Nike Inc.: Is $50bn by 2020 achievable?

Following another financial year of growth and record revenues, this case study explores Nike's current status as the world's premier sportswear manufacturer. It assesses the company's current strengths and weaknesses, and analyzes the current and potential opportunities and threats which face the company which may impede its objective of $50bn revenue by 2020.

Scope

  • Assesses how Nike achieved another year of record revenue growth in 2015, and how it plans to drive growth in the future.
  • In-depth analysis of Nike's structure to highlight its vulnerabilities.
  • Evaluating Nike's target of $50bn by 2020, assessing both company and macroeconomic conditions which could foil achievement of such a target.

Reasons to buy

How is Nike so successful?

What is Nike's marketing strategy?

Will Nike achieve its $50bn target?

What is Nike doing to ensure future growth?

Companies mentioned

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Table of Contents

OVERVIEW

Catalyst

Summary

WHERE NIKE IS SUCCESSFUL

FY2015 was another successful year for Nike

Nike has outperformed many of its rivals in 2014/2015

Nike's improving ...

OVERVIEW

Catalyst

Summary

WHERE NIKE IS SUCCESSFUL

FY2015 was another successful year for Nike

Nike has outperformed many of its rivals in 2014/2015

Nike's improving margins accounted for by premium products

Nike has a diverse product platform

R&D enhances premium image and permits further product segmentation

Nike's marketing continues to be an industry forerunner

Star endorsement strategy continues to pay dividends

Nike knows how to generate buzz for its products

NIKE'S WEAKNESSES

Nike is concentrated in North America

Nike is imbalanced with reliance footwear

Premium products risk excluding many customers

Endorsement strategies are expensive and risky

Endorsement deals are becoming rapidly inflated

Endorsement deals can backfire with irresponsible luminaries

FUTURE OPPORTUNITIES FOR NIKE

Nike has a growing DTC business

Increasing physical retail presence and marketing opportunities

The Nike Tech Book could be used to profit from product buzz

Nike looks to the future with 3D printing and the Internet of Things

Nike switches its campaigns to further womenswear sales

Growth potential in emerging markets

Nike attempting to turnaround Beijing Olympic problems

Nike using basketball to slam dunk China

DTC business will benefit from rampant Chinese e-commerce growth

Nike taking advantage of its premier status

Nike has several major sporting events to support its target

Nike collaborating with Apple on wearable tech

Nike faces more intense competition globally

Macroeconomic conditions could diminish expansion plans

Quantitative Easing weakening developed currencies

CONCLUSIONS

Nike: Just doing it

APPENDIX

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