The Global Strategy Of Nike'S Industry

* Introduction

Nike was found by Bill Bowerman, the legendary University of Oregon track & field coach together with Phil Knight, a University of Oregon business student and middle-distance runner under Bowerman. At the beginning Nike was found in January 1964 with the name of Blue Ribbon Sport (BRS). The first-year sales totaled was $ 8.000. In 1972, Nike was introduced by BRS as the new brand of athletic footwear, the name was for the Greek winged goddess of victory. The Nike's mission is "To bring Inspirations and innovation to every athlete* in the world. *If you have a body, you are an athlete". The asterisk quote is taken from Bill Bowerman which was the legendary track and field coach for the University of Oregon and the co-founder of Nike. For Nike's corporate responsibilities mission are;

* We must help the company achieve profitable and sustainable growth.

* We must protect and enhance the brand and company.

Nike employers approximately 25,000 people on worldwide. In addition, approximately 650,000 workers are employed in Nike contracted factories around the globe . Nike owned over 200 Nike Factory Stores and over 100 sales and administrative offices. In order to operate the Nike leased facilities such as for Nike Town and Nike Women retail store, Nike owns facilities in Oregon, Tennessee, North Carolina and The Netherlands.

The subsidiaries for Nike are:

* Cole Haan Holdings, Inc. - With its headquarters in Yarmouth, Maine, Cole Haan sells a line of dress and casual footwear, apparel and accessories for men and women under the brand names Cole Haan, g Series and Bragano.

* NIKE Bauer Hockey - Based in Greenland, New Hampshire, NIKE Bauer Hockey manufactures and distributes ice skates, skate blades, in-line roller skates, protective gear, hockey sticks, hockey jerseys, licensed apparel and accessories under the Bauer and Nike brand names. Bauer also offers a full line of products for street and roller hockey.

* Hurley International LLC - Headquartered in Costa Mesa, California, Hurley International designs and distributes a line of action sports apparel for surfing, skateboarding and snowboarding, and youth lifestyle apparel and footwear under the Hurley brand name.

* Nike IHM, Inc. - Based in Oregon, Nike IHM makes AIR-SOLE cushioning components used in Nike footwear products and sells small amounts of various plastic products to other manufacturers.

* Converse, Inc. - Based in North Andover, Massachusetts, Converse designs and distributes athletic and casual footwear, apparel and accessories under the Converse, Chuck Taylor, All Star, One Star and Jack Purcell brand names.

* Exeter Brands Group LLC - Based in New York, Exeter Brands includes the Starter, Team Starter and Asphalt brand names and is the master licensee of Shaq and Dunkman brands. The Exeter Brands Group is devoted to designing and marketing athletic footwear and apparel for the retail value channel.

Nike has been divided into 4 parts of manufacturing regions in the world which are;

* US Region: The first company inception was in the University of Oregon in Eugene where the co-finder Bill Bowerman coached track and Phil Knight went to college. There are 14,000 Nike employees in the United States. 7,000 works at world headquarters in Oregon; around 6,000 works in the Memphis distribution center and other retail stores around the country; and approximately 1,000 works in a variety of regional locations. Nike's US distribution centers for footwear are located in Wilsonville, Oregon, Memphis, Tennessee and Greenland, New Hampshire. Revenue for the year 2006: For the full fiscal year, US revenues were up 12 percent to $5.7 billion. Footwear revenues increased 14 percent to $3.8 billion; apparel revenues grew 9 percent to $1.6 billion; and equipment revenues declined 5 percent to $298.7 million. U.S. pre-tax income improved 10 percent to $1.2 billion.

* Europe, Middle East and Africa (EMEA) Region: The first Nike footwear sold in Europe was in 1978. In 1980, Nike opened their first European Headquarters. In 1994, Nike centralized their European distribution in the Laakdal, Belgium. The current EMEA headquarters, a state-of-the-art complex designed by William McDonough + Partners, opened in 1999 in Hilversum, The Netherlands. There are approximately 6,000 Nikes employees in the EMEA region. Nike branch offices and subsidiaries are located in 27 countries in the EMEA region: Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Israel, Italy, Lebanon, the Netherlands, Norway, Poland, Portugal, Russia, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Turkey and the United Kingdom . Revenue for year 2006: For the full year, EMEA revenues grew 1 percent to $4.3 billion. Seven percentage points of this growth were the result of changes in currency exchange rates. Footwear revenues were down 2 percent to $2.5 billion. Apparel revenues increased 4 percent to $1.6 billion and equipment revenues rose 10 percent to $313.3 million. Pre-tax income increased 5 percent for the full-year to $960.7 million.

* Asia Pacific Region: the business in Asia was run deeps before Nike was established. In 1963, Phil Knight was importing shoes from Japan. Since 1977, Nike Asia Pacific was operating. It began selling footwear in the region and subcontracted factories in Taiwan and Korea. In 1997, two major customer service centers opened outside Seoul and Tokyo, and China became both a source country and a vital market for Nike. There are 3,282 employees based in the Asia Pacific region. With the 252 contract factories located in North Asia, and 238 contract factories located in South Asia. Combined, these factories employ 550,821 workers. Nike has 13 branch offices and subsidiaries in the Asia Pacific region: Australia, China, Hong Kong, India, , Japan, Korea, New Zealand, Southeast Asia (Indonesia, Singapore, Malaysia, Philippines, Thailand), Sri Lanka, Taiwan and Vietnam. Revenue for the year 2006 was $2.1 billion, up 8 percent from year 2005. Of these revenues, approximately $1.0 billion were from footwear sales, $815.6 million from apparel sales and $194.1 million from equipment sales.

* Americas Region (North and South America excluding the United States): Canada has been the first foreign market for Nike. It started in 1972 and started expanding to the South of America in 1978. There are approximately 1,076 employees are based in the Americas Region with the total of 137 contract factories and the factories employ 44,568 workers. Nike branch offices and subsidiaries are located in five countries

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