Company Background
Nike has a fascinating success story and a significant effect on the athletic clothing and footwear business. It is a worldwide brand that leverages innovation, high-quality goods, and devotion to athletes and their performance to sustain market leadership for decades. This paper focuses on some important aspects that have led to Nike’s success, such as its emphasis on innovation, marketing, and corporate social responsibility.
Phil Knight and Bill Bowerman launched the firm in 1964. William Bowerman was born in Portland, Oregon, in 1911 (Companies History). He was the track and field coach at the University of Oregon, where he trained many Olympians. He was the one who originally thought of making shoes with higher traction for running. Phil Knight was born in Portland, Oregon, in 1938. He went to the University of Oregon, where he met Bowerman and ran track under his tutelage. Knight moved to Japan after graduation and learned about the Onitsuka Tiger shoe brand there. Knight persuaded Bowerman to join him in importing and distributing their shoes in the US, which resulted in the creation of Nike. The company was initially called Blue Ribbon Sports and was renamed Nike, Inc. in 1978 (Companies History). Nike was not a pioneer in its field of specialty athletic shoes, as they have been produced since the 1800s by Goodyear (Pioneering Minds). However, the company has significantly contributed to popularizing sports shoes for everyday use.
Nike’s early products were running shoes and accessories. Initially, the firm sold Onitsuka Tiger shoes to runners in the US. Their early competitors were Goodyear, Converse and Keds, Adidas, and Reebok (Pioneering Minds). The company had early struggles connected with the rapid growth it had to overcome. The combination of 100% year-on-year growth, supplier terms that required payment considerably before distribution, and conservative bank financing posed a triple existential danger. The provider was routinely late with the order (Knight 68). High demand, growing sales, and non-standard approach to managing cash flow helped Nike to overcome early struggles.
Company Business Trends
Currently, Nike acts in the sports and athletic footwear, clothing, and equipment industries. They create, develop, manufacture, and distribute athletic shoes, clothes, and accessories for sports and fitness activities. Nike’s products are available worldwide through its retail shops, online sales platforms, and a large network of retail partners (Nike). Nike’s current product line includes athletic footwear such as running, basketball, soccer, and training shoes, as well as apparel and accessories. The company develops digital fitness products and services such as Nike by You and Nike Plus. It is now a publicly traded company and sells stock on the New York Stock Exchange (Pioneering Minds). Their worldwide headquarters is located in the United States, in Beaverton, Oregon.
Nike is now one of the world’s largest and most successful sportswear corporations, having a considerable global economic presence. Nike’s market valuation was more than $250 billion in 2021, making it one of the most valuable brands in the world (Pioneering Minds). In terms of its worldwide business footprint, Nike operates in approximately 190 countries, having a strong presence in both established and emerging markets. Almost 75,000 employees work for the firm internationally. It announced revenues of $44.5 billion in its fiscal year 2021 (Pioneering Minds). Their mission statement is: “To bring inspiration and innovation to every athlete* in the world. (*If you have a body, you are an athlete.)” (Nike). Nike uses such marketing research types as customer surveys, focus groups, sales data analysis, social media monitoring, and consumer trend analysis (Nike). The company is well-known for its high-impact advertising campaigns that include famous athletes and celebrities. Nike is a prominent sponsor of sports teams, athletes, and events worldwide. They have a large presence on social media.
Nike has always committed to its devotion to innovation, high-quality products, and athletes and their performance, from its early days to current role as a worldwide leader. Nike’s concentration on developing items that boost athletic performance, paired with its effective marketing efforts, has helped the business gain success. While Nike has had controversies, they have continually taken measures to address these concerns and improve operations.
Works Cited
Companies History. “Nike”. Companies History. Web.
Knight, Phil. Shoe Dog: A Memoir by the Creator of Nike. Simon & Schuster, 2018.
Nike. (n.d.). “About Nike”. Web.
Pioneering Minds. (n.d.). “Nike.” Pioneering Minds. Web.