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Nike PowerPoint Presentation

Nike

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Nike

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Presentation Transcript

  1. Nike Just Do It

  2. Before There Was Nike • 1948-Bill Bowerman is hired as University of Oregon’s track coach (1948-1973) • 1957-Bowerman meets Phil Knight, a runner on his track team • 1962-Knight writes research paper at Stanford, goes on trip, and Blue Ribbon Sports is born

  3. Before There Was Nike cont. • 1963-Knight’s first shipment of Tiger arrives, 200 pairs of shoes • 1964-Knight and Bowerman team up in Blue Ribbon Sports (BRS) • 1968-First BRS store opened in Eugene, OR • 1970-Bowerman experiments with wife’s waffle maker, forever changing running shoes

  4. Nike Is Born • 1971-Swoosh is created for a fee of $35 • 1971-Jeff Johnson has a dream • 1973-Steve Prefontaine becomes first major track athlete to wear Nike • 1976-Nike shoes are seen on most athletes in Olympic time trials • 1978-John McEnroe signs with Nike

  5. Nike Is Evolving • 1979-Nike Air cushioning is created • 1981-BRS merges with Nike • 1984-58 Nike-supported athletes take home 65 medals in L.A. Olympics • 1985-Nike signs Michael Jordan, AIR JORDAN is born • 1988-Just Do It ad is born • 1990-Present-Nike stores started opening, Nike World in Oregon, Nike Town in Oregon (1990) and New York (1996)

  6. Nike Is Evolving cont. • 1998-Knight commits Nike to enforcing more strict manufacturing safety • 1999-Co-founder Bill Bowerman dies • 2000-Nike develops Swift Suit for Sydney Games • 2003-International sales exceed U.S. sales

  7. How Is Nike Made? • Knight decides to outsource and market • Japan-South Korea and Taiwan-Indonesia and China (1990) • Indonesia minimum wage barely $1 (1991) • Things got bumpy; foreign strikes and newspaper articles lead to Jeff Ballinger

  8. Jeff Ballinger vs Nike • Labor activist hired to run Asian-American Free Labor Association office in Indonesia • Ballinger felt that Nike mistreated foreign employees • Spent years publishing information against Nike • Went mostly unnoticed until the 1990s, coincided with the strikes and people started paying attention

  9. Outcry And Results • Government raised min. wage from 2100 to 2500 rupiah (roughly $1.25) • 1992-Workers wages compared to Michael Jordan’s endorsement contract, it would take 44,492 years to make the equivalent • Protestors started assembling at events such as the Olympics and the opening of new Nike stores • Doonesbury comic strip • Michael Jordan and Jerry Rice hit by media

  10. Andrew Young • Knight hires Andrew Young in 1997 • Basically said they are doing good but need to do better • What about wages?

  11. 1998 • Nike was losing popularity • 1,600 worker layoff • Schools started denying Nike as athletic supplier and students started protesting • Knight changes attitude

  12. How Is Nike Doing Now? • Named “Advertiser of The Year” by the Cannes Advertising Festival (2003) • Phil Knight steps down as CEO but remains the chairman • Annual revenue over $12.3 billion (2004) • Annual revenue of $13.7 billion (2005) up 12% over previous year

  13. Strengths • Name and image • Been there done that

  14. Weaknesses • Questionable track record • Upper management issues • Nike’s response to criticism

  15. Opportunities • New athlete name recognition • Website needs improvement • Merging with other companies • Community projects

  16. Who Else Is Nike? • Cole Haan (1988) • Bauer (1995) • Hurley (2002) • Converse (2003) • Exeter Brands Group (Nike created 2004) • Starter (2004)

  17. Threats • Other companies • Protestors • Lawsuits (Marc Kasky) • Nike

  18. THE END