According to Wang, Liao, Lin, Huang, Gu, and Wei (2016), China had 649 million mobile Internet users—accounting for approximately 19% of the total number of mobile Internet users in the world—and 557 smartphone users at the end of 2014. South Korea is one of the most highly digitalized societies in the world with nearly 100% of teenagers—13-18-year-olds—using the Internet every day. Nike, Inc. can reach—and market to its customers with technology based on the number of people in Shanghai, China, and Seoul, South Korea who are connected to the Internet and have smartphones to download the Nike, Inc. apps or follow Nike, Inc. on social media (Oh, Subramanian, Kim, and Kawachi, 2014). Financial Management Plan In 2017, Nike, Inc. revenues totaled $36,397 million (Plunkett et al., 2018). Nike, Inc. has five long-term financial objectives: to drive more than 50% revenue growth with innovation platforms, to increase revenues from 15% to 30% with digital platforms, to reduce its production
EBUSINESS PLAN 8 creation timeline 50%, and to drive more consistent full-price sell-through with its “triple double” strategy (Nike, Inc., 2017). Nike, Inc. uses a “triple double” financial management strategy to drive high-single digit revenue, margin expansion, and mid-teen earnings per share growth (Nike, Inc., 2017). The “triple double” strategy drives growth by doubling its impact of innovation, doubling its creation to market speed, and doubling its direct connection to consumers. Nike, Inc., too, uses five measures—innovation platforms, digital platforms, speed-to-market timelines, full price sell- throughs, and consumer ratings—to reflect the operational drivers of its long-term financial objectives and guide its investments (Nike, Inc., 2017). Market Plan Nike, Inc. designs, markets, and distributes athletic footwear, apparel, equipment, and accessories for men, women, and children (Plunkett, et al., 2017). The demand for casual footwear crossing between formal and athletic and the demand for casual footwear crossing between athletic and leisure is growing (Global – Footwear, 2018; Hoover’s First Research, 2018). As consumers shift to living and working in cities, consumption is shifting to design and fashion; thus, influencing purchasing decisions above functionality or necessity (Hoover’s First Research, 2018; Global – Footwear, 2018). Nike, Inc.’s strengths include its global brand and geographic presence (Nike, Inc. SWOT Analysis, 2018). Nike, Inc.’s weaknesses include its high prices compared to its competitors; thus, declining its profitability. Nike, Inc.’s opportunities include new product lines and new locations. Nike, Inc.’s threats include its competition and an influx of counterfeit products sold around the world (Nike, Inc. SWOT Analysis, 2018).
EBUSINESS PLAN 9 Nike, Inc. includes Nike, Converse, Hurley, and Jordan brands (Nike, Inc., 2019a; Plunkett, et al., 2017). Nike, Inc. promotes its athletic footwear, apparel, equipment, and accessories for men, women, and children, online or offline. Nike Inc.’s products range in price. It employs a “clicks-and-mortar” eBusiness model, in that, it operates online—and offline stores; as so, customers can purchase products online, then, wait for its delivery or pick it up at store.
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