Nike is the leading and renowned world supplier of athletic apparel and shoes. The brand is in control of over 47% of the market for athletic shoes. The company begun way back in 1962 and it was founded by Phil Knight and Bill Bower. It was originally known as Blue Ribbon Support and only in 1978 did it change its name to the worldwide recognized brand, Nike. Nike provides its products to more than 100 countries throughout the world.
in was founded on 1960’s on Beaverton, Oregon its initial founders are blue ribbon sports . Since its foundation the company was characterized by the rapid growth and development..The main mission of the company was to gain a larger share of the market . In the first decade of its existence they attracted leading sportsmen for advertisement campaigns . Steve Prefontaine, an American record holder, and John McEnroe were the first ambassadors of Nike . by involving popular sportsman and adding it up with new technology’s such as air technology which helped in growing their popularity in USA.
Nike Corporation Nike, Inc. is a multinational corporation that is involved in design, manufacturing, development, sales and marketing of footwear, equipment, apparel, and services. Nike is the leading supplier of apparel and athletic shoes and is a leading brand based in Beaverton, Oregon. Nike’s mission is to deliver innovation and inspiration to every athlete globally (Merk, 2008). The mission is all about satisfying the customers with its products worldwide. Moreover, the company aims to adopt business practices to secure intergenerational life quality, reinstate the environment, and escalate the value for their customers, corporate partners, and shareholders.
Nike was founded on January 25, 1964, as Blue Ribbon Sports by Bill Bowerman and Phil Knight and was officially named Nike Inc. on May 30, 1971 (Wiki). The company initially operated as a distributor for Japanese shoe maker Onitsuka Tiger (Wiki). Nike first started making shoes with the help of Bowerman. He made track shoes for Phil Knight, a track and field athlete, at the time, attending the University of Oregon. In Blue Ribbon Sports first year of business, they sold 1,300 pairs of running shoes.
The company became one of the very first international brands to introduce a Supplier Code of Conduct, which was launched in 1992 and opened for external audit in 1994. The code was desperately needed because, as Nike CEO Phil Knight noted in a 1998 speech to the National Press Club, “the Nike product [had] become synonymous with slave wages, forced overtime and arbitrary abuse”. At the time of his speech, Nike’s stock had more than doubled in value. The company has since gone from a virtual dead heat with rival Adidas (market caps of $3.97B and $3.59B, respectively) in 2001 to a position of dominance sixteen years later, with a market cap that has ballooned to over $86B vs. Adidas’s $17B. (Mulroy, 2016).
In 2014, Vietnam, China, and Indonesia manufactured roughly about 43%, 28%, and 25% of total Nike branded footwear and it has also operations in other country such as Argentina, Brazil, India, and Mexico. The low cost of producing products in these countries continues to boost the bottom line. 2. Price stability The price of the Nike’s product is high, but the quality is high and the market price stability. Although Nike have more than 44,000 employees worldwide and thousands of retail in the world but the price is stability.
Nike has been around much longer than most would think and continues to be the leading trend setter in athletic wear. Nike was started in January of 1964. The athletic company began as just a small clothing distributing company out of the truck of Phil Knight’s, owner and CEO of Nikes, Car. The Saying you started from the bottom is very true when it comes to Nike who now leads in sales of all athletic gear compared to Adidas who at the time of 1964 was the most popular athletic company. From starting in a truck of a car no one would suspect that this company would not only be defined as the definition of ‘cool’ when purchasing clothing and shoes from stores all over the United States but yet the brand that carries our pop culture.
In its 45 years of existence, Nike has developed from a small operation to a household name, present on all continents. However, in the 1990's Nike came under scrutiny for various unethical practices. • Explain how Nike came to that situation through its expansion strategy. According to the working paper, Nike was the largest shoes firm in the world. Nike has reached this position mainly due to its expansion strategy.
1. Major Facts:- Nike made, created, and sold sport and casual shoes, efficient sports and leisure clothes, sports items, and materials under the Nike, Bauer, Cole-Haan, and Hurley brands names . It was the biggest vender of sport shoes and clothing around the universe, with a U.S. market share more than 40%. The organization's product were offered at around 18,000 retail stores in the United States, containing shoes stores, department stores, and sporting products stores. It also distributed to specialty , skate, tennis, and golf shops.