TEAM MEMBER

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TEAM MEMBER
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STRATEGY PHILOSOPHY

• Know your enemy, know yourself, and your
  victory will not be threatened.
• -- Sun Tzus Art of War

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CONTENTS

• Part 1 Introduction and Sportswear industry
  trends
• Speaker Paula
• Part 2 Nike history and performance highlight
• Speaker Harry
• Part 3 Product market segment
• Speaker Nancy
• Part 4 Competitor, customer and generic strategy
• Speaker Frank
• Part 5 Analysing strategy
• Speaker Don and Robby

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SPORTSWEAR INDUSTRY TRENDS

• Entering the mature stage of its product life
  cycle
• Pursuing a more casual lifestyle
• Shifting away from status product to value
  products
• Competing on a worldwide basis
• Changing in technology and consumer preferences
  constitutes significant operation risk
• High degree of specialisation and industry
  fragmentation
• Globalisation of a few sportswear companies (led
  by Nike, Rebook and Adidas)

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SPORTSWEAR INDUSTRY TRENDS
Segment Sports clothing and footwear

• m at retail
• selling prices

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SPORTSWEAR INDUSTRY TRENDS

• Sports clothing consumers by sex and age (,
  1999)

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SPORTSWEAR INDUSTRY TRENDS
Sports footwear consumers by sex and age
() 1995, 1998 and 1999
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BRIEF HISTORY OF NIKE

• 1964 -
  established by
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  Phil Knight and
• 
  Bill Bowerman
• 1970s - named after Greek goddess of victory,
  Nike
• - known for swoosh logo, graphic
  shorthand
• - spawned by patented Nike Air
• - soared from 10mn to 270mn

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BRIEF HISTORY OF NIKE

• 1980s - replaced footwear Empire, Adidas,
• as number one in USA market.
• - slogan
• - introduced the Air Jordan, named
  after superstar Michael Jordan.
• 1990s - grew to a giant in sportswear industry
  through global acquisitions and investment.

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PERFORMANCE HIGHLIGHTS

• 100 invested in NIKE stock ten years ago
  would have been worth 1,432 on May 31, 1999
  investment in the SP 500 Index would have been
  worth 527

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NIKES GEOGRAPHIC REVENUES
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PERFORMANCE HIGHLIGHTS
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NIKES PRODUCT SEGMENT

• Sports footwear
• Sports apparel
• Specialty sports products
• Sports equipment
• Leisurewear
• Accessories

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Nikes Product Niche by Sports
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Nikes Product Niche by Apparel
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Nikes Product Niche by Mens Footwear
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Nikes Product Niche by Mens Equipment and
Techlab
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Nikes Corporate, SBUs and product market
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SEGMENT MARKET NIKE (UK)

• One of 36 wholly-owned subsidiaries of Nike
  Inc., carries on the same line of business,
  namely the design, marketing, distribution and
  sale of athletic and leisure footwear, apparel,
  accessories, and relative equipment.

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COMPETITORS OF NIKE (UK)

• Adidas, leading brand, ahead of Nike and
  Reebook,
• focus on football
• Rebook, larger share than Nike, diversification
  in
• leisure clothing and gymnastic equipment
  ranges
• Hi-Tec, UKs leading competitor in footwear,
  strong
• niches in racket and outdoor footwear
• Pentland, focus on sports and outdoor leisure
  sectors
• Umbro Europe, leading in replica football club
  strips,
• including Manchester United and the England
  national
• squad

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CUSTOMERS OF NIKE (UK)

• Mainly among the under-30 crowd
• Average age is 25
• Pursuing fashion and leisure lifestyle
• Certain sports lovers, adore sports
• stars

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NIKES STRATEGY

• Among the 1200 U.S. brands, Nike ranks among the
  top ten, alongside Coke, Disney and Hallmark.
  Knight has built a giant on what a decade would
  have seemed an unlikely product Athletic Shoes
• Conclusion
• Industry characteristics dont matter It is
  structural position that counts.

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GENERIC STRATEGY

• Differentiation
• strong and defensible competitive
• position from reputation, premium
• price because of higher quality
• Focus
• targeting a particular buyer group,
• segment of product line, or
• geographic market
• Driven by the combination, achieving preeminent
  performance

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KEY STRATEGIES

• Virtual production
• Emphasize on core competency product
• design and marketing
• Full Utilization of a variety of distributions
• Extreme emphasis on branding and
• advertising
• Pursuing globalisation
• innovative products and technology

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BRANDING AND ADVERTISING

• Widely contract
• with prominent
• and influential
• athletes, teams
• and sports
• leagues. Recruit
• a team of athletes.
• Jordan, inspiration
• for Air Jordan Shoe

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BRANDING AND ADVERTISING
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BRANDING AND ADVERTISING
Heavily invest on advertising, sponsorship
of key athletes in local
markets more than 1 billion on
sponsored endorsements and advertising
100 million to get athletes to use
products
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BRANDING AND ADVERTISING

• Actively sponsor sporting events and be
• competitive in all areas
• Utilize Nike trademark and Swoosh trademark
• on nearly all of products to identify the
• company and to distinguish Nike products
• from the goods of others.

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UNIQUE PROMOTION STRATEGYNike Town
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DISTRIBUTION STRATEGY

• Fully utilization of a variety of
  distributions,
• including independent distributors,
  licensees,
• sale representatives, subsidiaries and
• branch officers
• Paying attention to accuracy, speedy and
• overnight delivery

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VIRTUAL PRODUCTION

• All of products are manufactured by
• independent contractors
• All of sportswear production for sale to
• the international market are manufactured
• outside USA
• All footwears are manufactured outside
• USA, largely in Asia.
• Fully Make substantial use of ordering
• program in advance of manufacturing

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VIRTUAL PRODUCTION

• Focus all resources on product design
• and marketing
• Without large investment, but earn
• maximum profits.
• Fully take advantage of low labour, low
• materials and land, slight government
• interferences
• Accessing to local market directly and
• attracting local consumers conveniently

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INNOVATIVE FOOTWEAR
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INNOVATIVE DESIGN

• Design as advanced as possible
• Design as fast as possible. One day, more than
• one new shoe style
• Design as excellent as possible. Nike Alpha
• Project is about design excellence
• Designers Not only specialists in biomechanics,
  
• exercise physiology, engineering, but also
• research committees and advisory boards
• made up of athletes, coaches, trainers,
• equipment managers, orthopedists, etc

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INNOVATIVE MARKETING
high Relative Price low

• Reinvent the
• footwear industry
• by developing and
• marketing a
• premium-priced

Low
high Market-perceived quality

• Change the industry game through a marketing
  blitz

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SUCCESS
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REVELATION

• The business success is dependent upon the
  strategies of the firm.
• Each successful firm has used its marketing
  antennae to take weak signals from the markets,
  amplify them and then translate them into
  strategic market plans which ultimately led to
  superior performance.