Nike

Philip Hampson Knight

SUBMITTED TO : SUBIMITTED BY :MA’AM RENUKA RATHORE BRAJESH RAWAT BBA PT.III SEM.VI

Founder & CEO of Nike.

"Play by the rules. But be ferocious.“Philip H. Knight

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BornPhilip Hampson KnightFebruary 24, 1938 (age 75)Portland Oregon, U.S.

Residence Hillsboro, Oregon

Alma materUniversity of Oregon

Stanford University

Occupation Co-founder and chairman of Nike, Inc.

Net worth US$14.4 billion (2012)

Spouse(s) Penelope "Penny" Parks

ChildrenMatthew KnightTravis KnightChristina Knight

ParentsWilliam W. KnightLota Hatfield Knight

Philip Hampson Knight

Early Years• Phil Knight is the son of "a lawyer turned newspaper publisher", William W. Knight and his wife

Lota (Hatfield) Knight.

• Growing up in the Portland neighborhood of Eastmoreland, he attended Cleveland High School in Portland.

• Knight continued his education at the University of Oregon in Eugene, where he was a member of Phi Gamma Delta ("FIJI") fraternity, was a sports reporter for the Oregon Daily Emerald, and earned a journalism degree in 1959.As a middle-distance runner at the school, his personal best was 4:10 miles winning varsity letters for track in 1957, 1958, and 1959.

• In 1977, together with Bill Bowerman and Geoff Hollister, Knight founded an American running team called Athletics West.where he was a member of Phi Gamma Delta ("FIJI") fraternity, was a sports reporter for theOregon Daily Emerald and earned a journalism degree in 1959.[As a middle-distance runner at the school, his personal best was 4:10mile winning varsity letters for track in 1957, 1958, and 1959.

• In 1977, together with Bill Bowerman and Geoff Hollister, Knight founded an American running team called Athletics West.

• In 1982 Knight was named Oregon Businessman of the Year and was selected as one of 1988’s Best Managers by Business Week magazine. He is a Republican and an Episcopalian.

Budding entrepreneur• After graduating from Oregon, Knight enlisted in the Army and served one year on

active duty and seven years in the Army Reserve.

• After the year of active duty, he enrolled at Stanford Graduate School of Business. In Frank Shallenberger's Small Business class, Knight developed a love affair with something besides sports — he discovered he was an entrepreneur.

• Knight recalls in a Stanford Magazine article:"That class was an 'aha!' moment ... Shallenberger defined the type of person who was an entrepreneur--and I realized he was talking to me. I remember after saying to myself: 'This is really what I would like to do.' “

• Knight set out on a trip around the world after graduation, during which he made a stop in Kobe, Japan, in November 1962. It was there he discovered the Tiger-brand running shoes, manufactured in Kobe by the Onitsuka Co. So impressed with the quality and low cost, Knight made a cold call on Mr. Onitsuka, who agreed to meet with him. By the end of the meeting, Knight had secured Tiger distribution rights for the western United States.

• . When Knight received the shoe samples, he mailed two pairs to Bill Bowerman at the University of Oregon hoping to gain a sale and an influential endorsement. To Knight's surprise, Bowerman not only ordered the Tiger shoes but also offered to become a partner with Knight and would provide some design ideas for better running shoes. The two men shook hands on a partnership on January 25, 1964, the birth date of Blue Ribbon Sports, forerunner to Nike.

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Created by Bill Bowerman and Phil Knight

Blue Ribbon Sports

Phil Knight

Bill Bowerman

January 25, 1964,

Blue Ribbon Sports• Originally known as blue ribbon sports(brs), was founded by university of

oregon track athlete philip knight and his coach bill bowerman in January, 1964.

• Initially operated as a distributor of Japanese shoemaker onitsuka tiger• The fledgling company was housed in a storefront in a working class section

of portland. Knight devoted his nights and weekends to the new endeavor, which primarily imported and sold japanese-made tiger running shoes.

• In 1966 brs opened its 1st retail store in california.

• As the business grew, blue ribbon sports was named the national distributor of tiger. At that point, onitsuka, the japanese company, also demanded a majority share of blue ribbon and threatened to revoke its distributorship if knight and bowerman refused to comply.

• By 1971 brs-onitsuka tiger relationship ended

Nike

• In 1971, Phil Knight created the name Nike, name of Greek goddess, Nike, which symbolizes the victory.

• Carolyn Davidson designed the logo of Nike, for $ 35! This symbol, the swoosh, a comma inversed and horizontally, is correlated with the brand name.

• In fact the Greek goddess in mythology was represented as winged deity able to move at high speed, and comma represents these wings.

• The first line of Nike shoes debuted in 1972 and Blue Ribbon Sports is officially renamed Nike on 31 December 1981.

• In 1979, he added the technology “air” at new sneakers “Tailwind”. This technology consists in putting a pocket of gas in order to step up the runners’ comfort.

• In 1980, Nike became the number 1 of sports shoes in the United States. In the same year the company is introduced in stock exchange.

• Nike went public in 1980, in order to raise monies for capital expansion. Knight received 46 shares of Nike stock, while Bowerman was left with just 2 percent. At that time, the company began to expand its product line, adding sports apparel and children’s shoes.

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• Nike is the U.S-based manufacturer of athletic shoes, apparel and sports equipment.

• Stock symbol: NKE (NYSE) • Annual revenue : more than $18billion • Founders: Bill Bowerman, Philip Knight • Year established: 1964 (as Blue Ribbon Sports) • Industry: Sportswear/equipment • HQ: Beaverton, Oregon • President/CEO: MARK PARKER• Staff: 30,200 • Products: shoes, apparel and sports equipment, accessories • Slogan: Just Do It!

About Nike

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• Nike’s principal business activity is the design, development and worldwide marketing of high quality footwear, apparel, equipment, and accessory product

• Distributed in over 160 countries around the world: (Asia, Australia, Canada, Europe, Latin America, and the United States)

• Nike is the largest seller of athletic footwear and athletic apparel in the world. • Fiscal year ended May 2003: Revenues of $10,697 million (increase of 8.1%

against 2002) • Employees: 26,000 worldwide.

650,000 in Nike contracted factories around the globe.• Facilities: in Oregon, Tennessee, North Carolina and The Netherlands.

– Also operates leased facilities for: * 14 Niketowns, * Over 200 Nike Factory Stores, * 12 NikeWomen stores * Over 100 sales and administrative offices.

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TIMELINE

1960’s – Blue Ribbon Sports

founded by Phil Knight

1970’s – Swoosh logo created for just

USD 35.00

-BRS changed into “Nike"

1970’s – HQ opened at

Beaverton, Oregon

1980’s – Introduction of Nike Air Shoes

- Canada’s top seller

1980’s – Famous slogan “Just Do It”

comes to life

1990’s – Opens World Campus

- Opens Nike Town in Oregon

1990’s – Gets distribution rights in

Korea & Japan

- Opens Nike town in NY & Chicago

2000’s – Purchases Converse Inc for USD 305 million

- Opens first Nike Goddess Store

2000’s – Acquired Umbro (apparels)

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CORE VALUES

• To experience the emotion of competition

• Winning• Crushing Competitors

Core Values

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VISION & MISSION

• To bring inspiration and innovation to every athlete* in the world

• * If you have a body, you’re an athlete – Bill BowermanVision

• To be the world’s leading sports and fitness companyMission

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CORPORATE LOGO

Nike Logo as at 1971



Current

Nike Logo

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BOARD OF DIRECTORS

Philip KnightCo founder/ Chairman

Alan Graf Jr.

Fedex

Timothy Cook

Apple Inc

John Connors

Ignition Partners

Mark ParkerCEO/President


SWOT ANALYSIS OF NIKE,INC

STRENGTHS: 1) IT IS A HARD COMPETITOR.

2) STRONG AT RESEARCH AND DEVELOPMENT.

3) IT’S THE NO. 1 SPORTS BRAND IN THE WORLD.

WEAKNESSES:

4) LACK OF DIVERSIFIED RANGE OF SPORTS PRODUCTS.

5) HEAVILY DEPENDENT UPON MARKET SHARE OF FOOTWEAR.

6) RETAIL SECTOR IS VERY PRICE SENSITIVE.

OPPORTUNITIES:7) IKE HAS ALSO BECOME A FASHION BRAND.

8) THERE ARE MANY MARKETS LEFT UNEXPLORED ON INTERATIONAL BASIS.

THREATS:9) COSTS AND MARGINS ARE NOT STABLE.

10) COMPETITORS ARE DEVELOPING ALTERNATIVE BRANDS TO TAKE AWAY NIKE’S MARKET SHARE.

BRAND PORTFOLIO

Cole Haan, designs and distributes dress and casual footwear, apparel, and accessories for men and women

Converse Inc., offers a diverse portfolio including premium lifestyle men's and women's footwear and apparel.

Hurley International LLC., designs and distributes a line of action sports apparel for surfing, skateboarding and snowboarding, and youth lifestyle apparel and footwear

NIKE Golf, designs and markets golf equipment, apparel, balls, footwear, bags and accessories worldwide.

Umbro.Ltd., designs, distributes, and licenses athletic and casual footwear, apparel and equipment, primarily for the sport of football (soccer)


NIKE PRODUCTS AND TARGETTED CUSTOMERS

They design, develop, and market high quality active sports apparel, equipment, and accessory products

Nike distributes one new shoe style every single dayNike’s critical factors for success are maintaining current

standards, closer working relationships, and retaining customer loyalty by guaranteed standard of product

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.


NIKE SPORTS GOODS


NIKE SHOES AND BAGS


NIKE ACCESSORIES AND APPARELS


NIKE’S COMPETITORS

NIKE IS FACING HYPERCOMPETITION FROM QUITE A FEW FIRMS BOTH DOMESTICALLY AND GLOBALLY.THE MAIN FIRMS ARE REEBOK, ADIDAS, FILA, PUMA, TAYLOR MADE, CONVERSE, NEW BALANCE, ETC.IN THE DOMESTIC MARKET (i.e. U.S.) NIKE IS THE INDUSTRY LEADER WITH

47% MARKET SHARE, FOLLOWED BY REEBOK, A

DISTANT 2ND WITH 16%

AND ADIDAS WITH 6%.NIKE IS THE LARGEST SELLER OF ATHLETIC FOOTWEAR AND APPAREL WORLDWIDE BY SALES.


THE GLOBAL MARKET SHARES OF ATHLETIC FOOTWEAR


CORPORATE SOCIAL RESPONSIBILITYMANY OF NIKE’S MANUFACTURING PROCESSES NEGATIVELY CONTRIBUTE TO THE ENVIRONMENT.ITS EXPANDING INDUSTRY IS LEADING TO ACUTE WATER DEFICIT,CLIMATE CHANGE, POLLUTION, EXCESSIVE FUEL AND RAW MATERIALS CONSUMPTION.NIKE IS TRYING HARD TO COUNTERACT THESE DIFFICULTIES.CURRENTLY NIKE IS AMONG THE TP 3 CLIMATE-FRIENDLY COMPANIES.NIKE STARTED THE NIKE GRIND PROGRAM WHICH CLOSES THE PRODUCT LIFE-CYCLE.NIKE ALSO STARTED RE-USE-A-SHOE PROGRAM IN 1993 FOR RECYLCLING AND REUSING USED SHOES.THE MATERIAL THAT IS CREATED FROM RECYCLED SHOESS IS OFTEN USED TO CREATE SPORTS SURFACES LIKE BASKETBALL COURTS, RUNNING TRACKS, PLAYGROUNDS, ETC.04/08/2023 Brajesh Rawat 23

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Corp. Social Responsibility

- Contributes for the study of rural children

- Innovates its product constantly to make it eco-friendly

- Offers scholarship to children in sports

- Member of Fair Labour Association (FLA) & Global Alliance

- Funds number of NGO’s as part of contribution towards society


Thank you for attention.

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