Nike Culture

Background
Nike was founded in 1960, when the company CEO Phil Knight concluded that high-quality running shoes • there will be sales, then launched a revolution in the footwear industry. To 80 years, he again booming in the sports shoe company into a marketing machine. Since 1986, the company's stock returns average annual increase of 47% in the 1986-1996 period, the "Fortune" magazine in the discharge of 1,000 companies nationwide, the company within the top 10. Currently, the company is becoming a sports machine, the organizers of events like golf tournaments, and also sell sports equipment and apparel.Nike cultural personality
(A) the cultural identity of the company
"Sports, performances, free and easy freedom of sportsmanship" is the pursuit of personalized Nike corporate culture. The distinctive feature of the corporate culture from the traditional concept of corporate image, by company founder Philip Knight • founded.
Nike start-up company for the Blue Ribbon Sports, which is based on Knight in Si Tanfu Graduate School of Business at school to write a paper for the simulation created. Knight random collection of some track and field star and sports fans the idea to write in the article, their minds have a common goal: to defeat Adidas, so that more and more athletes to wear the Japanese production of high quality low the price of running shoes - Tigers (Tiger).
As the company's founder, Knight's personal struggle to stand still and business ethics throughout the business operations always. Knight was elected to the University of Oregon track team, a professional middle-distance team, his passion for sports has been worn away. He later worked in Poland for five years when the price waterhouse accountant, his business sense is nurtured in that time. Typical of the legendary Oregon track coach who Piel • Powell, always tailor-made for his star athlete running shoes. He told Knight, a track and field team is composed by a number of individual players, each person must stand still to hard to improve his or her achievements, track athlete of the creed is: "There is no end." The price waterhouse to the revelation is "the most basic principles of business behavior." Nike's history is the continuing dialogue over the course of two beliefs, the spirit of an athlete's personal struggle to harmonize with the process of commercial constraints. Knight and Bowerman co-founded Blue Ribbon began, and changed its name to Nike in 1972, and since then it began to design shoes with the company trademarks, and manufactured in Asia.
Nike's corporate culture is never-ending. At that time, in the U.S. athletic footwear market is dominated Adidas, Puma and Tiger. The early 1970s, running hot and gradually rise, millions of people began to wear sports shoes, sports shoes because not only comfortable, but also a symbol of healthy and young - that is what most people aspire to the image of sports shoes will pop up, but Adidas led to the "iron triangle" did not grasp this development, "Nike" has run into. In 1974, Bowerman coach baked waffle iron mold playing a kind of urethane rubber, made a new soles. This shoe is the "Wall biscuit" style, there are small rubber soles nails, making it popular in other than the market more flexible sole, this seemingly simple product innovation to promote the cause of Knight, products quickly open the market, Nike's sales in 1976, the window of $ 8.3 million the previous year soared to $ 14 million. Nike like wildfire since the development of industry, companies developing new style shoes and spend huge sums of money, to the late 1970s, Nike has nearly 100 researchers, many of whom have biology, chemistry, experimental biology, engineering, industrial design, chemistry, and a variety of leadership related degree. This strong research efforts to develop more than 140 different styles of products, many of which products are the most innovative and most advanced technology. These styles are based on different foot type, weight, running speed, training programs, gender and level of technology design. These styles, different prices and multi-purpose products, attracting thousands of runners and make them feel Nike is to provide the most complete variety of running shoes manufacturers, millions of all kinds, a variety of capacities runners have such a concept, which is a developing industry is a very attractive image.
Rely on a never-ending corporate philosophy, to 1979, Nike through the planning of new products to market and strong sales, market share of 33%, and finally squeezed into the original Adidas, Puma and Tiger are built "iron triangle", a sales star. By 1981, its market share even 50%, ahead of Adidas, and Knight himself running into the "Forbes" magazine's coveted 400 American rich list. Nike is the adventurous spirit of the pioneering companies in the green state of Oregon where the company has cultivated a well-designed culture, Nike was a veteran manager, recalls: "It's like a full foot in the bonds of friendship the environment. happy to drink with colleagues, talked about sports, and active and self-proclaimed anti-traditional character. "every six months, Knight of the management team to meet and discuss strategy. The row of the noisy party of "tit for tat" with. Knight always encourage confrontation, or even encourage confrontation, and he and everyone else, accept other people's loud accusations. Nike corporate location, like school, like a forest, jogging trails, lake, soccer fields. Knight hopes to create a harmonious work environment, he believes the world has enough chaos, the working time should be as free as at home.
 Nike distinctive corporate culture, attracting a large number of young people, 40 percent of Nike employees less than 30 years of age, their day's work is organized; noon in the "campus" in sports and leisure sports for two hours, and then worked the evening, they are very loyal to the company, Nike's management is not strict, but must break the strong belief Adidas whole team together. The company's marketing staff, said: "We instinctively able to judge what is the Nike company to do, what is Nike doing nothing." Adidas is because Orthodox, Nike can attach great importance to recognition Orthodox hated those athletes such as Steve, Prejean side Ting - track and field in the world of James • Dean of the Federation of amateur athletes scoff; "love arguing," the Yi Lei • Nastase, the tennis is a creepy character. These anti-traditional athletes funded by Nike, the Nike challenging the orthodox and progressive dynamic image. Knight founded the company of their own fond, as children of their own as full of affection for the company's affairs, as long as he thinks necessary, every day, hands-on, in and out of office. Knight, most of the time in the office next door to a small room. House dirty clothes lying on the floor, next to piles of things and documents, almost no one else into his house, Knight complained that: "Once let people into your house, they will all day and out and I think the problem is required. "
Nike With their entrepreneurial spirit to defeat the best final in the U.S. market, Adidas, Reebok, but as a major competitor to emerge in the early 1980s, the Nike men's sports production company focused on the culture a bit short-sighted . Nike actually not foresee the importance of soft leather shoes areobic these shoes popular among women of all ages. In 1986, Reebok over Nike, the industry leader. Knight inspiration, he developed a management rules, in order to support the work of the center to maintain brand loyalty. In 1981, he embarked on a new transformation within the company. He put a large shoe department is divided into several smaller departments, each department in charge of small projects a sport shoes, so to speed up product development process, he had set up a production, marketing, advertising linked to system composed of the company as a whole. As a result, companies work together to develop a variety of shoes, and advertising as a means to create a powerful Nike shoes, with a sensation of the image.
(B) the marketing strategy of innovation driven by the concept of innovation culture
Corporate and product excellence and create a vibrant image of the company's strategic objectives. Knight believes that young people's ability to mimic strong, the brand is also very sensitive to the star of the campus dress often become the object of imitation, so as long as trying to get the most attractive athletes to wear Nike, you will be able to attract imitation of a large number of people nationwide. Was the greatest world-class stars, red man Nike Jordan excellent grasp of the unique ethos, that is perfect and vibrant style of work. Nike to sponsor the "first night", but also a ten million who love sports idol. Nike is now a $ 4 billion in sales of large companies, its image of being anti-traditional threats, a business commentator shouted: "Knight found that Nike's quickly become a combination of American business and sports arising from the ambivalence of ordinary lightning rod. "Knight himself said:" When your family business is growing, you must pay attention to the business cool, but do not extinguish fire out. "In the U.S., although every sale out of three pairs of shoes in there one pair marked with Nike trademark Swooshk, but the analysis shows that, as of May 31, 1994, Nike's fiscal year, total revenues will decline by 6 percent, fell to $ 3.7 billion. The biggest basketball shoe sales market declined sharply, Nike's most important, potential market in Europe and Japan, but the two countries is not how the economic boom.
Core of the problem is that in the past few years, Nike has been promoting the development of consumer - young people and early 20s have given up the younger generation have shoes, they tired of the flood of players involved in the footwear ads. They are looking for new, less commercial gas products - similar to the coarse wrinkles shoes. All this affected Nike's stock price peaked in November 1990 to 1992 dropped by 40%, 35% of shares held by Knight, worth $ 2.3 billion in the past, is now worth only $ 1.3 billion. Many analysts believe that Nike has fallen to the lowest, they estimated that in 1995, Nike's profits will rise 12 percent, or about $ 316 million. Although still lagging behind the 1992 financial year profit, but announced on March 15 3 / 4 of the results, the Wall Street found they had been looking for signs of good news. The summer months there has been little improvement in orders of new models - including the new series of basketball shoes - will be subject to retailers welcome, but the 56-year-old chairman of Nike, Inc. is still worried, he knew to be in the saturated U.S. market once again realize that he had created the kind of growth is no longer possible. He spent a lot of time to consider two things; how can we achieve these goals, without losing critical to the success of the company's innovative, entrepreneurial spirit. Knight enigmatic yet withdrawn.
To achieve corporate objectives, corporate culture needs to be reformed. Knight has no say in Nike several months of daily affairs. To cope with the situation of the company is difficult to manage, Knight once again participate in corporate decision-making. Fact is the case, Nike director of the department for Chris • Van Dyke: "Knight is back." Mid-February, the chairman convened 31 senior managers at the Oregon beach house meeting, 8 bit is the overseas branch manager. At the meeting, he announced in June, will succeed 42-year-old Clark, president of Nike's 66-year-old Chad • Donahue. The newly appointed general support by the company from top to bottom. It fully endorsed the Clark as a means to strengthen the communication links, eclectic talent, but also for Nike the "laggards" put up a full display of the big stage. However, this new strategy requires the full cooperation of all departments Nike. In a middle management meeting, President-bit grams to 60 grams manager explained, "cooperative approach" the importance of Knight, although usually do not like meetings, but also back to attend the meeting. Clark mentioned that Nike makes more smooth communication channels to speed up decision-making and do not nearly enough. "Our sense of genes in the growth of cooperation," he concluded: "But before that some people gathered in the hall Gone are the days of decision-making." Knight, and listened patiently until he invited Clark - the unexpected guest - the front desk to go, he wore double-breasted suit and a pair of shabby flat sandals, Knight looks a little disheveled. He slowly through the aisle, when the lights with him, he narrowed his dark eyes, he jokes stressed the importance of channels of communication: "A few days ago, Sean • Eckhart head a frog into a bar. bar waitress asked: 'What is that' the frog replied: 'I do not know. the beginning, it's just my ass on a long sarcoma'. "Knight by a joke to pass on information managers : we must succeed, but can not lose a sense of humor, and our rebellious culture. To the United States, only a few can be like Knight, chief executive officer, as appeared in front of employees, they will be able to rejoice, his legendary charm is that he played one of the most insignificant gesture, but also reminiscent of the brilliant Nike history.
The spirit of sportsmanship and to build a Nike commercial, temper Knight smart and strong dry. Knight started when Nike is just a nobody, but he defeated Adidas, play their own brand. His recipe for success: first love of sports, business practices and then to break the old rules. He is still wearing Oakley sunglasses folding, nor taboo was difficult to open some of the jokes in the hall Masayuki. He is excitable and calm person. He and his employees are willing to work together to create the myth of Nike, in addition, no other requirements. However, Knight is a competent person first. He clearly knows that in past years, when they can win in the competition and make unremitting efforts of the marathon, the Nike touched the wall, after six years of the most difficult of development, the company became the world's most powerful sports a force. Now, as sales always stay in the nearly 40 billion U.S. dollars, Knight is seeking to stay out of this situation is not the way before.
(C) further reform and innovation, the implementation of new marketing strategies
In order to be able to stand our ground has been saturated U.S. market, Nike has been updated "look" technology, launched a series of new running shoes sports shoes and other training shoes. He will also work to expand Van Dyke charge of $ 200 million of funds outside the sporting goods department of the rent. Thick wrinkled appearance of footwear shoes shoe industry is the only popular products. Outdoor sporting goods departments in this area and Tingbolande companies and other powerful peer competition, its production has increased by 1 fold, higher than a multiple of profits. Knight confidence that 1996 will be the best Nike profit sector, sales will reach $ 500 million.
Meanwhile, Nike has also changed the sales approach. Have sales of outdoor products sector in focus of the new generation of yuppies and unknown customers, but Nike's ability to recognize and television advertising through the athletes so that they are interested for Nike shoes, which have aroused doubts. To attract them, while, in order to fight back the public's cynicism of Nike, Nike launched the biggest ever campaign. The spring of 1994, Nike adjusted forms of advertising. • retired basketball star Michael Jordan, Chicago White Sox of the uniforms worn in the adult league baseball in the spring back on, Nike took the opportunity to show it has brought a tourism product, which makes the pure baseball fans are very angry.
 Corporate image, while in the planning, there is an important: inventory control system, but the company often ignore it. This system is called "futures", Nike can continue earning profits is the key. Retail business to Nike requires 6-8 months advance booking of its total share of 80%, the only way to ensure the delivery time Nike and give 10% discount. Consequently, as the orders for the Nike company very well, it has enough time to arrange production according to orders. This avoids too much inventory, but also by ensuring from its factory in Asia to obtain a more satisfactory ex-factory price. Retailers hate this system, because the moment they appear on the market estimate of error, they will be trapped by these shoes. But Nike's market to attract them to try their luck. Although Nike's competitors are doing the same thing, but when Nike began in accordance with a deal already shipped, it has been a leading opponent process. Reebok Carmody said: "Nike has a strong logistics system, logistics system than our much more powerful."
(D) marketing cross-cultural issues
Cross-cultural issues in every operation and management of multinational companies have encountered problems. Germany's Adidas, Nike and Reebok's biggest competitor in Europe. Europeans instinctively prefer the production of all on the European continent. Adidas, Nike took advantage of this to start a strong campaign. In addition, Nike shoes are expensive, priced as high as 80-200 dollars per pair, so that some Europeans can not accept. On this point, Nike deliberately fathom the psychological characteristics to meet the Europeans. France, for example young people better advertised, the Americans put a price tag on the shoe to meet the French youth as peers. Dutch people over the age of 25 like to wear white shoes, the age of 25 who prefer colorful sneakers, Nike treated differently.
Differences between European and American cultural traditions also some European goods to the U.S. abhorrence. Paris, France, a fashion design college contact Ms. Li is extremely offensive to wear shoes, she said: "It was fall, no shoe is one, and the most appalling is to wear shoes," another person to wear shoes in Italy women's work "ugly." At the same time, like Disneyland and American movies, American culture in Europe, a great market, Nike is using to shape the image of the United States of Europe "shoes family." Nike's strategy for the international market is key, Knight said, we are keenly aware that after a few years, the company conducted business in foreign countries than in large multi-national. The problem is that even if the current foreign sales accounted for Nike's total sales of 1 / 3, but only to carry out these operations by simply imitating the United States branch of the machine to achieve. Companies have to go to football and other sports programs to open up international markets. Knight worry overseas, Nike shoes are the loss of their authentic, working-class image. All this marketing strategy and sales attributed to ignore the body loose. Foreign retailers are also complaining that Nike always use heavy-handed early in order to force them to Nike shoes, and only U.S. retailer to get used to this approach.
To remedy this situation, Nike bought the distribution business around the world, in order to obtain more control over, Knight called on his men to concentrate on Germany, Mexico and Japan, this super-important to the market to conduct business. There, Nike will allow retailers to believe that: advance orders are not piling painful, advertising the focus in particular on the sports world, Nike will introduce the market to meet the special requirements of the shoes. For example, badminton shoes sold in Asia, sold to a new island worthy of the Scandinavian handball shoes. The real challenge is still to find a group of competent managers, and instilled in them Nike's mode of operation. However, this process is full of hardships. In the U.S., Knight believes the company's manager capable very well, because he knows they understand the significance of this brand of Nike. That is: sports, performances, free and easy freedom of sportsmanship. This is the legendary president of Nike explained the richness of the collective culture. Now, Knight would like to find a number of trust in foreign managers, by their ground-breaking operation of its domestic market, while maintaining Nike's reputation.
But the problem is that Nike may be the real translation of culture out of it? Export of Nike shoes while Knight has always obsessed with his Nike export culture. The reason is simple: In Oregon, Nike's compound around the close attention of the sports and news shows, these reports to encourage people to buy those shoes, although these shoes have sold 70% including Nike shoes, never appear in the gymnasium, an athletic shoe marketing experts believe that "consumers always cherished a great interest in sports, and this interest in a continuing nature, this criterion is essential." In order to strengthen international marketing force, Nike is buy the distribution rights around the world, to enable the company to exercise more control. Nike, on the one hand to make good business from foreign markets constantly emerge; the other hand to maintain the Nike brand for the purpose of performing those under the proposed strategy. Nike's experience in Japan is a good example, it proves that this process is very difficult. A year ago, Knight clearly aware of Nike's Japanese subsidiary sales are great, but because it has no sports, performance and brand image of the combined company, so Nike bought the company, it's a face-lift work. Knight Yong Ji Akimoto selected to lead this work. Akimoto expand business in Japan, Kentucky who has achieved a lot.
As the national and cultural backgrounds and ethnic traditions, in developing marketing strategies and tactics when it should be always attached great importance to this Akimoto such as smokers tend to sport interpreted as a very gentle pastime, such as high Lefu ball. Akimoto was sent to Beaverton, to accept up to 4 months of Nike's education culture and mode of operation. He threw away the cigarette and began running. In December, he returned to Japan in Tokyo Nike, he issued a command to prohibit smoking within the company. For this country smoke, the ban is undoubtedly a major event. He also forced the employees to participate in the Nike marathon training in Japan, to meet the 1994 Hawaii Marathon. Nike Corporation to strengthen ties with the branch, the Nike to be the first "dividend" is a foot-shaped design for Asians, the advent of a special lightweight running shoes. But for many important aspects, in particular, this brand of Nike itself, Akimoto and not fully understood, Knight said, Akimoto before departure back to Tokyo, trying to "let go and shop and go to" accurately translated into Japanese Ministry submitted to the manager of Nike are. Nike person for this fear. Knight recalled: "We say: 'No', do not translated it, and we never want to hide a thing - our brand is an American brand." Nike can outperform by virtue of their emphasis on the cultural power of this international competition competitions? Nike is now a large fortune better than the early days, the legendary Knight of entrepreneurs are faced with greater challenges.Unique business model
First, Nike will be the company's all personnel, material, financial and other resources together, and then all the cast and to product design and marketing of these two departments were to go out to cultivate the company's strong product design and marketing capabilities. • Phil Knight the one hand, emphasis on product development and design capabilities, more attention to the training was the ability of marketing, product design and brand marketing have become two of Nike's powerful competitive weapon.
Second, Nike has taken in the production of a virtualization strategy, namely: the external leveraging, through the integration of external resources, making it all for me in order to expand their territory, the use of external capabilities and strengths to compensate for their lack of invest in production sites, not assembly line, Nike does not own all the products manufacture, but all outsourced to other manufacturers out of manufacturing. Nike this coup, not only saves a lot of production investment in infrastructure, equipment acquisition costs, and workers labor costs, and is also full of other strong production ability of manufacturers, particularly in the production process is outsourced to Southeast Asia and other places of business in many developing countries, where the labor costs to very low, which forces a lot of Nike's labor cost savings, which is the Nike sports shoes have been able to lower prices competitive with other brand-name products an important reason. Implementation of virtual production, Nike will design drawings to the manufacturer so that they can carry out production strictly according to the drawing style, and to ensure appropriate quality and then, Nike and then posted their own brands and labels on these products, and products to the company's marketing staff. Through the company's marketing network to sell their products out. This model the full realization of the complementary role.
Third, Nike's innovation lies in the marketing communication. It uses the idol of young people such as Michael Jordan, etc. • to spread, but also the use of electronic game design of Nike's exclusive games. Whenever the launch of new models, which invited the band to play, through a kind of entertainment changes the way ideas spread and quality. Nike This communication strategies, not only to elevate its brand awareness, but also to establish a high degree of identity of the brand asset value.
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