Nike: Business Proposal
Frank Mattair
11 March, 2013
Alfred Igbodipe

Nike: Business Proposal
Founded in the 1950s out of the simple frustration in finding a running shoe that would give Coach Bill Bowerman’s University of Oregon’s track and field runners a competitive edge, Bowerman decided to start making the shoes himself. After partnering with one of his runners, Phil Knight, the two of them went on to found Nike in 1972 (Nike, 2013).  Although the 1970s saw growth and demand for Nike products, they saw their position as an industry leader drop in the early 1980s. They had dropped the ball and missed the explosion of the aerobics fad and were in desperate need of celebrity endorsements to increase sales revenue (Nike, 2013). The 1980s ushered in Nike’s new slogan “Just Do It,” and it seemed as though sports celebrities were flocking to Nike after the creation of the signature Air Jordan brand.   Nike has come far since their track and field days and is currently signing celebrities from across the sports spectrum. Tiger Woods, Bo Jackson, and Lance Armstrong are among their most popular celebrities and their endorsements have been critical to the success and recognition of the Nike brand (Nike,2013). 

Supply & Demand Analysis

During Nike’s first fiscal quarter of 2010, NASDAQ reported that orders were up 10% over the same period the prior year. Management noted rising demand, with the exception of Japan and Western Europe (Google Finance, 2013). 

Whereas demand dropped slightly in the fiscal second quarter of 2010, worldwide orders of Nike products still grew 9% over the previous quarter. Analysts reported that better than expected retail numbers showed demand increasing in China, Western Europe, and the United States (Cheng, 2010).

Both of the earning reports and market analysis indicated...