COMPETITIVE ADVANTAGE NIKE AND MY-SELF

Muhammad Rizky Pratomo 224412158 087880410353

rizkypratomo06@yahoo.co.id

6/1/2013

The Birth Of The Nike Brand, And Company

Johnson created the first product brochures, print ads and marketing materials, and even shot the photographs for the companys catalogues. He established a mail-order system, opened the first BRS retail store (located in Santa Monica, Calif.) and managed shipping/receiving. He also designed several early Nike shoes, and even conjured up the name Nike in 1971. Around this same time, the relationship between BRS and Onitsuka was falling apart. Knight and Bowerman were ready to make the jump from being a footwear distributor to designing and manufacturing their own brand of athletic shoes. They selected a brand mark today known internationally as the Swoosh, which was created by a graphic design student at Portland State University named Carolyn Davidson. The new Nike line of footwear debuted in 1972, in time for the U.S. Track & Field Trials, which were held in Eugene, Ore. One particular pair of shoes made a very different impression literally on the dozen or so runners who tried them. They featured a new innovation that Bowerman drew from his wifes waffle iron an outsole that had waffle-type nubs for traction but were lighter than traditional training shoes. With a new logo, a new name and a new design innovation, what BRS now needed was an athlete to endorse and elevate the new Nike line. Fittingly for the company founded by Oregonians, they found such a young man from the small coastal town of Coos Bay, Ore. His name: Steve Prefontaine.

Prefontaine electrified the packed stands of Oregons Hayward Field during his college career from 1969 to 1973. He never lost any race at his home track over the one-mile distance, and quickly gained national exposure thanks to cover stories on magazines like Sports Illustrated and his fourth-place finish in 1972 in the 5,000m in Munich. Pre challenged Bowerman, Johnson and BRS in general to stretch their creative talents. In turn, he became a powerful ambassador for BRS and Nike after he graduated from Oregon, making numerous appearances on behalf of BRS and sending pairs of Nike shoes to prospective runners along with personal notes of encouragement. His tragic death at age 24 in 1975 cut short what many believed would have been an unparalleled career in track at the time of his death, he held American records in seven distances from 2,000m to 10,000m. But Prefontaines fiery spirit lives on within Nike; Knight has often said that Pre is the soul of Nike.

Leading A New Generation

Nike rang in the new millennium with a new footwear cushioning system called Nike Shox, which debuted during Sydney in 2000. The development of Nike Shox culminated more than 15 years of perseverance and dedication, as Nike designers stuck with their idea until technology could catch up. The result was a cushioning and stability system worthy of joining Nike Air as the industrys gold standard. just as Nikes products have evolved, so has Nikes approach to marketing. The 2002 Secret Tournament campaign was Nikes first truly integrated, global marketing effort. Departing from the traditional big athlete, big ad, big product formula, Nike created a multi-faceted consumer experience in support of the World Cup.

What Is Competitive Advantage? And How Has Nike Achieved It

Competitive advantage is a distinctive feature about a business that makes it successful. It can be gained through :

Innovation (The introduction of new ideas, which change or create a product) Reputation Relationship with suppliers Relationship with customers Prices Advertising/Branding

To maintain competitive advantage it must be difficult for other firms to copy. The business must carefully identify the people who will buy the product, and make it more appealing to them.

Nike are a sports-clothing and footwear company, employing 22,000 people worldwide, from Nike World Headquarters in Oregon and Nike European Headquarters in Hilversum, The Netherlands, to nearly every region around the globe, including Asia Pacific, the Americas, and Europe, Middle East and Africa.

Nike sells footwear, apparel, and equipment for men, women and kids, for a variety of sports. They are famous for their quality, and science.

Nikes Target Appeal

LeBron James, Tiger Woods, Mia Hamm have been recognized as many of today's sports Images that are associated with Nike .

Nikes Target Strategy

target market for their shoes, clothes and other accessories are males and females between 18 and 35 years old. Nikes Competitive market has expanded and dominated in the international market. Nike disburse TV ads during professional and college sports events, prime-time programs, and late-night TV programs

Business Overview
As the worlds leading athletic footwear, apparel and equipment company, NIKE, Inc. is dedicated to inspiring every athlete to reach peak performance. Nike co-founder Bill Bowerman sawendless possibilities for human potential embodied through sport. His philosophy still guidesour mission today: To bring inspiration and innovation to every athlete in the world. (And if you have a body, you are an athlete.) Through our commitment to innovation and design, we are continually challenging ourselves, and our customers, to reach that next level of achievement. We strive for:

Innovation to serve the athlete Innovation to grow the company Innovation to inspire the world

Integrating Sustainability Into Our Game Plan

At Nike, one way we seek to deliver shareholder value is through sustainable growth. To us, sustainable growth means our long-term vision to deliver profitable growth decoupled from constrained natural resources, even as we work to deliver value to our shareholders in the near term. Meeting these two objectives requires a careful balance one our stakeholders expect of us and it remains our commitment. We attempt to strike this balance by leveraging our significant competitive advantages, including our authentic, emotional connections with consumers; innovative product and retail experiences that lead the industry; and a strong NIKE, Inc. portfolio that gives us tremendous opportunities for growth and profitability.

As we set aggressive goals in all areas of our business financial, social and environmental we are committed to sharing these goals and to reporting on our performance to consumers, the investment community and others interested in our commitments and progress, including the wider sports and apparel industry, community groups and academia. Over the past 15 years, we have moved from approaching sustainability as a risk management issue to viewing it as an innovation opportunity and a competitive advantage to be integrated into every aspect of our business.

Plan for Growth

Nike is a growth company. But we want to deliver growth in the right way. We seek growth that is:

Sustainable Profitable Capital efficient Brand enhancing

Like many other businesses, Nike faced some significant headwinds in FY10 and FY11. Around the world, unemployment was high, especially among youth; and governments wrestled with high debt levels. Rising costs for energy and labor sparked inflationary pressures. In turn, higher costs for materials, labor and freight were evident in our margins. While the headwinds we faced were shared across our industry, the competitive advantages we have are unique to the Nike portfolio. In spite of ongoing macroeconomic challenges, we are well positioned to leverage our strengths including scale, operational capabilities and pricing power to help mitigate the risks beyond our control and capitalize on opportunities to grow the company.

SUSTAINABLE PRODUCTS THROUGH DESIGN AND MATERIALS

We measure the environmental profile of our products through our indexes built on our Considered Design ethos introduced in 2005. We built tools to assess environmental impacts energy and carbon footprint, water and land use, chemicals and waste. These tools make the process of assessing materials and overall product design by development teams easier. The Index provides comparability and drives behavior internally and in absence of industry standards helps to create new standards that we share.

We shared those tools with the industry and weve made strides in improving the design of our products. We have made further updates taking into account the performance of materials vendors in addition to the environmental performance of the materials themselves. We hope the result, a new Nike Materials Sustainability Index, will drive further transformation. We assess performance as rated, Bronze, Silver and Gold. As we calibrate between our old and new indexes and set the bar higher for some of the indexes, we will set definitions for these levels in FY13 based on rigorous analysis of the pilot program in FY12 and will share and assess accordingly.

UNLEASH INNOVATION
The best way to predict the future is to design it, Buckminster Fuller said. Sustainability is the worlds greatest innovation challenge. Sustainability applied to mainstream innovation generates new, surprising solutions that can deliver breakthroughs in performance, business and sustainability. And thats where innovation comes in. NIKE, Inc. started with thoughts of innovation how to run faster, make lighter, develop new materials, see connections that held promise for leaps and bounds in performance. It is how we began and how weve continued to drive success in delivering performance in product and across our business. Disruptive innovation creates new markets, new products, new sources of revenues, even new industries. It fuels competitiveness, growth and jobs. Great innovation disrupts and makes the status quo obsolete. So why wouldnt we apply innovation to sustainability? What if, knowing what we know now, we were to challenge our problem solvers with this: Make it better, make it perform and make it sustainable. Not or, not only, but AND. What if we integrated the filter of improved performance and sustainability in our innovation processes, portfolios and resources? What could happen if we applied systems thinking to how we turned a concept into a reality, so that our processes, systems, engineering and manufacturing built workers rights and sustainability into the design, rather than being retrofitted in hindsight? By inextricably linking sustainability and innovation we can think differently about both the opportunities and the solutions.

Re-imagine materials that eliminate waste, water, toxics, scarce resources, fossil fuels. Re-imagine products that have an afterlife where what was waste destined for landfill becomes a new source of value. Re-imagine manufacturing. What if manufacturing processes could evolve, bringing the insights and skills of the worker to the center of the value proposition. We believe the next wave of economic growth and competitiveness could well emerge from this nexus of sustainability and innovation. And we look forward to making this our journey.

Brand Positioning in the Target Market:

The Nikes effective Marketing Mix Program supports the brand positioning in the target market. The Nike 4Ps elements as shown in the architectural diagram, distinguishes it from its rival competitors. Its Products is basically designed for sporting events. Its product is considered to be highly effective and comfortable to the athletes. It has dominated United States sports market. It is recognized for the quality of its shoes and has gained the reputation all over the world. Due to its higher quality shoes, its Prices are usually higher than the normal brand. So, the customers perceive it as high-end product. NBA and NFL has always been its favorite playground to promote the product in the U.S. The United States culture ties closely to American Football, the mostly watched sporting event in the U.S. It has dominated in the football market with its most of the NFL events sponsored by Nike. But for its worldwide customers, it has been successful in teaming up with the Soccer, golf and even in FIFA world cup. Recently, Nike opens Nike golf schools and junior camps for junior golfers wanting to hone their golf skills and achieve the next level of their playing careers. (Worldgolf.com April 10th 2007) The alliance of Nike and Apple brought world sports and music together. Nike I pod sport kit changed the way people run and created better running experience. Nike chooses independent distributors. NIKE sells its products through about 22,000 retail accounts in the U.S and licensees in other countries. The Brand essence of Nike means a unique way of expressing sport in forms of performance, whereas its Brand personality is seriousness of athletes and global representations

Nike and Competitor

Nikes Manufacturing and Sales

The graph below indicates how Nike manufacturing and sales compete with their closest rivals in the early 2000s worldwide

Financial Analysis Overview

a) A financial analysis helps us compare a companys current performance with its past performance b) Gives us an idea of how the entire industry is performing as well c) Liquidity ratios, profitability ratios, and leverage ratios will give us a good basis of how Nike, Adidas Group, and Under Armour are performing

Current Ratio
18 16 14 12 10 8 6 4 2 0 2006 2007 2008 Nike Adidas Group Under Amour

Indicator of a firms short term liquidity Above 1 is usually considered good Nike and Under Armour have excellent current ratio scores, as the Adidas Group is abnormally high

 Accounts Receivable Turnover

10 8 6 4 2 0 2006 2007 2008 Nike Adidas Group Under Armour

Shows how well the working capital is being used A higher ratio is usually an indication of better cash collection management As we can see, Under Armour has had a very rapid increase since 2006 Nike and Adidas Group have good, steady ratio numbers

Altman Z Score

a) The Altman Z Score is a good way to evaluate a companys credit risk b) A score of 1.81 or less is not good c) A score of 2.67 or greater indicates that a company has little bankruptcy risk

Market share
Nike owns over 80% of the U.S.'s $2.6 Billion basketball market and its share is also growing year over year Adidas share of the market is only about 14% Adidas has a growing market share, but it remains to be seen whether it will grow at the cost of Nike, or other lesser brands.

Human Resource and Management

Designed Employee Networks to separate them from their competition Employee Networks promote diversity within the organization Intended role of network: a) Foster professional development b) Enhance work performance c) Identify mentors d) Assist in recruiting diverse professionals e) Develop community interaction f) Encourage increased teamwork

SWOT Analysis
Strength a) The strengths that Nike takes pride in is getting the top athletes to wear and sponsor their products rather than events or competitions as much. b) The basis of this comes from the idea that people tend to remember the brand worn by players and not the brand that sponsors the event that the players perform at.

Weakness a) The market that Nike participates in is very price sensitive. Most of Nikes income comes from the selling of its products to retailers. b) This usually shows that margins tend to get squeezed as retailers try to get low price competition on Nikes products

no reproduction limitations of the service

low quality

middle priced goods

low awareness

 Opportunities a) The technology is always changing in the retail market, as well as the sporting market. b) The ability to have the most recent fashion trends involved in their sporting equipment, sunglasses, shoes, and clothing is crucial to generate more money. c) Nike has a large global market and a large acceptance of their product all over the globe.

Threats a) The retail sector is becoming substantially price competitive. Ultimately it means that consumers are shopping around for a better deal. b) The consumer now maintains the control over the manufact c) So if a consumer wanted to find the lowest price on the same exact product, then the consumer could just walk from store to

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References

http://nikeinc.com/pages/history-heritage http://www.markedbyteachers.com/university-degree/business-and-administrativestudies/what-is-competitive-advantage-and-how-has-nike-achieved-it.html

http://www.nikeresponsibility.com/report/content/chapter/business-overview

http://www.nikeresponsibility.com/report/content/chapter/targets-and-performance

http://www.investopedia.com/terms/c/competitive_advantage.asp http://debbielaskey.blogspot.com/2010/06/whats-your-nike-swoosh-aka-competitive.html

My Competitive Advantage
I was a young man who aspired to build a company's supply chain management professional, for that I always study hard and persevere to achieve success, I also always discuss with my friends about the issues contained in the supply chain management, in addition to I also discussed with the lecturers to deepen knowledge. I also often access the website in connection with the supply chain management that I can take advantage of the open website. And of uniqueness I can control a situation complicated problem. I also can play a music instrument for example : drums, bass and piano. With it as well from all the advantages I have to make a profit for me and people around me