Strategic Management Project

By: Kalpesh D. RathodRoll No : 86

Introduction

Nike, Inc. NYSE:NKE is a major publicly traded sportswear and equipment supplier based in the United States. The is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area.It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of $18.6 billion USD in its fiscal year 2008.It has 30,000 employees world wide.It ranks 153 in fortune 500 companies list.

History1962: Phillip Knight, a Stanford University business graduate and former

member of the track team, arranges to import athletic shoes from Japan and sell them in the U.S.. Knight created Blue Ribbon Sports as a cover name for his small-scale shoe-selling operations

1964: Bill Bowerman becomes a partner by matching Knight's investment of $500.

1965: Hires a full time employee, and annual sales reach $2,000.1966: Blue Ribbon Sports, also known as BRS, rents its first retail space;

employees can now stop selling shoes from their cars.1969: It now has several stores and 20 employees; sales are close to

$300,000.1971: Nike, capitalizing on the Greek goddess of victory. The first Nike

product sold with the new symbol is a soccer shoe.

Cont…1976: The popularity of jogging increases revenue to $14

million.1978: The company changes its name to Nike. 1980: Nike goes public, offering 2 million shares of stock.1997: Feb., Stocks reaches a high of $76 per share.1998: Sept., Stocks tumbles to $31 per share.2003: Nike purchases Converse Inc. for US$ 305 million.2008: Nike acquired sports apparel supplier Umbro, known as

the manufacturers of the England national football team's kits, in a deal said to be worth £285 million (about US$600 million).

Background The company was founded in January 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight,

(Philip Knight) (Bill Bowerman)

Cont…..

The current chairman is Mr. Philip Knight The current CEO and President is Mark Parker

(Mark Parker) As of November 2008, Nike, Inc. owns four key subsidiaries: Cole Haan, Hurley International, Converse Inc. and Umbro

Products

Athletic shoesApparelSports equipmentAccessories

BCG Matrix

Cash-Cow

Stars

Dogs

Question marks

Types Of Strategy

IntegrationStrategy

IntensiveStrategy

Defensive Strategy

Diversification Strategy

Generic Strategy

HorizontalIntegration

ProductDevelopment

Concentric Diversification Downsizing

Cost leadership

Conclusion Through advertising, and endorsements by star athletes, Nike tries to create an image of quality. I do believe that the company has a commitment to quality.

Recommendation’s

Heavy dependence on footwear. Prices