Nike Business Model | Business Model Navigator

Overview:

Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is the world's largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. In 2014 the brand alone was valued at $19 billion, making it the most valuable brand among sports businesses. As of 2017, the Nike brand is valued at $29.6 billion.

Industries:

Retail

Fashion

Similar firms (based on pattern co-occurrence):

2 shared patterns

Business Model Patterns:

Direct Selling

How they do it: Nike operates brand stores in Flagship locations to present their latest products. These stores help the company shape the brand image directly and design an experience around their products. The stores also have special offers of customization of products.

E-commerce

How they do it: Nike’s online store has the latest collections and lets the customers order directly from and to their home. In addition, customers can customize their Nike products online.

Orchestrator

How they do it: Nike’s core competencies lie in the design and marketing of sports apparel. Hence it focuses on these steps in the value chain. Manufacturing for example is outsourced to low cost regions such as South East Asia.

User Designed

How they do it: Next to its standard collections Nike started a program called ”Nike ID”. This allows customers to individualize their products such as shoes and shirts. Individualization can include choice of colors or sticking a personal message.

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