Nike Incorporation

Table of contents

Nike is a world class company that manufactures and markets a wide large of sports equipments such as sports, balls, t-shirts, tracks, uniforms for various sporting activities such as football, basketball, athletics, cricket, tennis and golf. The company was in incorporated in the year 1968 in the state of Oregon, it main business being to design and manufacture the best foot wear and other accessory products. But, Nike has grown to be a world class company that sells well branded and expensive products that are well known for their high quality. Nike trademark of “just do it” is well known, and it relates to the sporting spirit. The company has more than 500 plants in more than 45 countries.[1]

Nike did not experience much competition until in 1980s and 90s when Reebok and European counterparts Adidas and Puma entered the market. But Reebok was purchased by Adidas in 2006 thus Adidas is the one giving Nike competition. Nike has been the main player on the footwear market until then, the company controlled about 30% of the United States market, Reebok enjoyed about 20% followed by other companies like Adidas and Puma. Nikes abroad sales went up to $2 billion by 1995 and were leading by having 40% of total sales in footwear. [2]

The has been the biggest success of the company. Nike has premium brands, and offers the market high quality and expensive products. The company creates a brand image which is achieved by the unique logo of a (tick) and a slogan of “just do it” which attracts lots of customers. The company also does promotional activities of its products by entering into sponsorship deals with world class football stars, celebrity athletes, national teams, and also college athletic.

Nevertheless Nike has mixed it marketing strategies and has more elements more than promotion.  This other elements are; competitive price, wide range of products, numerous outlets and retailers (more than 20,000), sponsorship and promotion activities. Currently, Nike has a market share of around 37% in the world. The main objective of Nike is to become a leading sport equipment manufacturer in the world and maintain these standards in future.

The major client base is the youth and the young adults who mainly buy the sports products from the company. The company has put a lot of attention on products for men, women, and children, and their children’s shoes are now doing very well on the market currently.  The company has created more market by venturing into various market segments and manufacturing more various products. To achieve its objective of being the leader in market business the company is exploiting new markets outside Europe.

Nike has also managed to control its market by acquiring other small companies and turning them to manufacture their products. Like in 1998 it’s purchased Cole Hann which was making informal dress and shoes for $180 and cached a base of young people and their sales went up at 23% making a profit of $ 100 millions in 1998. Nike has continued to improve in its brand and marketing and its objective of being “the greatest sports and fitness company in the world” alongside world class companies like Coca-Cola.

Nike gets contracts with individual clients, cooperate clients and even countries and states. The company supplies to them different products, they can be football uniform for a national team, tracksuits for national athletic teams or even tailor made shoes or uniform for specific football stars such as Ranaldhno of Brazil. [3] The market is divided in various segments which can be viewed according to the region

There have been many challenges faced by Nike on the marketing side and Nike has done a lot of to recapture the market. These initiatives that Nike undertook was such as creating an ACG (all- conditions gear) unit and Techlab which was meant to market a brand of sports technology products. Such like digital audio player and waist compass these projects were meant to capture sales. In the beginning of 1999 Nike launched its products on the internet and they were directly available to the customers. Nike has continued to expand its market and with a strong marketing team lead by Mr. Perez who has vast experience, the company in 2004, posted profits of more than $1 billion. [4]

The company has a high team of human resources managers who are responsible for building a workforce which is effective and efficient. This managers build teams develop the necessary talents that are seriously needed by the organization to perform their duties. The managers also inspire, mentor, set examples, innovate and revolutionize all the employees in order to achieve the best from them. The employees also attend refresher courses seminars and training to keep them in touch with new market trends and technological advancements.

In general the public attitude towards the company is good, but the people of Beaverton where the company feel that it should be annexed fro where its headquarters are in Oregon State. But the company feels that the annexing will cost it $700,000 every year in terms of added taxes.

The company objective is achieved through proper marketing and advancement in technology by creating high quality products and designing better management approaches to maintain the market. Another aspect the company has done is to create better working conditions and customer relationships as from 2002 Nike addressed the issues of employees exploitations and carried out random company inspections to check the working conditions of its employment. [5] Nike has training programmers to train its employees and advance them with the current market needs.

Another thing that the company is involvement in is to improve its company image by getting involved in corporate social responsibilities. The company thus contributions to charities organizations and also organizes social activities for the society, and sponsors individuals and persons. This has greatly improved its image. Nike is also one of the most environmental friendly companies. And this has a very positive image in the eyes of the public which has become much environmental aware.


Nike is a big organization that commands a large market in the world. It is apparent that to maintains such a market by investing a lot in marketing and research so that it can satisfy its customers and keep up with new trends on the market. Better management skills and quality products are the main ingredient for success for any company.

Many obstacles in marketing and management come up to challenge the company including stiff competition. But it is clear that with well and timely adjustments in marketing and advancement in technology and being to be innovative the company has managed to capture and maintain its markets. Therefore for any company to remain profitable and impressive its must embrace prudent management and better technology.


  1. Jenkins, H. W. (1998): The Rise and Stumble of Nike;  Wall Street Journal, June 3.
  2. Collingwood, H. (1988): Nike Rushes in Where Reebok Used to Tread; Business Week, October 3, p. 42.
  3. Collingwood, H. (1988): Nike Rushes in Where Reebok Used to Tread; Business Week, October 3, p. 42.
  4. Holmes, S. and Christine, T. (2002): How Nike Got Its Game Back; Business Week, November 4, pp. 129-31.
  5. Collingwood, H. (1988): Nike Rushes in Where Reebok Used to Tread; Business Week, October 3, p. 42.

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