Nike: Business Details, Marketing Strategies And Analysis
Company name Nike
Sector Manufacturing apparel and furniture, Accecories, Sports equipment
Founder(s) Bill Bowerman, Phil Knight
IPO date Wednesday, 17.10.1990
Location Beaverton, Oregon, US
Fundamentals and financials:
Market cup $87.91 billion
Revenue $34.35 billion
Net income $4.24 billion
Shares outstanding 1.641 billion
Annual earnings/share $2.56
P/E ratio 20.92
Company management: Mark G. Parker (Chairman of the Board, President and Chief Executive Officer), Phil Knight (Chairman Emeritus)
Plenty of clothing companies have come and gone over the years, but very few can boast with such a memorable legacy as Nike’s.
Seeing how massive this company currently is, its lineage may be valuable to those eager to gain insight into business in general.
The company didn’t become successful right from the start. In fact, it wasn’t even called Nike back then – the company was founded in 1964 and it didn’t manufacture shoes of its own. It was initially called Blue Ribbon Sports and it was conceived to be the North American distributor for shoes made by Onitsuka Tiger (which would later become ASICS, one of major competitors).
It took the company 7 more years to become “Nike” and move on to bigger and better things. Read more below.
This corporation wasn’t always the epitome success, and the financial details reflect that.
During its first year, BRS sold only about 1,300 pairs of shoes and grossed about $8,000. In stark contrast, the company now earns over $30 billion of annual revenue with a net income of $3,5 billion. Sports apparel is a competitive market, but this corporation seems to edge out competition with clever planning and smart administration. Other relevant financial details can be found below.
Many have tried to copy and maintain a brand image as strong as Nike’s. The tagline alone speaks volumes – ‘Just Do It!’
This slogan first emerged in a 1988 ad campaign and has been used ever since, it’s easily recognizable and extremely memorable. With it, the corporation has established itself as a results-driven corporation. The brand’s logo is worth a mention as well, the iconic ‘Swoosh.’
It’s important to note how the company markets itself – as being made by athletes for athletes. Well-known sports celebrities often get involved with their marketing campaigns; Nike currently uses a mixture of digital marketing channels along with classic ones. Additional information can be found below.
- Nike and Reebok Marketing Strategy
- Nike’s Market Positioning Strategies
- Marketing Analysis of Nike
- Nike Marketing
- Nike Marketing
Structure & Operations
The employee count sits at roughly 74 thousand and grows at a very fast rate every year in order to support the accelerating production.
The company owns total assets valued at $23,3 billion and total equity set at $12,4 billion. So how does the company keep operating?
Nike has adopted a structure that is common to businesses of its kind – regional divisions.
The corporation has manufacturing capabilities in North America, Europe, Asia and Japan. Are there advantages and disadvantages to this approach? Let’s find out.
- Weaknesses Nike
- Understanding the Entrepreneurial Aspect of Nike Incorporated
- Nike Corporate Responsibility
- Nike Business Strategy
Nike is a highly resilient business. It went through a lot during its half a century lifespan, and in order to establish issues and amplify every possible success, it’s important to conduct unbiased and impartial evaluation of the business. The business has a lot of eager competitors who are ready to muscle in on the market share: Reebok, Adidas, Fila and Puma.
Delve deeper into the specifics of this corporation with this list of related materials.