Innovative Technologies are Used by Nike

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Updated: Mar 28, 2022
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Summary: In this competitive world, there is wealthy competition between sports giants. This report shows how Nike find the solution of disruptive innovation with the support of innovative technology. For Nike technologies like Robotics and Crispr can be the disruptive. By using innovative technology Nike could become disrupter. This report states the 3 diffrent innovative technology and 2 disruptive technology.


History: Nike is today the largest manufacturer of athletic footwear, clothing and equipment, which was sold in 2010 with international sales revenue of more than US $ 34 billion, up from US $ 20 billion in 2011, revenue more than 40% in the last 7 years Jump.

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An impressive achievement in the global market dominated by trusted rivals such as Adidas, Puma, K-Swiss and Under Armour, It competes with the Sports Market. Many analysts expect that Adidas sales are rapidly declining in comparison to Adidas’s sales battlefield in America (KUSH).

Vision: Nike Inc.’s vision is “to bring inspiration and innovation to every athlete in the world.” The company further states that everybody is an athlete, based on Nike founder Bill Bowerman’s statement, “If you have a body, you are an athlete.” This mission statement shows the company’s planning goal of reaching out to the worldwide leisure and sports footwear, apparel and tools market.

Human resources: We have our dedicated workforce in our area to measure and develop our HRM capabilities to our suppliers. Over the last several years, these engagements were often part of an integrated approach to Nike’s Lean Management Framework. Those activities include:

  • Assessing supplier management strengths and weaknesses and identifying development opportunities.
  • Focusing on supplying coaching and consulting to strengthen the HRM system, how to attract, develop and engage your workers.
  • Develop equipment for measurement of worker engagement and searching chances for investment (Strengthening human resources management, 2019)

Product segment: In demographic divisions(Segment), they include age, race, family income and education level. Apart from this, it was seen that among the majority of respondents, professionals from various fields like engineers, software professionals, executive employees etc. are included. Who is 38% of our database? While 36% were students from different areas. Other people form designers and athletes etc. Further study is done on the behavior of the above categories of consumer, which shows that our consumer is well educated and knows very well about the product. The second segmentation focuses on geodymographics and proximity. The basis behind geodemographics is that people who are equal in income, culture, and attitude, naturally move towards each other. When you ask for a store your zip code while making a purchase, it is using geomorphology as a partition technique. (Market Segmentation of the Nike Company, 2018)

Competition: Rivalry in the sports industry is very intense. Nike competes with many athletic and leisure shoe and apparel companies around the world like Puma, adidas,under armour, reebok and asics (nike bibliography). The brand faces competition in every aspect of business, but the biggest competitior of Nike is Adidas. In recent time adidas beat Under Armour for getting the 2nd place in market for biggest sports brand. Nike still has plenty of room to go before Adidas or the underarm armour is anywhere near to catch it. The company has an ambitious plan to reach $ 50 billion in revenues worldwide by 2020, which is expanding rapidly in the consumer business on a large scale (GREEN, 2016).

Trend analysis: Smart scan chart analysis confirms that a strong uptrend is in place and the market remains positively long lasting. With strong management, strong uptake stops. A triangle indicates the presence of a very strong tendency which is being operated by strong forces and intermediaries. (Stock Trend Analysis Report, 2019)


Political: Political factors are especially important for the backend of a company – the part we normally do not see. Most of today’s political changes affect only how a company can produce its goods or how much they can earn. For Nike some are,

  • The United States, Nike’s country, to speak of ‘Country’, there are great policies for development which are especially valuable to this corporation. These include low-interest rates and well-organized international tax agreements.
  • Various political conflicts can always make the customs procedures difficult, or stop imports and exports.

Envirnmental: Environmental issues are of increasing importance. Of course, there are only a few factors that affect Nike in this regard, but they say:

  • Nike’s large scale production factory, without any doubt, is harming the environment. Not only do they leave too much air pollution like most factories, but Nike’s production centers occasionally go into polluting rivers.
  • Nike also shows the promise of a change in its current practices, in which the ‘Echo’ is a determination to become.

Economical: Nike sells a well-respected middle-class product, so they are less sensitive to economic factors than others, but some economical things are,

  • A market collapse with many other big brands can be bad news for Nike. Consumers can choose to switch to low-end, cheaper products, if it was going to happen, or even when it becomes easy to produce a decent level of quality.
  • With the help of ‘deep pockets’ of finance, Nike has the resources to pursue after the emerging emerging markets in which they could sell the products.

Social: Public relations has never been more relevant than today A good social situation matters a lot to modern corporations, Its worth to see this factors:

  • An increase in health consciousness across the world means that more and more people are heading towards better life style. These people will undoubtedly buy many sports apparel, something that will make Nike very pseasant.

Technology: Technology gives companies the ability to innovate in so many different ways. By interacting with customers to design products, technology provides value to organizations like Nike. There are some technical factors affecting it:

  • Social media allows things to fly or away faster than ever before. Nike is doing well with the use of social media to build its brand, but it can be a double-edged sword if used incorrectly.
  • Nike also offers the opportunity to use valuable information-based matrix for technical advancement, thereby allowing them to optimize targeting and production and maximize revenue (BUSH, 2016)

Five forces: According to Grant (2005), there are many features of an industry in which a company competes, which determines the level of competition that it will have to face and how much profit it will get. The most famous classification was by Michael Porter, which is known as Porters Five Forces Framework, which can help a company determine its potential profit by looking at five sources of competitive pressure. Competition’s five forces are:

  1. competition from entrants
  2. competition from substitutes
  3. competition from established rivals
  4. bargaining power of suppliers and
  5. bargaining power of buyers (KUSH).


STRENGTH: Nike’s strengths are the primary drivers of global leadership in the company’s development and sports shoes, apparel and equipment markets. This component of SWOT analysis is related to the internal strategic factors that support business development and competition. Some noticeable strengths are:

  • Reputed brand image.
  • Quick innovation process.
  • Wide worldwide production and distribution network.

Weakness: Impairment can inhibit Nike’s development trajectory in sports shoes, apparel and equipment markets. This component of SWOT analysis addresses the internal strategic factors that inhibit or reduce commercial performance. Some of weakness are:

  • Controversies of labour.
  • Limits in product mixing.
  • Limited appearance in market.

Oppurtunity: Nike Inc. has opportunities to increase its performance in athletic footwear market. External strategic factors that provide the development of business, this component of SWOT analysis are included. Some of biggest oppurtunies :

  • Improvement in labour.
  • Improvement in product mixing.
  • Increasing the presence in market in diffrent countries.

Threat: Even if Nike sports shoes, equipment and apparel are one of the major players in the market, but some hazards can limit or minimize the company’s performance. This component of SWOT analysis is related to external strategic factors which negatively impacts professional performance. Some of threats are:

  • Tough compitetors like ADidas and Under Armour.
  • Rapid innovation of technology.
  • Limitations. (KISSINGER, 2017)

Assests: Nike, Inc. Long before the Chairman, Chairman and CEO was nominated Mark Parker was leading the company in other ways. After running competing in Pen State University, Parker joined Nike as one of our first footwear designers in 1979. And since then Nike has been in the center of innovation. Andy Campion joins Nike as Vice President of Global Planning and Development in 2007, making long-term financial and strategic plans. He was appointed the chief financial officer of the Nike brand in 2010. Nike does business in nine product categories, which include specialists in activities such as basketball, football and running. It generates most of its annual sales through footwear, with the help of large-scale franchises like Jordan brand. The company has a dominant position in running shoes, too, with the segment rising 10% last year thanks to its popular Pegasus franchise. Footwear accounted for $ 20 billion, or 61% of Nike’s $ 32 billion revenue in fiscal 2016 (Kalogeropoulos, 2017). 

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Innovative Technologies are Used by Nike. (2021, Oct 20). Retrieved from