The Case of Nike - 1035 Words

WEEK 1 – CASE STUDY: THE KEY MARKETING STRATEGY OF NIKE Nike is considered to be a leading athletic footwear manufacturer, which makes up over 30 percent and 50 percent of global and US market share respectively. In order to reach customers’ demands and get profits, Nike has executed/implemented a number of marketing strategies. This essay will examine Nike’s key strategies from1962 to 2009. The most essential marketing strategy called â€Å"Pyramid of influence† was expressed by Product, Place and Promotion strategies throughout targeting on athletes, sportsmen and sports loving consumers. Product (product variety, design, quality) Nike provided high quality running shoes designed for athletes by athletes with competitive prices in†¦show more content†¦It is showed that the growth of business depends much on customers and the replacement of new potential products which are more useful and convenient. Population of Myth: Manufactures could not reply on population growth because if the products which have automatically expanding market, this will lead you to not give much thought to expand it. The absence of problems might lead to the absence of thinking. He took petroleum industry as an example. Consequently, the current industries probably did not pay attention on improving their products and could not compete with their rivals with the galloping industries. There is no guarantee against product obsolescence. If a companys own research does not make a product obsolete, anothers will. Production pressures: Mass production was expected to reduce the unit cost of industry which could lead to a situation that companies tried to use all efforts to produce products and neglect marketing. Selling is preoccupied with the sellers need to convert the product into cash, marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering, and, finally, consuming it. The evidence could be found in the case of Detroit, they did seem to be â€Å"customer – orientation† by spending money on customer research, especially in urgent situations.Show MoreRelatedNike Case696 Words   |  3 PagesNIKE INC. CASE 14 Philip Chen, Choco Huang, Ariel Chou, Matt Krieger In this report we analyzed Cohen’s approach in calculating WACC. After observing how Cohen derived his figures we came up with our own WACC, terminal value, and EPS. Cohen broke down his calculations into five parts 1) Single or Multiple Costs of Capital 2) Proportion of capital from debt and equity 3) Cost of Debt 4) Cost of Equity 5) WACC In part one; we disagreed with Cohen where he decided to value theRead MoreNike Case1172 Words   |  5 PagesNike Inc. Case 1. What is the WACC and why is it important to estimate a firm’s cost of capital? WACC is weighted average cost of capital, which is the expected rate of return on average from all the company’s existing debts and securities. It takes into account all different types of financing in the company’s capital structure. The reason it is important to estimate WACC is because it measures what it costs the firm to take on a project based on its current Debt and Equity mix. When theRead MoreNike Case2717 Words   |  11 PagesNIKE, INC.: COST OF CAPITAL On July 5, 2001, Kimi Ford, a portfolio manager at NorthPoint Group, a mutual-fund management firm, pored over analysts write-ups of Nike, Inc., the athletic-shoe manufacturer. Nike s share price had declined significantly from the beginning of the year. Ford was considering buying some shares for the fund she managed, the NorthPoint Large-Cap Fund, which invested mostly in Fortune 500 companies, with an emphasis on value investing. Its top holdingsRead MoreNike Case1074 Words   |  5 Pages5+855+418=$1,278 m Based on the new calculations, we will determine the new weights Wd=Dà ·D+E We=E à ·D+E Wd=1,278à ·12705=10.05% We=11,427à · 12705=89.95% Cost of Debt Cost of debt is calculated by finding the yield to maturity on a 20 year Nike Inc. bond with a 6.75% coupon rate. We used a single cost of capital, as Nike’s other business segments are not different and would probably carry similar risk and exposure. Cost of debt can be calculated as follows | YTM = coupon value = 6.75%Read MoreNike Case Study1004 Words   |  5 PagesRSS Case Study: E-recruitment gets Nike on track Posted by HR Zone in Strategies on Thu, 09/12/2004 - 16:54 0 inShare The Nike employer brand is extremely powerful in attracting potential talent to the business making the process of handling applications and supporting the resourcing process effectively and efficiently critical to business success; implementing e-recruitment was identified as the way to solve this businesses hiring problems. The issue Nike currently receives aroundRead MoreNike Case Study1112 Words   |  5 PagesCase Study- Nike 1. Discuss how Nikes growth can be attributed to its targeting of diverse market global segments. In the 1960’s Nike was only making running shoes. At this point in time not many people knew of Nike or the Nike swoosh. In order to increase brand awareness, they started paying athletes to wear their shoes. However, very soon Nike learnt that in order to be a global brand they needed to appeal to different market segments, not just athletes. Hence, they then decided to tapRead MoreNike Case Analysis794 Words   |  4 PagesNIKE CASE STUDY ANALYSIS Q: What characteristics about Nike contributed to their troubles with i2 becoming nothing more than a speed bump? 1. i2’s predictive demand application and its supply chain planner used different business rules and stored data in different formats, making it difficult to integrate the two applications. The i2 software needed to be so heavily customized to operate with Nike’s legacy systems that it took as much as a minute for a single entry to be recordedRead MoreNike Case Answers1120 Words   |  5 PagesNike Case Answers– Spreading out to stay together 1. When Nike CEO Phil Knight stepped down and handed his job to Bill Perez, he stayed on as chairman of the board. In what ways could Knight’s continued presence on the board have created an informal structure that prevented Perez from achieving full and complete leadership of Nike? Answer: Informal structures are the set of unofficial relationships between organization members. Potential advantages of informal structures: ââ€" ª Helping peopleRead MoreNike Case Study1219 Words   |  5 PagesCase Discussion Questions 1. Should Nike be held responsible for working conditions in foreign factories that it does not own, but where subcontractors make products for Nike? Some people probably think that designing and marketing its products is what Nike is responsible for. But outsourcing its manufacturing divisions into foreign countries doesn ´t release Nike from the responsibility. During a developing process manufacturing is one of the most important intermediate steps and because ofRead MoreNike Case1085 Words   |  5 PagesBACKGROUND Kimi Ford, a portfolio manager of a large mutual fund management firm, is looking into the viability of investing in the stocks of Nike for the fund that she manages. Ford should base her decision on data on the company which were disclosed in the 2001 fiscal reports. While Nike management addressed several issues that are causing the decrease in market sales and prices of stocks, management presented its plans to improve and perform better. Third party sources also gave their opinions