An Investment Analysis Case Study Nike Solution

It had to be at once very distant from the core business and also very appealing. It had less to do with shoes and more to do with athletes.

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In those days, Bowerman would often rip apart the Tiger brand shoes to see how he could make them lighter and better.

He used to take help from university runners to test his creations and collect their feedback.

By 1971, though BRS revenue had touched $1 million, the business relationship with Onitsuka was turning sour.

So, they moved on from being distributors of athletic footwear to designers and manufacturers of athletic footwear and took full control over their value chain.

Founded in January 1964 as Blue Ribbon Sports (BRS) by University of Oregon track athlete Philip Knight and his coach Bill Bowerman, the company was initially a distributor for the Japanese shoemaker Onitsuka Co and their brand Tiger.

In 1966, it opened the first BRS retail store in Santa Monica, California.In a bid to regain its edge, Nike, in 1987, launched a new product called Air Max.The shoes had two interdependent bags with compressed air inside.But in mid 1980s the revenue started dipping mainly because the management did not take note of the aerobics boom.Nike's competitors had by then developed their business in this segment.Today, the estimated market value of Nike is about .7 billion.In 1973, BRS signed its first endorsement pact with Ilie Nastase, a professional athlete and ATP tennis star.Shoes Technology: In due course, even the hi-tech Air Max technology was found to be inadequate to entice customers.And it was time for something that would differentiate Nike in the long run.: Constant innovation has been the byword for Nike's success.This case study analyses the ever-evolving marketing strategies adopted by Nike to become a global brand.

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