Strategy

Strategy

A Strategic Fit Analysis of Nike

1.0 INTRODUCTION

1.1 TERMS OF REFERENCE
The purpose of the report is to analyze the overall goals set by Nike and the plans developed to achieve them. The report will further evaluate the degree to which Nike matches its resources and capabilities with the opportunities in their external environment, therefore evaluating the current strategic position of Nike. It will utilize tools such as: a PESTEL Analysis, a Value Chain Analysis, and more to analyze the resources and capabilities of Nike.

1.2 COMPANY HISTORY AND BACKGROUND
In the 1960s under a partnership between Bill Bowerman and Phil Knight, Blue Ribbon Sports was founded. From this foundation came the establishment of Nike Inc in 1971. Nike’s goal is to create a legacy of innovative thinking, whether to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for their shareholders.
Nike has established a strong Brand Portfolio with several wholly-owned subsidiaries including Cole Haan, Converse Inc., Hurley International LLC, NIKE Golf, and Umbro Ltd. Today Nike has expanded from their birthplace in Beaverton, Oregon to operating in more than 160 countries around the globe.

In 2009 Nike implemented 4 Corporate Strategies which they refer to as FY05-06. They are:
  1. To bring about Systemic change for workers in the footwear, apparel and equipment industries.
  2. To create sustainable products and business models.
  3. To become eco-friend in manufacturing, inbound logistics and facilities and travelling.
  4. To increase invest in social programs.

According to Global Market Share, Nike is the world’s largest designer and marketer of athletic footwear and apparel. In 2007 they held 31% of the athletic apparel market share.

Chart 1.1: Athletic Footwear – Global Market Shares
Source: Global Market Share 2007

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