The paper discusses how Nike responded to a crisis they faced in the 1990s, related to operational discipline, by identifying critical success factors and providing a SWOT analysis. The paper examines future success factors and describes further potential alternatives the company could implement. The paper explains the rationale behind its recommendation of the strategy of diversification and decentralization of Nike.
Outline:
Introduction
Problem Statement
Identification of Critical Success Factors
Alternatives
Issues
Conclusion
From the Paper:
"Nike Inc., nowadays the largest seller of high quality athletic footwear, apparel, equipment and accessory products was founded in 1971 by its two co-founders Bill Bowerman, a track coach who realized the niche for a good us-made running shoe produced in low-wage countries allowing to yield higher profits ahead of competition and his athlete Phil Knight, after a couple of years of initial business with first formed Blue Ribbon Sports Company. This was the foregoing 1964 grassroots company with initial sales out of the co-founders car trunk during local sports which eventually evolved into Nike Inc. with a distinctive trademark and brand, named after the Greek Goddess of Victory. Nike's core and best selling categories were and are running, basketball, children's, cross-training and women's shoes. However, the originator of Nike's early success and the company's core competence is a patented waffle sole, which originated from an experiment of stuffing a piece of rubber into a waffle iron, and the cushioning system known as Nike Air. These technological innovations formed the breakthrough for Nike in the athletic shoe industry during the early 70s."