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Nike, Inc. - 2009Case Notes Prepared by: Dr. Mernoush Banton

Case uthor: Randy Harris

A. Case Abstract

Nike, Inc. !""".nike.co#$ is a co#prehensi%e strate&ic #ana&e#ent case thatinc'udes the co#pany(s )isca' May *+st, 2009 )inancia' state#ents, co#petitorin)or#ation and #ore. he case ti#e settin& is the year 2009. u))icient interna'and eterna' data are pro%ided to enab'e students to e%a'uate current strate&iesand reco##end a three-year strate&ic p'an )or the co#pany. /eaduartered inBea%erton !Be%artn$, 1re&on, Nike is traded on the Ne" ork tock 3chan&eunder ticker sy#bo' N43.

B. Vision Statement !ctua'$

5Brin& inspiration and inno%ation to e%ery ath'ete in the "or'd.6

C. Mission Statement !ctua'$

5o be the 'eadin& sports brand in the "or'd.6

Mission Statement !Proposed$

s the 'ar&est se''er o) ath'etic )oot"ear and ath'etic appare' in the "or'd !2, *$,"e create products )or consu#ers and ath'etics !+$ "ho en7oy ha%in& ua'ity

products that are hi&h per)or#ance and re'iab'e such as shoes, appare', andtechno'o&ica''y ad%anced euip#ent$ !8$. 1ur dedicated e#p'oyees !9$continuous'y "ork on de%e'opin& ne" products, price, and product identitythrou&h #arketin& and pro#otion !$. he co#pany ai#s to 'ead in corporatecitienship !;$ throu&h proacti%e pro&ra#s that re)'ect carin& )or the "or'd )a#i'yo) Nike !

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D. External Audit

CPM Competitive Profile Matrix

Nie Adidas Puma

Critical Success !actors "ei#$t%atin

#"ei#$ted

Score%atin

#"ei#$ted

Score%atin

#"ei#$ted

Score

Price co#petiti%eness 0.+0 * 0.*0 2 0.20 + 0.+0

?'oba' 3pansion 0.0 8 0.2; * 0.2+ 2 0.+8

1r&aniationa' tructure 0.08 * 0.+2 + 0.08 + 0.08

echno'o&y 0.09 * 0.2 + 0.09 2 0.+;

Product a)ety 0.+= 2 0.*0 * 0.8= 8 0.

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taste, are enab'e to achie%e considerab'y better pricin& as "e'' as5deepenin&6 the e#otiona' bond consu#ers ha%e "ith the brand

&$reats

+. )ter the a&e o) 80, the typica' consu#er is not "i''in& to pay #ore thanG*= to G80 per pair )or ath'etic )oot"ear2. Co#petition is stron& a#on& ath'etic )oot"ear and appare' )ro# o)) brand

co#panies*. 'uctuation o) )orei&n currency i#pacts the cost o) i#portin& &oods to the

E..8. Increase in une#p'oy#ent has i#pacted the househo'd inco#e "hich

#ay resu't in spendin& 'ess on brand na#e=. Barrier to entry is 'o" 20++ Pearson 3ducation, Inc. pub'ishin& as Prentice /a''.

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taste, are enab'e to achie%e considerab'y betterpricin& as "e'' as deepenin& the e#otiona' bondconsu#ers ha%e "ith the brand

&$reats

+. )ter the a&e o) 80, the typica' consu#er is not

"i''in& to pay #ore than G*= to G80 per pair )orath'etic )oot"ear

0.0 * 0.2+

2. Co#petition is stron& a#on& ath'etic )oot"ear andappare' )ro# o)) brand co#panies

0.0; 2 0.+ 20++ Pearson 3ducation, Inc. pub'ishin& as Prentice /a''.

C

3

I

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-ais: 3 *.; !-8.

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3. &$e 3nternal;External 3E/ Matrix

&$e 3!E &otal "ei#$ted Score

tron&

*.0 to 8.0

%era&e

2.0 to 2.99

Feak

+.0 to +.99

/i&h*.0 to *.99

I II III

Mediu#2.0 to 2.99

IK IK

Nie> 3nc.

KI

@o"+.0 to +.99

KII KIII IO

?. @SPM

Increasead%ertisin&

andpro#otionthrou&hsocia'

net"orkin&such as

"itter andacebook

cuire a 'essepensi%ebrand o)

accessoriesand

sports"earand pro#otethe# as ano)) brand o)

Nike0e1 !actors "ei#$t AS &AS AS &AS

-pportunities

Copyri&ht > 20++ Pearson 3ducation, Inc. pub'ishin& as Prentice /a''.

&$e E!E &otal"ei#$ted

Score

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+. oun&er consu#ers are 'ess price sensiti%eand &enera''y spend #ore on casua' andath'etic )oot"ear than o'der consu#ers

0.0; + 0.0; 8 0.*2

2. Most )oot"ear co#panies ha%e outsourcedtheir production abroad in order to #aintain'o"er cost and D epenses

0.0 --- --- --- ---

*. E )oot"ear i#ports tota'ed 2.*< bi''ionpairs in 200, or rou&h'y .9 pairs per capita"hich is "as up 0.8 percent )ro# 200