Case Study-NIKE Liteanu Alexandra, B4/I

1.
The Nike vision is "to bring inspiration and innovation to every athlete in the world and if you have a body you are an athlete and refers to the fact that Nike exists to supply everyone in the world with the shoes, equipment, or apparel that if anyone has a body then anyone has the potential of becoming an athlete. From the start one understands that Nike intends to merchandize to the world of athletes or people who have a body. That is a huge undertaking, which involves various set of stakeholder groups. Nike's mission is to carry on Boweman legacy of innovative thinking, develop products that help athletes of every level of ability reach their full potential and to create business opptortunities that set Nike apart from the competition and provide value for their shareholders. The strategic goal of the company is to make 23 bilion $ by the end of the year.The company strategy is based on three principles:pursuing the greatest growth opportunities , leveraging Nike resources and capabilities, and serving customers with premium products and experiences. 2. Strong Points -very well branded among consumers; -offers their product worlwide; -have offices in 55 different countries; -a very strong marketing compaign that increases brand familiarity; -fortune 500 company. Weak Points -accusations of poor conditions in the work place; -high price of their products; -constant focal points for negative criticism by the anti-globalization groups. Opportunities -product development that changes as the trends change;

-expansion into sport sunglasses and jewely lines; -reducing controvery surronding their trade and products practices. Threats -aggressive competition (Adidas, Puma); -sensitivity to price among consumers; -maintaning the reputation of being eco-friendly.

3. Risk Factors Nike operates in a very competitive and rapidly changing environment.New risk factors emrge from time to time and it is not possible for management to predict all such risk factors. The main risk factors: -intense competition; -failure to maintain reputation and brand image could negatively impact the business; -being unable to anticipate costumers preferences and develop new products; -failure to continue to obtain high-guality endorses of our products could harm their business; -seasonality which could result in fluctuation in their operating resultsand stock price; -failure to adequately product intellectual property right could adversely affect the business; -changes in tax laws and innacticipated tax liabilities could adversely affect their effective income tax rate and profitability; -natural disasters; -they may fail to meet analyst expectation, which could cause the price of their stock to decline. 4.The footwear industry is global in scale and scope with several large, well-capitalized firms competing worldwide for customers and market share, including firms like Nike, Adidas, Puma.These companies have been conducting business worldwide on the basis of global competitive advantage.The multinational strategies allow the largest competitors to cope with slowing demand in their core markets , such as US, by shifting their emphasis to countries and regions that have rates of sales growth such as Brazil, India, China.Adidas and Nike moved

aggressively into these areas to capitalize on the rapid pace of expansion on these emerging markets. *-excessive overtime work hours;environment, health and safety issues;inaccurate payment or nonpayment of wages; harassment and abuse of workers.