Corporate

Nike was founded by Bill Bowerman and Phil Knight. The company was born in 1964 and was originally known as Blue Ribbon Sports (BRS). Then, in 1972, they formed a new company that would design, produce, and sell its own shoes. By 2006, the company was named as “Nike” for the Greek goddess of victory. It is a well-known brand in global athletic footwear, apparel, and equipment market with its vision to bring inspiration and innovative to every athlete in the world, and its mission to innovate for a better world.

By 2006, it shifted the company’s focus from a product orientation to a category-driven approach which consists of running, men’s training, basketball, soccer, women’s fitness, and sportswear. The goal is to have more consumer-oriented approach to the market. It was also a change in Nike’s traditional business priorities to deliver cohesive collection of footwear apparel and equipment to the women’s market.

Problem identification

Q1.Inconsistent integration

Q2.Matrix structure which limited decision making to business units only.

Analysis

Business-level strategies

Differentiation business-level strategy; it used to focus on running and basketball. Then, it design and offer into more segments which are their category-driven. Their products are variety and can be used by wide range of customers.

Corporate-level strategies

Moderate-High, related constrained diversification; Their major products are shoes and apparel. They also provide some minor products with using the same distribution channels, technological and resources.

Organizational structure

Nike use Multidivisional structure which were organized into a Three-Dimensional Matrix which are dimension 1; Business Units, dimension 2; Geographic region and dimension 3; sports.

They use changing the game to reorganize their company. During phase2, it developed overarching plan head to toe collection and integrated marketing. For phase3, it organizing the...