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NIKE, Inc. Introduces 2015 Global Growth Strategy
Brandon Armatas Billy Lane Brandon Rice
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Company Background Established in Eugene, Oregon in 1964 as Blue Ribbon Sports Became Nike in 1978, HQ in Beaverton Founded by Phil Knight and Bill Bowerman Sell high-quality sports equipment, apparel, and shoes across numerous categories Nike owns Converse, Hurley, Umbro, and Jordan brands Named after Greek goddess of victory
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Financials 2009 net income of $1.49 billion
2009 gross revenue of $19.2 billion Pursue both organic and external growth Nike brand accounts for 85% of revenue
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Revenues by Category Action Sports - $390 million
Athletic Training - $1.4 billion Basketball - $1.7 billion Football - $1.7 billion Running – $2.1 billion Sportswear - $4.9 billion Women’s Training - $740 million
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Marketing Strategies Excellent marketing campaigns featuring popular athletes Positioned themselves as a premium brand Popular slogans and trademarks eg. “Just Do It”, Nike swoosh, and Nike Air
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SWOT Analysis Strengths: Opportunities: Weaknesses: Threats:
Strong Brand Loyalty Strong Brand Equity Effective Advertising Product Development + Innovation Opportunities: R & D Fashion Potential Global Markets New Categories Weaknesses: Bad Publicity Human Rights Concerns Most Market Share from Footwear Highest Prices in Cost-Sensitive Sector Threats: Consumer Spending Down Emergence of Competitors Piracy and Counterfeiting
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Article Nike plans for significant growth by 2015
Investing $500 million to develop direct-to-consumer business new niche-specific Nike stores, smaller than Niketowns Grow/develop all geographic regions Grow all non-Nike brands by $1.5-2 billion
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References The internet
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