Nike Today: The Latest Nike News, Releases & Deals

Introduction 

Nike is the largest fashion company worldwide that deal with designing, marketing, and distributing athletic footwear, apparel, and other sports equipment. Since its formation, Nike focused on continuous innovation and product quality, factors that have profoundly contributed to its success over the years. Nike has not been left behind in investing in digitalization. An idea of two men later became to be a global business and investments generating billions of dollars annually. A company that started as a single retail outlet in 1966 is currently the leading designers of sports equipment; Nike became a brand that superseded one’s expectation ( Ahmed, 2016) . The success of Nike Company is contributed by its vision and mission, which ensured the multinational company does not stray away from its strategic goals. According to Ozanian (2014), Nike is the most preferred brand of choice by many consumers . Today, Nike Company leads the world in designer, marketing, distributing authentic footwear, apparel, equipment, and accessories. Nike's efficient designs are worthwhile and have a significant impact on its users, especially athletes. 

Company Overview 

Nike was formed by Bill Bowerman, a track-and-field coach at the University of Oregon, and his former student Phil Knight. Bowerman wanted to give athletes a competitive advantage by experimenting in running shoes. A knight was the first person to experiment with different brands of Bowerman's shoes to test their competitive advantage in athletics. Later, Knight gave the shoes to teammate Otis Davis who won gold in 400-meters dash during the 1960 Olympics. Between 1964 and 1969, the two visionary innovators designed various athlete's shoes and gave them to multiple shoe companies like Tiger shoe company. Phil Knight and Bill Bowerman found Blue Ribbon Sports in 1964, which worked in ties with Onitsuka Tiger. Later, Blue Ribbon Sports rebranded itself as Nike Inc as the two innovators continue creating better designs to give running shoes more traction. Waffle Trainer athlete's shoe was the most successful design invented in 1980, making Knights a millionaire with shares worth 178 million dollars ( Ahmed, 2016) . Nike began expanding and diversifying in other sports products in the 1980s (O’Reilly 2014). From the beginning, Nike used celebrity endorsers to sell their products with earlier athletes been Tiger Woods, Kobe Bryant, and Lebron James. The most lucrative endorsement that Nike has ever had is Michael Jordan. As the ambassador, Jordan rose to superstardom with his shoe like Air Jordan, reaching over $100 million revenue by 1985 ( O' Reilly, 2014) . Up to today, Air Jordans earns high for Nike, and Jordan continues earning roughly $100 million Nike Royalty annually. 

Present Status 

Nike has its headquarters at Beaverton, Oregon. Currently, Nike has acquired numerous shoe companies with major ones been surf-apparel company Hurley, Lebron James and Kobe Bryant, Converse, and Derek Jeter. Phil Knights stepped down as the CEO of Nike Inc in 2004, but the CEO retains his role as the chairman while William D Perez took over the role CEO. Since 2012, Nike became the official supplier of the apparel National Federation League (NFL), and in 2015 it became the official supplier of National Basketball Association (NBA) apparel. Starting from January 2020, Nike will have a new CEO John Dohanoe. Nike factory is located in Asia, which supplies shoes to over 700 Nike shops and offices located in over 45 countries. With the largest store located in London. For several years, Nike has faced criticism for contracting with sweatshops. The company operates under the principle of establishing cheap labor to produce same-quality goods, a principal that has affected its market. 

Nike SWOT Analysis 

Nike Strengths 

Nike has established its success through a strong, memorable, and recognizable brand. Nike is one of the most recognized brands of sports apparel across the world, and its name is memorable. The name "Nike" is unique and easy to pronounce. Also, the swoosh symbol of Nike is recognized by everyone and has currently captured 31% of the world market in athlete footwear ( Epstein, Buhovac, & Yuthas, 2010) . Nike products are globally recognized and are ranked among the top recalled among youths customers due to their fitness and endurance. The strength of Nike is a vast customer base from across the world. Since its formation in 1964, Nike has earned the loyalty of many customers globally who follow Nike's trends, give adequate feedback to better the product, and participate in Nike events. Today, Nike has established a huge customer base for both athletes and casual wear. According to "NIKE Revenue 2006-2018” (2018), as per the 2018 financial year, Nike had grown to 115.19 billion dollars. 

Nike finds its strength in the low manufacturing cost of its products. Nike manufactures most of its footwear in foreign nations, where the cost is low. For instance, in 2018, Nike manufactured 47% of its products in Vietnam, 26% in China, and 21% in Indonesia ( Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016) . Low manufacturing cost gained from labor and material has made it possible for the company to survive during the economic crisis and continue making a huge profit. The innovative culture of Nike products has been the pillar of the company since its formation. The two co-founders of Nike, Knights, and Bowerman are innovative leaders who introduced the culture of innovation to the entire Nike. Rapid innovation process adopted by Nike enables the company to create cutting edge designs for various athletics footwear, apparel, and equipment ( William, 2012) . Lastly, Nike research and development team takes pride in the product that will be produced. The team researches the suitability of the products making it perfect for individuals across the globe. 

Nike Weaknesses 

Weaknesses are internal factors that reduce the performance of a business in the market. The major weakness of Nike Inc is scrutiny over manufacturing, which has affected the image of the company globally. For the last 20 years, Nike has faced critics from the press and the public for targeting poor labor conditions. Despite having its capital in Beaverton, Oregon, Nike manufactures its producers oversee countries like Asia and China, where the cost of labor and material is cheap ( Brohi et a l., 2016) . Nike has been accused of taking jobs from the American workforce. Nike left the American shoe manufacturing industry without making an impact on it and moved its production to Vietnam, Indonesia, and China, where there is cheap labor. Nike engages in poor working conditions like low wages, horrific working conditions, working extra time without pay, and child labor. Nike workers earn as little as 20 US cents an hour and are expected to work for 80 hours per week. Workers are poorly paid, yet they make billions of dollars for the company. Women workers in Nike are oppressed and mistreated through sexual harassment, denial of paid maternity leaves, and other personal leaves. The above weaknesses of poor pay and poor working conditions limit the global growth of Nike. The company needs to improve its various strategies and policies in areas of labor and employment and penetration into the already developed markets. 

Nike Opportunities 

Nike Inc is a highly recognized company ranked top in the manufacture of sports apparel; hence has the opportunity fir to enhance its performance. The first opportunity of Nike Inc is the emerging markets-more presence is needed in other external markets. Although Nike is known globally for its quality products, there is still an opportunity for growing further in the gradually flourishing markets like Brazil, India, and China ( DeLong, 2016 ) . The company can grow and expand its performance in the emerging markets due to its high growth potential. The company needs to reform some of its policies and strategies, especially in labor and employment, to ensure it continues been a global leader in athletic footwear and apparel. Another opportunity for Nike is innovative products that deal with technology ( Epstein et a l., 2010) . Although Nike has produced many products since the 1960s, there is an opportunity to develop more. Advancement in technology creates more opportunity for Nike to produce more products associated with health and fitness. According to DeLong (2016), Nike needs to adopt wearable technology for monitoring physical activities. When Nike combines athletic wear with technology, it can expand its innovation to the fashion industry. 

Threat 

Despite being the global leader in athletic apparel and shoes, Nike faces threats which limit their global performance. The primary threat faced by Nike is a counterfeit product, which easily hurt the brand reputation and revenue. For the past few years, Nike has encountered risks of counterfeit products from merchandisers and retailers who sell their products at a low cost. The products are made from low-quality products bearing the Nike name and logo. These products tarnish the reputation of Nike globally as loyal customers feel the company is producing low-quality products ( Brohi et a l., 26) . Another major threat faced by Nike Inc is increased competitive pressure to the point where Nike pays a heavy price for marketing. Although Nike dominates the sportswear market, the new emerging brands pose a threat to the company. Nike is forced to spend extra money for intensive marketing and advertisements. Nike spent 3.5 billion dollars in 2018 for marketing. Nike can overcome high competition by innovating more quality products tailored to meet the needs of athletes. 

Nike's Marketing; The four Ps of Marketing 

Marketing is a vital strategy used by companies to determine their profitability and growth in the global market. Fashion wear is a competitive industry that requires high marketing to reach customers globally. Today, organizations have adopted the use of the marketing mix of 4Ps to measure their profitability in the athletes wear and apparel. Marketing mix of 4Ps determines various tactics and strategies used by companies to execute their marketing plan while focusing on products, place, promotion, and price ( Dominici, 2009) . Nike has adopted a marketing mix in its athletic products to satisfy the needs of customers. The 4Ps of Nike has evolved with time to respond to the changing trends in fashion and wear, athletics, local and international policies, and demands. 

Products 

Product is an element of the marketing mix that shows various products offered by the company. Nike Inc offers a variety of products ranging from shoes, equipment, apparel, and accessories. The products are designed to suit all genders and customers of different ages. With all the variations of the product that is produced through Nike Shoes and clothing are the most popular items. There are shoes designed for athletics, basketball, football, gym, and also lifestyle ( Gregory, 2018) . Nike also offers other sportswear like tech fleece and Windrunner for athletes, tops, jersey, socks, Hoodies and Pullovers-shirts, shorts, and pants. The products have the logo and brand of Nike, including Air Jordan, Hurley, and Converse ( Nike Product, 2019 . Based on the growth strategy of Nike, the company integrates new technology when producing its products to improve the effectiveness of the products and attain customer satisfaction. ` 

Place 

Place as an element of marketing mix outlines the location or venues where customers can purchase and access Nike’s products. Nike Inc has various outlets worldwide where it sells its shoes, apparel, and other support equipment. The major Nike distribution strategies for its different products in order of significance include retail stores, Nike Online Store, and Niketown retail outlets (company-owned). Most of Nike's products are sold to retail strategically located and easily accessible ( William, 2012) . For instance, Wal-Mart store is a major Nike retail outlet. The place element shows the customers where they can purchase the company's products physically and online. The outlets are owned by Nike hence easy to access business and market information for supporting corporate strategic management. Therefore, Nike controls sales and distribution through online sales and Niketown retail outlets. 

Price 

The element of price identifies costs that the company applies to maximize profit while attracting customers from across the world. Through investing in technology, Nike manages to offer its products at a premium. When setting the price, Nike considers the condition of the markets when setting price points and ranges Price mix determine the maximum price that consumers are ready to pay for the products. The pricing strategy of Nike is similar to that of competitors involving high prices based on premium branding strategies, which make Nike products high in quality compared to competitors like Adidas. Nike increased its pricing in 2014, which led to the generation of high sales and revenues ( Gregory, 2018) . Up to today, Nike continues increasing the selling prices of its products while generating high revenue. The goal is to lead in manufacturing products that bring out the best in athletes ( Nike Product, 2019 ). Changes in pricing are linked to changes in socio-cultural and economical, which shapes the nature of marketing. 

Promotion mix 

Promotion is an element of marketing mix which shows various tactics used by Nike to communicate with customers. Nike relies on promotion to maintain the image of its brand. Different communication tactics are used to communicate to customers about Nike's products and persuade potential customers to buy. The primary promotional activities of Nike in order of priority include advertising, personal selling, direct marketing, sales promotion, and public relations. Nike uses advertisement intensively like the use of celebrity endorsers to attract customers worldwide ( William, 2012) . Most of the Nike personnel at retails are trained on how to persuade customers to purchase more products. As a way of attracting more customers, Nike uses public relations to boost its brand name and reputation across the world. The company engages in community-based activities to promote its products and at the same time, use high-profile endorsers to promote the products. 

Nike’s Financial Status 

Since its formation, Nike focused on increasing financial status through increased sales. Apart from its popularity in sports products, Nike is also known for its great stocks. Nike stocks have high market liquidity, and little debts, as indicated in their balance sheets. A ccording to CFO, Andy Campion reports growth is paramount at Nike, and the steady growth is driven by strategic transformation (Nike.com). Even in a time of market uncertainty, Nike is always safe due to its strong balance sheets containing market valuation of US$123. Nike has a debt of 39% of equity, which leverage and safe for companies giving them opportunities for future growth ( Bajpai, 2018) . Financial results of Nike Revenue 2006-2018 shows that full-year revenue rose $39.1 billion, up 7%. Nike has demonstrated its ability to generate more revenue by reinvesting capital while keeping the debts low ("NIKE Revenue 2006-2018”). Based on the analysis of the financial status, it is evidence that Nike is successful and leads against other brands in the industry. Appendices 1 shows the financial status of Nike. 

Conclusion 

In summary, m arketing is an essential tool for any business. Businesses need to come up with an effective marketing strategy to enhance their survival and growth. Some of the crucial strategies include; developing a strong relationship with customers, which will last for a very long time, and also making sure that customers are aware of most of the products that your company deals with. Nike company has proven to be successful in its operation by applying various marketing tools. As we have seen, Nike has been able to develop numerous marketing strategies that have helped it remain at the helm of the industry, also putting it in a position to expand to other regions of the globe. Nike continues to be an essential global company in the production of sports shoes, apparel, and other materials that have a high demand in the global market. 

References  

"NIKE Revenue 2006-2018 | NKE" .   www.macrotrends.net. Retrieved   October 30,   2018. 

BAJPAI, P. (2018). Nike, Inc. Is a Growth Company (NKE). Retrieved 12 December 2019, from https://www.investopedia.com/stock-analysis/081815/nike-inc-growth-company-nke.aspx 

DeLong, M. (2009). Innovation and sustainability at Nike.  Fashion Practice ,  1 (1), 109-113 

Dominici, G. (2009). From marketing mix to e-marketing mix: a literature overview and classification.  International journal of business and management ,  4 (9), 17-24. 

Epstein, M. J., Buhovac, A. R., & Yuthas, K. (2010). Why Nike kicks butt in sustainability.  Organizational dynamics ,  39 (4), 353. http://www.ef.uni-lj.si/docs/osebnestrani/why_nike_kicks_butt_in_sustainability.pdf 

Gregory, L. (2018). Nike’s Promotional Mix (Marketing Communications Mix) - Panmore Institute. Retrieved 12 December 2019, from http://panmore.com/nike-marketing-communications-mix 

Nike Product. (2019). Retrieved 12 December 2019, from https://store.nike.com/us/en_us/ 

O' Reilly, Lara (November 4, 2014).    "11 Things Hardly Anyone Knows About Nike."    BusinessInsider.com . Retrieved December 28, 2014. 

Ozanian, Mike (2014).    "The Forbes Fab 40: The World's Most Valuable Sports Brands 2014" . Forbes. Retrieved   October 12,   2019. 

William Strange, I. (2012). Interview with Andrew Kilshaw, Chief Learning Officer at Nike Inc.  Development and Learning in Organizations: an international journal ,  26 (3), 32-34. 

 Appendices 1

Nike Financial Analysis; ( Bajpai, 2018) . 

Appendices 2

Nike Competitive Advantage, 2019