Case Study #4: Nike - Essay Example

Nike About Nike, Businesses, Financials and Growth Areas Nike is in the business of designing, manufacturing and marketing innovative products for athletes. The company was founded as Blue Ribbon Sports in 1964. It was renamed Nike in 1971. The company’s market offerings include footwear, apparel, sports equipment and related accessories. Nike’s revenue has grown steadily from 2010 through 2014 at a compounded annual growth rate (CAGR) of 8 percent. The company recorded revenue of $27,799 million in 2014, up from $25,313 million in 2013.

Nike’s net income spiked 10 percent to $2.7 billion in 2014 (Nike.com). Nike has done extremely well in emerging countries like China. The Apparel sales in China alone resulted in revenue of $2 billion in 2011. Nike intends to double its sales in China in the next few years (Schachtel). Executive Leadership, Phil Night, Mark Parker, Characteristics Phil Knight, who co-founded Blue Ribbon Sports along with Bill Bowerman, is presently the chairman of Nike. To this extent, there has been no change at Nike’s helm since inception.

Knight is knowledgeable and passionate about sports. He likes to interact with sportspersons and know them personally (Clarke). Mark Parker is the President and CEO of Nike since 2006. Mr Parker was appointed as appointed divisional Vice President in 1987 and since then he has risen through the ranks. All the top executives of the company are passionate and relentlessly strive to achieve excellence.Brand Strategy, Innovation, Digital Media, Business Relationships Nike has adopted growth as a corporate level strategy.

The company designs and develops innovative products to satisfy its customers (Nike.com). The designers have a great role to play as Nike products are meant to have a great aesthetic as well as functional appeal. As a part of its innovation initiatives, the company has resolved to indulge in sustainable business activities and thereby minimize the environmental impact of its activities (ReliablePlant). Nike has cut back on its traditional advertising expenditure on television and print. Instead the company has harnessed the reach of the digital and social media to connect with the consumers and create a buzz (Crain).

The company has increased the brand’s reach and frequency through this cost effective medium. The price skimming policy adopted by Nike ideally complements its superior brand image. The company can further enhance its brand equity through co-branding activities with iconic companies like Apple. Athletes, Endorsements, Advertising, Licensing Nike invariably signs up professional athletes as its brand ambassadors. The company gains a lot of visibility through this advertising strategy. Nike’s viewpoint is that whosoever has a body is an athlete (Nike.com). Nike sees China as a major growth market.

The company sponsors NBA stars like LeBron James to cash in on the popularly of basketball in China. The Chinese citizens are however not active participant in sports. By partnering with the government, developing athletics programs in schools and colleges, and holding special training classes for females in the gyms, Nike is associating itself with the target market and thereby expanding its base in the country (Burkitt). Corporate Careers, Fulltime Positions, Internship Program I would be interested in Marketing & Communications and Sales positions at Nike.

These positions match my academic background as well as interest area. The paid internship program would be of tremendous help to me in understanding the company’s culture and way of working. It can provide an ideal platform for a full-time job at the company. Works CitedBurkitt, Laurie. In China, Nike Sets Out To Alter Sports Mindset. 2011: n. pag. Print.Clarke, John. What You Need To Know About Nikes Phil Knight. Forbes 2012. Web. 25 Nov. 2014.Crain, Rance. Nikes Phil Knight On How He Became A Believer In Advertising.

 Media Buzz 2013. Web. 29 Nov. 2014.Nike.com,. NIKE, Inc.— Inspiration And Innovation For Every Athlete In The World.. N.p., 2014. Web. 29 Nov. 2014.Jakab, Spencer. Nike Struggling To Regain Its Glory Days. 2012: n. pag. Print.Peterson, Hayley. One Stunning Stat That Shows How Nike Changed The Shoe Industry Forever. Business Insider India 2014. Web. 29 Nov. 2014.ReliablePlant,. Nike Outlines Global Sustainable Business Strategy. 2014. Web. 29 Nov. 2014.Schachtel, Alexander. How Nikes Business Is Doing It Just Right Oversees.

 The CheatSheet 2011. Web. 25 Nov. 2014.