Nike: Well-designed and innovation


In these days, companies play a major role in the development of the economy. all companies are competing to reach the summit. Each company has advantages and characteristics that distinguish them from the others. I did my research in one of the most famous companies in the world. Nike Company. , One of the largest companies responsible for the manufacture of shoes, clothes and sporting equipments and sale it in the market Also it has a high profile corporate and Ancient History.

In this reflection I will talk about the history of this company over the years because it has a great history and also I will talk about their active role with the companies and the arrangement between the companies, Main products, services and the biggest challenges facing the company in the future all that are included in my report .Finally, the company's motives.


Nike Company was found in 1962 in the united state of America and the name of the company was Blue Ribbon Sports. The owner of this company is Philip Knight. The company has 500 companies headquartered in the state of Oregon. Swoosh is the slogan of this company. The company at the beginning of her career was making athletic shoes and with the passage of time it has evolved and producing clothes and sports equipment.

History of Nike:

Nike's originated in 1962, a product of the imagination of Philip H. Knight, whose travelled to Japan after graduating from business school. In Japan he was connected with Japanese company Processing sport shoes. The name of these companies is Onitsuka Tiger Co. He transferred small parts of these goods to the United States. With time, he opened a partnership with Japanese company) tiger Co). The Knight invented Blue Ribbon Sports to satisfy the Japanese partner, in anticipation that he represents the actual Company. The company has evolved and become a virtual company on Nike.

Key Dates:

1962: the Blue Ribbon Sports (BRS) was found by Philip H. Knight.
1963: small parts of shoes Transfer from Onitsuka tiger co.
1964: Knight and William Bowerman became partnership.
1966: The Company's first retail outlet opens.
1968: the Bowerman becomes a big seller.
1971: BRS manufacture their products abroad And the Nike brand are introduced.
1972: For the first time the Nike brand and promoted and for the first time the company enter the foreign market.
1978: the name of Company is changed to Nike.
1980: Nike has become famous company.
1985: the Company use the signs of Michael Jordan to Produce "Air Jordan" shoe.
1988: The use of a new logo which is 'Just Do It'.|
1990: Nike Town opens its first retail outlets in Portland, Oregon
1991: Profits reached to $3 billion.
1996: Nike created equipment division.
1999: the Company begins using web site to sell its products.

the company abroad:

Company competitions

Nike Company, Its one of the biggest company for manufacture of shoes, clothes, Accessories and sport equipments and it's compete in Sportswear, Sports equipment, Designing and Manufacturing. They compete with large companies in the quality of their products. It has high quality production and its desirable when people. They are working hard to produce the highest quality and at excellent prices.

It has the largest sales in the manufacture of shoes then clothing and after that sports equipment.

Also it competes in the motivation and services.

Market share:

Nike has the largest sales attributed in the world for the sale of sports shoes and clothing. By 1980, Nike had reached 50% of market share in the United States athletic shoe market. Nike was the clear leader in the market, with 31% of the global market for sports shoes in 2007. The global market for sports shoes and concentrated, with the first four companies control 71%. In contrast, the sports clothing market is both the largest - 49.5 billion dollars in 2005

Nike Competitive Strategy

Nike is an interesting combination of long cycle attributes (Such as the brand that have existed for decades). Nike Premier Brand Management (Qualities required for a long cycle) the glamorous launch of new products special events (Features a fast cycle) Reflects its ability to successfully manage multi-project cycle.

Fashion styles and innovations in the differentiated market are difficult to patent and difficult to defend. An example would be Nike by Nike Air technology for a comfortable sport shoes issued in August 1996. This following quote is a modification of Nike's 1996 Form 10 K filed with the Securities and Exchange: "The Company has exclusive license in and around the world to manufacture and sell footwear using patented "Air" technology. The process uses pressure of the gas encapsulated in polyurethane. Some of the patents in the early Nike Air will expire in 1997, enabling competitors to use certain types of NIKE Air technology."

Therefore, Nike was a small window of opportunities to extract maximum profit before new villa Reebok shoes hit the market. Rapid convergence of technology, the air is a good indicator of the speed of convergence of this product in the market.


  • Nike is an organization is very competitive. Phil Knight says that the 'Business is war without bullets'. Nike has a healthy dislike of is competitors. At the Atlanta Olympics, Reebok went to the expense of sponsors for the match. Nike does not. However, under the auspices of Nike's top athletes and gained valuable coverage.
  • No Nike factories. It does not link them and cash in the buildings and workers in the field of manufacturing. This does a lean organization. Nike is strong in research and development, as reflected in the range of products of advanced and innovative. Then they made wherever possible to produce high quality products the lowest possible price. If high prices, and products that can be made more cheaply in any other place (for the same or better specification), Nike will move production.
  • Nike is a world famous mark. Is the first sports brand in the world, its famous 'Swoosh' is instantly recognizable,


  • The organization does have a variety of sporting goods. However, it still depends heavily on its share of the footwear market.
  • The retail sector is very price sensitive. Nike has retail stores in Nike Town. However, most of its income is derived from sales to retailers. Retailers tend to offer very similar experience to the consumer. Can you tell one of the sports stores again? Margins even tend to get squeezed and retailers in an attempt to pass some of the low price competition pressure on Nike


  • Nike's product development offers many opportunities. Brand is fiercely defended by their owners who truly believe that Nike is not a fashion brand. However, whether we like it or not, consumers that wear Nike product do not always buy it to participate in sport. Some would argue that youth culture especially, Nike is a fashion brand. This creates opportunities and private, because the product can become unfashionable before it wears out any need for consumers to replace the shoes. There is also an opportunity to develop products such as sportswear, sunglasses and jewellery. This item of high value does not tend to be associated with them, and profitability is high.
  • It can also be advanced business internationally, building on its strong global brand recognition. There are many markets that have the disposable income to spend on sporting goods of high value. For example, in emerging markets such as China and India have a more affluent new generation of consumers. There are also global marketing events that can be used to support the brand such as the World Cup (football) and the Olympic Games.


  • Nike exposed to the international nature of trade. He buys and sells in different currencies and the costs and margins are not stable over long periods of time. Such exposure could mean that Nike may be manufacturing and / or selling at a loss. This is the question facing all brands.
  • Market sports shoes and clothing are very competitive. Model developed by Phil Knight in his Stamford Business School days (high value branded products manufactured at low cost) is now commonly used, and to some extent is no longer the basis for sustainable competitive advantage. Competitors on the development of alternative brands to take the market share of the company Nike.

As mentioned above, in weakness, and the retail sector has become competitive prices. This means ultimately that consumers are shopping around for a better deal. Even if the store and paid the price of one pair of sports shoes, the consumer could not go to the store along the street to compare prices for exactly the same item, the purchase of cheaper of the two. Such as sensitivity to consumer prices is a potential external threat to Nike.

Future consequences:

Nike Price Strategies

The main reasons for the success of Nike and its associated promotion of the brand given the advertising campaigns and wide range of Nike brand is known all over the world almost household. Given the significant increase in revenue over the past decade, the company has proved its popularity and high demand for its products among the people. Nike brand management strategy as a key to its success is based on the global sponsorship deals with world-class athletes, including individual performance and sports clubs. Basically all types of sports equipment and branded with the Nike logo that reminds people of success and link them with the achievements of star performers In such a way, Nike is not only the expansion of corporate image throughout the world, but also promotes a healthy lifestyle and dedication to sports activities. Unfortunately, despite the million promotional and advertising campaigns, and the original Nike products are still not available to most people in all parts of the world. The price of individual items rather high, so the vast majority of buyers to buy copies of the concession contract the Nike slogan .However, this is one of the strategies are justified and reasonable practical work in conditions of globalization.

In recent years, Naik said the application of unfair labour practices, which involve child labour, and working conditions is not sufficient, under the level of wages, etc. In addition to this, the company was subject to legal claims for unfair public campaigns to associate with the announcement of the corporate brand. Therefore, Nike for more success in the business world requires changes and reviews the business strategies. To this end, the recent Nike has stopped practice is irrelevant, and tries to lead socially and environmentally responsible business operations.

It is also not surprising that the company constantly challenges of anti-globalization claims. To this end the company should confirm the practice of transparency and the consideration of human rights and social concerns. In this regard, the company must restore the image of the more socially-oriented player on a global scale. Therefore, Nike management is fully aware that the proceeds gained from the large companies multinational operations must be accompanied by social-oriented projects aimed at recycling, and environmental campaigns.

Opportunities Facing Nike In The Future

In the foreseeable future, Nike is facing great opportunities with the company up in 2008 a success in financial terms. The company will continue to implement projects for companies and programs to suit the demand and social needs of its customers in all parts of the world. However, the main focus will be on developing promotions and sponsorship agreements to be concluded with the new rising stars.

Possible Challenges Facing Nike in the Future

It is difficult to predict the challenges that face companies that may face the company's consideration of the overall negative impacts of the global financial crisis. Most likely, many other multinational companies, and Nike will close its branch offices in a number of countries and / or failure rates of industrialization in Asia.

In general, it is clear that Nike has a solid background of potential for a strong competitive position in the foreseeable future. We hope that, in terms of increased business strategy orientation, the company will become more socially responsible in the eyes of average consumers, thus providing brand products will increase

Other challenges:

  • The development of industry can be the main problem that faces the company with the passage of time.
  • The emergence of new companies
  • Decline in the global economy

Nike innovation

We communicate with Nike innovation to develop a new approach to charity in the world .We will invest at least $ 315 million in grants and product donations in-kind support through 2011 to give excluded youth greater access to sports programs designed to unlock human potential. In fiscal years 2005 and 2006, Nike contributed more than $ 100 million in cash to support the products and partners from non-profit organizations in various parts of the world. Nike approach to community investment is active and focused. There is a large majority of our investments are targeted towards the community. The remainder goes to support local organizations in the home of Portland, Oregon, Memphis, Tennessee; Hilversum, the Netherlands; Laxdale, Belgium and other corporate offices in different parts of the world. In addition, we do not offer scholarships through local organizations for retail sale.

We pro-actively seek out key strategic partners around the world to help us drive a three pronged strategy of:

  1. Innovation is selective programming of popular support that demonstrates innovation in raising the level of sport as a means for social change.
  2. The transfer of skills are looking for creative social and social projects that are thinking about new models for sustainable development at the grassroots level programming and taking the best practices on a large scale. Our goal is to provide them with the Nike business acumen and build their capacity to achieve success.
  3. Scale are seeking partners to join us in calling for changes in public policy, and open new channels of funding and other resources for programming and activities at the grassroots level.

Because of this proactive strategy, and participate in the long term, it is rare to accept the United Nations requested applications. Nike and the spirit of innovation and has helped athletes win medals and break records. Now, it will help our children get better education. In January 2007, Nike created Nike School Innovation Fund (NSIF), a 9 million, five-year commitment to help public education in Portland, Beaverton and Hillsboro school districts. And NSIF The overall objective is to support our community and the major school districts in their quest to improve education for our children. In the end, it will help children receive a quality education while preparing them to be leaders of tomorrow. Portland Public Schools (PPS) got the first three innovation grants for a total of $ 1 million. These grants will indicate a greater contribution by the business in the history of PPS. In the end, NSIF will help more than 100,000 students reach their highest potential. it also would not stop at this point. Our hope is that the NSIF and visionary ideas will spread to thousands of others

The most innovation product of Nike is shoes. It classified for two type of innovation:

  1. Radical Innovation: because it's Produce a new product, that completely Replaces the existing one.
  2. Incremental innovation: because its produce A new product that modifies an exit one.

Types of Nike Shoes

When it comes to coach basketball, Nike has always been in the spotlight. Nike shoes, but extends beyond the Jordan in the airspace. In fact, Nike shoes have been manufactured for sports such as:

  • Football
  • Soccer
  • Running
  • Skateboarding
  • Golf
  • Cycling
  • Softball

More importantly, what makes Nike such a trusted name in the sports industry is a specialized technology that is included in the manufacturing of all Nike shoes. Nike is not a name that is aimed at creating simple random and footwear; these shoes are geared to help you run faster and safer, to enhance traction, to help jump, and simplify the rapid and intense exercise.

No matter what sport you are participating in, Nike, and probably collect shoes are designed to improve your sporting performance. This technology is just too prone hype or is there some truth in these claims?

The fact that Nike shoes are still worn by many professional athletes, competitive, and all those who want to stay at the top of their game, and perhaps a good indication of the detail that goes into the heavy shoes, Nike probably worthwhile endeavour

Product Life Cycle

Nike strives to reduce the environmental impacts of each product throughout the life cycle, from design to manufacturing, post-consumer use and disposal at the end. For example, programs now stylish waste recycling and manufacture of boots and shoes were defective and worn out NIKES also.


After consideration of this company and the most important characteristics and properties owned by and maintenance of global markets I believe that the company has a bright future due to the development it has reached, but need more effort, work, well-designed and innovation to avoid Threats and problems that facing the company in the future. These are some of the points may contribute to the development of this company:

  • Produce new item like the shoes with music player.
  • using a new strategy.
  • Increase in advertising.
  • Significant new solutions to product-related environmental impact issues that are not currently captured in the Index criteria for both footwear and apparel
  • Keeping with innovation = key to preparing for the future




Nike Sportswear Bespoke Bespoke is a new and innovative by appointment design experience offering consumers the opportunity to work one-on-one with Nike design consultants to customize select Nike footwear styles. Globally exclusive to 21 Mercer, Nike Sportswear's first stand-alone retail space located in SoHo, New York, it is the natural evolution of Nike's personalization and customization offering, first brought to consumers with in 1999. NikeiD Bespoke takes individual design to new heights with an unparalleled, creative individual design experience. It provides consumers with the greatest design freedom ever offered by NikeiD. Launching with the iconic Air Force 1 sneaker, consumers will be able to create a unique design by customizing up to 31 parts of the shoe, including the base, overlay, accent, lining, stitching, outsole, laces and dauber. Consumers will also be able to choose from 82 premium, iconic materials and colour options. The Air Force 1 material options were meticulously selected to represent Nike's heritage and innovation through the perspective of Nike Sportswear. Exclusive options include iconic Nike material prints Elephant and Safari - a design first used in 1987 by Tinker Hatfield who utilized two naturally occurring patterns on his Nike Air Safari running shoe and Nike Air Assault basketball shoe. Additional premium options include premium full grain suede, and leathers, Italian full grain patent leather, premium denim and reflective synthetic leathers.

Appointments are limited and can be made exclusively in store at 21 Mercer; Nike Bespoke Air Force 1's take four weeks to be created once the design process at 21 Mercer has been completed.

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