Nike’s Analysis Essay Example

the company "Nike" a few years later.

Bowerman was focused on creating the design during this time. In 1968, Phil Knight and his coach Bowerman aimed to produce high-quality running shoes via Tiger. They renamed the company to Nike, after the Greek goddess associated with victory. This marked the start of Nike's success. The 1970s brought significant changes for the company, including the creation of its iconic logo – "the Swoosh" – designed by graphic arts student Carolyn Davidson.

After a few months, Nike broke ties with Japanese manufacturer O. Tiger due to disputes over distribution rights, leaving them with no choice but to establish their own brand. In 1972, Knight and Bowerman founded Nike, and within a few months, the renowned "Waffle" shoe was available for purchase.

Back in 1975, Bowerman had a brilliant idea - he observed his wife's footwear and realized that adding rubber to the compound could create rubber waffles. These could then be cut and placed under the shoes. He lent them to a few athletes who were highly impressed, transforming Nike into a top sports brand. The shoes boasted a sole that could both cushion shocks and bounce the foot.

Undoubtedly, Nike became the top producer of athletic footwear in the United States with this invention and utilized it as an opportunity to release an Initial Public Offering. In 1982, Nike introduced the renowned Air Force One basketball. This basketball served as the brand's beacon with NBA player Michael Jordan's signature. Nike and Reebok were neck and neck in competition until Michael Jordan came along. Nike devised a pair of shoes labeled 'Air Jordan' that Jordan sported on the NBA court.

Air Jordan sneakers,

although popular, were once declared illegal due to the red and black color combination. Michael Jordan was willing to pay a thousand dollars per game just to wear them. However, this controversy turned out to be a blessing in disguise for Nike as it boosted their sales from $870 million annually to over $4 billion. In addition, during the 1980s, Nike's logo was given the iconic slogan "Just do it", and they began sponsoring several athletes as their official sportswear supplier. Later on, Nike also became the official supplier for major sports events such as the "Tour De France" cycling competition and UEFA Champions League football in the late 1990s.

In 2003, Converse Shoes was acquired by Nike Inc. for a total of $305 million.

William Perez was originally designated as Phil Knight's successor in 2005, but he was replaced by Mark Parker in January 2006. However, Nike remains committed to enhancing its offerings with new technologies for the benefit of its customers. This article will explore how the company motivates consumers to buy their products.

The reason for Nike's global recognition can be credited to its effective marketing tactics, such as widespread advertising and partnering with top athletes and sports organizations. This approach involves connecting the Nike logo with the triumphs of successful performers, resulting in increased brand awareness. Alongside this adept branding strategy, Nike has also paved the way in sports manufacturing by utilizing outsourcing to minimize production expenses.

Nike developed an outsourcing system by centralizing command functions to the Beaverton headquarters, laboratory studies to St. Louis, and commercial responsibilities to Memphis. This was made possible by the company's use of vertical division of work,

which involves the separation of managers and unskilled workers. Together with other developments such as the transport revolution and communication advancements, this led to a greater liberalization of world trade.

This is how it can be summed up: Presently, every textile corporation emulates Nike's techniques, but this innovation enables them to establish a monopoly by dominating the market. Nike's system encompasses an elaborate branding mechanism and an economic plan that accentuates marketing instead of production. Phil Knight has suggested that production could be replaced entirely with branding and that production is merely a tiresome and secondary function. The focus then shifts to Nike's branding, which has shifted towards celebrity endorsement.

Branding involves giving products and services the power of brand equity, as noted by academic researchers. The company has invested significantly in this aspect and expanded into various sports such as basketball (with Michael Jordan), golf (with Tiger Woods), and football (with Ronaldo). The athletes endorse Nike products through advertisements on TV or magazines, showcasing their usefulness and coolness. Over the years, Nike has effectively responded to sports events such as when Knight associated Nike with the Kenyan cross-country skiing team at the 1998 Winter Games in Nagano.

The concept of the "Opportunist mark" refers to the tactic of utilizing news to drive successful advertising campaigns. Nike places significant emphasis on developing their branding and marketing strategies online as a means to increase their market shares. The internet has become an integral tool for companies to maintain their competitive edge in the 21st century, and more businesses are establishing an online presence. Along with high-speed internet connectivity, companies like Nike and Adidas heavily invest in online brand

building and image development.