MBradshaw BUSN 470 Nike Case Study.docx - NIKE CASE STUDY 1...

NIKE CASE STUDY
1
Nike Case Study
Monique Bradshaw
BUSN 470 Strategic Management
Regent University
David Cullipher
May 05,2019

NIKE CASE STUDY 2
Nike Case Study
Introduction
Nike is an American multinational that engages in design, manufacturing, and
development of footwear, accessories, equipment, and apparel. As evident in the case study, Nike
started in 1963 under the name Blue Ribbon Sports before becoming Nike in 1972. Nike had
secured 50% of the US running shoe market before it went public in 1980. The company is the
world’s leading shoemaker and dominates about twenty percent of the athletic shoe market in the
US. Nike’s position in the market can be understood through an analysis of the industry, market,
strategies, SWOT and strategic alternatives.
Industry and market analysis
Based on the case study, it is evident that Nike operates in the footwear manufacturing
industry. Although the industry has been growing in the last half a century, its leading players
have become well-established to reduce rivalry. Companies such as Reebok, Fila, Puma, and
Adidas have protected themselves from the competition by developing strategies to make them
dominant players (Ali et al., 2017). The move has enabled the companies to maintain
profitability and reduce threats of new entrants thus taking the industry to the maturity stage of
its lifecycle.
Although the shoe manufacturing industry has been competitive, some firms have exited
the stage. For instance, Converse sold its stakes to Nike and exited the industry. Also, Adidas
acquired Reebok after the later failed in some markets (Ali et al., 2017). These findings suggest
that Nike and Adidas have succeeded in the industry. The firms that thrive in the industry
embrace innovation, pricing strategies and customer satisfaction as the critical success factors.

NIKE CASE STUDY 3
Players in the footwear industry should respond to legal and political issues. For instance,
companies such as Nike have significant exposure to regulations governing international trade.
Changes in trade and tax policies in the world affect the operations of the firms in the industry
(Facts, 2009). Also, diplomatic tensions such as the ones between the US and North Korea pose a
threat to the operations of the firms in the industry.