Nike Case Study

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Nike hit the ground running in 1962. The company focused on providing high-quality running shoe designed for athletes by athletes. Founder Philips knights believed high-tech shoe for runner could be manufactured at competitive price if imported abroad. Nike believed in a “pyramid influence” in which the preferences of a small percentage of top athletes influenced the product and brand choices of others. In 1985, Nike signed up then-rookie guard Michael Jordan as a spokesperson. Nike’s bet paid off – the Air Jordan line of basketball shoes flew off the shelves and revenues hit over $ 100 million in the first year alone. In 1988, Nike aired the first ads in its $20 million “Just Do It” ad campaign. The campaign, which ultimately featured 12 TV spots in all, subtly challenged a generation of athletic enthusiast to chase their goal. As Nike began expanding overseas to Europe, it found that its U.S-style ads were seen as too aggressive. Nike realized it had to “authenticate” its brand in Europe, so it’s focused on football and became active as a sponsor of youth leagues, local clubs, and national teams. Nike’s big break came in 1994 when the Brazilian team won the world cup. The victory transformed Nike’s image in Europe from a sneaker company into a brand that represented emotion, allegiance, and identification. It also helped launch Nike into other international markets over the next decade, and by 2003 overseas revenues surpassed U.S revenues for the first time. In 2007, Nike acquired Umbro, a British maker of soccer-related footwear, apparel, and equipment. The acquisition helped boost Nike’s presence in soccer as the company became the sole supplier of uniforms to over 100 professional’s soccer teams around the world. Nike focused its efforts on international markets, especially China, during the 2008 Summer Olympics in Beijing. Nike received special permission

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