Nike

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2.

NIKE
Presentation
created by
Mikhail Shatskikh
&
Aleksandr Kiselev

3.

NIKE
Nike, Inc. is an American multinational corporation that is
engaged in the design, development, manufacturing, and
worldwide marketing and sales of footwear, apparel,
equipment, accessories, and services. The company is
headquartered near Beaverton, Oregon, in the Portland
metropolitan area.

4.

BACKGROUND
Nike was founded in 1964 by Phil Knight and Bill Bowerman as Blue Ribbon Sports, a distributor of Japanese athletic shoes in
the United States. The company changed its name to Nike in 1971. Over the decades, Nike has expanded its product line to
include apparel and equipment for a wide range of sports and activities. Today, Nike is one of the world's largest and most
recognized sportswear companies, with a presence in over 190 countries.
Nike, originally known as "Blue Ribbon Sports", was founded by University of Oregon track athlete Philip Knight and his coach
Bill Bowerman in January 1964. The company was incorporated in 1968 as Blue Ribbon Sports and has been operating for the
past 44 years.
The company's first self-designed product was based on Bowerman's "waffle" design. Bowerman began experimenting with
different potential outsoles that would grip the new urethane track more effectively.
His efforts were rewarded one Sunday morning when he poured liquid urethane into his wife's waffle iron. Bowerman developed
and refined the so-called 'waffle' sole which would evolve into the now-iconic Waffle Trainer in 1974.

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BACKGROUND
Over the years, Nike has evolved from a small distributor of imported shoes to a global leader in the sportswear industry. One of
the key factors in Nike's evolution has been its focus on innovation and design. In the 1980s, Nike introduced its Air cushioning
technology. Nike has also invested heavily in research and development, creating new materials and manufacturing techniques
to improve the performance and comfort of its products. Today, Nike continues to push the boundaries of design, technology,
and marketing to maintain its position as a leader in the sportswear industry.

6.

BACKGROUND
By 1980, Nike had reached a 50% market share in the U.S. athletic shoe
m a r k e t , a n d t h e c o m p a n y w e n t p u b l i c i n D e c e m b e r o f t h a t y e a r.
Its growth was due largely to word of mouth advertising, rather than
television ads.
Nike's first national television commercials ran in October 1982 during
t h e b r o a d c a s t o f t h e N e w Yo r k M a r a t h o n .
It Widen+Kennedy co-founder Dan Wieden who coined the now-famous
slogan "Just Do It" for a 1988 Nike ad campaign, which was chosen by
A d v e r t i s i n g A g e a s o n e o f t h e t o p f i v e a d s l o g a n s o f t h e 2 0 t h c e n t u r y.
Throughout the 1980s, Nike expanded its product line to include many
other sports and regions throughout the world.

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TIMELINE
1994
2003
Nike signs LeBron James
Acquires Converse for $309
million
1964
1988
2012
Nike founded as blue-ribbon
sports
First “Just Do It” campaign
was launched
Becomes official supplier for
NFL apparel.
1971
1984
Officially becomes Nike
Nike signs Michael Jordan
2015
Becomes official supplier for
NBA apparel.

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STATISTICS
TO TA L R E V E N U E
TO TA L S TO R E S
CONVERSE IN
US
$50.2B
1046
87
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SWOT analisys
SWOT
Describe
Strength
Nike is a global brand and is number one sports brand in the world. it is famous an recognizable easily with its trademark “just
do it”
Unethical views which tainted the image of Nike have been gradually ironed out by the efforts of management
Has strong control over its distribution channel.
Nikes financial position is very strong with little long-term debts.
The company has experts who carry out innovative designs in footwear. They even allow consumers to design their own shoes
Nike company is very competitive with a very strong management team and excellent cooperate strategy in all its markets.
Nike is very efficient in service delivery.
Weakness
dependence on its share of the footwear in the market for business income.
Saturation of the market
The poor working conditions of Nike workers in overseas factories portrays a negative image of the company
Opportunities
Nike has benefited from product development.
Nike brand is strong and if firmly defended by its owners who believe that it is not a fashion brand.
Increased female participation in athletics is an opportunity female wear product from Nike
Expiration of new technology and innovation makes Nike to remain top in the market.
Treats
Exposure of Nike to international nature of trade is dangerous incase of trade barriers.
“Sweatshops” portray negative image
Economic constraints in North American countries and Asian countries are a big treat.
Challenges of import and export duties threatens its growth
Strong competition from major competitor such as Reebok and Adidas in all its aspects of business.

10.

SWOT analisys – Strengths
1 . S t r o n g B r a n d A w a r e n e s s a n d B r a n d Va l u e
Nike is one of the most recognizable brands in the world. Nike is ranked at # 10 position with a
brand value of $50.2 Billion.
2. Huge Customer base
Nike has millions of customer from around the world who loyally follow Nike’s trends, participate in
Nike events, and even provide customer feedback.
3. Aimed For Sustainability
Nike’s CEO Mark Parker has addressed that they will continue to acknowledge the environmental
issues in the communities.
4. Iconic Relationships
Nike’s long-term partnership with Michael Jordan has proved to be beneficial in terms of sales for
t h e c o m p a n y.
5. Side Brands
Nike’s ability to maintain and enhance its side brands such as converse and Hurley have enabled it
to enjoy unparalleled success for decades.

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ENDORSEMENT
S
Nike endorsements refer to partnerships or sponsorships between Nike and athletes, teams, or other public figures. Nike has a long history of collaborating
with high-profile athletes, such as Michael Jordan, LeBron James, and Tiger Woods, to promote its products and build its brand
MICHAEL
JORDAN
RORY MCILROY
TIGER WOODS
LEBRON JAMES
R A FA E L N A D A L
DEREK JETER

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SWOT analisys – Strengths
6. Low Manufacturing Cost
Most of Nike’s footwear is manufactured in foreign countries such as Vietnam, China, India and etc.
7. In-house Professionals
Nike has a team of professionals that design its shoes and other athletic accessories.
8. Superior Marketing Capabilities
Nike has excellent marketing campaigns. The brand heavily relies on demand creation expense,
which includes advertisement, promotion, endorsement contracts, media print and complimentary
products. In the fiscal year 2019, 2020, 2021, and 2022 Nike spent $3.7 billion, $3.6 billion, $3.1
b i l l i o n a n d $ 3 . 8 b i l l i o n r e s p e c t i v e l y. T h e b r a n d h a s s u c c e s s f u l l y u t i l i z e d s o c i a l m e d i a a n d m a r k e t i n g
campaigns to target more customers.
9. Black Community Support
The brand has excellent marketing campaigns and recently released “Don’t Do It” ad campaign in
support of Black communities against racism.
10. High Market Share
N i k e i s a m a r k e t l e a d e r i n f o o t w e a r i n d u s t r y. N i k e h a s c a p t u r e d a p p r o x i m a t e l y 3 9 % o f t h e g l o b a l
athletic footwear market and 13% of global athletic apparel market.

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COMPETITIO
N
Adidas is a multinational corporation that designs and manufactures athletic
and casual footwear, apparel and accessories, and is the largest
sportswear manufacturer in Europe.
Under Armour is an American company that produces athletic apparel, footwear,
and accessories and is known for its innovative performance materials and
designs.
Sketchers is an American footwear company that produces lifestyle and
Puma is a German multinational company that designs and manufactures
performance shoes for men, women, and children, and is known for its casual
athletic and casual footwear, apparel and accessories, and is the third-largest
and comfortable styles.
sportswear manufacturer in the world.

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SWOT analisys – Weakness
1. Poor Labor Conditions in Foreign Countries
In the last 20 years, Nike has been consistently targeted regarding their poor labor conditions.
T h e s e i s s u e s i n c l u d e f o r c e d l a b o r, c h i l d l a b o r, l o w w a g e s , a n d h o r r i f i c w o r k i n g c o n d i t i o n s t h a t w e r e
deemed “unsafe”.
2. Retailers Have a Stronger Hold
Nike’s retail sector makes Nike weak due to its sensitivity against pricing. 65% of Nike products are
sold directly to wholesalers or retailers. With retailers serving as their core customers, Nike does
n o t p u t u p a f i g h t a g a i n s t t h e i r p r i c i n g s t r u c t u r e s w h a t s o e v e r.
3. Pending Debts
Although Nike’s income statements prove to be prosperous, a quick glance at their balance sheet
could paint a different picture. Nike is still facing financial threats. As of FY22, Nike’s total long
term debt was $8.9 billion
4. Lawsuits
- R e c e n t l y, a f o r m e r e m p l o y e e a c c u s e d N i k e o f d i s c r i m i n a t i o n b a s e d o n h i s C r o a t i a n o r i g i n .
- Four former female Nike employees filed a class-action lawsuit against the company in August
2018. According to these women, Nike has a toxic company culture for women. The women filed their
case against the sportswear company claiming that the company violated the Equal Pay Act. The
women said the company engaged in systematic gender pay bias where men were paid more than
women for the same amount of work.

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SWOT analisys – Weakness
5. Lack of Diversification
Nike’s over-dependence on sporting apparel or lack of diversification is a major weakness. If the
c r i s i s d i s c o u r a g e s s p o r t i n g e v e n t s f o r l o n g e r, N i k e ’s l o s s e s c a n b e c a t a s t r o p h i c .
6. Contradicting Strategies
Nike pledged to shift all its facilities to 100% renewable energy with net -zero carbon emissions
under the “Move to Zero” scheme. While the strategy is great and welcomed, it contradicts Nike’s
s t r a t e g y t h a t f a v o r s i n n o v a t i o n o v e r s u s t a i n a b i l i t y. T h i s c r e a t e s t h e p e r c e p t i o n t h a t N i k e i s n o t
committed to addressing climate change and its pledge is just a marketing stunt.
7. Dependency on North America especially US Market
E v e n a f t e r h a v i n g e s t a b l i s h e d i t s e l f g l o b a l l y, N i k e s t i l l r e l i e s o n t h e U . S M a r k e t i n t e r m s o f s a l e s a n d
revenue. In the fiscal year 2022, about 41% of Nike’s sales came from the North America, while the
r e s t o f 5 9 % c a m e g l o b a l l y. D e s p i t e i t s f a m e , N i k e d e p e n d s o n t h e U . S f o r s u b s t a n t i a l s a l e s a n d
growth.
Image source: Nike annual report
8. Sexual Harassment
Former female employees also pointed out that sexual harassment and misconduct was very common
i n t h e c o m p a n y. T h e N e w Yo r k T i m e s c o n d u c t e d i n t e r v i e w s w i t h 5 0 f o r m e r a n d p r e s e n t N i k e
employees to investigate the company culture. Through the interviews, it was established that Nike
did have a toxic working environment, where sexual misconduct was rampant.
Multiple female employees reported that they had complained to the HR but saw no action being
taken from their part. The women were left devastated and felt unsafe while working at Nike. Some
even left their jobs. The entire controversy has significantly affected the company’s image.

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SWOT analisys – Opportunities
1. Emerging Markets
Although Nike already has a presence in many foreign countries, there is still plenty of opportunities
for Nike. This is because emerging markets like India, China, and Brazil are gradually flourishing.
2. Innovative Products
Although Nike has produced many products, there is still a lot to innovate. Nike has extended its
reach in technology in association with fitness and health. Products like wearable technology that
monitors physical activities, is the first step in building innovative technology products. Combining
technology with athletic wear can prove to be beneficial as it is an aspect of the fashion industry
that still hasn’t been explored much.
3. Efficient Integration
The supply and production of Nike’s products depend on independent manufacturers. The brand can
either acquire a few of these or make some of its own for a more efficient and streamlined supply
chain.
4. Cutting ties with big retailers
Nike has decided to cut ties with some of the biggest multi -brand retailers and wholesale partners.
According to the report, Nike will no longer work with wholesale retailers such as Zapoo’s, Dillard’s,
Fr e d Me ye r, B o b ’s S t o r es, e t c . Th e s t e p i s t a k e n f o r b e t t er p r o d uct p o s i ti on in g a n d g r e a te r c u s tomer
experience.
5. Acquired Artificial Intelligence Start-up
With its vast financial resources, Nike can acquire small or medium companies or startups. It
recently acquired predictive analytics platform – Celect to expand its online sales capabilities and
p r e d i c t c u s t o m e r ’s s h o p p i n g b e h a v i o r.

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SWOT analisys – Opportunities
6. Merges with the Metaverse
R e c e n t l y , N i k e a c q u i r e d R T F K T, a d i g i t a l s h o e - m a k i n g c o m p a n y . Y e s , y o u h e a r d t h a t r i g h t , t h e
c o m p a n y d e s i g n s s h o e s , b u t f o r t h e v i r t u a l s t r a t o s p h e r e o n l y. H o w e v e r , R T F K T a l s o c l a i m e d t h a t i t
partnered with FEWOCiOUS (a young artist) to sell real shoes along with their digital versions. Nike
is banking on the opportunity to market their digital shoes on the Metaverse, where players can use
their Metamask wallets to purchase different types of in -game merchandize.
7. Exiting From Wholesale Distribution
R e c e n t l y, N i k e a n n o u n c e d i t ’ s g o i n g t o b e e x i t i n g t h e w h o l e s a l e d i s t r i b u t i o n m a r k e t i n t h e U . S . T h e
company plans to only market its products at Nike stores, app, and websites. According to Nike, the
m o v e a w a y f r o m d i s t r i b u t o r s i s g o i n g t o h e l p t h e m d o u b l e t h e i r p r o f i t m a r g i n s . M o r e o v e r, N i k e w i l l
also have the opportunity to spearhead the customer shopping experience as well as control prices.
8. Nike to End Use Of Kangaroo Leather For Its Shoes
Nike has announced a significant move that will please both animal rights activists and consumers.
The athletic apparel giant will no longer use kangaroo skins in their shoes, ending a controversial
practice. The decision comes after Puma made a similar move weeks ago.
I n s t e a d o f k a n g a r o o l e a t h e r, N i k e w i l l u s e s y n t h e t i c m a t e r i a l i n i t s n e w l i n e o f Ti e m p o f o o t b a l l b o o t s ,
t h e Ti e m p o L e g e n d E l i t e , s e t t o l a u n c h t h i s s u m m e r. T h e c o m p a n y a l s o e n d e d i t s p a r t n e r s h i p w i t h i t s
sole kangaroo leather supplier in 2021, reflecting its commitment to more sustainable and ethical
practices.
9. Consumer Direct Strategy
N i k e h a s a c c e l e r a t e d t h e c o n s u m e r - d i r e c t s t r a t e g y, w h i c h m e a n s s h i f t i n g i t s f o c u s t o d i g i t a l b u s i n e s s
and subsequently closing physical stores. In fiscal year 2022, 42% of its Nike revenue comes from
o n l i n e s a l e s . C l e a r l y, t h e p a n d e m i c i s s h a p i n g u p h o w N i k e i n t e r a c t s w i t h i t s c u s t o m e r s .

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SWOT analisys – Threats
1. Counterfeit Products
Counterfeit products can significantly affect the revenue and reputation of Nike. The company deals
g l o b a l l y a n d t h e r i s k o f c o u n t e r f e i t p r o d u c t s h a s b e c o m e h i g h e r. A n u m b e r o f m e r c h a n d i s e r s a n d
retailers offer counterfeit Nike products at lower prices. The low -priced products are made from lowquality materials but still have the Nike label. This can tarnish the image of the brand as the
customers might feel that Nike has started producing low quality products.
2. Increased competitive pressure
A l t h o u g h , N i k e i s a d o m i n a t i n g t h e a t h l e t i c i n d u s t r y, c o m p e t i t i o n , a n d n e w e m e r g i n g b r a n d s a r e s t i l l
p o t e n t i a l t h r e a t s t o t h e c o m p a n y. W i t h h i g h e r c o m p e t i t i o n r a t i o , N i k e h a s t o s p e n d m o r e m o n e y o n
marketing and advertising.
N i k e s p e n t $ 3 . 8 B i l l i o n s p e c i f i c a l l y o n m a r k e t i n g a n d d e m a n d g e n e r a t i o n i n f i s c a l y e a r 2 0 2 2 . To
overpower competition, Nike’s safest bet is to design innovative products that are tailored according
to the needs of athletes.
3. Marketing Budget Pressure
Companies like Under Armour , Adidas and Lululemon are spending more on marketing and
advertising campaigns, increasing the pressure on Nike.
4. Currency Foreign Exchange Risks
S i n c e t h e b r a n d o p e r a t e s g l o b a l l y, i t i s a f f e c t e d b y f l u c t u a t i n g f o r e i g n e x c h a n g e r a t e s . N i k e r e p o r t s
its financial earnings in U.S dollars. This affects its revenue as the U.S dollar is exposed to
volatility against other financial currencies.
u n s p e c i f i e d d a m a g e s , L u l u l e m o n h a s y e t t o c o m m e n t o n t h e m a t t e r.

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SWOT analisys – Threats
5. Patent Disputes
Regardless of whether a company is wrong or right, patent disputes are hotly and fiercely contested
in the public domain and expose some dirty secrets about sides in the dispute. Nike and Adidas have
been engaged in a fierce patent disputes over Primeknit and Flyknit shoes in U.S. and German
courts.
6. Economic Uncertainty
R e g a r d l e s s o f t h e i n d u s t r y, a l l c o m p a n i e s a r e s u s c e p t i b l e t o t h e n e g a t i v e e f f e c t s o f a g l o b a l
recession. During lockdown, Nike had reported a decline in sales and sales can drop further in the
future if the recession strikes as hard as predicted by experts.
7 . T r a d e Te n s i o n s
Nike depends on different markets across the world evidenced by the recent increase in its stocks
rallied by an increase in sales in China. With China and the US as its biggest markets, a large chunk
of Nike’s sales will be threatened if the trade tensions between the two giants escalate.
8. Patent Conflict towards Adidas Primeknit Shoes
I n a n a p p e a l t o a U . S . a g e n c y, N i k e f i l e d a c o m p l a i n t t h a t A d i d a s h a s b e e n i n f r i n g i n g o n t h e
company’s Flyknit shoe technology patent. The company also stated that the German shoe
manufacturer had used Nike’s Flyknit tech in 49 shoe designs (which uses Primeknit tech).
Ho we ve r, a c c ord ing t o a n A d i d a s r e p r ese ntati ve , t h e c o mp a ny wi l l f i g h t t h e se c l a i ms a n d s t a t ed t h a t
Adidas has started using their Primeknit technology after numerous years of research and
development.

22.

SWOT analisys – Threats
9. Risk to Kangaroo Population
Nike has been accused of putting the Australian kangaroo population at risk of extinction. The
leading athletic brand uses kangaroo skin to manufacture leather football shoes. Animal rights
activists and advocates have urged Nike to rethink its strategies and to use plant -based alternatives.
S o f a r, Ni k e h a s n ’t r e s p ond ed t o t h e s e a l l e g ati on s.
10. Nike Faces A Wave Of Retail And Warehouse Thefts
Nike experiences a surge in theft crimes throughout its supply chain, including warehouse and train
thefts. According to the National Retail Foundation, retail theft has become a massive problem in the
United States, with an estimated cost of $95 billion.
The company has reported that thieves are stealing from shelves and vehicles. This forced Nike to
close a popular outlet store in its hometown of Portland. In addition, two suspects were arrested in
Memphis for stealing Nike merchandise worth about $60,000 from five rail cars. Despite having 344
stores across the United States, including outlets and Converse stores, Nike finds it hard to prevent
theft along its entire supply chain.
11 . N i k e S u e s L u l u l e m o n O v e r P a t e n t I n f r i n g e m e n t
N i k e h a s f i l e d a c o m p l a i n t i n M a n h a t t a n f e d e r a l c o u r t a g a i n s t C a n a d i a n a t h l e t i c a p p a r e l c o m p a n y,
Lululemon, alleging patent infringement of at least four footwear products.
N i k e c l a i m s t h a t L u l u l e m o n ’ s B l i s s f e e l , C h a r g e f e e l M i d , C h a r g e f e e l L o w, a n d S t r o n g f e e l f o o t w e a r
h a v e c a u s e d e c o n o m i c h a r m a n d i r r e p a r a b l e i n j u r y t o t h e c o m p a n y.
Although this isn’t the first time Nike sued Lululemon for patent infringement, the recent complaint
alleges that three patents have been infringed, including one addressing the performance of footwear
when force is applied. While the company seeks

23.

Recomendation
The current policy of widening the range of sport activities can be continued and
expanded. Nike can venture into new markets such as fishing, walking, and hiking which
has little entrance barriers. Nike can also expand its market to UK to serve the demands
of customers as Mintel investigation report showed.
N i k e c a n e x p l o i t t h e o p p o r t u n i t i e s a v a i l a b l e o t h e r t h a n s p o r t s a n d c l o t h i n g i n d u s t r y. I t
nay likes to join other companies to expand its product portfolio.
N i k e s h o u l d b e g i n a c a m p a i g n a g a i n s t c o u n t e r f e i t p r o d u c t s i n s p o r t s w e a r i n d u s t r y. T h i s
will increase Nike’s profits and improve PR by becoming more ethical
Nike can benefit from economies of scale if they look for new product and upcoming
brands to take over while still being an alternative brand for Nike.

24.

Conclusion
The current policy of widening the range of sport activities can be continued and
expanded. Nike can venture into new markets such as fishing, walking, and hiking which
has little entrance barriers. Nike can also expand its market to UK to serve the demands
of customers as Mintel investigation report showed.
N i k e c a n e x p l o i t t h e o p p o r t u n i t i e s a v a i l a b l e o t h e r t h a n s p o r t s a n d c l o t h i n g i n d u s t r y. I t
nay likes to join other companies to expand its product portfolio.
N i k e s h o u l d b e g i n a c a m p a i g n a g a i n s t c o u n t e r f e i t p r o d u c t s i n s p o r t s w e a r i n d u s t r y. T h i s
will increase Nike’s profits and improve PR by becoming more ethical
Nike can benefit from economies of scale if they look for new product and upcoming
brands to take over while still being an alternative brand for Nike.

25.

Bibliography
1.
2.
3.

26.

THANKS

27.

28.

PRODUCT
S
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incididunt ut labore et dolore magna aliqua. Ut
incididunt ut labore et dolore magna aliqua. Ut
incididunt ut labore et dolore magna aliqua. Ut
enim admin minim veniam, quis nostrud
enim admin minim veniam, quis nostrud
enim admin minim veniam, quis nostrud
exercitation ullamco laboris nisi ut aliquip ex ea
exercitation ullamco laboris nisi ut aliquip ex ea
exercitation ullamco laboris nisi ut aliquip ex ea
commodo consequat duis aute irure
commodo consequat duis aute irure
commodo consequat duis aute irure
SNEAKERS
JACKETS
T SHIRTS

29.

NIKE
ZOOM
Zoom Air technology gives runners the benefits of a more
responsive and energetic run. It helps rebound from the
road, getting runner's feet on and off the ground quicker
into the next stride
MESH
Allows your feet to breathe and avoids
U
PPER
blister-causing friction.

30.

LACE
Lorem ipsum dolor sit form a amet,
consectetur adipiscing elit, sed do
FOAM
Updated foam provides softer
S
OLE
cushioning than the previous version

31.

SUSTAINABILIT
Y
Nike has made significant commitments to sustainability
and reducing its environmental impact. In 2020, Nike
announced a new sustainability strategy, called "Move to
Zero," which includes several ambitious goals. One of these
goals is to achieve 100% renewable energy across Nikeowned and operated facilities by 2025. Nike is also working
to reduce the carbon footprint of its products by 30% by
2030, and to achieve zero waste across its supply chain by
2025.

32.

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