4. PHIL KNIGHT
BILL BOWERMAN
FOUNDERS
“Nike has always been more than just a
company – it has been my life’s passion”
“Victory is having done your best. If you’ve
done your best, you’ve won.”
7. 1964: Blue Ribbon Sports is Founded by Bill Bowerman and Sports Coach Phil Knight
1966: Blue Ribbon Sports’ First Retail Outlet Opens
COMPANY HISTORY
1971: Shifts From Distributor to Manufacturer, Developing the NIKE Line
1972: Launches its First Nike Brand Shoes Model, the Cortez or Waffle Shoes
1978: Officially Named as Nike, Inc.
1980: Nike Stock Goes Public (First IPO: $0.14)
1980: Nike Sport Research Lab Opens
1983: Philip Knight Steps Down and Returns the Following Year
1985: Michael Jordan Signature Basketball Shoes Debut: Air Jordan
8. 1986: Surpasses $1 Billion Dollar Revenue for the First Time
1988: Launches the “Just Do It” Campaign
COMPANY HISTORY
1988: Acquires Cole Haan
1990: Opens the First NikeTown Chain Stores
1990: Moves to World Headquarters Campus in Beaverton, Oregon
1991: Shifts From Innovation to Consumer
1993: Adidas Made a Shift from Sales Driven to a Marketing Driven Company
1994: Acquires Bauer Hockey
1999: Bill Bowerman Passes Away
9. 1999: Nike Begins Online Commerce
2000: Creates Nike Tech Lab Division
COMPANY HISTORY
2002: Acquires Hurley International
2003: Acquires Converse
2004: Acquires Starter: Uniform Lines
2004: Phil Knight Steps Down as CEO, Replaced by William D. Perez
2006: William D. Perez Resigns as CEO, Replaced by Mark Parker
2006: Launches Nike+
2007: Launches NIKEiD
10. Sells Bauer Hockey and Starter
2012:
COMPANY HISTORY
2013: Quarterly Profit Rises Due to Increase in Global Orders for Merchandise
2014:
2014:
Defunds Nike Wearables
2015: Phil Knight Announces His Plan to Step Down as Chairman
2015:
Nike Partners with Apple for Wearables
2011:
Sells Cole Haan and Umbro: “Sharpen its focus”
New Environmental Awareness to Global Markets and Working Conditions
2008:
Yue Yuen Strike in China Factory
2015:
Nike begins $12 Billion Stock Buy-back Program and 2 for 1 Stock Split
11. 2015:
Partnership With Flex Manufacturing
COMPANY HISTORY
2015:
Steph Curry Signs with Under Armor After Dismissing Nike Negotiation
2016: Nike Announces 2 for 1 Stock Split
2016: Nike, Inc. Declares $0.16 Quarterly Dividend
2016: Nike Announces its First Chief Digital Officer: Adam Sussman
2016:
2015: Mark Parker Claims $50 Billion Dollar Revenue Goal by Fiscal Year 2020
2015:
Mark Parker Exposes All Strategies
Nike Invests Trade Promotion Authority With President Obama
2016: Nike Announces Phil Knight to Step Down in June
15. Our Definition
Difficult to imitate
SUSTAINABLE COMPETITIVE ADVANTAGE
Customer experience augmented
through value-added services
High perceived value
Value Based Pricing
Measurable Advertising
• Customer will be less price sensitive
Unique and differentiated
16. “At NIKE, no one determines our future but us. We exist to serve the
athlete and our success is determined by our ability to inspire and
innovate to meet – and often exceed – their expectations. No matter
the macro challenges, we have the plans and strategies to rise above.
The breadth and depth of our powerful portfolio across brands,
categories, geographies, gender and channel is unmatched. And we
remain well-resourced and well-positioned to create competitive
separation and deliver sustainable and profitable growth by continuing
to leverage that portfolio. As always, the key to unlocking our highest
earnings potential is our unshakable focus on the consumer.”
-NIKE, 2015 Annual Report
SUSTAINABLE COMPETITIVE ADVANTAGE
17. “At NIKE, no one determines our future but us. We exist to serve the
athlete and our success is determined by our ability to inspire and
innovate to meet – and often exceed – their expectations. No matter
the macro challenges, we have the plans and strategies to rise above.
The breadth and depth of our powerful portfolio across brands,
categories, geographies, gender and channel is unmatched. And we
remain well-resourced and well-positioned to create competitive
separation and deliver sustainable and profitable growth by continuing
to leverage that portfolio. As always, the key to unlocking our highest
earnings potential is our unshakable focus on the consumer.”
-NIKE, 2015 Annual Report
SUSTAINABLE COMPETITIVE ADVANTAGE
19. Based on our thorough and extensive research, we have become
experts of Nike, Inc. and have gained valuable understanding about its
worldwide position in the highly competitive sports textile industry.
Consequently, we have discovered existing, yet underleveraged
opportunities and resources within the company. We have created
programmatic recommendations that will allow the company to
maximize these opportunities to mitigate risk and create a new form of
sustainable competitive advantage.
SIGNIFICANCE TO LEADERSHIP
21. The sports textile industry is highly-competitive, and driven by consumer
needs. Industry participants must meet the consumer’s needs for time,
convenience, and quality in order to overcome competition.
NIKE has differentiated itself by boldly stating the company’s core
values and strong convictions for high-quality products and ethical
business conduct.
NIKE has the opportunity to create new forms of sustainable
competitive advantage through leveraging intellectual capital,
insulating customer portfolios, and improving distribution channels.
OPPORTUNITY STATEMENT
23. If Implemented, Nike Will Experience
An increased ability to leverage intellectual capital
EXPECTED OUTCOMES
Measurable advertising
Enhanced customer loyalty
Increased profit margins
Differentiate customers based on value
An increased ability to anticipate and meet customers’ needs
Strengthened brand image
25. Limitation of Our Study
Secondary research only
RESEARCH METHODOLOGY
Research Strategy
Environmental scanning
Environmental monitoring
Sources Consulted Example:
Nike News, Nike Annual Reports,
Yahoo Finance
28. PHIL KNIGHT - Founder + Chairman
LEADERSHIP
Visionary | Marketing Savvy | Passionate | Competitive
Director since 1968
Served as the President from 1968-1990,
2000-2004
Remains as Chairman in the Board of Directors
"Play by the rules. But be ferocious."
29. LEADERSHIP
“If you come from the world of packaged goods, where data is always valuable, Nike is very different.
Judgment is very important. Feel is very important. You can't replace that with facts. But you can use
data to guide you.”
WILLIAM PEREZ - Former CEO
Data-Oriented | Consumer-Product Marketing
Former CEO, SC Johnson from 1970-2004
Served as President from 2004 to 2006
Current Senior Advisor of Greenhill & Co.
30. LEADERSHIP
“To be the company that constantly inspires others it’s crucial that we feel inspired ourselves. And that
inspiration strikes in so many ways from collaborating with one another, from staying open to the world
around us and from engaging in our work environments.”
MARK PARKER - Nike CEO
“Multiplier” Leader | Visionary | Creative | Ambitious
Joined Nike as a footwear designer in 1979
Broad range of leadership styles in Nike
before becoming a CEO
Become Nike CEO in 2006
31. LEADERSHIP
"We're really expanding out the idea of brand not only being about great products but also being about
great services in terms of how we connect with our consumers."
TREVOR EDWARDS - President, Nike Brand
Digital Influence | Transformative Leadership
Joined Nike in 1992 as a Regional
Marketing Manager
Named President in 2013
Will be succeeding Mark Parker as next
CEO
32. LEADERSHIP
“Adam is just as passionate about solving a problem for one athlete as he is introducing that innovation to
a global community.” - Trevor Edwards
ADAM SUSSMAN - Chief Digital Officer
Consumer Technology | Strategic Leadership
Prior to joining Nike, Sussman worked at
EA and Disney
Hired as Nike’s first Chief Digital Officer in
2016
33. SUMMARY
United as a Team
Passionate about Nike’s Brands
Share the same philosophy, vision
and mission of Nike
LEADERSHIP
“We are big believers in the power of the collective – in uniting individuals with different strengths,
experiences and points of view. The chemistry across our diverse teams makes us stronger together than
we could ever be as individuals.” - Mark Parker, CEO
35. CORPORATE CULTURE
“Every day at Nike we dream up new ways to inspire athletes to expand their
potential. To do that, we relentlessly evolve how we inspire our own teams and
design environments that foster chemistry and collaboration. Our expanding World
Headquarters reflects the best of Nike’s culture — a place where we obsess the
athlete and invent future products and experiences for consumers everywhere.” - Mark
Parker, CEO
36. CORPORATE CULTURE
Sports created Nike, but design and
innovation made it grow. Our challenge — and
our opportunity - is to use all three to help
people reach their true potential.
- Mark Parker,
CEO
“
“
37. CORPORATE CULTURE
At Nike, we’ve built a culture that attracts
smart, curious and highly creative employees.
Of course a passion for sport is also critical
because no matter where you work — in
design, at retail or in the supply chain — we are
all focused on serving the athlete.
- Mark Parker, CEO
“
“
39. Environment Conservation
CORPORATE CULTURE: SUSTAINABLE INNOVATION
Drive innovation and collaboration and engage in public policy advocacy to
deliver carbon reductions across the value chain
40. Environment Conservation
CORPORATE CULTURE: SUSTAINABLE INNOVATION
Drive innovation and collaboration and engage in public policy advocacy to
deliver carbon reductions across the value chain
Empower Workers
Transform our working relationship with contract factories to incentivize
changes that benefit their workers
Lean approach
Conducting worldwide survey of employees
WE Portal - the dragonfly effect
41. Empower Workers: Satisfaction Survey
CORPORATE CULTURE
QI: Issues of High Satisfaction & High Importance
Q2: Issues of Low Satisfaction & High Importance
Q3: Issues of Low Satisfaction & Low Importance
Q4: Issues of High Satisfaction & Low Importance
Source: FY 15/15 Sustainability Report
43. Environment Conservation
CORPORATE CULTURE: SUSTAINABLE INNOVATION
Drive innovation and collaboration and engage in public policy advocacy to
deliver carbon reductions across the value chain
Empower Workers
Transform our working relationship with contract factories to incentivize
changes that benefit their workers
Support Communities
Catalyze human potential by creating community and business impact
through a portfolio of innovation partnerships, advocacy and movement-
making initiatives with a strong focus on sport and physical activity
46. HUMAN RESOURCE MANAGEMENT
“Empower Your Players. Follow a Collaborative Playbook. Practice as a Team” - NIKE website
Source: FY 15/15 Sustainability Report
47. Recruiting and Hiring
Seeks individuals that exemplify Nike’s culture
Recruits online and in person
Partners with collegiate campuses
HUMAN RESOURCE MANAGEMENT: ATTRACT
Searches for diversity
51. Training
Informal and formal training
Internship program
Lean management approach
HUMAN RESOURCE MANAGEMENT: DEVELOP
Source: FY 15/15 Sustainability Report, Nike Retail Jobs
52. Retaining
Benefits program
Making an impact in the sports industry
Provides platform to grow workers’
potential
HUMAN RESOURCE MANAGEMENT: EMPOWER
Source: Nike Retail Jobs, FY 15/15 Sustainability Report
54. ORGANIZATIONAL STRUCTURE
Digital Chief Officer
"It’s a mix. Traditional hierarchic top-down is archaic, it’s just not real. On the other side, everything is
not bubble-up. That ratio, top-down to bubble-up, will shift based on situations. I’m a big believer that
there’s no one single approach." - Mark Parker, CEO
61. Wholesalers
Largest revenue category
DISTRIBUTION CHANNELS
Contributes 83.3% of retail sales
Lower profit margins
Nike reduces competitive stake
Increasing focus on direct-to-
consumer
Retail Partnerships
Footlocker
Department Stores
Lifestyle Clothing
Sports Retailers
Source: Nike Investor Relations
62. CORPORATE CULTURE
...we cannot completely control the use of our licensed brands by
our licensees. The misuse of a brand by a licensee could have a
material adverse effect on that brand and on us.
2015 Annual Report
“ “
63. Direct-to Consumer
Higher Profit Margins
DISTRIBUTION CHANNELS
Growing Category
23% of Sales
E-commerce
Factory Stores
Source: Nike Investor Relations
79. CASH RATIO
Cash Ratio
Cash on Hand
Current Liabilities
2015- $2,534 million
2013- Completed 4-year
$5 billion share
repurchase program
Source: Nike 2015 10K Annual Reports
81. DEBT TO EQUITY RATIO
Debt to Equity
Total Liabilities
Shareholder’s Equity
10.2 below required
maximum
Nike below industry
average of 39.6
UA Financing Growth
with Debt
Source: Yahoo Finance UA CFO Quote
83. FINANCE: SUMMARY
Nike leads the industry in the majority of categories
Under Armour has been aggressively taking on debt to grow its company in its
efforts to compete with Nike
There is still a $13 billion gap in revenues between Nike and Under Armour
Observations
85. Core Product Group
PRODUCT
Product Differentiation
Nike+
Innovation is key
1. Team, Trefis. "Nike Faces Tough Competition In Europe and China." Forbes. Forbes Magazine, 4 Mar. 2014. Web. 13 Mar. 2016.
2. Siegel. "Nike and Adidas: Different Strategies for Telling Their Brand Stories." Siegel + Gale. N.p., n.d. Web.
Highly Competitive Industry
Shoes, Apparel, Equipment
“But at NIKE, innovation is more than something we do – it’s who we are.” - NIKE Annual Report
“The plus means more. More gear, events, and coaching, just for you.” - NIKE Website
Differentiated by NIKE brand
Creates powerful experiences
Personalized service
Expanded benefits
Oriented around customer needs
88. Cost Plus Pricing (Past)
PRICE
Price + Revenue Increases
Footwear prices increased 5% (2014)
Increased customer perceived
value
1. MacLeod, Ryan. "NIKE Pricing Strategy: Cost-Plus vs. Consumer Value Equation." Marketing Discussions. N.p., 18 Mar. 2015. Web. 13 Mar. 2016.
Premium Pricing (2014)
Nike increased sales by $168M by
driving up average selling price¹
“NIKE brand footwear and apparel revenues increased 12% and 10% respectively…Footwear unit sales in fiscal 2014
increased approximately 7% and the average selling price per pair increased approximately 5%, driven nearly equally by price
increases and a shift in mix to higher priced products.” - NIKE Annual Report 14’
Footwear revenue increased 12% (2014)
Apparel revenue increased 10% (2014)
89. NIKE Stores
PLACE
Online Sales
Increased data capture capabilities
Innovation drives online growth
1. "Total Number of Nike Retail Stores Worldwide 2009-2015 | Statistic." Statista. N.p., n.d. Web. 14 Mar. 2016.
Key Domestic Retail Partners
Foot Locker
Dick’s Sporting Goods
Finish Line
91. Goals of Promotions
Increase brand awareness
Motivate response
PROMOTIONAL GOALS
Nike’s Goals
Drastic shift from company’s
inception
Understanding the evolving
needs of the consumer
Build and insulate relationships
Source: Nike Inc., 2015 10K Annual Report | Nike News
“We’ve come around to saying that Nike is a marketing-oriented company, and the product is
our most important marketing tool.” -Phil Knight
92. Create Awareness
Increase brand image
ADVERTISING
Advertising Budget
In 2015, Nike spent $3.2B on
“Demand Creation”
People make decisions based on
emotions
Create Emotional Connections
New product lines, sub-brands
“That’s why you have to start with a good product. You can’t create an emotional tie to a bad product because it’s not honest.
It doesn’t have any meaning, and people will find that out eventually.” - Phil Knight
Source: Nike Inc., 2015 10K Annual Report | Nike News
94. Recent Positive PR
“Nike Named Top Endorsed Brand.”
“Nike in Top 10 for Social Responsibility Reporting.”
PUBLIC RELATIONS
“Nike Is the Most Valuable Apparel Brand in the World.”
Pilon, Anne. "Celebrity Endorsements Survey: Nike Named Top Endorsed Brand." AYTM. N.p., n.d. Web. 14 Mar. 2016.
"Nike Named Top 10 for Social Responsibility Reporting." NIKE, Inc. N.p., n.d. Web. 14 Mar. 2016.
Friedman, Vanessa. "Nike Is the Most Valuable Apparel Brand in the World." The New York Times. The New York Times, 29 May 2015. Web. 14 Mar. 2016.
Recent Negative PR
“China Shoe Plant Strike Disrupts Output at Nike.”
“Nike workers 'kicked, slapped and verbally abused' at factories making
Converse.”
95. Jordan Brand
Originally signed in 1984
ENDORSEMENTS
LeBron Brand
Original deal signed in 2003 for 7
years - $90M; resigned in 2010
Paid close to $100M in brand
royalties per year
$2.5B generated in sales/per
year from Jordan Brand
“We can confirm that we have agreed to a lifetime relationship with LeBron that provides significant value to our business,
brand and shareholders. We have already built a strong LeBron business over the past 12 years, and we see the potential for
this to continue to grow throughout his playing career and beyond.” - NIKE Public Statement
$340M worth of LeBron shoes
sold in 2015
First-ever lifetime contract
signed by Nike in 2015
Source: Business Insider
96. Special Offers
Dedicated section of their
website to clearance items
SALES PROMOTIONS
Response Motivators
Limited to select holidays
and email subscribers
97. Front-line Employees
Direct interaction with the
customer
No separation in distribution
channel
PERSONAL SELLING
Personalized Service
Advanced Gait technology
Complete video evaluation
98. DIRECT MARKETING
Traditional Direct Marketing
Email program
Issued catalog
Social media conversations
Nike Plus Marketing
Engage directly with customer
Data driven interaction
99. New Strategy
Nike Fuel PR
Social media campaigns
SOCIAL MEDIA
Main text here
Enter statistic here. Add some
% and some numbers
Artistic branding
100. $7 billion goal
E-COMMERCE
C.D.O Adam Sussman
Growth Plan
Direct-to-consumer
Nike Plus accounts
Clearance Promotion
Online Shopping
Nike ID
108. ADIDAS
We are innovation and design leaders
Mission Statement
We are consumer focused
CEO | Geoffrey Smith
Socially and environmentally responsible
Deliver consistent outstanding financial
results
Going forward, speed will be a key
competitive advantage for us as we
transform the adidas Group into the
first true fast sports company
Competitive Advantage
109. UNDER ARMOUR
Make all athletes better through passion,
design, and the relentless pursuit of
innovation
Mission Statement
Being good at the underdog
Competitive Advantage
“I Will” campaign
CEO | Kevin Plank
110. DIRECT COMPETITORS
New Balance
-Private
-Running
-Made in
America
-No Celebrity
Endorsements
Puma
-Casual
-Athletic
-Strong Global
Brand
-Celebrity
Endorsements
Skechers
-Less Technology
-Comfort
-New Athletic Focus
-Purchased Umbro
-$3 Billion
Nike Lawsuit
114. The Digitsole Smartshoes
“The Smartshoes are the first connected, interactive, heated, and shock absorbent
shoes with automatic tightening that can be controlled via your smartphone.”
TECHNOLOGY
119. Brand Image
Nike has grown to one of the most
well-established brands in the
world
STRENGTHS
Integrated Distribution Channels
Increasing Profit Margins
Corporate Culture
Leverage over retail partners and
tapping into e-commerce
Innovative and highly motivated
Premium pricing
Charismatic Leadership
Employees are inspired and
empowered
Internal R&D
Intellectual Capital
Financial Strength
Innovative and proprietary
technology
Profit margins
HR program
120. Negative Perception of Outsourcing
Previous scandal with “sweatshops” outsourcing
WEAKNESSES
Lack of Utilizing Customer Data Capture Opportunities
Underleveraged Loyalty Program
Not leveraging the customer’s data from retail partners
Negatively affects brand image
No significant differences for Nike+ members
Inconsistent Pricing Strategies
121. OPPORTUNITIES
Millennial Market
An emerging market
Athleisure popularity
Direct-to-Consumer Selling
E-commerce
Publicize Corporate Responsibility
Many ethical efforts on behalf of Nike are not widely known
Deeper Customer Profiling
Expand customer database through response motivators and other
techniques
122. Consumer Behavior
Shift and trends directing 50 billion dollar initiative
THREATS
Indirect Competition
Foreign Production Factors
Millennial market is quick to change
Different economies
Direct-to-consumer approaches integrated with new technology
Manufacturers gaining leverage
124. Our Definition
Difficult to imitate
SUSTAINABLE COMPETITIVE ADVANTAGE
Customer experience augmented
through value-added services
High perceived value
Value Based Pricing
Measurable Advertising
• Customer will be less price sensitive
Unique and differentiated
125. Direct-to-Consumer
DTC programs
Identify customers with data
POTENTIAL FORMS OF SCA
Brand Image
Remove clearance items
Further premium product lines
Leverage data
Intellectual Capital
Drive Nike’s innovation
Training programs
128. VIABLE ALTERNATIVE I
“We used to think that everything started in the lab. Now we realize that everything spins off the
consumer.” -Phil Knight
Direct-to-Consumer
129. Direct-to-Consumer
Separate from third-party distributors
Employee engagement - live customer
support
VIABLE ALTERNATIVE I
Increase online sales presence
Expected Outcomes
Higher profit margins
More data capture opportunities
Determined for Future Study
Lack of primary research - third party contracts, slow process
Greater feasibility in future timeline of Nike
131. VIABLE ALTERNATIVE II
Employee Development Program
“One of my biggest
sources of angst is having
people so comfortable with
a formula that works that
they are not challenging
themselves or their ideas.”
-Mark Parker
132. Employee Development Program
More cross-functional teaming
Opt in opportunities
VIABLE ALTERNATIVE II
Communicate better with front-
line employees
Expected Outcomes
Increase innovation
Differentiate intellectual capital
based on current and future value
Determined for Future Study
Difficult to change corporate culture
Nike currently undergoing leadership transition
Better data capture abilities
138. PROGRAM OVERVIEW
Personalized Customer Profiles
Exclusive benefits to our most valuable customers
Expanded applications and customization
Data Capture Platform
Customer segmentation
Needs anticipation
139. PROGRAM RATIONALE
Underleveraged Loyalty Program
Easily replicated
Lack of augmented value-added services
Underleveraged Customer Database
Lack of application integration
Restricted to application + services, rather than customer membership
“You have to come up with what the consumer wants, and you need a vehicle to understand it.” -Phil Knight
140. PROGRAM OBJECTIVES
Increase Customer Share
Insulate customer’s loyalty to the brand
Increase long-term market share
Differentiate Customers by Value
80% of sales come from top 20% of customers¹
Leverage data from highest valued customers
1. https://www.entrepreneur.com/article/229294
Integrate Program
Personal Selling
Augmented Services
Profiling
141. THREE TIER PROGRAM
BRONZE SILVER GOLD
Victory Shipping
Further Customized NIKE ID
Tablet Customer
Experience
Victory Shipping
Further Customized NIKE ID
Tablet Customer Experience
Workout Workshops
Celebrity Exercise Videos
Event Access
Access to Nike Headquarters
Gym Partnerships
Exclusive Product Releases
Victory Shipping
Further Customized NIKE ID
Tablet Customer
Experience
Workout Workshops
Celebrity Exercise Videos
Event Access
142. BECOMING A VICTOR
Future Value Customers
Invitation through Nike’s measurements
Purchases Retention
Present
and Future
Value
151. AREAS OF FUTURE STUDY
Initiate direct-to-customer strategies
Employee development program
Further expansion into global markets
Domestic manufacturing
HR Management
Leadership succession plan
154. Teamwork as the Body of Christ
SPIRITUAL INTEGRATION
21 The eye cannot say to the hand, “I have no need of you,” nor again the
head to the feet, “I have no need of you.” 22 On the contrary, the parts of
the body that seem to be weaker are indispensable, 23 and on those parts
of the body that we think less honorable we bestow the greater honor, and
our unpresentable parts are treated with greater modesty, 24 which our
more presentable parts do not require. But God has so composed the
body, giving greater honor to the part that lacked it, 25 that there may
be no division in the body, but that the members may have the same
care for one another. 26 If one member suffers, all suffer together; if
one member is honored, all rejoice together.
(1 Corinthians 12: 21-26)
155. For the Glory of God
SPIRITUAL INTEGRATION
17 And whatever you do, in word or deed, do everything in the name of
the Lord Jesus, giving thanks to God the Father through him.
(Colossians 3:17)
31 So whether you eat or drink or whatever you do, do it all for the glory
of God.
(1 Corinthians 10:31)
161. LEADERSHIP
“I want to create a new long-term financial model that delivers sustainable profitable growth, more
strategically bringing our category offense plan into our major markets.”
ANDY CAMPION - CFO
Strategic Planning | Organizational | Finances
Joined Nike as VP Global Planning and
Development in 2007
Appointed CFO in 2010
Added SVP Strategy to accompany CFO
162. LEADERSHIP
"It's about putting your resources up against the most critical opportunities and supporting them with
very great operating processes, great leaders and great managers."
DAVID AYRE - Global Human Resources
Inspiration | Development | Talent Scouting
Prior to Nike, David led the Talent and
Performance Rewards functions at PepsiCo.
Hired as HR Executive for Nike in 2007
163. LEADERSHIP
ERIC SPRUNK - Chief Operating Officer
Strong Work Ethic | Competitive | Team Player
Previously, Executive at Price Waterhouse
managing the Nike account
Joined Nike in 1993 as Finance Director
Hired as the COO in 2013
“At Nike we are very competitive, we know we are competing for our consumers. We work very hard at it
and I like that. But our culture is very team-oriented and that is what makes us so successful.”
164. Jeanne P. Jackson - President, Product & Merchandising
LEADERSHIP
“Jeanne is one of the most experienced and talented leaders in the retail industry and
over the past eight years, she has been a strong and visionary director for our company.
- Mark Parker
Hilary Krane - Chief Administrative Officer & General Counsel
“Hilary’s broad experience will be a great asset to Nike as we continue to
grow our business globally,” - Mark Parker
John Slusher - Global Sport Marketing
"John is a fascinating mix of intelligence, negotiating savvy and compassion"-
Chris Bevilacqua (a partner at SCP Worldwide)
165. Reasons of resignation:
Knight is still heavily involved with NIKE’s leadership (Perez)
WHY PEREZ STEPPED DOWN
“Perez didn’t understand the unique the company and its Nike brand” (Knight)
Nike was doing well before and there’s no big opportunity for Perez (Analyst)
Overwhelmed with growth and prioritizing Nike’s many brands (Perez)
166. Yue Yuen Strike in China Factory
Largest Strike Affects Industry Wide
Nike “Sweatshop” Suppliers
YUE-YUEN STRIKE
Strike Negotiation Settles with Social Security Benefit
2014:
167. How Nike Managed to Solve Its Sweatshops Scandal?
The real shift begins with a May 1998 speech by then-CEO Phil Knight.
“The Nike product has become synonymous with slave wages, forced
overtime, and arbitrary abuse,” Knight said. “I truly believe the American
consumer doesn’t want to buy products made under abusive conditions.”
In 1999, Nike begins creating the Fair Labor Association.
In 2005, Nike becomes the first in its industry to publish a complete list of
the factories it contracts with and published detailed reports about its
factories and workers conditions
2005 until present, The company continues to post its commitments,
standards, and audit data as part of its corporate social responsibility
reports.
SWEATSHOPS SCANDAL
169. Shoes and Gear
Lunarlon cushioning
TECHNOLOGY
Max Air
Nike Zoom
Hyperfuse
Nike Shox
Nike Free
Flywire
Nike Air
Dynamic Support
Flyknit
170. Under Armour Connected Fitness
“Track, analyze, and share your fitness activity
with the world’s first social network for athletes
and fitness enthusiasts.”
Family of Apps
TECHNOLOGY
UA Record
MapMyFitness
Endomondo
MyFitnessPal
171. Support Communities: Programs
Homeless World Cup
Ninemillion.org
Stand Up Speak Up
Let Me Play in China
Fighting HIV/AIDS through soccer
The Girl Effect
CORPORATE CULTURE: SUSTAINABILITY
172. NIKE INC MARKET PRICE
Source: Yahoo Finance
NYSE
Data Last Opened:
March 17, 2016
6:33 AM EDT
174. Nike sued Skechers for infringing 8 patents
It comes 4 months after Adidas sues Skechers for copying their design
The "overall appearance of the designs of the Nike patents and the
corresponding designs of Skechers' infringing shoes are substantially the
same."
Nike wants to ask the judge to order Skechers from selling those product.
Nike also seeks additional remedies from the profits of selling those
products.
LAWSUIT WITH SKECHERS
178. The dangers to pulling out of all distributors
Due to the high fixed cost
structure associated with our Direct to Consumer operations, a
decline in sales or the closure or poor performance of individual
multiple stores could result in significant lease termination costs,
write-offs of equipment and leasehold improvements and
employee-related costs.
VIABLE ALTERNATIVE I
Source: Nike Inc., 2015 10 K Annual Report
179. The impact towards Nike
Under Armour sales grew 754% in 2015 after Curry won MVP and
Warriors won the NBA title.
Steph Curry continues to be a rising star with the chance of becoming the
new face of NBA like Jordan or Kobe.
STEPH CURRY IMPACT ON NIKE
Why Nike lost the deal with Curry
Nike presented Curry wrongly during the pitch meeting
181. Women
Sales growth has outpaced men’s
business
“Athleisure trend”
CUSTOMERS
Women’s line could add $2
billion in sales by 2017
182. Young Athletes
Youth athletes are a growing part of
the athletic apparel market
Drawn in through local leagues,
clubs, and federations, as well as
partnerships with professional
athletes
CUSTOMERS
183. Our Definition
Difficult to imitate
SUSTAINABLE COMPETITIVE ADVANTAGE
Customer experience augmented
through value-added services
High perceived value
Value Based Pricing
Measurable Advertising
• Customer will be less price sensitive
Unique and differentiated
187. Example of golden questions
Do you participate in any athletic events? If so, what are they?
What is your favorite line of Nike products?
How often do you run?
How do you rate yourself in athletic ability?
How could your customer experience be improved?
GOLDEN QUESTIONS
188. Direct to Consumer Stat
In fiscal 2015, Nike’s DTC revenue came in at $6.6 billion—a
25.1% year-over-year growth. Nike derived 23.1% of its total sales
from this channel in fiscal 2015, compared to 16.2% in fiscal 2012.
Nike’s targeting $8 billion in DTC sales by fiscal 2017.
NIKE Sales Mix - Direct to Consumer
189. Hedging
Our investments in working capital decreased due to increases in accrued
liabilities, primarily resulting from the receipt of $968 million of cash collateral
from counterparties as a result of hedging activity.
Why Nike has much liabilities
190. Nike Buys Back Shares
September 2012 $8 billion buyback program
2015 Third Quarter Purchase 24.3 millions shares ($1.5 billion)
Share Repurchase Program
September 2012 $8 billion buyback program
Source: Nike Inc., 2015 10Q Report
198. Work Cited
Nike History and Timeline. (n.d.). Retrieved May 16, 2016.
O'Reilly, L. (2014). 11 Things Hardly Anyone Knows About
Nike. Retrieved May 16, 2016
Studios, F. (n.d.). Just Watch It: The History Of Nike In 3
Minutes. Retrieved May 16, 2016
Mini-case study Nike's. (n.d.). Retrieved May 16, 2016
High-Performance Marketing: An Interview with Nike's Phil
Knight. (1992). Retrieved May 16, 2016,
A.(n.d.). History. Retrieved May 16, 2016, from
http://www.adidas-group.com/en/group/history/
This is Nike's secret weapon: Converse. (n.d.). Retrieved
May 16, 2016
Nike News. (n.d.). Mark Parker Named CEO, William D.
Perez Resigns. Retrieved May 16, 2016
McGrath, M. (2015, November 19). Nike Pops After
Announcing 2-For-1 Stock Split, Dividend Hike And $12
Billion Repurchase Program. Retrieved May 16, 2016
REFERENCE PAGE
Situational Analysis
Nike News. (n.d.). Sustainable Innovation. Retrieved May 16, 2016
Nike Innovation (Rep. No. FY 14/15). (n.d.). Retrieved May 16, 2016, from Nike
website: http://about.nike.com/pages/sustainable-innovation
Innovation drives us. (n.d.). Retrieved May 16, 2016, from
http://retailjobs.nike.com/article/innovation
GalbRaith, J. R. (n.d.). ORGANIZATION DESIGN Challenges Resulting from Big Data.
Retrieved May 16, 2016
Nike Investor Relations (Rep. No. FY 15). (2015). Retrieved May 16, 2016, from
Nike website: http://investors.nike.com/investors/news-events-and-
reports/?toggle=earnings
Soni, P. (2015, October 12). Why Under Armour Expects to Take on More Debt to
Fund Growth. Retrieved May 16, 2016
1. Team, Trefis. "Nike Faces Tough Competition In Europe and China." Forbes.
Forbes Magazine, 4 Mar. 2014. Web. 13 Mar. 2016.
2. Siegel. "Nike and Adidas: Different Strategies for Telling Their Brand Stories."
Siegel + Gale. N.p., n.d. Web.
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