MINI PROJECT ON

NIKE SHOES INDUSTRIES LIMITED.

MASTER OF BUSINESS ADMINISTRATION

SESSION(2021-2023)

Submitted By
DEEPANSHI SONI
Roll No.: 2100470700016

Under the supervision of

Mrs. SUMEGHA BHATIA (HOD)

Dr. VIRENDRA SWARUP INSTITUTE OF COMPUTER STUDIES (047)

810, W1 BLOCK, JUHI KALAN, KIDWAI NAGAR, KANPUR- 208014
 COVER PAGE

 INTRODUCTION ABOUT THE TOPIC

INTRODUCTION

BACKGROUND OF THE PROBLEM

Since the late 1980s, Business School marketing professor Itamar Simonson has looked
for ways to understand how consumers make choices. Much of his work debunks the
accepted theory that giving consumers what they want and making a profit are the most
basic principles of marketing. Customers may not know what they want, and second-
guessing them can be expensive, says the professor who teaches MBA and PhD
marketing and consumer decision-making courses. In Simonson’s words, “The benefits
and costs of fitting individual customer preference are more complex and less
deterministic than has been assumed.” That’s because “customer preferences are often ill-
defined and susceptible to various influences, and in many cases, customers have poor
insight into their preferences.” In one of his recent papers, Simonson tackles the issue of
one-to-one marketing and mass customization. Supporters of these marketing approaches
have suggested that learning what customers want and giving them exactly what they
want will create customer loyalty and an insurmountable barrier to competition.

ABOUT THE NIKE INDUSTRY

In sport, visual acuity and protection can mean the difference between winning and
losing. Light conditions have a dramatic effect on how the human eye perceives and,
subsequently how the body reacts and performs -- in the sun glinting over the upper deck,
shallow contrast on a putting green, or quickly adjusting from shadows to light on a
tennis court or mountain bike single track.
Nike knows that in athletic competition, even small advantages are critical to performance. Nike has
spent the last eight years exploring the human eye to understandthe science of vision in the
development of the new Nike Max-Sight Sport-Tint Contact Lens, available August 2005.

PRODUCT PROFILE
Apart from delivering a pair of comfortable sports shoes Nike also provides a number of
value-added features with its products. The features that are a part of every Nike sports
shoe are as follows.
 High Performance Sports Shoes: Nike has patented the “Air” system and has made it into
a regular feature in most of its models. Many models feature an air pocket in the shoe that
reduces the weight of the shoe and reduces pressure on the heels. Besides the overall
design and compactness of the shoes have made it a favorite of many professional
athletes around the world.

Comfort: Nike shoes are renowned all over the world for the comfort they provide. Well
padded and cushioned, they provide a tremendous level of comfort to the wearer and
reduce the strain to his feet while playing.

Lightweight: This attribute is in line with the two described above. A lightweight shoe
provides greater mobility and eases the pressure on the feet of the wearer.

Durability: People purchasing a pair of shoes at such a high price often feel that they
have made an investment. They would obviously want to see their shoes last a long time.
To prove this point we draw the example of the authors of this marketing plan. All of us
own a pair of Nike’s and have been wearing them for well over two years – a symbol of
the durability of Nike shoes.

Style: Nike’s designs are considered to be the most stylish in the industry and beat all
others as far as looks are concerned. Attractively packaged, it is a delight to bring a pair
home. Add to this the “Swoosh” – the most recognizable symbol in sports and you have a
product that would give the user a definite sense of pride.

Nike shoes also come with a guarantee card that enables the owner to return it in case of
manufacturing defects. However, owing to the fact that the company implements strict
quality control measures, coming across a defective pair in a store are a rarity. The most
recent additions to their line are the Nike 6.0 and Nike SB shoes, designed for
skateboarding. Nike has recently introduced cricket shoes, called Air Zoom Yorker,
designed to be 30% lighter than their competitors'.[ Nike positions its products in such a
way as to try to appeal to a "youthful....materialistic crowd".[5] It is positioned as a
premium performance brand.

 Research Methodology and proposed statistical tools

RESEARCH METHODOLOGY

Research comprise defining and redefining problems, formulating hypothesis or

suggested solutions; collecting, organizing and evaluating data; making deductions and
reaching conclusions; and at last carefully testing the conclusions to determine whether
they fit the formulating Hypothesis.
In short, the search for Knowledge through Objective and Systematic method of finding
solutions to a problem is Research.

RESEARCH OBJECTIVES
 to study the tastes, preferences, and buying behavior of consumers in case of footwear
of Bata.
 To analyze buying behavior of ladies segment of consumers.
 To recommend strategies to Nike to increase sales in ladies segment.

The main objectives of this study are:

 Working of Insurance Plans
 SWOT analysis of the product sold
 Comparative study with the competitors

RESEARCH DESIGN

TYPE OF RESEARCH: -

Primary source: - the sources are

https://www.nike.com/in/w/shoes-y7ok

https://news.nike.com/news/nike-go-flyease-hands-free-shoe
 ACKNOWLEGEMENT

Any task that is under taken reaches successful completion not only by an
individual’s effort but also by the guidance and support of many others. Here am I
to acknowledge a few of those who have helped me carry out this project work
successfully.

I would like to express my sincere, gratitude and regards to the my both heads Mrs.
Sumegha Bhatia and Mrs. Shweta Agnihotri for his constant inspiration ,
supervision and invaluable guidance and providing me the infrastructural
facilities like library & computer laboratory ,during the preparation of the project .

I would also like to extend my sincere gratitude to all my faculty members for
giving their valuable suggestions.

With Regards

DeepanshiSoni
M.B.A. 2nd Semester
 PREFACE

In spite of the theoretical knowledge gained through classroom study, a person is

incomplete if not subjected to practical exposure of real corporate world. He may
have to face hurdle which will be difficult to overcome without any first- hand
experience of business.

In the context, research program has been designed to make the person aware of
happening of business world. The project entitled “NIKE SHOES
INDUSTRIES’’.

I got an opportunity to apply my theoretical knowledge and meaningful concept to

actual business condition and to familiarize with the marketing activities of the
product, all the work done on this project report is confined to my broad objective.
 TABLE OF CONTENT

S.NO. TOPICS PAGE

NO.

1. CHAPTER 1- INTRODUCTION OF THE

INDUSTRY
 ABOUT THE INDUSTRY

 EVOLUTION

2. CHAPTER 2- INTRODUCTION TO
TECHNOLOGICAL ADVANCEMENT

3. CHAPTER 3- EMERGING TECHNOLOGY IN

CHOSEN INDUSTRY

4. CHAPTER 4- EFFECT AFTER ADAPTION

/IMITATION

5. CHAPTER 5 –EXAMPLE OF COMPANIES AS

TECHNOLOGY INITIATORS / IMITATORS

6. CHAPTER 6- GRAPHICAL REPRESENTATION

OF LAST 5 YEARS PERFORMANCE
INDICATORS OF NIKE SHOES INDUSTRY
7. CHAPTER 7- SWOT OF NEW TECHNOLOGY

8. CHAPTER 8- CONCLUSION
CHAPTER 1- INTRODUCTION OF THE INDUSTRY
About the Industry:-

Overview of Nike:

Company’s Name NIKE, Inc.

Company’s Former Names Blue Ribbon Sports, Inc. (1964-1971)

CEO John Donahoe

Company Type Public

Year Founded 1964

Number of Employees 75,400 (2020)

Annual Revenue 37.4 billion USD (2020)

Founder Bill Bowerman, Phil Knight

Area Served Worldwide

Headquarters Beaverton, Oregon, US

Operating Income 3.12 billion USD (2020)

In sport, visual acuity and protection can mean the difference between winning and losing. Light conditions have a

dramatic effect on how the human eye perceives and, subsequently how the body reacts and performs -- in the sun

glinting over the upper deck, shallow contrast on a putting green, or quickly adjusting from shadows to light on a

tennis court or mountain bike single track.

Nike knows that in athletic competition, even small advantages are critical to performance. Nike has spent the last

eight years exploring the human eye to understand the science of vision in the development of the new Nike

MaxSight Sport-Tint Contact Lens, available August 2005.

WHAT IT IS

Nike MaxSight, developed in partnership with Bausch & Lomb, is a tinted soft contact lens that behaves like

sunglasses, reducing glare and filtering out 95% of UVA and UVB and more than 90% of blue light. But because

the lens rests directly on the eye, there’s virtually no distortion as with standard sunglasses. Athletes get the same

clear view at all angles.

Plus, Nike MaxSight eliminates the environmental effects that plague sunglasses like fogging, scratching,
additional weight, or nosepieces and frames to obstruct vision. There’s no obstruction from the edge of the lens,

the frame or the nosepiece, because they don’t exist. And there are no pressure points and no slippage. Max Sight

also eliminates light leakage, reducing the need to squint, allowing the eye to relax and perform more naturally.

Nike MaxSight is, in effect, one giant visual sweet spot .

 EVOLUTION

NIKE has the same pronunciation of NI-KEY, is a goddess represent victory in Greek mythology. A

symbolizing of victory, NIKE was s appeared in history's earliest battlefields. A Greek would say,

"When we go to battle and win, we say it is NIKE." (Nike Consumer Affairs packet, 1996) Seem

with this great honored symbol; NIKE is theworld's greatest Sports wearing company in twentieth

century. The NIKE 'swoosh' showsthe spirit of the NI-KEY who inspired the world's greatest

athletes to new levels of record.

1978 NIKE International was formally established. NIKE shoes started to enter Canada,Australia,

Europe and South America and other overseas markets.

1987 Nike has been product innovation, making the Nike Air technology more visible to the general

public to understand, at the same time plus the outstanding performance of itssports shoes, Nike

during this period successfully established a leadership position in terms of sneakers Kanji, through

commercial revolution, Air King to enter the market. Inthe same year, Nike shoes almighty born.

New comprehensive training shoes, Nike expanded its brand new fields; comprehensive training

shoes enough cushioning for running both, but also very suitable for other sports and aerobic

fitness training.

Emergence of Nike: 1970s

By the end of the decade, Knight's venture had expanded to include se viral stores and 20employees

and sales were nearing $300,000. The company was poised for greater growth, but Knight was
frustrated by a lack of capital to pay for expansion. In 1971, using financing for m the Japanese

trading company Nissho Iwai Corporation, BRS was able to manufacture its own line of products

overseas, through independent contractors, for import to the United States. At this time, the comp

any introduced its Swoosh trademark and the brand name Nike, the Greek goddess of victory.

These new symbols were initially affixed to a s occur shoe, the first Nike product to be sold.

 IMPORTANCE

Like most leaders in the market, Nike values the consumer and the importance of providing a quality

product. Nike quality and durability is a critical part of their strategy to be able to command high prices for their

products. Their brand is associated with providing top-notch product for athletes that help them perform better.

Their Excellent Marketing Nike Has Established their Brand and Logo through Extensive Marketing

Investment Nike Focuses on Selling the "Emotional Benefits" of their Product Nike Provides a Wide

Variety of Products To A Large Number Of Sports To Capture Greater Market Share The Nike shoe company

has maintained its popularity across generations because of high-quality manufacturing shoes. Furthermore,

these shoes come in numerous designs that are attractive and long-lasting. The quality of shoes manufactured by

the company has ensured that it retains its market as well as attract more consumers.

Shoppers today are focused on health and wellness, and more people are buying athletic shoes so they can

exercise. They realize exercise is as important as a healthy diet. Nike has ridden this trend by making its products

widely available and promoting these ideas in their marketing.

Nike also noticed that people are wearing athletic shoes for comfort and casual wear, and as “streetwear” and not

just for spoNike targets women in their marketing, knowing the buying power of women and their increasing

interest in sports and fitness.

They have jumped on new ways of advertising and selling products more quickly than their competitors. For

example, Nike created its website and offered e-commerce before other athletic shoe brands, and they had a

strong social media presence before their competitors.

The company has put a lot of effort into sustainability, which is important to its target market .
CHAPTER 2:-INTRODUCTION TO TECHNOLOGICAL ADVANCEMENT
1. 3-D PRINTING
(Eventually) Coming to a Home Near You

The initial dream of 3-D printing was that consumers could print their own products at home. While the footwear

market is not there yet, lower prices for 3-D printers have made the technology accessible to a larger number of

shoe manufacturers, which is helping this innovation achieve mainstream recognition.

Recently, athletic powerhouses such as Under Armour, Nike, Adidas and New Balance have produced special runs

of sneakers with 3-D midsoles. But in about a year, footwear firms may hit a more-solid milestone: They should be

able to produce short runs — including sole-tooling components, midsoles and shanks — that they’ve printed

themselves for market introductions.

“We’re just starting to see some examples of [3-D-printed shoe] production,” said Lee Dockstader, director of

vertical market development for HP.

In May, the company announced a 3-D printing partnership with Nike, and also revealed a printer that it said is 10

times faster and less expensive than other models.

Dockstader declined to provide specifics on the timing or “strategic footwear applications” of HP’s Nike

partnership, but he noted that during the Rio Olympics, 3-D-printed spike plates from New Balance and Nike’s

Superfly Flyknit shoes will show the power of this innovation.

2. IMAGE RECOGNITION

See It, Snap It, Buy It

Google’s purchase last month of image recognition startup Moodstocks alerted the world to the potential of this

technology.

One company already operating in that space is Slyce, a mobile image technology that recognizes products such as

footwear in the real world, according to CEO Ted Mann. It’s being used inside the apps of at least 20 retailers,

among them Neiman Marcus, Shoe Carnival, Nordstrom, Shoes.com and JCPenney.
In the search bar of a company’s app, a camera icon appears, allowing users to launch Slyce’s universal scanner.

Once the camera snaps a picture, the app utilizes 3-D optic recognition and shows either an exact match or a shoe

with similar attributes.

3. 3-D SCANNING
The Fit Is It

Photo technology is also reaching new heights when it comes to getting exact measurements to achieve the best

possible shoe or insole fit.

Not unlike the premise of Adidas’ Futurecraft 3-D shoe prototype, some retailers have embarked on 3-D foot

scanning to help improve the shopping experience. Zappos.com, for one, recently tested Intel’s RealSense

technology. Its three cameras can “‘see’ like the human eye to sense depth,” according to Intel, and scan to create a

digital 3-D version of a foot.

Volumental is a 3-D scanning technology that utilizes RealSense cameras to assess feet and give recommendations

on shoes. According to the company, Nordstrom is using its scanning device, as is New Balance, which has it in its

Boston and Taipei flagship stores.

In another iteration, an app in beta called Fitfully offers a 3-D foot scan that is completed via users’ iPhones. It’s

geared toward online retailers and promises to take 30 seconds to reveal a pressure map of how a foot will fit a

particular shoe.

4. AUGMENTED REALITY

Even Better Than Virtual Reality

Most market observers agree that virtual reality is an effective marketing strategy for retailers and brands — think

watching Milan fashion shows via Augmented reality, however, may serve as a bigger revenue-driver, helping

consumers find the right products and actually make purchases. The difference, in part, comes from the fact that

VR does not yet allow users to see their bodies, while AR can show what products look like on the body and offer
360-degree views.an Oculus Rift headset after the fact, or trekking the mountains via Merrell’s or The North

Face’s VR experiences.

5. SMART SHOES

Change Is Upon Us

Looking good is not enough — products of the future need to be high-tech wonders as well.

Already there are Altra and Under Armour sneakers that track distance and stride, while self-lacing or adjusting

shoes are available in different iterations. Nike recently stepped up innovation in that area. And a company called

Powerlace, which raised more than $25,000 in a recent Kickstarter campaign, promises to use a person’s weight to

auto-lace sneakers.

Then there’s Shift Sneaker — kicks that change color based on mood or fashion. The product is a creation of U.K.-

based Rehabstudio. According to the firm, it uses “experimental technologies,” and although the concept is not

available yet, it could be the next evolution of smart sneakers. The idea is that reactive textiles with adept fibers

and mini LED lights change the colors of the sneakers via downloadable design packs. Colors can also change

based on movement, temperature or location.

6. ENDLESS-SHELF PROGRAMS

In-Store Shopping with Online Efficiency

At Aldo, a focus on omnichannel retailing has resulted in a test of in-store iPads and touchscreen TVs that

consumers can use while shopping in 25 of the brand’s retail stores to see the types of footwear or specific shoes

available in that store or other locations, said Grégoire Baret, senior director of omnichannel experience for Aldo.

To take it a bit further, customers’ endless-shelf requests can prompt store associates’ mobile devices, improving

the speed at which shoes are brought out by “runners” from storerooms.

“Requesting a product and getting it for a consumer is reduced to the core: scan a product to check availability and

tap a button to request it automatically from a runner. This means less time lost in the back-store and more face
time for added value with our consumers,” said Baret, who added that conversion and engagement with customers

is increasing.

On Aug. 16, Aldo opened what Baret calls its “most advanced retail location to date” in Westfield World Trade

Center in New York.

The company will also be adding a request try-on feature directly from its consumer app, said Baret. In addition,

Aldo is working on adding predictive product recommendations to its website .

7. DATA COLLECTION

Knowing Is the Whole Battle

By this point, it’s clear that data is more important for competition than ever before. As seen in many of the entries

reported here, firms that put the power of data to use will stand apart from their peers. “Now that you literally can

see how millions of customers are using your product and how it wears, you can imagine things proactively,” said

Razorfish’s Jason Goldberg.

For example, to provide curated assortments and improved “clienteling,” Under Armour and Nike are among the

companies building communities online through social media and tracking technologies, which makes sense for

customizing future shoe orders and, eventually, products.

In 1927, Charles Brannock, the son of a local shoe company owner in Syracuse, N.Y., invented the

Brannock Device. The steel measurement tool with five scales has been the most effective way in the

U.S. to find an accurate shoe size.

Industry-wide, 60% of consumers are wearing the wrong-sized shoes. Not only is there a discrepancy among

different styles of shoes (high heels to leather boots), sizing can often differ from brand to brand within one type of

shoe (like adidas sneakers to Nike sneakers) and even silhouette to silhouette within a singular brand.

For instance, I’ve owned Nike React Epic sneakers with Flyknit technology in a women’s size 10. I have men’s

suede Nike Air Max 95s in a 9.5. All of my men’s Air Jordan 1s are comfortably a men’s size 8.5, but I have a
women’s pair in an 11, and my Air Jordan 4s are an 8. Meanwhile, my Nike Air Max 720s feel decidedly too small

at a men’s 8.5. And this is all within one brand.

During the 92 years since its introduction, the birth of the internet, and some other society-altering technological

advances, the Brannock Device has somehow remained uncontested. Until now.

This summer, Nike will introduce Nike Fit, a foot-scanning solution designed to find every person’s best fit.

Conceptually, Nike Fit falls somewhere between “why would we reinvent the wheel” and “we don’t even need that

wheel.”

Nike Fit uses a proprietary combination of computer vision, data science, machine learning, artificial intelligence

and recommendation algorithms to find your right fit. With sub two-millimeter accuracy through dozens of data

points, measurements are fed into the machine learning model that accommodates every detail of every Nike

silhouette down to the materials that were used, the lacing systems and other critical aspects of fit. This is then

paired with AI capabilities to learn a wearer’s personal fit preference and how they relate to the population as a

whole.

Users can either find their size with the augmented reality feature in the Nike app or, soon, visit participating stores

to use the technology. I recently had the opportunity to do both.

Within the Nike app, I used my phone’s camera to capture an empty space where the floor meets the wall as a point

of reference, with the app’s guidance ensuring a level plane. I stood with my heels against the wall I captured as my

reference point and pointed the camera down at my feet as if to take a photo. Once my feet were properly aligned

with the outline guide within the app, I simply touched the button that looks just like I’m taking a photo. In seconds,

this action scans the feet and collects 13 data points, the best of the 32 points Nike is capable of capturing. Despite all

of the data being collected, users will only be offered the length and width measurements, down to the millimeter, of

each foot individually.

“Augmented reality is a new type of experience for a lot of consumers and sets a lot of challenges for them,” says

Josh Moore, Nike’s vice president of design and user experience. “We’ve been doing a lot of experiments and

creating new features in our SNKRS app over the last few years where we really learned a lot about how to use
augmented reality successfully. Specifically, we know we have to guide our users through the journey at their own

pace so they can comprehend as they go.”

“We’re talking about phones with cameras measuring your feet,” Moore continues. “It’s a new type of experience

where you’re using your device, the device’s camera, the 3D space around you, and you’re using your body. There’s

no common UX pattern for this.” The in-store experience differs in a few ways. It wasn’t enough to simply have

great technology, it also had to reduce friction within the in-store buying process. The idea is to reduce the amount

of time associates spend going back and forth grabbing sizes from the stock room in order to ensure time spent with

customers is higher quality and more efficient.

At the Retail Lab on Nike’s campus, I stood on a mat while a Nike sales associate scanned my feet with a handheld

iTouch device. With the measurements taken (my right foot is 1 millimeter longer than my left, while my left is 1

millimeter wider than my right), the associate can provide a range of sizes for me, which includes where my best fit

could fall in any shoe in Nike’s catalog. Once they look up the shoe I’m interested in, the app will offer the best fit

size for my measurements and that shoe. If it’s available, they’ll bring out that size, and if there is any disbelief,

they’ll bring out the size you’d like to try, as well.

Whether using the app to find the right fit and make a purchase or going into the store, associates and customers can

record which size is purchased, as well as other personal preferences around fit.

“Before a shoe arrives onto the market, it will already be trained into the solution. But since the solution

encompasses both machine learning and AI, its accuracy out of the gate is astonishing and just gets even better,”

says Michael Martin, vice president of Nike direct products, growth and innovation.

With more data, Nike will not only have continual improvements of an individual’s fit preferences, it will also learn

the greater population’s preferences around each specific model, offering insight on creating better-fitting shoes.

In development for just over 12 months, Nike Fit was being tested in three stores — one each in Seattle, Dallas and

Pasadena, Calif. — only six months after Nike acquired Israeli startup, Invertex, whose entire mission was to create

scans of the human body for better fit customization.

“Fundamentally, at this stage, Nike is a technology company. It’s a technology company that builds upon its

historical strengths in footwear design, storytelling and inspiration, and it’s able to use those in combination to solve

problems that no one else can solve,” says Martin. “We think this is arguably our biggest solution to date.”

Despite being for footwear right now, the technology created for Nike Fit has the potential to change retail in a lot

of ways. One can imagine women being able to use the tech to find the right bra size. It could also make buying

denim easier. As individualism and inclusivity have become marketing tools, custom fit seems like a natural next

step, but until now, there hasn’t been a clear-cut solution.

Nike Fit will be introduced in select stores in the U.S. and within the Nike app in early July 2019, with Europe to

follow later in the summer.

Nike has always had a place in the conversation alongside the likes of Apple when upper echelon branding and

storytelling is discussed. With the introduction of Nike Fit, Nike just does it again

Whether using the app to find the right fit and make a purchase or going into the store, associates and customers can

record which size is purchased, as well as other personal preferences around fit.

“Before a shoe arrives onto the market, it will already be trained into the solution. But since the solution

encompasses both machine learning and AI, its accuracy out of the gate is astonishing and just gets even better,”

says Michael Martin, vice president of Nike direct products, growth and innovation.

With more data, Nike will not only have continual improvements of an individual’s fit preferences, it will also learn

the greater population’s preferences around each specific model, offering insight on creating better-fitting shoes.

In development for just over 12 months, Nike Fit was being tested in three stores — one each in Seattle, Dallas and

Pasadena, Calif. — only six months after Nike acquired Israeli startup, Invertex, whose entire mission was to create

scans of the human body for better fit customization.

“Fundamentally, at this stage, Nike is a technology company. It’s a technology company that builds upon its

historical strengths in footwear design, storytelling and inspiration, and it’s able to use those in combination to solve

problems that no one else can solve,” says Martin. “We think this is arguably our biggest solution to date.”
Despite being for footwear right now, the technology created for Nike Fit has the potential to change retail in a lot

of ways. One can imagine women being able to use the tech to find the right bra size. It could also make buying

denim easier. As individualism and inclusivity have become marketing tools, custom fit seems like a natural next

step, but until now, there hasn’t been a clear-cut solution.

Nike Fit will be introduced in select stores in the U.S. and within the Nike app in early July 2019, with Europe to

follow later in the summer.

Nike has always had a place in the conversation alongside the likes of Apple when upper echelon branding and

storytelling is discussed. With the introduction of Nike Fit, Nike just does it again
CHAPETER 3:-EMERGING TECHNOLOGY IN CHOSEN INDUSTRY
Digitsole:-

Smart shoes by Digitsole features a wide range of uses and is fit for everyone. These interactive smart shoes provide

personalized feedback to analyze health, fatigue, posture, steps, and calories and create precise data for improving health and

preventing injuries. It is easily connected to Bluetooth 4.0 device and provides personalized coaching in real time via a

smartphone app. The lightweight next-gen shoe design boasts of auto-lacing and temperature regulation.

Xiaomi :-

to Xiaomi’s MiFit Xiaomi, another big player in the market, has developed chip-laden MiJia smart shoes. These shoes

are easily connected app to detect speed, distance, calories, hours slept, and even weight. By just shaking the shoes, one

can connect and synchronize the data with the app. Moreover, these sporty looking shoes possess a long battery life.
Altra Torin IQ :-

These shoes feature razor-thin, lightweight sensors and transmitters to provide data for each foot individually. Moreover,

they provide live coaching feedback, including impact rate, landing zone, distance, pace, contact time, and cadence. The

coaching can be made audible depending on the preference of the runners. Altra IQ shoes communicate directly to the

company’s iFit app on smartphones. App screen settings are easily customizable with feedback relayed in real time.

Smart shoes require a reliable system for data acquisition, data transmission, storage, and data analysis. A wide variety

of sensors are used to acquire data for smart shoes:

 Inertial-magnetic measurement units made up of an accelerometer, a gyroscope, and a magnetometer are used for

gait analysis.

 Satellite navigation systems such as GPS, GLONASS, and GALILEO are used to provide information for the real-

time location.

 Pressure sensors are used to provide information on the distribution of body weight mid-gait.
  Ambient environmental sensors, including atmospheric pressure, light, and sound sensors, are used for acquiring

data from altitude-dependent activities and the surrounding environment.

 Internal status sensors are used to provide information on battery and memory capacity.

Besides sensor recording, data acquisition systems often have cloud-based transmission abilities. Raw sensor data is

processed to get relevant information using filters, drift correction, or gradient descent-based algorithms. The data is

further segmented using sequential model-based approaches, template-based approaches, multidimensional sub-

sequencing, and a dynamic time warping approach. And gait or activity patterns can be extracted and analyzed for

personalized feedback, visualization, and various health applications.

Challenges and the future of smart shoes industry:-

A new industry insiders’ report suggests that the market for smart shoes will continue to grow steadily through 2022, at a

CAGR of about 23% over the next four years. Already, companies like Adidas and Salomon are in the process of testing

shoes that can be customized with foot biomechanics. In collaboration with Puma, MIT Design Lab is developing

biologically active smart shoes capable of sensing how we feel, which can therefore adapt to the wearer. Apple is

designing smart shoes that could prevent damage to feet, helping users to avoid an injury. More companies like Sensoria,

Garmin, Vivo barefoot, E-Traces, E-vone, and others are shaping the future of athletic wear with their innovations. The

era of smart shoes has just begun. Let’s wait and watch for the next best pair of smart shoes.
Nike Flyleather :-

Nike Flyleather is a new super material — made with at least 50 percent recycled natural leather fiber — that has

the potential to be as game-changing as Nike Flyknit.

Nike Flyleather was born out of a challenge to evolve leather into the performance material it once was—before

the invention of advanced performance materials like engineered mesh and Flyknit. The key was to do so while

still preserving the things people love about leather: the look, feel and even the smell. Another crucial factor was

the desire to reduce the environmental footprint associated with leather manufacturing, which not only uses a lot of

energy and chemicals, but also results in a great deal of leftover scrap material. The mission became not only to

invent a better version of leather, but also to reinvent the material production process to be more sustainable.

Here’s a detailed look at how engineers, scientists and designers created Nike’s lowest-carbon-footprint leather

material ever.
WHY IT’S SO SUSTAINABLE:-

For Nike, leather is featured across many iconic footwear styles — but it has the second-highest environmental

impact on the company's carbon emissions and water usage. Flyleather can change that. Here are the top three

reasons why it's Nike’s most sustainable leather material ever:

Creating it uses less water and has a lower carbon footprint than traditional leather manufacturing

Nike Flyleather is lighter and more durable than traditional leather (based on abrasion testing)

Because Nike Flyleather is produced on a roll, it improves cutting efficiency and creates less waste than traditional

cut-and-sew methods for full-grain leather

WHAT IT MEANS FOR SPORT:-

Flyleather has the potential to reinvent leather-like materials in performance footwear, especially in sports like

football and basketball. (Early on, many performance basketball shoes were made out of leather, but over time, it

was swapped out for other lighter, stronger, performance-engineered materials.)

“Similar to what Nike Flyknit did for knit, Nike Flyleather can do for leather,” says John Hoke, Nike Chief Design

Officer. “New technologies and platforms allow us to get closer to working at the molecular level. Flyleather is the

latest example of this, and is particularly exciting because it allows for increased potential to extend our craft with

more precision. This means opportunity for greater strength, support, elasticity and so on, based on the needs of

specific sports.” This impact goes beyond the leather category. “By opening up the possibilities to engineer

performance leather, we are creating a new conversation across performance categories to include materials that

have otherwise been retired from the options list for products such as footwear, apparel and equipment,” says

Bignell. The latest product to feature Nike Flyleather is one of its most historic running, models, the Cortez. The

mindful take on the Cortez also features 100 percent recycled lining, laces and labeling.

The shoe is now available in a White/Light Silver-White colorway from nike.com and at select retailers.
Some of the Technological Advancements Changing the Footwear Industry:-

Over the past couple of years, there have been innovations that have taken the world by storm in the shoe industry.

Sneakers have always been on the receiving end when it comes to changing the shoe game. This can mainly be

attributed to the fact that a lot of Millennials and Generation Xers like to wear cool things( and you have to admit

sneakers are amazing).

However, this does not mean that the working class has been left behind. You have people such as nurses,

lumberjacks and construction workers who spend a lot of time on their feet. When you think about such

hardworking people, you realize that loggers and construction workers need heavy duty footwear. These include

shoes that protect them from slipping, sharp objects and other foot hazards. If you are in any of these

professionals, you need to invest in shoes that provide various benefits. Here is a look at some advancements in

technology that have helped multiple professionals.

1. Smart Footwear
Just like smartwatches, the footwear industry is changing too. When smart footwear was introduced in the market,

it was a game changer for many shoe companies. Smart footwear changes the way individual life and how they

feel when they are wearing a shoe.

The smart footwear industry might be relatively young, but it has revolutionized the way we wear our shoes. Smart

footwear goes beyond just using ordinary fabrics and materials; instead, they also offer some performance. There

are new shoes with sensors which are being developed that monitor functionalities such as in-depth run tracking,

location monitoring, activity tracking and a lot more.

Professionals who wear smart footwear are a privilege to a lot of benefits which can help them in every aspect of

their careers. Most smart footwear is embedded with sensors that can track the number of calories which you burn.

For instance, a lumberjack and a construction worker spend a lot of energy in what they do. Smart shoes will help

them monitor the amount of energy that they are using and other biometric data.

Garneau Carbon Team footwear is one of the companies that has introduced new technology into the market. The

company has woven a chemical known as xylitol into their insoles. When you are sweating the compound converts

the sweat molecules into coolants.

2. Augmented and Virtual Reality

Do you love playing VR games? We do too – but there is a lot more to VR than just gaming. Using VR and

Augmented Reality in the business industry has changed the shopping experience for most shoppers. You have to

admit finding the right shoe is a bit hard. However with augmented and VR then you can shop for the right shoe

without even trying it on. There are certain footwear companies which have switched to virtual prototypes that are

found in some stores. Seeing the right shoe for your profession has been made easier.

For instance, a construction worker will need a shoe which protects them from sharp objects. They will require

heavy-duty pumps. In this case, Augmented and VR will come in handy in choosing the best fit.

3. Shoe Knitting Technology

The kind of shoe materials which are needed to manufacture footwear for people in various careers is different.

For instance, a construction worker and a lumberjack require heavy-duty protective shoes. On the other hand, a

nurse, a lawyer or an accountant will need less dense material which is still comfortable. Shoe manufacturers are
using new forms of technology which best fit people in different careers. It is predicted that shoe knitting

technology is going to change the shoemaking process.

What types of shoes do you prefer? Let us know what you think about the shoe industry and how technology has

changed the shoe game.

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Nike, Asics, New Balance, Brooks, Adidas, Deckers,

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Forecast period 2021–2026

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Men Shock Absorption

North America, Europe, Asia
Running Shoes, Women
Daily Life Running, Tournament, Outdoor Enthusiasts Pacific, Latin America, and
Shock Absorption
Middle East & Africa
Running Shoes
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TOC of Shock Absorption Running Shoes Market Report:

1. Industry Overview of Shock Absorption Running Shoes Market.

2. Aggregation Cost Structure Analysis of Shock Absorption Running Shoes Market.

3. Specialized Information and Manufacturing Plants Analysis of Shock Absorption Running Shoes Market.

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5. Value, Cost, Gross and Gross Margin Analysis of Shock Absorption Running Shoes Market by Regions, Types,

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6. Utilization Volume, Consumption Value, and Sale Price Analysis of Shock Absorption Running Shoes Market

industry by Regions, Types, and Applications.

7. Supply, Import, Export, and Consumption Analysis of Shock Absorption Running Shoes Market.
8. Significant Manufacturers Analysis of Shock Absorption Running Shoes Market industry.

9. Advertising Trader or Distributor Analysis of Shock Absorption Running Shoes Market.

10. Industry Chain Analysis of Shock Absorption Running Shoes Market.

11. Advancement Trend Analysis of Shock Absorption Running Shoes Market.

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• Investors
CHAPTER 4:- EFFECT AFTER ADAPTION / IMITATION
The Changing Business Environment Of Nike shoes industry :- Change as we see around was

always there in our environment and in our ecosystem. This is a way how the old things evolve and new products

are developed. What has changed with time and development of new technology is the rate at which change takes

place around us. If earlier the life cycle of a product was 10 years, it has been shortened down to 2 years or to a

maximum of 3 years. This is also different for different industries. It may be faster for a low technological oriented

product to slower on a higher technology intensive product. What is can be of interest is are the factors which

brings about this change and how large corporations are dealing with this fast changing environment to sustain

their business and to maintain their leadership status.

The Changing Environment :- As mentioned above the change in the business environment is not only

because of technological developments but there are other factors as well. These factors directly or indirectly have

an impact over the ecosystem of the business. These factors are the political environment, the environmental

climate, the social changes, the economic scenario and at last the legal aspects of doing business, each of these

factors change with the passage of certain duration of time. Though social change may take place every 10 to 15

years the legal or political change may take place faster.

* Tell more about the business model and how Nike is doing it and use IT instead of WE

Whatever we have spoken earlier is about the change in the external environment of a company whereas there are

certain factors which affects the company because of the change in internal environment. This may include the

change in the management of the company, long term impact of the company policies being followed etc. These

factors are more in control than the external factors. Apart from this, Davidson and Griffin (2006) has also

included the task environment which is composed of the competitors, customers, suppliers, regulators and strategic

alliances. The entire gamut of factors could be very large but here we will understand how these factors have

affected the sports gear company Nike and how it has been dealing with these forces to emerge successful.

Challenges of the Changing Environment and Nike Strategy:-

As discussed above there are various factors that can affect an organization. In this background we can see that

Nike’s major market has always been supportive and helped it to advance its products. The overall stability of the

American economy low interest rates, stable currency condition and competitive tax system has also helped Nike

to reach the stage it is present. (REFERENCE)

Similarly the economic condition as of today is a matter of slight concern for Nike. Its biggest market the US is

going through a severe financial crisis which is affecting as sales as customers are postponing their spending. This

crisis is also affecting its manufacturing cost as its manufacturing base is in Asia and the cost of material and

labour is on upward trend. Its sales are not affected by only local economy but also international economy hence

the lower valuation of Euro coupled with Asian financial crisis will affect the sales of Nike. Though his also one

reason that the sales will remain stable over a longer run as the strong movements in one part of the world

compensates for the weak conditions in some other part. (REFERENCE)

Increasing social trend of fitness and people awareness of diet and health has also benefited Nike. People are

joining fitness centers and looking for up to date equipments and other sports gears which is a positive sign for

Nike.

At the same time Nike has also got bad publicity because of ignoring the social conditions of labours in its

manufacturing locations which they have taken up seriously and have come up with its responsibility agenda.

(PUT SOME YEAR HERE , SO WE KNOW ITS UNDER LAST 5 YRS AND REFERENCE)

Nike has also harnessed technology for its utmost utility. It has implemented IT systems in its supply chain which

has facilitated its growth in international markets. At the same time it has used technology for product

development, this again has taken Nike far ahead of its competitors. It is making use of technology from all

aspects of its product from development to supply chain and distribution.

The challenges for Nike can also be explained in terms of Michael Porters five forces model in which Mr. Porter

explains how the five forces working in the industry affects the competitive environment of a company, in this

case Nike.
*You will see that the following text is appearing at Scribd (http://www.scribd.com/doc/38643840/Nike-Strategy-

Analysis-Final-Jun-2010) so take a snapshot and put as image instead of a text box.

Threat of New entrants (Low)

~High Barriers to Entry:-

Capital Intensive

Strong Brand Following

Economies of scale

High R & D Costs

Industry in consolidation phase

Internal Rivalry (High):-

Fierce Competition- Adidas, Reebok, New Balance

Mature Industry

Mostly Non-Price competition

Differentiation strategy

Industry in Consolidation phase

Substitutes (Low):-

Other types of shoes

Other sport apparel

Buyer Power (High):-

Everything depends on Customer Preferences

Price sensitivity issues

Brand following

Retail and vendor consolidations

Growing power of retail chains e.g. Walmart

Supplier Power (Low)

Raw Materials are abundantly available

Cheap resources, commodity items

From the diagram we figure 1, it is observed can see that each of the factors of entry barrier to the industry, buyer

power, supplier power and other substitutes can affect the industry. The two concerning points for Nike in this

category are internal rivalry i.e. competition and the other is the buyer power that is an inherent part of this

industry. Nike has adopted various policies that has to an extent neutralise the effect of both this factors by

introducing product innovation and adopting various selling strategies that has helped it retain the market leader

status.

Using technology, Nike is immersing customers into their world and automating former human functions to give

them personalized, on-demand service that gives each customer a unique experience5. ... Nike has also introduced

3D printing for two reasons: to improve product and prototype testing and enhance retail experience.
CHAPTER 5:- EXAMPLE OF COMPANIES AS TECHNOLOGY INITITIONS
/IMITATORS
In 1927, Charles Brannock, the son of a local shoe company owner in Syracuse, N.Y., invented the Brannock

Device. The steel measurement tool with five scales has been the most effective way in the U.S. to find an accurate

shoe size.

Industry-wide, 60% of consumers are wearing the wrong-sized shoes. Not only is there a discrepancy among

different styles of shoes (high heels to leather boots), sizing cand even silhouette to silhouette within a singular

brand.an often differ from brand to brand within one type of shoe

For instance, I’ve owned Nike React Epic sneakers with Flyknit technology in a women’s size 10. I have men’s

suede Nike Air Max 95s in a 9.5. All of my men’s Air Jordan 1s are comfortably a men’s size 8.5, but I have a

women’s pair in an 11, and my Air Jordan 4s are an 8. Meanwhile, my Nike Air Max 720s feel decidedly too small

at a men’s 8.5. And this is all within one brand.

During the 92 years since its introduction, the birth of the internet, and some other society-altering technological

advances, the Brannock Device has somehow remained uncontested. Until now.

This summer, Nike will introduce Nike Fit, a foot-scanning solution designed to find every person’s best fit.

Conceptually, Nike Fit falls somewhere between “why would we reinvent the wheel” and “we don’t even need that

wheel.”

Nike Fit uses a proprietary combination of computer vision, data science, machine learning, artificial intelligence

and recommendation algorithms to find your right fit. With sub two-millimeter accuracy through dozens of data

points, measurements are fed into the machine learning model that accommodates every detail of every Nike

silhouette down to the materials that were used, the lacing systems and other critical aspects of fit. This is then

paired with AI capabilities to learn a wearer’s personal fit preference and how they relate to the population as a

whole.

Users can either find their size with the augmented reality feature in the Nike app or, soon, visit participating stores

to use the technology. I recently had the opportunity to do both.

Within the Nike app, I used my phone’s camera to capture an empty space where the floor meets the wall as a point

of reference, with the app’s guidance ensuring a level plane. I stood with my heels against the wall I captured as my

reference point and pointed the camera down at my feet as if to take a photo. Once my feet were properly aligned

with the outline guide within the app, I simply touched the button that looks just like I’m taking a photo.

In seconds, this action scans the feet and collects 13 data points, the best of the 32 points Nike is capable of

capturing. Despite all of the data being collected, users will only be offered the length and width measurements,

down to the millimeter, of each foot individually.

“Augmented reality is a new type of experience for a lot of consumers and sets a lot of challenges for them,” says

Josh Moore, Nike’s vice president of design and user experience. “We’ve been doing a lot of experiments and

creating new features in our SNKRS app over the last few years where we really learned a lot about how to use

augmented reality successfully. Specifically, we know we have to guide our users through the journey at their own

pace so they can comprehend as they go.”

“We’re talking about phones with cameras measuring your feet,” Moore continues. “It’s a new type of experience

where you’re using your device, the device’s camera, the 3D space around you, and you’re using your body.

There’s no common UX pattern for this.”

Nike will not only have continual improvements of an individual’s fit preferences, it will also learn the greater

population’s preferences around each specific model, offering insight on creating better-fitting shoes.

“Fundamentally, at this stage, Nike is a technology company. It’s a technology company that builds upon its

historical strengths in footwear design, storytelling and inspiration, and it’s able to use those in combination to solve

problems that no one else can solve,” says Martin. “We think this is arguably our biggest solution to date.” Nike

and Adidas, outsource production to more than 1 million workers in factories in China and other countries around

the world where the labor costs are relatively cheap.3 4

As an example, in 2014, Nike reported $28.50 as the general cost to manufacture one pair of sneakers and ship

them to the United States. Nike's cost breakdown includes approximately $27.50 per pair for Chinese factory labor

and overhead costs, plus $1 in shipping.

Sneakers have been a part of popular culture ever since Converse introduced Chuck Taylor canvas basketball

sneakers in 1921.1 Cutting-edge footwear technology by leading companies, such as Nike (NKE) and Adidas AG

(ADDYY), combined with youth-influenced designs, fuels demand for sneakers, especially among young

consumers.

Today's retail sneaker prices—which typically range from $70 to $250—reflect an overall rise in manufacturing

and marketing costs as sneaker companies compete to build and maintain brands desirable to their target markets.

Celebrities and social media also play an important role in the prices at which sneakers sell.

 Manufacturing Costs

Sneaker companies, such as Nike and Adidas, outsource production to more than 1 million workers in factories in

China and other countries around the world where the labor costs are relatively cheap.

As an example, in 2014, Nike reported $28.50 as the general cost to manufacture one pair of sneakers and ship

them to the United States. Nike's cost breakdown includes approximately $27.50 per pair for Chinese factory labor

and overhead costs, plus $1 in shipping.

KEY TAKEAWAYS
 Nike and Adidas make some of their profits by selling sneakers at prices that exceed the cost of manufacturing.

 Labor is an important manufacturing cost, which companies attempt to minimize by using low-cost labor in

Asia.

 Another way companies are reducing costs is by using robots instead of manual labor.

 Deals with star athletes and celebrities can help shoemakers sell sneakers at a substantial markup.

 Creating media buzz, while keeping supplies just below demand, can help shoe resellers maximize their

profits.

In recent years, rising costs of labor in China have impacted profit margins, and in response, some companies have

moved their manufacturing operations to Vietnam, Indonesia, or Thailand. In addition, the big shoemakers are

continuously shifting some manufacturing tasks from human workers to robots in order to reduce labor costs.

Nike's Air Jordan brand sneakers—first introduced in 1985—are the most famous example and have made

Michael Jordan one of the richest athletes in the world. 6 Roughly 20 years after his retirement from the basketball

court, the slam-dunking superstar banked $145 million in the 12 months ended May 2019, including $130 million

from the Nike shoe label.7

Nike's Jordan brand now includes Russell Westbrook, Chris Paul, and dozens of other professional athletes

In 1990 the company sued two competitors for copying the patented designs of its shoes and found

itself engaged in a dispute with the U.S. Customs Service over import duties on its Air Jordan

basketball shoe s. In 1990 the company's revenues hit $2 billion. The company acquired Tetra Plastics

Inc., producers of plastic film for shoe soles. That year, the company opened Nike Town, a prototype

store selling the full range of Nike products,in Portland, Oregon.

By 1991 Nike's Visible Air shoes had enabled it to surpass its rival Reebok in the U.S. market. In the

fiscal year ending May 31, 1991, Nike sales surpassed the $3 billion mark,fueled by record sales of 41

million pairs of Nike Air shoes and a booming international mark t. Its efforts to conquer Europe had

begun to bear fruit; business there grew by 100 percent that year, producing more than $1 billion in

sales and gaining the second place market share behind Adidas. Nike's U.S. shoe market had, in large
part, matured, slowingto 5 percent annual growth, down from 15 percent annual growth from 1980

and 19 88.
CHAPTER 6:- GRAPHICAL REPRESNTATION OF LAST 5 YEAR
PERFORMANCE INDICATORS OF NIKE SHOES INDUSTRY
PERFORMANCE GRAPH
The following graph demonstrates a five-year comparison of cumulative total returns for NIKE's Class B Common

Stock; the Standard & Poor's 500 Stock Index;

Standard & Poor's Apparel, Accessories & Luxury Goods Index; and the Dow Jones U.S. Footwear Index. The

graph assumes an investment of $100 on May 31, 2015 in each of the indices and our Class B Common Stock.

Each of the indices assumes that all dividends were reinvested on the day of issuance.

COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN AMONG NIKE, INC.; S&P 500 INDEX;

THE DOW JONES U.S. FOOTWEAR INDEX; AND S&P APPAREL, ACCESSORIES & LUXURY

GOODS INDEX

The Dow Jones U.S. Footwear Index consists of NIKE, Deckers Outdoor Corporation, Skechers U.S.A., Inc.,

Steven Madden, Ltd. and Wolverine World Wide, Inc. Because NIKE is part of the Dow Jones U.S. Footwear

Index, the price and returns of NIKE stock have a substantial effect on this index. The Standard & Poor's Apparel,

Accessories & Luxury Goods Index consists of Hanesbrands Inc., PVH Corporation, Ralph Lauren Corporation,
Tapestry, Inc., Under Armour, Inc. and V.F. Corporation. The Dow Jones U.S. Footwear Index and the Standard &

Poor's Apparel, Accessories & Luxury Goods Index include companies in two major lines of business in which the

Company competes.

The indices do not encompass all of the Company's competitors, nor all product categories and lines of business in

which the Company is engaged.

CHAPTER 7- SWOT OF NEW TECHNOLOGY
NIKE SWOT ANALYSIS DETAIL :-
Strength:

For significant and famous companies like Nike, it is essential to know their strengths. It is their strengths that

have helped them to reach one of the top positions. As a top-notch company, Nike has several vital areas. Some of

them are:

 The brand is successful in creating strong brand awareness. They are also associated with several non-profit

organizations.

 As a sports apparel company, Nike has successfully created a fantastic customer base in the entire world. Their

low manufacturing cost allows them to have a cheap product range. Hence, they can attract many customers.

 The brand has total control over its retail business as well as its online business. Their online business is also

successful as its retail business.

 The company knows how to do campaigns. They are associated with several celebrated athletes and also

receive praise for their product quality

Weakness:

Just like many other top-rated companies, Nike also has its weaknesses. Besides strengthening its vital areas,

working on their strengths can improve its services, eventually supporting its growth.

 Though the company provides a world-wide service, the company largely depends on the North American

market.

 The retailers get upper margin cuts, which is one of the significant weaknesses of the company.

 There are several accusations against Nike regarding their poor labor conditions in several countries. They are

also suffering from controversies, like sexual harassment and lawsuits. The constant highlight of their negative

criticism is hampering the growth of their business to some extent.

  The company's outsourced manufacturing is a weakness for the brand. For quality management and good

brand awareness, the company must have a dedicated worker group. For outsourcing, Nike cannot always have

control of its product. Hence, their product may not have the same quality in all countries.

Opportunities:

Though Nike is considered one of the top brands, the retail market, especially for sports apparel, is highly

competitive. Several high-rated brands are continually struggling their way to the top. Nike must look for

opportunities that can help them to expand their business.

 The company’s association with non-profit organizations can allow them to create more products from recycled

goods if one of the top brands takes the initiative to involve its R&D team to work on recycled products that will

surely encourage other small brands. It will support the environmental cause and also send the right message to the

customers.

 Nike should seize an opportunity by standing firm against any accusations about upper management. The high

number of controversies related to the higher authority is harming their image. Nike should take steps against labor

treatment and sexual harassment, helping them develop a more dedicated workforce.

 Since Nike has a successful online business, it can create more AR/VR-related products.

 Nike has an association with many celebrated athletes, so they have a better chance of growth if they bring in

sports sunglasses, accessories, or other fashion lines.

 Nike should try to look for more expansion in the global market while controlling product quality.

Threats:

In a highly competitive market like sports retail, several threats can affect a company's business. Recognizing them

from Nike SWOT analysis can help the company to take several strategies that will negate them. It will help them

to concentrate on their opportunities to expand.

 The post epidemic economy is creating the wrong time for most of the companies. Even top brands like Nike

cannot stay away from the effects. The budget pressure due to the low economy can adversely affect their

growth.

 The presence of counterfeit products is a severe threat to the brand. Since the market for these sorts of products

is diverse, it is difficult for Nike to Control them.

 The retail market is ready to accommodate more companies that are threatening for the existing ones. Though

Nike is one of the top brands, it is also challenging for them to ensure their highly competitive market growth.

Many brands offer the best quality products at a cheaper rate, attracting more customers towards them.

 The company's brand reputation is under constant threats because of the accusations against the higher

authorities, poor labor treatment, and inconsistent product quality .


 Key Takeaways:-

Nike SWOT analysis shows specific issues that need to take care of to retain their position in the current

competitive market. Nike SWOT analysis shows that the brand has several weaknesses that add to its threats and

prevent growth. Based on the Nike SWOT analysis, here are some recommendations for the brand:

1. The company needs to take care of their product quality. In the countries they are using outsourcing for

product development, they need to have specific guidelines to ensure that their quality is good.

2. Nike must not take the charges against the higher authorities casually. Workplace sexual harassment is a

serious accusation. The company should investigate such charges on their level and take the necessary steps. It

will revive their image and help them to get rid of the negative impressions.

3. Many retailers in the current market are offering similar products. Nike has limited itself in shoes only; they

should start other labels and fashion lines with their signature style and be different from the other companies.

It will support the company in its growth.

Use EdrawMax to create a SWOT analysis diagram, or create any other diagram with ease! There are massive

SWOT templates and symbols to choose from, and creating a SWOT analysis diagram could be really simple.
CHAPTER 8 - CONCLUSION
The famous shoe Company with the swoosh logo has gone from strength to strength, since its inception in

1962, headquartered at Beaverton, Oregon to emerge as an industry leader – the most competitive sports

and fitness company(www.nike.com). However of late, there has been some drop in sales because Adidas

has teamed up with Reebok and has also managed to win the bid to outfit all athletes of the Australian

team for the next three years which is a substantial contract worth over 20 million Australian dollars

(Pullen 2005).

Company Profile:

The Company was founded by Bill Bowerman and Phil Knight and the first shoe with the Nike Swoosh

was introduced in 1972. The swoosh on the Nike shoe embodies the wing of the Greek goddess Ni-Key

who is the goddess of victory sitting beside Zeus, inspiring the most courageous warriors on to

victory(www.trizera.com). The Company started out manufacturing running shoes with cushioned mid

soles and expanded into a wide range of products including sporting goods and T shirts. Branch offices

are located at New York city, Yarmouth Maine, Montreal Canada, Costa Mesa California and various

locations all over the world. As of May 31, 2005, the Company operated 184 stores in the United States

and 190 stores internationally (Gale Database).

The Company’s Mission statement is “To maximize profits to shareholders through products and services

that enrich peoples’ lives” while their value statement is “To bring inspiration and innovation to every

athlete in the world.” John McEnroe, Joan Benoit, Shane Warne and Andre Agassi became some of the

famous athletes who promoted Nike products. The Company Objectives are (a) to provide a supportive

work environment to help employees maximize their contribution to Nike (b)provide quality and

innovative services internally and externally (c) identify focused customer segment opportunities and (d)

establish ties with those customer segments to (e) maximize profits.(www.trizera.com)

Nike currently employs about 24,667 employees worldwide and its annual sales as of May 2005 were

$13,739.70 M. Total assets as of May 2005 were 8793.5 million dollars and total liabilities 3149.3 million

dollars and revenue rise was slow during the last quarter. Shares are currently being traded at about $80

per share.(Gale Database), As of September 20th, quarterly profits had jumped by 32% and pushed up

the value of its stock up to $83.45.(Sage 2005: C1). The company earned 432.3 million dollars in the last

quarter.

Nike has been enjoying a steady consistent profitability due to its superior sports shoes, diversification of

its products and its good relationship with its suppliers and distributors. However, the merger of Adidas

and Reebok poses a potent competitive threat for Nike’s future profitability, as also rising gas prices

which could impact upon consumer spending. Therefore Nike needs to focus more on expanding its

market through its lower priced range of products in order to maintain its lead position in the industry.

In summary, price factor will be the major factor that affects customer in purchasing shoes. In

monopolistic market, it’s hard to categorize whether it’s inelastic or elastic demand as some of the

consumer would more concern about the price of shoes but some of them would not.

Other than the price of shoes, there are some factors that also will affect the demand of shoes, for

instant: preferences, quality, brand and availability of substitute products. Among four of these,

preferences is the major factor of demand of shoes.

Besides that, hobby or opinion of others could be the minor personal reason on affecting their

purchasing decision. For example, a husband feels strongly negative on the shoes that his wife

wanted to purchase.
Recommendation:

From this study, we will recommend that Nike should have more concentrate on customer

benefits. It can create a privilege for the members for bonding the relationship between the

customer and the company. It also can improve the customer services by conducting survey to

more understanding the customer needs.

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