Cost Fo Capital

Case Overview

Though the name of Nike is known worldwide and has achieved the position of global sportswear leader, Nike was still $3 billion shy of reaching the goal of $12 billion that CEO Phil Knight intended the company to reach by 2000. In a letter in Nike's 2000 annual report, Knight addressed the issue of how to jumpstart his company's slowed growth and offered the following formula: "We need to expand our connection to new categories and toward new consumers." This quotation is indicative of Nike's relentless drive to build its brand with a strong consumer focus.

The Nike brand is synonymous with innovative marketing campaigns, featuring legendary sport stars like Michael Jordan, Tiger Woods, Andre Agassi and the Brazilian national football team. Since its inception in the 1972, Nike has built one of the most successful brands ever.

Unfortunately Nike has become an example of complacence with respect to brand management. Nike's image has been on the spotlight since its issues with human rights agencies about working conditions in most of its sweatshops in Asia surfaced. Nike has been accused of prizing sports star endorsements over staff. Nike has also been faced with intense competition from other athletic shoes namely Reebok who have been prepared to compete in market segments that Nike was originally reluctant to participate in.

Major Case Problem/ Issue

Nike has suffered a tarnished brand image due to the effects of shifting consumer attitudes and values in relation to the process of globalization. Nike have lost market share in the traditional teen segment. New teens are more socially concerned and respond to holistic company values rather than branding alone.

Executive Summary

Push mowers have experienced dramatic growth in recent years, driven by a trend to smaller lawns, consumers’ desire for simplicity and concerns about the environmental impact of gas and electric mowers. We recommend that Keith Damien choose urban women as his...