Nike
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Mission
Nike’s mission is to bring inspiration and innovation to every athlete in the world.
Business segments
Nike is a producer of athletic footwear, apparel, equipment, accessories, and services. The company operates six reportable segments based on geography: North America, Western Europe, Central & Eastern Europe, Greater China, Japan, and Emerging Markets.
History
In 1962 Stanford Business School graduate Philip H. Knight was traveling through Japan when he took a liking to the athletic shoes he saw there. He contacted a Japanese shoe manufacturer, Onitsuka Tiger Co., and convinced it to import some of its products to the U.S. He believed that the running shoes could challenge the dominance of German-made counterparts in America. The businessman founded the company Blue Ribbon Sports (BRS) to oversee the distribution of the products.
In 1963 Knight received 200 pairs of Onitsuka’s Tiger athletic shoes. He kept them in his father’s basement and sold them at track meets in the neighborhood. His business became a partnership when his old track and field coach, William Bowerman, invested $500 in the venture. Bowerman had spent much time studying new designs for running shoes. When BRS began designing prototypes, he used his knowledge (along with insights from runners) to make enhancements.
BRS got off to a strong start, selling 1,300 pairs in 1964, and acquired its first retail space in 1966. Bowerman’s expertise paid off when a shoe he designed called the Cortez became a top seller in 1968. He continued developing innovative products, including a shoe with a nylon upper portion and a shoe that had a cushioned midsole through its entire length. By the end of the decade, Knight’s operation had expanded to 20 employees and many stores, with annual sales approaching $300,000.
In 1971, with financing from a trading firm, BRS began using independent contractors to manufacture a line of products. The company chose a swoosh symbol as its logo and gave it the name Nike, after the Greek goddess of victory. One year later, BRS separated from Onitsuka following a distribution disagreement. With a fresh start, it began marketing the new line at the 1972 Olympic trials as a shoe for serious athletes. It also created a promotional tagline, “There is no finish line.”
The new offering was a major success. In their first year, the products generated $1.96 million in revenues, enabling staff and store expansion to Canada (its first foreign market) and Australia. The next few years saw major milestones. BRS opened its first U.S. plant in New Hampshire. Its shoes were worn by numerous athletic stars at the 1976 Olympic trials. In 1978, it added a childrens’ line, and officially changed its name to Nike. The firm’s success enabled it to go public in 1980.
Benefits at Nike
Health insuranceDental insuranceVision insuranceLife insuranceDisability insuranceHealth care on-siteMental health carePension plan401k PlanEmployee stock purchase planStock optionsMaternity & Paternity leaveFamily medical leaveVacation & Paid time offPaid holidaysSabbaticalPaid sick daysBereavement leaveEmployee discount
Business model of Nike
Customer Segments
Nike has a mass market business model, with no significant differentiation between customers. The company targets its offerings at any consumer who is interested in athletic footwear and apparel.
Value Proposition
Nike offers four primary value propositions: accessibility, innovation, customization, and brand/status.
The company creates accessibility by offering a wide variety of options. It has acquired numerous footwear and apparel firms since its founding, including Converse and Hurley International. These actions have enabled it to expand its product lines, giving consumers more to choose from.
The company places a strong emphasis on innovation. It maintains the Nike Explore Team Sport Research Lab at its headquarters, a research facility focused on designing cutting-edge products. It also operates the Nike Advanced Product Creation Center, focused on technology incorporation.
The company enables customization through its service NikeID. It allows customers to personalize various aspects of their shoes, including sport style, traction, and colors. Socks can also be tailored.
The company has established a strong brand as a result of its success. It is the top seller of athletic footwear and apparel globally. It has partnered with several of the world’s leading athletes to promote its products, including Michael Jordan, Cristiano Ronaldo, and Tiger Woods. Lastly, the company has won many honors, including recognition as the “World’s Most Innovative Company“ by Fast Company (2013) and the “Most Admired Company in America“ for apparel three years in a row.
Channels
Nike’s main channel is physical retail stores, including its Nike-branded stores. It also acquires customers through its website and a combination of independent distributors and licensees worldwide. The company promotes its offering through its social media pages, online/print/TV advertising, brand events, and sponsorships of athletes and professional/college sports teams.
Customer Relationships
Nike’s customer relationship is primarily of a self-service nature. Customers use its products while having limited interaction with employees. The company’s website provides answers to frequently asked questions. That said, there is a personal assistance component in the form of phone, e-mail, and live chat support.
Key Activities
Nike’s business model entails designing and developing its products for customers.
Key Partners
Nike utilizes independent contractors for manufacturing purposes. The items are produced in 146 footwear factories located primarily in Vietnam, China, and India, as well as 408 apparel factories located mostly in China, Vietnam, Sri Lanka, Thailand, Indonesia, Malaysia, and Cambodia.
The company’s aforementioned Nike Explore TeamSport Research Labmaintains research partnerships with several leading universities and institutions in North America, Europe, and Asia. The alliances provide it with access to top athletes as well as cutting-edge science findings.
Key Resources
Nike’s main resources are its physical and human resources. Its Nike Explore TeamSport Research Lab, which creates innovations,has state-of-the-art research equipment. It also features over 40 researchers, many of whom have earned Master’s degrees and doctorates in various disciplines including biomedical engineering, biomechanics, kinesiology, mechanical engineering, physics, physiology, and systems science. The company maintains advisory boards and research committees consisting of athletes, trainers, coaches, orthopedists, podiatrists, equipment managers, and other experts who provide guidance in the product design and development process. Nike has five distribution centers in Memphis, TN as well as centers in California. Lastly, it places a high priority on its intellectual property, maintaining the third-largest design patent portfolio in the U.S.
Cost Structure
Nike has a value-driven structure, aiming to provide a premium proposition through frequent enhancements to its products. Its biggest cost driver is cost of sales, a variable expense that primarily includes inventory and warehousing costs. Other major drivers are in the areas of overhead, sales/marketing, and administration, all fixed costs.
Revenue Streams
Nike has one revenue stream: sales of its athletic footwear, apparel, equipment, and accessories.
Our team
Philip H. Knight,
Founder and Chairman
info: Philip earned a Bachelor’s degree at the University of Oregon and an MBA at Stanford Business School. He previously served as President of Nike, as a CPA at PricewaterhouseCoopers & Lybrand, and as a professor at Portland State University.
Mark Parker,
President and CEO
info: Mark earned a B.S in Political Science from Pennsylvania State University. He previously held numerous executive roles at Nike, including Vice President of Global Footwear, Vice President of Consumer Product Marketing, and Co-President of the Nike Brand.
Andy Campion,
EVP and Chief Financial Officer
info: Andy earned an MBA from UCLA and a J.D. and LL.M. in Taxation from the University of San Diego School of Law. He previously served as SVP of Strategy, Finance, and Investor Relations and as VP of Global Planning and Development at Nike.
Hilary Krane,
EVP, Chief Administrative Officer and General Counsel
info: Hilary earned a B.A. at Stanford University and a law degree from The University of Chicago Law School. She previously served as SVP, General Counsel and Corporate Affairs at Levi Strauss.
FAQs
Company Nike | Cleverism.com? ›
Nike, Inc. is owned by Phil Knight and Bill Bowerman. Founded in 1964, it is an American multinational corporation that manufactures and sells clothing, footwear, and accessories. Currently, John Hoke serves as the company president and CEO.
What company owns Nike? ›Nike, Inc. is owned by Phil Knight and Bill Bowerman. Founded in 1964, it is an American multinational corporation that manufactures and sells clothing, footwear, and accessories. Currently, John Hoke serves as the company president and CEO.
What kind of company is Nike? ›The world's largest athletic apparel company, Nike is best known for its footwear, apparel, and equipment. Founded in 1964 as Blue Ribbon Sports, the company became Nike in 1971 after the Greek goddess of victory. One of the most valuable brands among sport businesses, Nike employs over 76,000 people worldwide.
What does Nike stand for? ›Nike: The Winged Goddess of Victory.
Who signed Michael Jordan to Nike? ›Sonny Vaccaro's story
Back in 1984, Vaccaro convinced Nike to reach a deal with NBA rookie, Jordan. They offered him a 15-million dollar, five-year contract and created the now iconic 'Air' Jordan brand. "Signing with Jordan was the best decision I've ever made in my life," noted Knight.
The Jordan brand is owned by Nike (owned by the Knight family), as, at the time, the company was building its strategy to work with athletes to launch shows that could inspire consumers.
How much of Nike does Michael Jordan own? ›In the past five years, the Jordan Brand has brought in $19 billion USD for Nike. Though the brand generates close to $20 billion USD, Michael only receives 5% from the brand. In 2020, it was reported that Jordan's contract earned him $1.3 billion USD from Nike, the most any athlete has made from Nike.
Why is Nike so successful? ›Nike's business strategy is straightforward: engage in brand creation through emotional marketing and sports star endorsements, manufacture products with high-quality, market-leading technology, and acquire competitive sports brands. Nike's swoosh dominates the footwear industry.
What does Nike sell the most of? ›Nike generated most of its revenue from footwear. Indeed, in 2022, Nike generated over $29 billion in revenue from footwear, over $13.5 billion in apparel, $2.35 billion in equipment, and over $1.6 billion from the Converse brand.
Where is Nike most popular? ›With a market capitalization of $197.8 billion, Nike is among the 50 most valuable companies in the world. Nike stats show that it's still the most popular sports brand in the world. In February 2022, Nike.com had over 98 million visits. The United States had the highest number of visitors to Nike's official website.
What is Nike symbol called? ›
They ultimately selected the mark now known globally as the Swoosh, a shape inspired by the wings of the Greek goddess Nike.
What was Nike's original logo? ›Originally, the logo was called as 'the srtip', which later became well known as 'Swoosh'. Swoosh referred to the fibers that the Nike shoes used that time. The Nike swoosh logo made its first public appearance on the shoes in the spring of 1972.
Does Nike own Adidas? ›Since Horst Dassler, the son of Adolf Dassler, passed away in 1987, adidas was sold and is no longer family-owned. Instead, Adidas is now owned by Adidas AG, a multinational corporate group owned by several shareholders. The majority holders are football club Bayern München and Austrian fitness company Runtastic.
Does Nike own Jordan logo? ›The "Jumpman" logo is owned by Nike to promote the Air Jordan brand of basketball sneakers and other sportswear. It is a silhouette of former NBA player and current Charlotte Hornets owner Michael Jordan.
Does Nike own Converse? ›Founded by Marquis Mills Converse in 1908 as the Converse Rubber Shoe Company in Malden, Massachusetts, it has been acquired by several companies before becoming a subsidiary of Nike, Inc. in 2003. February 1908 in Malden, Massachusetts, U.S.
Did Jordan sell his shoes to Nike? ›Just two months into the sneaker's release, Nike sold $70 million worth of Air Jordans by May. Ultimately, the Jordan Brand had made the company more than $100 million by the end of the year in 1985.
What companies does Michael Jordan own? ›He played fifteen seasons in the NBA, winning six NBA championships with the Chicago Bulls. Jordan is the principal owner and chairman of the Charlotte Hornets of the NBA and of 23XI Racing in the NASCAR Cup Series.
Who owns Jordan Brand now? ›Air Jordan is a line of basketball shoes produced by Nike, Inc. Related apparel and accessories are marketed under Jordan Brand.
How much is Air Jordan worth? › How much does Michael Jordan make as an owner? ›Michael only receives 5% from the brand. In 2020, it was reported via Hypebeast that Jordan's contract earned him $1.3 billion USD from Nike, the most any athlete has made from Nike. In 1997, Nike made the Jordan Brand. The revenue reached over $5 billion in sales in 2022, of which Michael Jordan made $150 million.
How much does LeBron make from Nike? ›
Details about LeBron James' Nike contract were all over the place, with some reports noting that it was not below $500 million, while others said that it could be upwards of $1 billion. As for his annual pay from Nike, Cleveland.com's Joe Vardon reported that it was "multiple times" higher than $30 million.
Who owns the most Nike shoes? ›Nike (NYSE: NKE) is owned by 63.58% institutional shareholders, 0.95% Nike insiders, and 35.47% retail investors. Philip H. Knight is the largest individual Nike shareholder, owning 8.34M shares representing 0.54% of the company.
Which is bigger Adidas or Nike? ›This is an important factor to consider when comparing the two brands, as it shows that Nike is the more successful and preferred brand. Nike's global brand value in 2021 is approximately 34.8 billion U.S. dollars, while Adidas' brand value amounts to 16.5 billion U.S. dollars.
Who is Nike's biggest competitor? ›With annual revenue of $22.12 billion, Adidas is the biggest competitor of Nike. The brand actively serves across 55 countries via more than 2500 stores worldwide. Founded in 1924 by Adolf Dassler and Rudolf Dassler, the brand is the largest sportswear manufacturer in Europe and the second-largest globally.
Which is better Nike or Adidas? ›1. Is Adidas better than Nike? Yes, financially Nike shoes are known to be much larger than Adidas shoes, but the latter's performance has been better over recent years.
Who are Nike's biggest customers? ›The average Nike customer is a sports enthusiast, interested in leading an active and healthy lifestyle. Besides the sporty behavioral traits of the Nike audience, they are also image-conscious and tech savvy, looking to be ahead of the trends and up-to-date with the latest in fitness fashion and footwear technology.
What is Nike's biggest money maker? ›Nike generated most of its revenue from footwear. Indeed, in 2022, Nike generated over $29 billion in revenue from footwear, over $13.5 billion in apparel, $2.35 billion in equipment, and over $1.6 billion from the Converse brand. Analysis By Gennaro Cuofano - FourWeekMBA.
How much does Nike make a day? ›How much does Nike make a day? Nike makes $128.0M in a day.
Where does Nike rank in the US? ›| Rank | Company | Revenues ($ millions) |
|---|---|---|
| 1 | Nike | 20,862.0 |
| 2 | VF | 9,459.2 |
| 3 | PVH | 5,890.6 |
Nike is considered one of the biggest sportswear brands in the world. Its authentic and transparent approach to marketing and focus on company innovation, growth, and development makes it one of the most attractive sports brands for athlete sponsorship.
What is Nike ranked in the world? ›
Nike continues to lead the Apparel 50 ranking in 2021. Nike once again leads Brand Finance's “Apparel 50” - the sports brand ranking of the world's most expensive apparel brands.
What is the slogan of Nike? ›An original "Just Do It" commercial. Wieden coined the tagline, "Just Do It" for the then smaller sportswear brand based out of Oregon. The phrase immediately took off, and signaled an upward trajectory for Wieden and Kennedy, as well as Nike.
What does the upside down Nike symbol mean? ›Theory #1: Wearing the Nike swoosh headband upside down was to pay homage to NBA player Rajon Rondo, a University of Kentucky alum. While with the Celtics, he wore his NBA headband the wrong way, which led to the NBA banning the flip in 2010.
How much did the Nike logo cost? ›Carolyn Davidson designed the Nike Swoosh logo. She was inspired by the wing of the Greek goddess of victory. It took her 17.5 hours to design, and she was paid $35 for her work.
What is the story behind Nike? ›It was founded in 1964 as Blue Ribbon Sports by Bill Bowerman, a track-and-field coach at the University of Oregon, and his former student Phil Knight. They opened their first retail outlet in 1966 and launched the Nike brand shoe in 1972. The company was renamed Nike, Inc., in 1978 and went public two years later.
What are the Nike brand colors? ›The company believes that the right colors can convey the energy, attitude and style of Nike. The Nike color palette includes a wide variety of colors that are used in Nike shoes, apparel and accessories. Some of the most popular Nike colors include black, white, red, blue, green and pink.
Why Nike uses black and white logo? ›Colorless: Leave Logo Black and White
Most Simplism logos use black and white hues, like the Nike logo does since the B&W color style makes people feel real naturally. B&W is an ideal nesting place to start creating a logo.
Gatorade is now a portfolio of PepsiCo brands with Muscle Milk, Propel.
Is Nike still cool? ›Good news for Nike — the brand is still cool. That's according to the 10,000 teens across 44 states who responded to Piper Sandler's 42nd semi-annual survey this fall. As per the results, Nike earned the top spots for footwear and apparel in the survey that ranked teen's favorite brands.
Which came first Nike or Adidas? ›Adidas is the older of the two rivals and has a fascinating story associated with its beginning. The two Dassler brothers – Adolf and Rudolf – started manufacturing sports shoes in the year 1924.
What brands are under Nike? ›
Apart from its own brand, Nike market its products under Nike Pro, Nike+, Nike Golf, Nike Blazers, Air Jordan, Air Max and other as well as subsidiaries including brands Jordan, Hurley Int. and Converse.
Does Michael Jordan own the Jordan Brand? ›He also owns the majority stake in the Charlotte Hornets, as well as a sizable percentage his personal brand under Nike, the Jordan Brand.
Is Michael Jordan is a billionaire? ›He made less than $100 million as the NBA's greatest player of all time, but that hasn't stopped him from becoming a billionaire with an estimated net worth of $2 billion. Jordan was the world's first athlete billionaire.
Are Nike and Under Armour the same company? ›Nike is the largest footwear company in the world while Under Armour is one of the fastest emerging companies in the apparel industry. A key similarity between the two companies is the way that they been able to carve out a niche for themselves in the Athleisure market.
What shoe stores does Nike own? ›Nike's history
U.S.-based Nike is the world leader in athletic footwear and apparel. The company, which is traded as NKE on the New York Stock Exchange, has acquired several footwear and apparel companies over its history, such as Cole Haan, Bauer Hockey, Converse, Hurley International, Starter, and Umbro.
The sneaker features an open back with a Swoosh-decorated strap around the heel, very reminiscent of Crocs. The new design retails at $90 and is available now.
How much money does Michael Jordan make a day? ›How much does MJ make a day? Michael Jordan slam dunks during the NBA Finals in June 1991. Jordan has a net worth of $2 billion. Though it's impossible to say how much his Airness makes in one day, that net worth equates to making about $5.5 million daily.
How long do Jordans last? ›How Long Do Jordans Last? Similar to Air Max sneakers, Air Jordans can last around 7-10 years in storage. Occasionally wearing them can increase this time period. Conversely, wearing them daily can accelerate their deterioration.
How much money does Michael Jordan make a year? ›In 2022, Michael Jordan made over $250 million as royalties paid by Nike for the sales of Jordan's shoes and apparel (which amounted to over $5 billion in 2022 alone). Between 2018-2022, Michael Jordan made almost a billion dollars in royalties from the sales of the Jordan brand.
Is Nike and Jordan owned by the same company? ›Air Jordan is a line of basketball shoes produced by Nike, Inc. Related apparel and accessories are marketed under Jordan Brand.
Does Michael Jordan own Jordan Brand? ›
He also owns the majority stake in the Charlotte Hornets, as well as a sizable percentage his personal brand under Nike, the Jordan Brand.
Is Nike a private company? ›Nike is a public company headquartered in Oregon with an estimated 73,300 employees.
How many other brands does Nike own? ›Now in its sixth decade, Nike owns a multitude of world-famous brands such as Nike Pro, Nike Golf, Nike+, Air Force 1, Air Jordan, Air Max, Nike Blazers, Nike Dunk, Nike Skateboarding and Nike CR7. It also owns subsidiaries such as Brand Jordan, Converse and Hurley International.
Who is bigger Nike or Adidas? ›Which company has a higher annual revenue, Nike or Adidas? Nike consistently reports higher annual revenues. In 2020, Nike's revenue was approximately $37.4 billion, while Adidas generated around $21.2 billion.
What company does Michael Jordan own? ›He played fifteen seasons in the NBA, winning six NBA championships with the Chicago Bulls. Jordan is the principal owner and chairman of the Charlotte Hornets of the NBA and of 23XI Racing in the NASCAR Cup Series.
Is Nike an American company? ›Nike, Inc., formerly (1964–78) Blue Ribbon Sports, American sportswear company headquartered in Beaverton, Oregon. It was founded in 1964 as Blue Ribbon Sports by Bill Bowerman, a track-and-field coach at the University of Oregon, and his former student Phil Knight.
Did Jordan sell his brand to Nike? ›The athlete and apparel company initially linked up in 1984, his rookie year. Based on those figures, Jordan may have earned $256.1 million last year from licensing his name to Nike. His net worth is $1.7 billion, per Forbes. Jordan Brand revenue hit $4.8 billion in 2021, up 31% from the previous year's $3.6 billion.
How much royalties does Michael Jordan get from Nike? ›When Jordan signed his deal in 1984, not only did he agree to $500,000 per year, but also had royalties mentioned in his contract. Michael Jordan does not earn a fixed amount from Nike, but rather gets a 5% royalty on Jordan Brand earnings. This has helped him amass a net worth of $2 Billion(via Forbes).
What part of Nike does Michael Jordan own? ›In 1997, Jordan and Nike launched Jordan Brand, his own sub-division of Nike. According to Centuro Global, as of 2020, Jordan has made $1.3 billion from his Nike deal.
How many stores does Nike own? ›As of May 31, 2022, Nike operated a total of 1,046 retail stores throughout the entire world, which is just two stores less than the previous financial year. The number of Nike stores in the United States amounted to nearly 350 in that year.
Who is Nike's main competitor? ›
With annual revenue of $22.12 billion, Adidas is the biggest competitor of Nike. The brand actively serves across 55 countries via more than 2500 stores worldwide. Founded in 1924 by Adolf Dassler and Rudolf Dassler, the brand is the largest sportswear manufacturer in Europe and the second-largest globally.
Who invented Nike? ›