guarantees organizational efficiency. An organization’s management team comprises various functional entities that are independent. However, their success depends on how they relate to one another.

Nike company values the marketing department because it helps establish new markets and facilitates decision-making processes. The marketing functions contribute to establishing merchandise prices based on market forces. The company gathers information about consumer behaviors, level of customer satisfaction, and product enhancement methods through market research. The marketing functions enable the company to interact with clients. In return, information obtained from the market is channeled to other functional areas, such as production and managerial departments.

Production Department

The production department is responsible for manufacturing apparel, sports shoes, and accessories based on the information gathered through the marketing function. According to Mahdi et al. (2015), the marketing department works closely with the production unit to ensure that the manufactured products meet the target consumers’ needs. Additionally, the marketing department provides that the production team creates adequate goods based on the volume of orders. At Nike, the marketing department ensures that sportswear is manufactured and delivered to the market on time to guarantee a competitive advantage.

The marketing department demands that products meet high-quality standards depicted in Nike’s promotional campaign messages. Customers have a perception that Nike manufactures the best sportswear in the world. Thus, the marketing department would not allow the company to frustrate customers by making inferior products. Nike has a quality assurance team that works in liaison with marketing representatives to assess the quality of goods before they are released into the market. Nike, being one of the leading corporations in the sports industry, spearheaded the establishment of international standards for sportswear and, therefore, cannot risk selling inferior products.

The marketing department gathers information about substitute products and the potential of introducing new merchandise into the market and shares data with the management for further deliberations. Moreover, the staff helps the management make decisions on innovation and manufacturing new products. The management uses information from the marketing department to direct the production and distribution of new products. The information gathered via market research enables the management to identify threats in the market and diversify the company’s operations to mitigate risks.

Finance Department

As aforementioned, the marketing department is the most critical unit because it determines the survival and profitability of an enterprise. It underlines the reason Nike allocates a considerable budget to the department. According to Mahdi et al. (2015), the marketing department collaborates with the finance division. It ensures that the finance sector allocates adequate financial resources to facilitate the promotion and distribution of products. At times, the marketing department requests additional funding if it identifies lucrative opportunities. A healthy relationship between the marketing and financial departments has helped to build market share and boost sales volume.

Risk Department

The law requires multinational corporations to have a risk department. As such, Nike has a risk department that works together with the marketing unit to identify potential hazards and cushion the company. The major risks in the apparel industry include competition and large-size syndrome. The risk department assesses the performance of the different brands compared to rival companies and advises the marketing team on strategies to mitigate competition.

Mahdi et al. (2015) posit that the marketing team works with the risk department to set prices for different merchandise based on the current market forces. Sports activities are seasonal, and therefore there are times when demand for certain products rises significantly. Whenever the marketing department predicts significant growth in the request for certain goods, it notifies the management team, which advises the production department to make necessary arrangements to meet customers’ needs. The marketing department is required to give accurate information about the projected demand. Nike uses an inventory management system to identify the flow of products and predict future needs (Jackson, 2013). The system helps in product portfolio management.

Human Resource Department

The marketing department comprises many employees. The department works in collaboration with human resource management to enhance working conditions. Moreover, the marketing department and human resource management collaborate to equip employees with the requisite skills. Human resource management contributes to the success of marketing research and the production of quality goods by ensuring that employees have the necessary skills. Mahdi et al. (2015) allege that Nike’s human resource management motivates the marketing team through competitive remuneration and rewards.

Moreover, the management addresses the sales team’s needs to prevent possible industrial action. Technological advancement has enabled customers to order products online. Once the clients purchase goods online, the marketing department has to liaise with the transportation division to facilitate their delivery. Thus, the marketing department works with the transportation unit to ensure that products are delivered to the right customers without delay.

Armstrong, G, Kotler, P, Harker, M & Brennan, R 2013, Marketing: an introduction, Pearson Education Limited, New York.

Jackson, N 2013, Promoting and marketing events: theory and practice , Routledge, Abingdon.

Kotler, P & Armstrong, G 2017, Principles of marketing , Pearson Education Limited, New York.

Mahdi, H, Abbas, M, Mazar, T & George, S 2015, ‘A comparative analysis of strategies and business models of Nike, Inc. and Adidas Group with special reference to competitive advantage in the context of a dynamic and competitive environment’, International Journal of Business Management and Economic Research , vol. 6, no. 3, pp. 167-177.

Pitts, B & Stotlar, D 2013, Fundamentals of sports marketing , Fitness Information Technology, Incorporated, New Jersey.

Proctor, T 2014, Strategic marketing: an introduction , Routledge, Abingdon.

Wen, O & Yazdanifard, R 2015, ‘The review of the effectiveness of celebrity advertising that influences consumer ‘s perception and buying behaviour’, Global Journal of Management and Business Research: E-Marketing , vol. 15, no. 4, pp. 1-7.

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Nike Market Segmentation, Targeting, and Positioning

Discover more helpful information.

Nike is one of the top sports shoe suppliers and sports equipment manufacturers globally. The company was first launched in 1964 by Phil Knight and Bill Bowerman. Whether its shoes and sports apparel for your daily workouts or just want to have signature shoes designed for your favorite athlete, you indeed have tried visiting Nike for these items. This kind of response from its customers reflects one of its marketing strategies to target athletes and young adults.

Since it was founded, Nike has vastly improved its products to be lighter and more comfortable, enabling customers to use its products for longer hours without feeling uncomfortable and sore on their feet. The firm also offers a vast selection of shoe types and colors focusing on training, running, or lifestyle shoes. It has also expanded its brand to provide sports equipment, guards, clothing, backpacks, and soccer balls.

The company's mission is to excel in nurturing and expanding human potential and impacting their customers in different communities. Since it's a global brand, it provides easy access to its products by mounting physical stores worldwide. This strategy and other marketing elements will be comprehensively discussed in this article using the Nike market segmentation approach.

Mind Map: Nike Market Segmentation, Targeting, and Positioning

If classifying facts using charts is not your liking, you can adopt a much easier and modern approach through mind maps. Here's how it looks.

• Market Segmentation
• Demographic
• Psychographic
• 15-55 years old
• Men, women, and kids
• Sports enthusiasts
• High-income groups
• Urban areas
• International locations
• Personality
• Purchase frequency
• Consumer loyalty

Positioning

• Innovative technology
• First choice for sports products
• Build a connection between Nike and the achievements of prominent athletes

Market Segmentation of Nike

In its most straightforward meaning, Market segmentation refers to the process of dividing a company's target market into achievable and approachable groups. Nike creates sub-segments based on needs, demographics, priorities, shared interests, and behavioral and psychographic criteria.

The process of identifying the segments will vary from company to company. For Nike, its market segmentation involves four categories - geographic, demographic, psychographic, and behavioral.

For Nike's demographic segmentation , the firm included various age groups, gender, and the customer's financial status. Nike has classified its products according to gender and group, typically between 15 and 55 years old. The company also categorizes its products from men, women, and kids. Nike offers promos, discounts, or cuts prices to reduce costs in special cases. The company's special offers sometimes fall on special occasions to entice customers to buy their products. It's Nike's way to have customers buy products that they cannot afford before the discount.

The presence of physical stores in different parts of the world is one of Nike's strategies under its geographic segmentation . This segment acknowledges that each country has varied lifestyle habits and cultures. The company introduced different products for various countries that meet the customers' needs. Nike conducts multiple promotional campaigns in the US, Europe, Australia, Asia, Africa since sports vary in regions and cities. You might notice that most commercials in the US focus on baseball and football, while in Europe, ads refer to soccer.

Nike also customizes its campaigns in New Delhi, India, by promoting cricket equipment and rugby for England and Sydney. Nike's most significant markets include North America, China, and Western Europe, where the firm performs segmentations more and focuses on urban areas.

Nike's psychographic segmentation tackles offering their customers a selection of products that can cater to their needs and suit their interests. This stage in the Nike market segmentation allows Nike to explore the preferences of every customer.

Finally, the behavioral segmentation of Nike is about providing benefits to customers through clothing, comfortable footwear, and essential sports equipment. Nike also creates a series of versions for a product to satisfy the preferences of each customer. Nike gives its customers the mindset of feeling athletes if they use Nike products. It also builds customer engagement by offering distinct quality and innovative products to choose from. More importantly, Nike allows its target market to share their experiences with family and friends, including product reviews on the internet and other social media channels. This, in turn, will have a significant effect on customers' purchasing behavior.

Targeting of Nike

This marketing strategy phase includes systematically choosing the segments that will yield the most efficient and practical approaches to achieve the firm's goals. As you know, Nike has three classifications of its target customers, including men, women, and kids. For men, Nike designs shoes for running, lifestyle, gym and training, American football, football, tennis, golf, crickets, baseball, basketball, skateboarding, softball, and athletics.

Nike includes yoga in its shoe selection for women. Meanwhile, the company targets young athletes in its kids' classification. Besides providing quality shoes, Nike offers various colors for its products since the company believes that comfort and the products' physical appearance can give satisfaction and enjoyment to customers.

Positioning of Nike

Positioning is all about placing the company's brand in the market with other competitors. Nike has strategically positioned its brand as a market leader for sports equipment that provides innovative and premium quality technology. Nike's swoosh logo, "Just Do It" slogan, and its promotional initiatives to connect to magnificent achievements of great athletes convinced its customers that it's a victorious and ambitious brand. Nike' speaks' into athletes' hearts through meaningful and unique feelings, making the firm exceptional from its competition. The company has also solidified its place in fashion, where a part of its products defines specific markets' lifestyles.

Nike has effectively imprinted a strong belief in its customers' minds that its products are the best options every time they need to buy sports products.

The Nike market segmentation, targeting, and positioning will be ideal to the points discussed above outlined in simplified words. The table below will provide a quick illustration of Nike's three elements for its marketing initiatives.

Bonus: 2 Other Analysis Diagrams of Nike

Nike pestel analysis.

In the SWOT Analysis below, Nike's strengths include a global presence, a high brand value, substantial market share, and effective marketing. However, they face weaknesses such as supply chain issues, rising operational expenses, reliance on the US market, and legal disputes. Nike has opportunities to expand into sports infrastructure, in-house manufacturing, and digital channels. Nevertheless, they face threats from counterfeit products, trade tensions, and ongoing supply chain challenges.

Nike SWOT Analysis

In the PESTEL analysis below, Nike's political factors include the stability of the American economy and manufacturing regulations. Economic aspects encompass emerging global markets and production costs. Social factors involve changing lifestyles and workplace stress. Nike is affected by technological advancements and social media trends. Environmentally, they face concerns over eco-friendly products and their factories' pollution impact. Legally, the company deals with false discounts and tax evasion issues.

Key Takeaways

Nike, through the years, had its formidable competition but continues to solidify its brand in the industry, thanks to its effective marketing initiatives. Similar to other international brands, it is very evident in Nike's marketing approach the intent to vary its product offering depending on its target customer and location. In the industry where Nike belongs, it is essential to study every marketing segment to cater to its customers' needs better. For example, a target market in countries that experience winter must not offer summer products. The same goes for a basketball country that must not be provided with equipment used to play cricket.

This also goes to other companies who want to use Nike's market segmentation, targeting, and positioning strategies. Besides the weather, it is also vital to consider the culture and preferences of customers in a specific region or location for the product to have value to them. Meanwhile, your brand does not necessarily have to be in the global market to take inspiration from Nike's principles. There are fundamental principles that smaller companies can use for their brands.

This article also presented a simplified diagram to categorize the three principles in Nike's marketing strategy. Modern diagramming utilizes mind maps for illustration. EdrawMind is a mind mapping tool that uses a friendly interface ideal for beginners and advanced users. The pre-built templates on market segmentation and STP Analysis are helpful, especially for those who do not want to structure their mind map from scratch. The software is flexible enough, giving you options for creating and editing your mind maps. You can use the browser or launch the software from your desktop. Either way, the features stay the same.

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Nike Inc. Operations Management: 10 Decisions, Productivity

Nike Inc. is a leading global manufacturer and seller of sports shoes, apparel, and equipment. This market position is partly a result of effective and efficient operations management (OM). To ensure success, Nike’s managers must continually examine and improve strategies and approaches used in the 10 strategic decision areas of operations management. These areas pertain to the main decisions in managing streamlined operations and productivity that effectively address business goals and objectives. Nike’s operations management considers talent management, product development, and total quality management as some of the most important variables in these 10 strategic decision areas.

The 10 strategic decisions of operations management (OM) at Nike Inc. cover a wide variety of issues, considering the company’s global market for sports shoes, apparel, and equipment. Nike effectively addresses these decision areas through standards consistently applied in operations management throughout the global organization.

Nike’s Operations Management, 10 Decision Areas

1. Design of Goods and Services . This strategic decision area deals with the design of Nike’s athletic footwear and other products. The operations management objective is to ensure that product design aligns with organizational capabilities and business goals. In this case, Nike Inc. focuses on designs based on advanced technology and current market preferences. Also, the company’s products are designed with consideration for the factors of innovation and brand distinction, which are emphasized in Nike’s mission statement and vision statement . Through successful product innovation, operations management supports the company’s goals for its business positioning in the sporting goods industry.

2. Quality Management . Nike emphasizes quality in its processes and products. The objective in this strategic decision area is to satisfy consumers’ expectations about product quality. The company’s operations management addresses this concern through high quality standards and the application of total quality management (TQM) in the production of sports shoes, equipment, and apparel. Process quality supports innovative capacity, which is one of the strengths noted in the SWOT analysis of Nike . Thus, effective quality management contributes to the competitiveness of the sporting goods business.

3. Process and Capacity Design . This strategic decision area requires that Nike’s operations management must prioritize streamlining and efficiency of production. The objective is to ensure adequate, effective, and efficient production. At Nike, operations managers apply continuous improvement strategies to support the company’s production goals and needs based on market dynamics.

4. Location Strategy . Physical location is the typical concern in this strategic decision area of operations management. The objective is to optimize costs and efficiency through proximity to employees, suppliers, and the target market. In the case of Nike Inc., the operations managers apply a corporate strategy that chooses production facility locations based on costs and nearness to the most significant markets. For example, Nike Inc. has sports shoe suppliers in Southeast Asia because of the cost advantage based on cheaper labor in the region.

5. Layout Design and Strategy . Nike’s operations management deals with the layout design of its facilities. The objective in this strategic decision area is to optimize workflow based on human resources, capacity requirements, technology, and inventory requirements. Nike’s operations managers apply corporate layout design and strategy to company-owned facilities only. For example, the firm uses office layouts where employees can move easily. The factories that manufacture Nike’s products are not under the company’s control in terms of layout design and strategy.

6. Job Design and Human Resources . Human resource adequacy and maintenance are the objectives in this strategic decision area of operations management. Nike Inc. satisfies this concern through internal leadership development, along with coaching and mentoring. The company also has regular evaluations of job assignments to ensure person-job fit.

7. Supply Chain Management . Nike has excellent supply chain management, which facilitates efficient production to support the global sports shoes, apparel, and equipment business. The objective in this strategic decision area of operations management is to align the supply chain with the company’s overall strategic aims. Nike Inc. satisfies this objective through supply chain automation and optimization of transport distances among suppliers, production facilities, distributors, and retailers.

8. Inventory Management . The objective in this strategic decision area is to maintain operations management that minimizes inventory costs while maximizing its effectiveness and efficiency. Nike’s operations managers apply the perpetual method of inventory management, which involves continuous monitoring and movement of inventory from the supply chain to the distributors and retailers.

9. Scheduling . Nike’s scheduling approach is primarily concerned with corporate operations and the coordination of the supply chain with distribution and retail operations. In this strategic decision area of operations management, the aim is to maximize resource utilization. Nike Inc. managers satisfy this aim through automation. Corporate office schedules are standardized, while supply chain schedules are adjusted according to the conditions of the market. Nike applies changes to the supply chain based on market demand for its athletic footwear, equipment, and apparel.

10. Maintenance . Nike’s maintenance strategy considers adequacy of all resources. Adequacy of human resources, facilities and capacity is the objective in this strategic decision area. Nike’s operations management implements continuous recruitment programs to support HR needs, as well as reward programs and career development strategies for maximum retention of employees. For facilities, the company has dedicated teams to regularly evaluate facility and equipment integrity and requirements. The companies that manufacture Nike shoes, apparel and equipment are responsible for their own maintenance.

Productivity at Nike Inc.

Nike Inc. operations management supports maximum productivity of corporate offices, the supply chain, distribution network, and company-owned retail facilities. There are a variety of measures applied to determine actual productivity levels. In this case, Nike uses the following criteria to measure productivity in some business areas:

• Revenue per square foot (Productivity of Nike’s retail stores)
• Pair of shoes per hour (Productivity of Nike suppliers)
• Items per day (Productivity of inventory personnel)
• Documents per day (Productivity of Nike’s corporate offices)
• About Nike .
• Chen, X., Deng, T., Shen, Z. J. M., & Yu, Y. (2023). Mind the gap between research and practice in operations management. IISE Transactions, 55 (1), 32-42.
• Nike, Inc. – Form 10-K .
• Nike, Inc. – Responsible Sourcing .
• Sahoo, S., Kumar, S., Abedin, M. Z., Lim, W. M., & Jakhar, S. K. (2023). Deep learning applications in manufacturing operations: A review of trends and ways forward. Journal of Enterprise Information Management, 36 (1), 221-251.
• Venkatesh, V., Raman, R., & Cruz-Jesus, F. (2023). AI and emerging technology adoption: A research agenda for operations management. International Journal of Production Research , 1-11.
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2025 and Beyond

Move to zero.

In the race against climate change we’re creating solutions that are better for all athletes* and the planet. We’ve set bold, science-based targets.

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Scaling Ideas at NIKE is the Game-Changer

In the race against climate change we’re creating solutions that are better for all athletes* and the planet. We’re scaling sustainable innovations throughout our whole business to reduce NIKE's environmental impact. We’ve set bold, science-based targets. And we’re optimistic—our successes and failures over the past 30 years are inspiring the solutions and resolve to create a future in which we all and this beautiful blue ball thrive.

Putting Progress in Perspective

NIKE has the climate impact of a global city. That’s a significant role for a company to play and it motivates us to look at everything we do, because small adjustments lead to big changes. Most people understand NIKE is big. But we thought it would be worthwhile to give that idea more context. NIKE is about 75,400 employees; upwards of 1 million employees in our owned and supplier facilities; over 1,500 physical spaces; and we emitted 11,706,664 metric tons CO2e in FY20. If we were a city, we’d have roughly the population and carbon footprint of Amsterdam, Netherlands.

Materials & Design

Currently, 78% of all NIKE, Jordan, and Converse products contain some recycled material. We’re working to increase that number because adjusting materials, which are about 70% of our total carbon footprint, is one of our biggest opportunities to reduce our impact. Take recycled polyester. This now foundational fabric begins as recycled plastic bottles. They are cleaned, shredded into flakes, converted into pellets, and spun into new, high-quality yarn that delivers peak performance while reducing carbon emissions by up to 30% compared to virgin polyester. One of our most popular product lines, the Tempo Short, is made from at least 75% recycled polyester. Most options come in at 100%. To date, this single product is responsible for pulling 112 million plastic bottles out of landfills and waterways.

Supply Chain

Sustainable materials matter that much more if our manufacturing is done responsibly. Our end-to-end approach looks at carbon, energy, waste, chemistry and water across the entire product lifecycle, ultimately making choices that improve conditions for teams and locations worldwide. Creating products takes energy. And today, that process also makes waste. But there is a growing truth of waste: trash is treasure. One of our greatest inventions is Nike Air. It’s also one of our most sustainable innovations. We’re able to reuse more than 90% of the waste from Air manufacturing, often turning it into new Air bags. This ensures all Nike Air soles are made with at least 50% recycled material. Small changes pave the way to achieve big aims. Since our last Impact Report, we’ve made single digit centimeter adjustments across product manufacturing meaning more than 3.5 million kg of waste was prevented. At scale, these adjustments and innovations are our path to achieving our aims of 100% of the waste from our extended supply chain diverted from landfills and at least 80% recycled back into NIKE products and other goods. We aren’t there yet, but just like our athletes constantly working to be better than they were before, progress is an every day goal.

Completing the Circle

The last phase of a product’s life—getting it to athletes* and, eventually, back from them—is the most challenging sustainability puzzle. Customized goods and next-day delivery are norms. What to do with a well-loved or defective product is blurry. And no one likes receiving a crunched package. So we’re re-thinking it all with ingenuity, science and grit. We’ve set a 2025 goal to donate, refurbish, or recycle 10X more used or defective product than we do today. To achieve this, we’re making it easier for people to return their used product back to us. Active in stores throughout the USA and Europe, we’re scaling Reuse-A-Shoe to stores in Greater China and re-energizing our operations. We’re hosting up-cycling workshops and providing relevant content like the Nike Circular Design Guide to consumers. Recently, we rolled out Nike Refurbished in select North America stores. We’re also hosting up-cycling workshops and providing relevant content like repair & care videos (that will go live this summer) to help extend the life of products. We’re just getting started with some of these services, but our aim is the same as with anything we do. To serve all the planet’s athletes with inspiration and innovation.

A Team Effort

When it comes to re-writing our planet’s future, our aim is to change industry standards along with our products and processes. Because we know that the faster we can collectively do more for the environment, the better it will be for generations to come. We’re also creating ways for each athlete* to take part. Look for the sunburst when shopping NIKE products. Tune in to Talking Trash for discussion and ideas from the NIKE community. Take note of brands’ accountability to larger sustainability agreements like G7 Fashion Pact, Transform to Net Zero and UNFCCC Fashion Industry Charter for Climate Action . Keep an eye out for Membership resources, like Repair & Care videos going live this summer and local store programming.

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Originally published: June 22, 2021

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Nike will lay off 740 employees in Beaverton

The cuts are part of a 2% downsize of the athletic shoe company’s workforce around the globe.

FILE - Nike shop in downtown Portland, Ore.

Evan Sernoffsky / OPB

Nike is slashing its Beaverton workforce by 740 employees, the global sportswear and sneaker company informed Oregon officials Friday.

“NIKE, Inc. will be permanently reducing its workforce at its World Headquarters located at One Bowerman Dr., Beaverton, OR 97005, and surrounding neighborhoods,” the company wrote in its notice to the state . “As a result of a second phase of impacts, which will take effect by June 28, 2024, approximately 740 employees at World Headquarters will have been impacted by this and the recent prior permanent reduction of workforce.”

Nike said in February it would lay off 2%, or about 1,600 employees, across its workforce because of the company’s less-than-stellar performance as of late. Nike leaders have pointed to lower online sales as one of the reasons behind the downsizing.

“Nike’s always at our best when we’re on the offense,” a company spokesperson wrote in an email to OPB Friday. “The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger.”

The sportswear giant told the state it’s still determining what job titles are being eliminated.

This isn’t the first time Nike has sought to restructure its workforce in an effort to trim costs. In 2017 the company also laid off 2% of its global workforce , which then represented about 1,400 employees.

Nike’s origins trace back to Eugene in the 1960s. The company’s co-founder and former CEO Phil Knight was a track athlete at the University of Oregon who famously sold running shoes out of the back of his car at local meets.

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Why Nike's new Olympic track uniform for women is stirring controversy

Juliana Kim

Elite athletes from around the world joined Nike to unveil the latest Nike Air footwear and team kits at the "Nike On Air" event at the Palais Brongniart in Paris earlier this month. Nike hide caption

Elite athletes from around the world joined Nike to unveil the latest Nike Air footwear and team kits at the "Nike On Air" event at the Palais Brongniart in Paris earlier this month.

Nike revealed a range of new styles and silhouettes for elite athletes last week ahead of the 2024 Olympics, but one article of clothing has raised controversy.

The Sexualization Of Women In Sports Extends Even To What They Wear

A bodysuit that appears to be cut high on the hips is one of the options for Team USA's track and field. Athletes and fans have criticized the design, saying that the outfit looks uncomfortable and revealing.

Complaints further mounted after Citius Mag , an online magazine that covers track and field, released a side-by-side comparison of the men's and women's uniform — with critics finding the vast differences deeply problematic.

BREAKING: Here's your first look at the new @Nike kits that will be worn by the U.S. track and field team at the 2024 Olympics in Paris. pic.twitter.com/XPWOnBrwsv — CITIUS MAG (@CitiusMag) April 11, 2024

In response to the criticism, Nike said female runners are not limited to the leotard and that the new line offers nearly 50 styles to choose from, including shorts.

"We showcased some of the new Olympic uniforms at the Nike On Air experience in Paris — but, as we are a few months from the Games and working with limited samples in a limited format presentation, not all looks and styles were featured," a Nike spokesperson said in an email.

The company added that it took female athletes' comfort especially seriously, which is why it raised the neckline for tops.

USA Track and Field said its athletes were consulted throughout the design process. "Athlete options and choices were the driving force for USATF in the planning process with Nike," the USATF said in a statement.

Sarah Hirshland, CEO of the U.S. Olympic and Paralympic Committee, said she supports athletes having options. "I think that's important. We want to make sure athletes have choices that they're comfortable in," she told reporters.

Why MLB's new uniforms are getting mixed reviews

The backlash comes less than two months after Nike was scrutinized over its new uniforms for Major League Baseball players, which some said looked see-through and of poor quality.

This time, Nike's designs were caught in the long-running discourse over sexism in women's sports attire.

U.S. national champion distance runner Lauren Fleshman said the track and field kit specifically displayed on the mannequin lacked the professionalism that top women athletes deserve.

"Women's kits should be in service to performance, mentally and physically. If this outfit was truly beneficial to physical performance, men would wear it," she wrote on Instagram .

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On social media, some fans asked if the mannequin outfit was for swimming events. Others expressed concern that the fit will sexualize sportswomen, given the uniforms' lack of coverage.

Pole vaulting Olympic gold medalist Katie Moon said while the uniform was troubling, she is in favor of female athletes having more options rather than less when it comes to attire.

"Even if its with best of intentions, you're ultimately attacking our decision as women to wear it," Moon wrote on Instagram . "The point is we DO have the choice of what to wear, and whether we feel the best in a potato sack or a bathing suit during competitions, we should support the autonomy.

Before the backlash, Nike said the uniforms were the "most athlete-informed, data-driven and visually unified the company has ever produced." The clothes were tailored to support a range of body types and sports disciplines while maximizing breathability, Nike Chief Innovation Officer John Hoke said in a press release Thursday.

Nike also plans to provide custom tailoring at the games.

• 2024 olympics
• track and field

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Nike to lay off 740 employees at Oregon headquarters

Nike will lay off about 740 employees at its world headquarters in Oregon, a letter showed on Friday, as the top sportswear maker looks to rein in costs after warning of a revenue dip in the first half of fiscal 2025.

The "second phase of impacts" would begin by June 28 at its headquarters, Michele Adams, Nike's vice president for people solutions, said in a legally mandated notice to state authorities.

The company's shares were up marginally in after-hours trading. They have declined nearly 13% this year.

Nike had in December announced a cost savings plan for $2 billion over the next three years, and in February said it would cut about 2% of its total workforce, or more than 1,600 roles.

It had about 83,700 employees as of May 31, 2023.

Several companies in the U.S. and Canada have announced new rounds of layoffs, following the spate of reductions in 2023, to cut costs in the face of an uncertain demand environment.

Nike in March flagged its revenues in the first half of fiscal 2025 would shrink by a low-single-digit percentage as it looks to scale back on some franchises.

Reporting by Granth Vanaik in Bengaluru; Editing by Sriraj Kalluvila

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Nike draws heat over skimpy U.S. women's track and field uniforms for Paris Olympics

By Megan Cerullo

Edited By Alain Sherter

Updated on: April 16, 2024 / 12:28 PM EDT / CBS News

Nike is defending its design of uniforms for the women's track and field team representing the U.S. at the Paris 2024 Olympics, which have spurred criticism from some female athletes and revived debate over sexism in sports. 

The outfits, which Nike unveiled at a special event in Paris and were first posted by digital media company Citius Mag , have a high-cut leg that that barely covers their display mannequin's groin area. The male version, by contrast, provides significantly more coverage. 

Commenting on Citius Mag's post, steeplechase competitor and Olympian Colleen Quigley wrote, "I mean I still wanna make the team but…." Paralympian Femita Ayanbeku, also a track and field competitor weighed in too, writing, "I'm someone's mom, I can't be exposing myself in such ways."

Added Paralympian and track and field athlete Jaleen Roberts, "This mannequin is standing still and everything's showing...imagine mid flight."

Other athletes chimed in saying the outfit would require a level of hyper-vigilance to make sure they didn't expose themselves, whereas they'd prefer to be focused on performance. 

Lauren Fleshman, the author of "Good For a Girl: A Woman Running in a Man's World," tore into the design in a post on Instagram. 

"Professional athletes should be able to compete without dedicating brain space to constant pube vigilance or the mental gymnastics of having every vulnerable piece of your body on display," she said.

" If this outfit was truly beneficial to physical performance, men would wear it," she added.

The Women's Sports Foundation, an advocacy group for female athletes, writes in a position paper that "athletes should be afforded maximum flexibility in the choice of uniform fabrics and styles." Appropriate uniform designs consider performance, medical and safety concerns, and diversity in body types and cultural norms.  

Nike defended the look, saying it had solicited input from Olympic athletes in designing its lineup of uniforms for both the men's and women's teams headed to Paris this summer. For the track and field kits, Nike Chief Innovation Officer John Hoke said in a  statement  that the company offers athletes "a range of silhouettes tailored for various sport disciplines, body types and sizes, prioritizing performance and maximum breathability." 

Male and female track and field athletes have a dozen competition styles to chose from, Nike added, explaining that "athletes can choose outfits that match their style and personal preference without sacrificing comfort during the games in Paris." The company also said it will offer tailoring options.

USA Track and Field said in a statement to CBS MoneyWatch that it has worked with Nike to ensure that competitors had uniform options. 

"USATF is also aware that Nike consulted with athletes throughout the design process to ensure that all athletes are comfortable and that the uniforms are well-suited for their respective events,"   the organization said, adding that the unitard that has drawn fire is just one option athletes can choose from. 

Nike also recently made waves for another uniform design. Its new Major League Baseball uniforms, which the company said is made from a "breathable, lightweight, high-performance fabric," are transparent enough that the jerseys' tags are visible when tucked into the pants' waistbands. And gray-colored uniforms , made from the same fabric, don't match the pants when they become soaked with sweat. 

Nike told The Athletic it is testing different fabrics to remedy the issue, but it's unclear if updated outfits will be issued this season. 

Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News Streaming to discuss her reporting.

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