Nike is the largest seller of athletic footwear and apparel in the world. It was founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and was later renamed Nike. Some key points: - Nike pioneered innovations like the Nike Air technology and uses high-profile athlete endorsements. It has acquired brands like Converse and Hurley. - Though criticized for labor issues in the 1990s, Nike has since improved working conditions and become a leader in corporate social responsibility through initiatives like the Nike Foundation. - Sustainability is now a key focus as Nike works to reduce its environmental impact through considered design, recycling programs, and the Green X

1. Presentation on a US based
consumer product
Presentation on a US based
consumer product
NEELGUNDH Swetha
MARTINEZ Hector
PHAM Jacques

2. Consumer ProductConsumer Product
As an example, The United States Consumer Product Safety Act
has an extensive definition of consumer product, which begins:
CONSUMER PRODUCT :The term ‘‘consumer product’’ means
any article, or component part thereof, produced or distributed
• (i) for sale to a consumer for use in or around a permanent or
temporary household or residence, a school, in recreation, or
otherwise, or
• (ii) for the personal use, consumption or enjoyment of a
consumer in or around a permanent or temporary household or
residence, a school, in recreation, or otherwise; but such term
does not include— (A) any article which is not customarily
produced or distributed for sale to, or use or consumption by, or
enjoyment of, a consumer,

3. Blue Ribbon SportsBlue Ribbon Sports

4. HistoryHistory
• Founded by University Of Oregon track
athlete Philip Knight and his coach William J.
Bowerman in January 1964
• The company initially operated as a
distributor for Japanese shoe maker Onitsuka
Tiger
• In 1965, Jeff Johnson became the first full
time employee of BRS

5. HistoryHistory
• 1966: BRS opened its first retail store, located on
Pico Boulevard in Santa Monica, California
• 1971: the relationship between BRS and Onitsuka
Tiger was falling apart
• 1971: BRS prepared to launch its own line of
footwear, Swoosh designed by Carolyn Davidson.
• February 1972: BRS introduced its new line of
shoes, with a new brand name.
• 1978, BRS, Inc. officially renamed itself after the
name of Greek goddess of victory

6. NikeNike

7. IntroductionIntroduction
• NIKE, Inc. is the “largest seller of athletic
footwear and athletic apparel in the world”.
• It is a major publicly traded sportswear and
equipment supplier based company.
• The company is headquartered
near, Beaverton, Oregon, Washington County,
United States

8. Growth and ExpansionGrowth and Expansion
• Nike offered 2 million shares of common stock to the
public in 1980 and continued its rapid growth and
expansion throughout the decade.
• Nike has success as a result of collaborating with
other companies within the sports and fitness industry
• Traditional formula “Big athlete, Big ad, Big Product”
• Modern formula “Secret Tournament”
•Today, Nike continues to seek new and innovative
ways to develop superior athletic products and creative
methods to communicate directly with consumers.
•Nike Free, Nike + and Nike Sphere

9. AcquisitionsAcquisitions
• Nike's first acquisition was the upscale footwear
company Cole Haan in 1988.
• In February 2002, Nike bought surf apparel company
Hurley International from founder Bob Hurley.
• In July 2003, Nike paid US$305 million to acquire
Converse Inc., makers of the iconic Chuck Taylor All
Stars.
• On March 3, 2008, Nike acquired sports apparel
supplier Umbro, known as the manufacturers of the
England national football team's kits, in a deal said to
be worth £285 million (about US$600 million).

10. Corporate StructureCorporate Structure
• As of November 2008, Nike, Inc. owns four
key subsidiaries:
o Cole Haan
o Hurley International
o Converse Inc.
oUmbro
• Other subsidiaries previously owned and
subsequently sold by Nike include
o Bauer Hockey
o Starter

11. Nike OperationsNike Operations
• Contracts with about 700 shops worldwide
• Runs offices in 45 countries
• Manages factories in China, Indonesia,
Taiwan, Thailand, India, Vietnam, Philippines,
Pakistan and Malaysia

12. Corporate Governance SystemCorporate Governance System

13. Managers and Board MembersManagers and Board Members
• Philip H. Knight
Chairman of the Board of
Directors
• Mark G. Parker
President and CEO
• John G. Connors
• Timothy D. Cook
• Jill K. Conway
• Ralph D. DeNunzio
• Alan B. Graf, Jr.
• Douglas G. Houser
• John C. Lechleiter
• Jonathan A. Rodgers
• Orin C. Smith
• John R. Thompson,
Jr.
• Phyllis M. Wise

14. Products and ServicesProducts and Services
• They design, develop, and market high
quality active sports apparel, equipment, and
accessory products
• Nike distributes one new shoe style every
single day
• Nike’s critical factors for success are
maintaining current standards, closer working
relationships, and retaining customer loyalty by
guaranteed standard of product

15. Products and ServicesProducts and Services
• Their products are made for men, women,
and children of all ages.
• The company presently sells roughly 300
models of athletic shoes in 900 styles for 25
different sports.
• Nike's target market for their shoes is males
and females between 18 and 35 years old.

16. Products and ServicesProducts and Services
•Nike had always believed on innovation and
has introduced many new technologies in the
market
NIKE SENS TECHNOLOGY: this
automatically adjust stud length in your shoe
NIKE AIR MAX TECHNOLOGY: this
technology is use in basketball shoes to
absorb shock

17. ProductsProducts
• Nike has made many products using high profile
technology for the sport stars like Lance
Armstrong, Rooney, Roger Federer, Maria
Sharapova, etc.
NIKE FLYWIRE TECHNOLOGY: this
reduces the weight and make it more
flexible and stronger

18. Financial historyFinancial history
Year
Revenue in
Millions
Gross
Margin in %
Net Profit in
Millions
2006 $ 14954.9 44.0% 1392.0
2007 $ 16325.9 43.9% 1491.5
2008 $ 18627.0 45.0% 1883.4
2009 $ 19176.1 44.9% 1486.7
2010 $ 19014.0 46.3% 1906.7

19. Nike Sales from 2006 to 2010Nike Sales from 2006 to 2010
In 2010, sales revenue of Nike has been reduced to 0.65%
has compared to the previous year but in 2009 sales
revenue of Nike was 2.2% more than the previous year.

20. Nike Sales from 2006 to 2010Nike Sales from 2006 to 2010
The EPS of Nike in 2010 is18.4% more than that of
the previous year

21. Athletic Foot Ware
Global Market Share
Athletic Foot Ware
Global Market Share

22. Athletic Apparel
Global Market Share
Athletic Apparel
Global Market Share

23. CSR backgroundCSR background
• 1992: Harper’s magazine article
about working conditions in a
Indonesian sweatshop
• 1992: Nike introduced the
“Code of Conduct and
Memorandum of Understanding”
for subcontractors
• 1996: Life magazine article
showed a 12 year-old boy
stitching soccer ball
Beginning of the consumer
awareness

24. CSR backgroundCSR background
• 1990s: Nike was the principal
target of journalists and activists
to denounce sweatshops
• 1997: Interview of Phil Knight in
“The Big One” by Michael Moore
about underage worker in
factories

25. Announcements
by Phil Knight in 1998
Announcements
by Phil Knight in 1998
•All Nike shoe factories will meet the U.S. Occupational Safety and Health
Administration's (OSHA) standards in indoor air quality.
•The minimum age for Nike factory workers will be raised to 18 for footwear
factories and 16 for apparel factories.
•Nike will include non-government organizations in its factory monitoring, with
summaries of that monitoring released to the public.
•Nike will expand its worker education program, making free high school
equivalency courses available to all workers in Nike footwear factories.
•Nike will expand its micro-enterprise loan program to benefit four thousand
families in Vietnam, Indonesia, Pakistan, and Thailand.
•Funding university research and open forums on responsible business
practices, including programs at four universities in the 1998-99 academic
year.

26. CSR visionCSR vision
“To bring people, planet and profits
into balance for lasting success”

27. NIKE CSR reportsNIKE CSR reports
www.nikebiz.com/responsibility/

28. NIKE CSR reportsNIKE CSR reports
• Business overview of the company
• Realistic strategies, goals and plans into
incremental steps
• CSR isn’t only to be politically correct but to
increase their profits
• Mark Parker “Transparency is an asset, not
a risk”

29. NIKE CSR reportsNIKE CSR reports
Source: Nike FY07-08-09 CR Report

30. CSR RankingsCSR Rankings
•The Corporate
Responsibility Magazine
rank 23rd Nike Inc. into its
“100 best Corporate
Citizens 2010”
•The website
Justmeans.com on its
Top1000 rank give Nike the
158th place

31. NIKE FoundationNIKE Foundation
• NGO created in 2005
• Invest in adolescent girls the most at-
risk and neglected segment in
impoverished countries
• $41.9 million was distributed to
promote sport and education

32. CSR ChallengesCSR Challenges
• Deal with Anti-Nike activists groups
like Team Sweat leaded by Jim Keady
• Get rid of the image the brand gained
in 90s
• Have to continue to be the more
effective possible to lead others brands
into the vision

33. Competitors visionCompetitors vision
• Adidas-Salomon group:
“Authenticity, Inspiration, Commitment,
Honesty”
• Puma:
“Fair, Honest, Positive, Creative”

34. NIKE : SustainabilityNIKE : Sustainability
“Sustainability is our generation’s
defining issue”
Matt Parker, CEO of Nike Inc.

35. Sustainability StatementSustainability Statement
• Reduce our consumer and our businesses’
energy footprint to enable both to thrive in
tomorrow’s low-carbon economy.
• How?
o Innovate: Deliver sustainability
solutions.
o Integrate: Get sustainability in the heart
of NIKE.
o Mobilize: Partner with key stakeholders
for better solutions.

36. Goals and ChallengesGoals and Challenges
• Put investing in sustainability as a key innovation,
R&D priority on consumer brands' agendas.
• Speed innovation through investment and
collaboration.
• Launch the GreenXchange as a platform for enabling
the sharing of intellectual property to fast track changes
efficiently.
• Build an advocacy agenda to push for large-scale
policies and investments in sustainable innovation as a
key enabler of global economic competitiveness.

37. Sustainability reportingSustainability reporting
• Nike has published its fiscal 2007 to
2009 Corporate Responsibility Report.
• Top U.S. Company for
Social Responsibility
Reporting. (SustainAbility,
2009)

38. Nike’s North Star
The Natural Step
Nike’s North Star
The Natural Step

39. Considered DesignConsidered Design
• Through innovative design, design out waste, chemicals
and energy, and design in new materials and new
approaches.
• Nike’s Vision:
oDesign for recycling
o Use of Environmentally Preferred Materials (Organic
Cotton, Recycled polyester, Leather, PVC), in 2009
release of the Nike Considered Suppliers Guide to EPMs.
o Consumers bring their products back to us to be
recycled into new products
o Waste that cannot be eliminated is recycled
o Product is less reliant on oil and water
o Use healthier chemistry to minimize the impact of
product ingredients through lifecycle

40. World Cup JerseysWorld Cup Jerseys
• Nike try to push the World Cup in a more sustainable direction. The
company design jerseys made from recycled plastic water bottles
instead of using the traditional material that is polyester. This recycled
version saves 30 percent of energy. The plastic bottles are rescued from
landfills in Japan and Taiwan, and only eight bottles are needed to make
each jersey.

41. Product improvmentProduct improvment
• Rethinking the Box
o The shoebox and its
shipping carton represent
half of Nike packaging.
o The new box use 30%
less material and is fully
recycled and recyclable.
o Nike will begin to use
this box in 2011 saving
approx. 200,000 trees
annually.
• Footwear
o 9% reduction of solid waste in grams per pair.
o Only 13% of the waste is delivered to landfills.

42. Re-use a ShoeRe-use a Shoe
Since 1990 Nike has recycled 23 million
pairs of shoes to resurface 320 playing
fields.

43. Climate & EnergyClimate & Energy
Nike is a founding member of Business for
Innovative Climate and Energy Policy (BICEP).
•Set short and long term greenhouse gas
reduction targets.
•Adopt a national renewable energy standard.
•Boost investment in renewable energy.
•Assist developing countries in adapting to
climate change and reducing carbon
emissions.

44. Lifecycle AnalysisLifecycle Analysis

45. The Green XchangeThe Green Xchange
A digital platform that will allow the creation, sharing and
adoption of technologies that have potential to solve
important global or industry-wide sustainability challenges.

46. How they are doing until now?How they are doing until now?
World Wildlife Fund Climate Saver’s Program, reducing CO2 by 18%
from 1998 to 2005.
Nike reduced CO2 by 7% in manufacturing footwear in 2009.
The CO2 emissions of Nike’s facilities were reduced 15% in 2009.
The CO2 from inbound logistics declined 9% percent between 07-09
Nike achieved a 77% increase in the use of EPMs from 06-09.
Since 2008 Nike has been a lead member of the U.K. Sustainable
Clothing Plan.
In 2008 Nike, Inc. became chair of the World Economic Forum’s
Consumer Industries Working Group on Sustainable Consumption.

47. Sustainability RankingsSustainability Rankings
Global 100 Most Sustainable Corporations in the World
(06-09, Corporate Knights Inc.)
100 Best Corporate Citizens (Business Ethics Magazine,
05-09)
World’s Most Ethical Companies (Ethisphere, 07-09)
1st place- Consumer and technology companies on
climate change strategies. (Ceres, 2008)

48. Industry Challenges &
Competitors
Industry Challenges &
Competitors
•The main challenge of the industry is to integrate sustainable
operations within companies.
•Adidas.- According to the Dow Jones Sustainability Index, is
the leader in the industry in sustainability and CSR issues.

49. StrengthsStrengths
• Nike, Inc is listed in NYSE
• International brand recognition
• Has many offices and factories in countries
• Belongs to Fortune 500 companies
• Employs more than 30.000 people worldwide
• Strong marketing strategy.
• Operates a chain of Niketown retail stores
• Applies lunarlite foam and flywire materials.

50. WeaknessesWeaknesses
• The income of the business is still heavily dependent
upon its share of the footwear market.
• The retail sector is very price sensitive. Most of NIKE’s
income is derived from selling into retailers.
• Provides poor working conditions, and tends to exploit
cheap workforce overseas, especially in free trade
zones.
• Contracts overseas companies that apply non-
transparent and inadequate labor regulations, involving
child labor.
• Positioned as a permanent subject of criticism by anti-
globalization groups.

51. OpportunitiesOpportunities
• Nike is a fashion brand. Consumers that wear Nike
product do not always buy it to participate in sport.
• The opportunity to develop products such as sport
wear, sunglasses and jewelry.
• The business could also be developed
internationally, building upon its strong global brand
recognition.
• Producing sportswear products from manufacturing
waste.
• Emphasis on corporate marketing strategy through
the promotion of corporate brand and sponsorship
agreements.

52. ThreatsThreats
• Nike is exposed to the international nature of trade.
• The market for sports shoes and garments is very
competitive.
• The retail sector is becoming price competitive.
• Financial crisis may lead to job shortages in a number
of Nike’s worldwide subsidiaries;
• The company has experienced negative publicity
feedbacks due to its extensive advertising in mass
media
• Textile industry adversely affects the environment, and
therefore the company is permanently striving to
maintain its eco-friendly reputation;

53. Suggestions for improvementSuggestions for improvement
• They should identify each market
segments

54. RecommendationsRecommendations

55. ConclusionsConclusions