presentation de l'organisation nike

Nike Business Model: Not a business but an inspiration

Born in a family of runners, Nike has always been a household name. I would spend a considerable amount of time trying new models and visiting the Nike Website for any possible discounts.

Quite recently, I finished Phil Knight’s Memoir- Shoe Dog. The story behind the brand speaks of resilience. Nike entered an already dominated market, faced supply-chain issues, financial problems, and lawsuits.

Each hurdle had the potential to put them out of business, but they fought against all odds and emerged to be the most dominant player in the sportswear market. Today, let us analyze the industry and the business model & strategies that made Nike a success story.

The Sportswear Industry

The sportswear industry in the world is dominated by Nike, Adidas, Asics, and UnderArmour. The global sportswear market size is projected to reach US$ 113190 million by 2026, from US$ 93160 million in 2020, at a CAGR of 3.3% during 2021-2026.

The sportswear industry saw a hit during the COVID 19 pandemic; however, it fared far better than the rest of the apparel industry. There was a shift in the sales pattern; people started to buy sportswear for indoor sports rather than outdoor sports.

The industry saw a change in their customer base- there was an increase in women buyers, and currently, more than 50% of buyers are women. Moreover, the pandemic shifted the public’s focus towards physical health and the importance of an active life, which boosted sales for the sportswear industry.

The industry is highly competitive as there is a shortage of raw materials and incredible demand. This problem causes an imbalance in the supply chain. New companies often do not have the funds to handle such an imbalance. Nike faced the same issue for a very long time and was floating due to supply-chain delays but eventually dealt with it after it introduced the idea of “futures” to its stockholders.

The problem was then resolved after the cash inflow when the company became public. However, even a small market share in this segment can yield good profits. Nike was not the first to enter this market, but with its innovative designs and marketing strategies, it managed to make its way to the top. Nike doesn’t sell shoes. It sells an idea with its marketing strategy!!

Nike’s Outsourcing Business Model

Nike has a mass-market business model which caters to sports enthusiasts. The product categories are broadly shoes, sports apparel, and accessories. Their first products were running shoes, given that Phil Knight was a runner himself.

Before they went public, they opened their Apparel line, which has been equally successful. They ventured out to Basketball sneakers and slowly created a demand for shoes as footwear used for daily use.

Nike Inc. (originally known as Blue Ribbon Sports) first started as a reseller for Onitsuka Tiger shoes from Japan. Post their fallout, they outsourced their manufacturing from 300 independent suppliers in 35 countries such as China, Vietnam, Thailand, etc. Today, there are 1096 Nike retail stores worldwide, apart from E-commerce and online platforms. They sell their products in 170 countries across the world. Nike currently has a brand value of 34.8Bn USD.

They have the highest market share in the shoes and sports apparel department. They were the first American shoe-selling company to open their warehouse and sell their products in the Chinese market. Countries such as India, Italy, Mexico, and Argentina have manufacturing units catering to local markets. This move significantly lowers the supply chain woes and makes Nike accessible all over the world.

Value Proposition

Nike’s business model focuses on Innovation and Customization. Despite the sportswear being outsourced, Nike maintains strict quality checks. It spends a lot of resources and time for designing, research, and development.

Bill Bowerman (Nike’s early partner) would often use waffle irons to experiment with shoes! Their designs are admirable- anyone who has a pair of Nike’s Air Zooms can vouch for this. They introduced the world to Air-Cushioning technology in shoes.

There is a special team- Nike Explore Team Sport Research Lab, which is responsible for innovations. It employs researchers with doctorates in biomedical engineering, biomechanics, kinesiology, mechanical engineering, physics, physiology, and systems science. The company maintains advisory boards and research committees consisting of athletes, trainers, coaches, orthopedists, podiatrists, equipment managers, and experts who can guide the product design and development process.

Customization is another feature that Nike provides. NikeID is a service that allows buyers to customize their shoes. They can choose colors, sports style, and traction. One can visit Nike by You, Custom shoes and have a shoe tailored to their needs and likes.

Brand positioning and Advertising

When Knight first started Nike, he did not believe in the power of advertising. Funny how things change, Nike spent 3.59 billion U.S. dollars only on advertising and promotional events in 2020. Nike roughly spends 10% of its revenue on advertising. However, their marketing strategy often reminds me of a verse from the book and their spirit throughout the book.

I’d tell men and women in their mid-twenties not to settle for a job or a profession or even a career. Seek a calling. Even if you don’t know what that means, seek it. Phil Knight

The first employees of the firm were Shoe dogs. Bill Bowerman was Phil Knight’s track coach. Jeff Johnson and Phil Knight went for 13-mile runs when they met to discuss strategies. All of them loved running and shoes. Their love for running pushed them to sell shoes and build amazing designs for runners around the world.

They were passionate about the cause and reflected the same in their marketing strategies. More than advertising their shoes, they advertise running and sports. They are master storytellers; they create demand for themselves by inspiring people to take up sports.

Another amazing strategy that makes the brand alluring is that it is inclusive and takes a firm stand on social issues. Nike was one of the first brands to release Pro Hijab, a product for Muslim women in sports. They’ve encouraged women empowerment and involvement of women in sports- their social media channel NikeWomen inspires women to take up sport and a healthy lifestyle.

Nike’s worldwide fan following is certainly anchored to its essence of standing for social justice over and over again. The recent decision of  Nike to split with soccer player Neymar  based on an allegation raised by a female employee of sexual harassment by the soccer player affirms the brand’s willingness and effort to stick to social norms.

Check out this story on how Nikes stand for social justice has created a powerful  node  in its  brand association .

The company supported and debuted an ad campaign centered on Colin Kaepernick. He was a former NFL player who refused to stand for the national anthem before his games in protest of racism and discrimination in America. The sport boycotted him due to political pressure, but Nike debuted an ad campaign supporting the cause right after the event.

When Nike first started, celebrity endorsements were considered one-way tickets to putting a brand’s shoes on the map. Nike has indeed continued to follow this particular strategy and has the world’s leading athletes to promote its products, including Tiger Woods, Michael Jordan, Cristiano Ronaldo, Rafael Nadal, and many more. In the 2016 Olympics, In the category of shoe brands- Nike had the highest number of players who won medals.

Wrapping up

Shoes are one of the world’s oldest creations. One thing that can be observed is how Nike has always been a pioneer in innovating shoes and sports apparel. Nike has built a business model that observes trends and always stayed relevant to the market.

Entrepreneurs can surely take a leaf out of Nike’s books. Stay resilient, relevant, do not be intimidated by competition, and sell a vision rather than a product.

-AMAZONPOLLY-ONLYWORDS-START-

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-AMAZONPOLLY-ONLYWORDS-END-

Manasvi is an aspiring entrepreneur - always on hunt for problems she can solve. She’s an education, business and public policy enthusiast. She loves spending her weekends teaching underprivileged children or on her couch reading books.

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Nike Inc. Organizational Structure Characteristics (Analysis)

Nike Inc.’s organizational structure reflects abilities and limits in business operations. The company’s organizational or corporate structure is the composition and system design applied on the interconnections among employees, groups, and divisions of the sportswear business. Nike’s corporate structure highlights differences among regional markets. These differences are linked to region-specific demands of target customers’ preferences for shoes, clothing, and equipment based on sports popularity and climate. Nike’s organizational structure enables adjustments in dealing with market differences. Through this company structure, regional variations are included in Nike’s generic competitive strategy and intensive growth strategies . Structural and strategic alignment that considers these variations reinforces the company’s competitive advantages, especially in penetrating regional markets.

Nike Inc. has an organizational structure that facilitates regionalization of business strategies. Such regionalization promotes value chains that specifically fulfill customers’ expectations, especially in service and marketing. The characteristics of its corporate structure provide Nike with flexibility to address consumer preferences for athletic shoes, apparel, and equipment in regional markets. This flexibility is especially notable in how the company markets its products through its own NikeTown stores. This structural support, together with Nike’s organizational culture , helps the company in combating the financial and business developmental effects of competitors, such as Adidas, ASICS, Puma , and Under Armour. In relation, the company structure supports initiatives and strategies contained in Nike’s marketing mix or 4P .

Nike’s Organizational Structure Type and Features

Nike has a geographic divisional organizational structure . This structure is based on the company’s needs in its global organization, as well as the uniqueness of conditions in regional markets. The following characteristics are notable in Nike’s organizational structure:

• Global corporate leadership
• Semi-autonomous geographic divisions
• Global divisions for Converse and brand licensing

Global Corporate Leadership . Nike’s organizational structure has global corporate leadership, which involves corporate managers who represent the company’s executive hierarchy. The managers have offices in the company’s headquarters in Oregon, USA. They decide for the global corporate structure of Nike. For example, the Global Sports Marketing group releases new athletic shoe marketing campaigns for worldwide marketing. Through this feature of the organizational structure, decisions are easily implemented throughout the company. Also, new goals and strategic objectives based on Nike’s corporate mission and corporate vision are disseminated and implemented through this characteristic of the company structure. The following are the company’s global leadership groups or departments headed by a President, Executive Vice President, or Chief Officer:

• Office of the President & CEO
• Global Human Resources
• Product & Merchandising
• Administration & Legal
• Global Sports Marketing

Semi-Autonomous Geographic Divisions . Geographic divisions are a major organizational structure characteristic of Nike, Inc. The company’s operations are divided into segments based on regional markets. Each regional division’s managers optimize operations in the regional sports shoes, apparel, and equipment market. Nike’s organizational structure has the following regional divisions:

• North America
• Western Europe
• Central & Eastern Europe
• Greater China
• Emerging Markets

Through geographic divisions, this business structure allows strategies to match region-specific industry variables, such as the competitive factors shown in the Five Forces analysis of Nike . Similarly, corporate management can use these divisions to tailor strategic decisions based on external factors specific to geographic regions. For example, the social and economic trends and external factors identified in the PESTLE/PESTEL analysis of Nike are effectively considered through the geographic divisions of this company structure.

Global Divisions for Converse and Brand Licensing . Nike’s organizational structure also has two global divisions: one for the Converse brand and another for brand licensing. One global division is responsible for managing the worldwide operations of Converse, which is another footwear brand and subsidiary of Nike Inc. Another global division is responsible for licensing the Nike brand. This characteristic of the corporate structure offers control for brand licensing and the operations of Converse. The brand and related competencies shown in the SWOT analysis of Nike are optimized through these divisions of the corporate structure. Control on brand licensing enables the sporting goods company to focus on operations and licensees that can maximize the benefits of these brands. Thus, Nike’s business structure and organizational design contribute to business competitiveness.

Advantages & Disadvantages of Nike’s Structure

Nike Inc.’s organizational structure’s characteristics support growth and stability. Global corporate leadership has the advantage of facilitating control over the entire organization. The advantage of the semi-autonomous regional (geographic) divisions is flexibility in satisfying regional market-specific consumer preferences for the company’s athletic shoes, apparel, and equipment. However, a disadvantage of Nike’s organizational structure is the limited approach to managing the operations of Converse.

• About Nike, Inc .
• Malenko, N. (2024). Information flows, organizational structure, and corporate governance. In Handbook of Corporate Finance (pp. 511-546). Edward Elgar Publishing.
• Nike, Inc. – Form 10-K .
• Nike, Inc. – Investor Relations – Corporate Governance .
• U.S. Department of Commerce – International Trade Administration – Consumer Goods Industry .
• U.S. Department of Commerce – International Trade Administration – Textiles Industry .
• Xia, Y., Li, X., & Wang, X. (2023). The influence of organizational structure on the dynamic capability of enterprises: The regulating effect of technological innovation. Science, 11 (2), 57-66.
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Nike’s Organizational Structure

Create this exact chart in Organimi! Scroll below to see how. 

Introduction

Nike, Inc. is an American multinational corporation that needs little introduction. With a truly global presence and a name that’s recognizable by pretty much anybody, Nike is a leader in the design, development, manufacturing, marketing, and sales of footwear, apparel, equipment, accessories, and services. 

Nike was founded in 1964 by Bill Bowerman and Phil Knight, the latter of whom is still active in the company today as its Chairman Emeritus. The company is headquartered in the U.S. state of Oregon and is the world’s largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$37.4 billion in its 2020 fiscal year. 

As of the same year, the company employed more than 76,000 people worldwide and was valued in excess of US$32 billion, making it the world’s most valuable sports brand. Nike ranked 89th in the 2018 Fortune 500 list of the largest U.S. corporations by total revenue. 

Nike markets many of its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Nike Skateboarding, and Nike CR7. The company also has several subsidiaries including Jordan Brand and Converse. Nike sponsors many high-profile athletes and sports teams around the world and owns the highly recognized trademarks ‘Just Do It’ and the ‘Swoosh’ logo.  

Nike’s Organizational Leadership

Nike’s overall operations are overseen by the global corporate leadership team, which is currently made up of 16 individuals holding C-level, presidential, and vice presidential roles. 

Although both the Chairman Emeritus and Executive Chairman are a part of this team, it’s the company’s President & CEO who has overall responsibility for ensuring that the company realizes its goals and vision.

Nike’s organizational structure can be broken down into two distinct parts aside from the global corporate leadership which has overall global oversight for the company’s many brands and divisions.  

First and foremost, the global business is segregated into semi-autonomous geographic regions: 

• North America
• Western Europe
• Eastern/Central Europe
• Greater China
• Emerging Markets

Each regional division optimizes its operations in the regional sports shoes, apparel, and equipment markets to accommodate cultural and regional differences. Prior to 2022, Nike’s regional markets were less segmented and were comprised of four geographic areas: North America, Greater China, Asia Pacific and Latin America (APLA), and Europe, Middle East, and Africa (EMEA). Nike’s decision to segment its geographic divisions further into seven regions has been driven by factors including the Beijing Olympics driving up sales past 50 percent.

Secondly, Nike follows a matrix organizational structure made up of a combination of horizontal and vertical structures. In a matrix structure, as we’ve covered before on our blog, there are several lines of authority as employees report to multiple supervisors and managers depending on their role and what projects they’re working on. 

While this type of organizational structure might sound complex or confusing, it makes sense for a company like Nike which has hundreds of different product lines, campaigns, projects, and more running at the same time. Even though the matrix structure means that there are multiple reporting relationships, Nike’s standardized operational and communications processes mean that employees are aware of what’s expected from them and to who they need to report. 

These characteristics of Nike’s organizational structure help to support growth and stability. The global corporate leadership team has the advantage of retaining control over the organization’s operations. Meanwhile, the semi-autonomous regional divisions enable flexibility in meeting market-specific consumer needs. 

Want to learn more about organizational structures and the role that they play within modern organizations? Here are some helpful blog resources that you can get started with:

• What Are Organizational Charts?
• What is a Functional Organizational Structure?  
• What is the Matrix Org Structure?  

Create this chart in Organimi! 

You can download the CSV file of Nike’s org structure, import it into Organimi and start editing this chart right away! Here’s how:

•  From your dashboard, select  Data Import.
•  Click the  CSV  tile.
•  Click  +Upload Your File .    
• Select an Excel file from your device.
•  In the  Organization  field, click the down arrow to select an organization.
• Click Create a New Chart
• Click  Next and select: Organization Chart
• Select the auto-build tool to automatically build your chart.

Build better org charts with Organimi.

A powerful, cloud-based platform that helps you create, connect, and collaborate with your colleagues wherever they work. 

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ETUDE DE GESTION

• Présentation de l'entreprise et pourquoi ce choix
• Problématique
• Démarche de recherche
• Explication du protocole de trie des documents
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John DONAHOE

25 janvier 1964.

44,53 milliards de dollars

(et pourquoi cette entreprise)

PRésentation nike

PROBLEMATIQUE

Quelle est l’intérêt et l’utilité des réseaux sociaux pour l’entreprise Nike ?

Via internet :

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• Manuel de Gestion STMG

MES RECHERCHES DOCUMENTAIRES

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