Nike's Corporate Structure

Nike's Corporate Structure

Nike follows a relatively flat corporate structure. Each business line is broken out, and at the top is an executive for that particular business group. Aside from that however, managers are empowered to perform their jobs without a lot of administrative hierarchy. This is important as Nike operates in an industry that can change rapidly, so this allows changes to product lines/mixes to happen quickly. Nike tries to be innovative. I think giving managers the discretion to make changes among products allows for new ideas to surface quicker than if they had to go through certain channels.

Nike's International Strategy

Nike's International Strategy

Nike has developed from producing running shoes on a waffle iron in a garage into the most recognizable sports brand in the world. The following commercial illustrates just how far they've come. While the commercial is already 8 years old, it shows uses all-star soccer European soccer players in an effort to appeal to an international audience (soccer is the most popular sport in the world).

While I don't know any of the soccer players in the ad, I am not Nike's target audience. They are looking to expand their brand reputation in Europe, and presumably Latin America where soccer is also extremely popular. Nike has the potential to significantly increase its market size by expanding not only its product lines, but also by selling them across the globe. Nike also uses its ability to sponsor athletes as one of its principle ways of putting the Nike "swoosh" in front of consumers. Some of the world's most recognizable athletes are proud Nike endorsers, including Tiger Woods, LeBron James, Rafael Nadal, Serena Williams, Derek Jeter, and Ronaldinho. Nike has developed an impressive international marketing campaign around these famous individuals.