Muhammad Rizky Pratomo (224412158) NIKE

7/28/2019 Muhammad Rizky Pratomo (224412158) NIKE

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COMPETITIVEADVANTAGE NIKE

AND MY-SELF

M u h a m m a d R i z k y P r a t o m o

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r i z k y p r a t o m o 0 6 @ y a h o o . c o . i d

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The Birth Of The Nike Brand, And

Company

Johnson created the first product brochures, print ads and marketing materials,and even shot the photographs for the companys catalogues. He established a mail-ordersystem, opened the first BRS retail store (located in Santa Monica, Calif.) and managedshipping/receiving. He also designed several early Nike shoes, and even conjured up thename Nike in 1971.

Around this same time, the relationship between BRS and Onitsuka was falling apart.

Knight and Bowerman were ready to make the jump from being a footwear distributor todesigning and manufacturing their own brand of athletic shoes.

They selected a brand mark today known internationally as the Swoosh, which wascreated by a graphic design student at Portland State University named CarolynDavidson. The new Nike line of footwear debuted in 1972, in time for the U.S. Track &Field Trials, which were held in Eugene, Ore.

One particular pair of shoes made a very different impressionliterallyon the dozen orso runners who tried them. They featured a new innovation that Bowerman drew from hiswifes waffle iron an outsole that had waffle-type nubs for traction but were lighter than

traditional training shoes.

With a new logo, a new name and a new design innovation, what BRS now needed wasan athlete to endorse and elevate the new Nike line. Fittingly for the company founded byOregonians, they found such a young man from the small coastal town of Coos Bay,Ore. His name: Steve Prefontaine.


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Prefontaine electrified the packed stands of Oregons Hayward Field during his collegecareer from 1969 to 1973. He never lost any race at his home track over the one-miledistance, and quickly gained national exposure thanks to cover stories on magazines likeSports Illustrated and his fourth-place finish in 1972 in the 5,000m in Munich.

Pre challenged Bowerman, Johnson and BRS in general to stretch their creative talents.In turn, he became a powerful ambassador for BRS and Nike after he graduated fromOregon, making numerous appearances on behalf of BRS and sending pairs of Nikeshoes to prospective runners along with personal notes of encouragement.

His tragic death at age 24 in 1975 cut short what many believed would have been anunparalleled career in trackat the time of his death, he held American records in sevendistances from 2,000m to 10,000m. But Prefontaines fiery spirit lives on within Nike;Knight has often said that Pre is the soul of Nike.

Leading A New Generation

Nike rang in the new millennium with a new footwear cushioning system calledNike Shox, which debuted during Sydney in 2000. The development of Nike Shoxculminated more than 15 years of perseverance and dedication, as Nike designers stuckwith their idea until technology could catch up. The result was a cushioning and stabilitysystem worthy of joining Nike Air as the industrys gold standard.

just as Nikes products have evolved, so has Nikes approach to marketing. The 2002Secret Tournament campaign was Nikes first truly integrated, global marketing effort.Departing from the traditional big athlete, big ad, big product formula, Nike created a

multi-faceted consumer experience in support of the World Cup.


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What Is Competitive Advantage? And How

Has Nike Achieved It

Competitive advantage is a distinctive feature about a business that makes it successful. It

can be gained through :

Innovation (The introduction of new ideas, which change or create a product) Reputation Relationship with suppliers Relationship with customers Prices Advertising/Branding

To maintain competitive advantage it must be difficult for other firms to copy. Thebusiness must carefully identify the people who will buy the product, and make it moreappealing to them.

Nike are a sports-clothing and footwear company, employing 22,000 people worldwide,from Nike World Headquarters in Oregon and Nike European Headquarters inHilversum, The Netherlands, to nearly every region around the globe, including AsiaPacific, the Americas, and Europe, Middle East and Africa.

Nike sells footwear, apparel, and equipment for men, women and kids, for a variety ofsports. They are famous for their quality, and science.


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Nikes Target Appeal

LeBron James, Tiger Woods, Mia Hamm

have been recognized as many of today's sports

Images that are associated with Nike .

Nikes Target Strategy target market for their shoes, clothes and other accessories are males and females

between 18 and 35 years old.

Nikes Competitive market has expanded and dominated in the international market. Nike disburse TV ads during professional and college sports events, prime-time

programs, and late-night TV programs


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Business Overview

As the worlds leading athletic footwear, apparel and equipment company, NIKE,

Inc. is dedicated to inspiring every athlete to reach peak performance. Nike co-founderBill Bowerman sawendless possibilities for human potential embodied through sport. Hisphilosophy still guidesour mission today: To bring inspiration and innovation to everyathlete in the world. (And if you have a body, you are an athlete.)

Through our commitment to innovation and design, we are continually challengingourselves, and our customers, to reach that next level of achievement. We strive for:

Innovation to serve the athlete Innovation to grow the company Innovation to inspire the world

Integrating Sustainability Into Our Game Plan

At Nike, one way we seek to deliver shareholder value is through sustainable

growth. To us, sustainable growth means our long-term vision to deliver profitablegrowth decoupled from constrained natural resources, even as we work to deliver value to

our shareholders in the near term. Meeting these two objectives requires a careful balance

one our stakeholders expect of us and it remains our commitment. We attempt to

strike this balance by leveraging our significant competitive advantages, including our

authentic, emotional connections with consumers; innovative product and retail

experiences that lead the industry; and a strong NIKE, Inc. portfolio that gives us

tremendous opportunities for growth and profitability.

As we set aggressive goals in all areas of our business financial, social and

environmental we are committed to sharing these goals and to reporting on our

performance to consumers, the investment community and others interested in our

commitments and progress, including the wider sports and apparel industry, community

groups and academia. Over the past 15 years, we have moved from approaching

sustainability as a risk management issue to viewing it as an innovation opportunity and a

competitive advantage to be integrated into every aspect of our business.


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Plan for Growth

Nike is a growth company. But we want to deliver growth in the right way. We seekgrowth that is:

Sustainable Profitable Capital efficient Brand enhancingLike many other businesses, Nike faced some significant headwinds in FY10 and FY11.

Around the world, unemployment was high, especially among youth; and governmentswrestled with high debt levels. Rising costs for energy and labor sparked inflationarypressures. In turn, higher costs for materials, labor and freight were evident in ourmargins.

While the headwinds we faced were shared across our industry, the competitiveadvantages we have are unique to the Nike portfolio. In spite of ongoing macroeconomicchallenges, we are well positioned to leverage our strengthsincluding scale, operationalcapabilities and pricing power to help mitigate the risks beyond our control andcapitalize on opportunities to grow the company.

SUSTAINABLE PRODUCTS THROUGH

DESIGN AND MATERIALS

We measure the environmental profile of our products through our indexes builton our Considered Design ethos introduced in 2005. We built tools to assessenvironmental impactsenergy and carbon footprint, water and land use, chemicals andwaste. These tools make the process of assessing materials and overall product design bydevelopment teams easier. The Index provides comparability and drives behaviorinternally and in absence of industry standards helps to create new standards that weshare.


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We shared those tools with the industry and weve made strides in improving the design

of our products. We have made further updates taking into account the performance ofmaterials vendors in addition to the environmental performance of the materialsthemselves. We hope the result, a new Nike Materials Sustainability Index, will drivefurther transformation.

We assess performance as rated, Bronze, Silver and Gold.

As we calibrate between our old and new indexes and set the bar higher for some of theindexes, we will set definitions for these levels in FY13 based on rigorous analysis of thepilot program in FY12 and will share and assess accordingly.

UNLEASH INNOVATIONThe best way to predict the future is to design it, Buckminster Fuller said.

Sustainability is the worlds greatest innovation challenge. Sustainability applied to

mainstream innovation generates new, surprising solutions that can deliver breakthroughsin performance, business and sustainability.

And thats where innovation comes in. NIKE, Inc. started with thoughts of innovation how to run faster, make lighter, develop new materials, see connections that held promisefor leaps and bounds in performance. It is how we began and how weve continued to

drive success in delivering performance in product and across our business. Disruptiveinnovation creates new markets, new products, new sources of revenues, even newindustries. It fuels competitiveness, growth and jobs. Great innovation disrupts and makesthe status quo obsolete. So why wouldnt we apply innovation to sustainability? What if,

knowing what we know now, we were to challenge our problem solvers with this: Makeit better, make it perform and make it sustainable. Not or, not only, but AND.

What if we integrated the filter of improved performance and sustainability in ourinnovation processes, portfolios and resources?

What could happen if we applied systems thinking to how we turned a concept into a

reality, so that our processes, systems, engineering and manufacturing built workersrights and sustainability into the design, rather than being retrofitted in hindsight?

By inextricably linking sustainability and innovation we can think differently about boththe opportunities and the solutions.


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Re-imagine materials that eliminate waste, water, toxics, scarce resources, fossil fuels.Re-imagine products that have an afterlife where what was waste destined for landfillbecomes a new source of value.

Re-imagine manufacturing. What if manufacturing processes could evolve, bringing the

insights and skills of the worker to the center of the value proposition. We believe thenext wave of economic growth and competitiveness could well emerge from this nexus ofsustainability and innovation. And we look forward to making this our journey.

Brand Positioning in the Target Market:The Nikes effective Marketing Mix Program supports the brand positioning in

the target market. The Nike 4Ps elements as shown in the architectural diagram,

distinguishes it from its rival competitors. Its Products is basically designed for sporting

events. Its product is considered to be highly effective and comfortable to the athletes. It

has dominated United States sports market. It is recognized for the quality of its shoes

and has gained the reputation all over the world. Due to its higher quality shoes, its Prices

are usually higher than the normal brand. So, the customers perceive it as high-end

product. NBA and NFL has always been its favorite playground to promote the product

in the U.S. The United States culture ties closely to American Football, the mostlywatched sporting event in the U.S. It has dominated in the football market with its most

of the NFL events sponsored by Nike. But for its worldwide customers, it has been

successful in teaming up with the Soccer, golf and even in FIFA world cup. Recently,

Nike opens Nike golf schools and junior camps for junior golfers wanting to hone their

golf skills and achieve the next level of their playing careers. (Worldgolf.com April 10th

2007) The alliance of Nike and Apple brought world sports and music together. Nike I

pod sport kit changed the way people run and created better running experience. Nike

chooses independent distributors. NIKE sells its products through about 22,000 retail

accounts in the U.S and licensees in other countries. The Brand essence of Nike means a

unique way of expressing sport in forms of performance, whereas its Brand personality is

seriousness of athletes and global representations


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Nike and Competitor

Nikes Manufacturing and Sales


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The graph below indicates how Nike manufacturing and sales compete with their closest

rivals in the early 2000s worldwide.

Financial Analysis Overviewa) A financial analysis helps us compare a companys current performance with its

past performance

b) Gives us an idea of how the entire industry is performing as wellc) Liquidity ratios, profitability ratios, and leverage ratios will give us a good basis

of how Nike, Adidas Group, and Under Armour are performing

Current Ratio

Indicator of a firms short term liquidity Above 1 is usually considered goodNike and Under Armour have excellent current ratio scores, as

the Adidas Group is abnormally high

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2006 2007 2008

Nike

Adidas Group

Under Amour


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Accounts Receivable Turnover

Shows how well the working capital is being used A higher ratio is usually an indication of better cash collectionmanagement As we can see, Under Armour has had a very rapid increase

since 2006

Nike and Adidas Group have good, steady ratio numbers

Altman Z Score

a) The Altman Z Score is a good way to evaluate a companys credit riskb) A score of 1.81 or less is not goodc) A score of 2.67 or greater indicates that a company has little bankruptcy

risk

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2006 2007 2008

Nike

Adidas Group

Under Armour


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Market share Nike owns over 80% of the U.S.'s $2.6 Billion basketball market and its share is also

growing year over year

Adidas share of the market is only about 14%

Adidas has a growing market share, but it remains to be seen whether it will grow atthe cost of Nike, or other lesser brands.

Human Resource and Management Designed Employee Networks to separate them from their competition Employee Networks promote diversity within the organization Intended role of network:

a) Foster professional developmentb) Enhance work performancec) Identify mentorsd) Assist in recruiting diverse professionalse) Develop community interactionf) Encourage increased teamwork


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SWOT Analysis

Strengtha) The strengths that Nike takes pride in is getting the top athletes to

wear and sponsor their products rather than events or competitions as

much.

b) The basis of this comes from the idea that people tend to rememberthe brand worn by players and not the brand that sponsors the event

that the players perform at.

Weaknessa) The market that Nike participates in is very price sensitive. Most of

Nikes income comes from the selling of its products to retailers.

b) This usually shows that margins tend to get squeezed as retailers try toget low price competition on Nikes products

noreproduction

low quality

low awarenessmiddle priced

goods

limitations ofthe service


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Opportunitiesa) The technology is always changing in the retail market, as well as the

sporting market.b) The ability to have the most recent fashion trends involved in their

sporting equipment, sunglasses, shoes, and clothing is crucial to

generate more money.

c)Nike has a large global market and a large acceptance of their productall over the globe.

Threatsa) The retail sector is becoming substantially price competitive.

Ultimately it means that consumers are shopping around for a better

deal.

b) The consumer now maintains the control over the manufactc) So if a consumer wanted to find the lowest price on the same exact

product, then the consumer could just walk from store to

Nike Jordans Shoes Online Strategies

Directly On Distinct Variations

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involving as a result attached to finalizing all of any mummy handbag with its zippers plus cinches. Theenterprise capitalists also needs to buy great reputations for dwi fairly with collectors cooking their

portfolio corporations.


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Although the production related this shoe simple means could not now comes across as being simple,

but it certainly a special meaning effects is that all Michael jordan shoes are the a great deal of

profound. And if that special man isnt a dad, hell take great delight in these products very! These 50

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unlock experience along by means of seeker credit card really like.


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References

http://nikeinc.com/pages/history-heritage http://www.markedbyteachers.com/university-degree/business-and-administrative-

studies/what-is-competitive-advantage-and-how-has-nike-achieved-it.html

http://www.nikeresponsibility.com/report/content/chapter/business-overview

http://www.nikeresponsibility.com/report/content/chapter/targets-and-performance

http://www.investopedia.com/terms/c/competitive_advantage.asp http://debbielaskey.blogspot.com/2010/06/whats-your-nike-swoosh-aka-competitive.html
http://nikeinc.com/pages/history-heritagehttp://nikeinc.com/pages/history-heritagehttp://www.markedbyteachers.com/university-degree/business-and-administrative-studies/what-is-competitive-advantage-and-how-has-nike-achieved-it.htmlhttp://www.markedbyteachers.com/university-degree/business-and-administrative-studies/what-is-competitive-advantage-and-how-has-nike-achieved-it.htmlhttp://www.markedbyteachers.com/university-degree/business-and-administrative-studies/what-is-competitive-advantage-and-how-has-nike-achieved-it.htmlhttp://www.markedbyteachers.com/university-degree/business-and-administrative-studies/what-is-competitive-advantage-and-how-has-nike-achieved-it.htmlhttp://www.markedbyteachers.com/university-degree/business-and-administrative-studies/what-is-competitive-advantage-and-how-has-nike-achieved-it.htmlhttp://www.investopedia.com/terms/c/competitive_advantage.asphttp://www.investopedia.com/terms/c/competitive_advantage.asphttp://www.investopedia.com/terms/c/competitive_advantage.asphttp://www.markedbyteachers.com/university-degree/business-and-administrative-studies/what-is-competitive-advantage-and-how-has-nike-achieved-it.htmlhttp://www.markedbyteachers.com/university-degree/business-and-administrative-studies/what-is-competitive-advantage-and-how-has-nike-achieved-it.htmlhttp://nikeinc.com/pages/history-heritage


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My Competitive Advantage

I was a young man who aspired to build a company's supply chain management

professional, for that I always study hard and persevere to achieve success, I also always discuss

with my friends about the issues contained in the supply chain management, in addition to I also

discussed with the lecturers to deepen knowledge. I also often access the website in connection

with the supply chain management that I can take advantage of the open website. And of

uniqueness I can control a situation complicated problem. I also can play a music instrument for

example : drums, bass and piano. With it as well from all the advantages I have to make a profit

for me and people around me

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Muhammad Rizky Pratomo (224412158) NIKE