EVOLUTION OF

NIKE
BY
Christopher R. S
Inbasekaran .S
Jones Jebaraj .D
Dinesh Babu .D
 P h ilK n ig h t w a s b o rn Fe b ru a ry
P h il K n ig h t 2 4 , 1 9 3 8 in Po rtla n d , O re g o n ,
th e so n o f a la w ye r a n d fu tu re
n e w sp a p e r p u b lish e r. K n ig h t
a tte n d e d
C le ve la n d H ig h S ch o o l in
Po rtla n d a n d th e n th e
U n ive rsity o f O re g o n in
E u g e n e , where he was a
m e m b e r o f P h iG a m m a D e lta
(" FIJI " ) fraternityand earned a
jo u rn a lism d e g re e in 1 9 5 9 . H e
w a s a m id d le -d ista n ce ru n n e r
a t th e sch o o lu n d e r tra ck
co a ch B illB o w e rm a n a n d ra n
a p e rso n a lb e st 4 : 1 0
m ile , w in n in g va rsity le tte rs fo r
 Bill Bowerman
Born
February 19, 1911
Portland, Oregon, U.S.
Died
December 24, 1999 (aged 88)
Fossil, Oregon
Occupation
Track and field coach, founder of
Nike, Inc.

In 1964, Bowerman entered into a handshake agreement

with Phil Knight, who had been a miler under him in
the 1950s, to start an athletic footwear
distribution company called Blue Ribbon Sports, later
known as Nike, Inc.. Knight managed the business end
of the partnership, while Bowerman experimented with
improvements in athletic footwear design.
 1. Nike’s inventory
Management
•In the mid-1980, demand management system

was built ,to manage inventory more

effectively.

•The supply chain software implemented by

I2 Technologies Inc (i2) in 1999

§Supply chain project was clubbed

with CRM.

§The price of i2 software was $40

million.
 Benefits expected by Nike for
implementing the supply chain
system
•To increase the scope of operations
•To help take orders from the customers and
inventory management
•To reduce order-to delivery time by about 50
percent
•To always ensure that supply always meets
the demand as per the prevailing marketing
conditions.
2. FAILURES OF SUPPLY CHAIN

vIt affected the inventory

systems
vProfits would fall short by
24%
 REASONS FOR FAILURE
•Built its demand management system in
mid 80’s
•System was not equipped to deal with
complications
•System was constantly modified
•Nike moved to a new system
 IMPLEMENTATION OF NEW
SYSTEM
• It was designed to streamline
communications & lower operation
costs
• Supply chain project was combined
with CRM
• It is expected to reduce order to
delivery date
• Main system implemented by i2
• SAP AG and Siebel Systems for CRM
 WHILE IMPLEMENTING
Ø Nike refused to use templates &
methodologies
Ø System was customized
Ø Slowed down the application &
complicated to use
Ø Resulted in users waiting long
Ø Increased employee turnover affected
the system
Ø No third party integrators
Ø Implementing both SCM & CRM
 LEADING TO………
• Over estimate demands to some
shoes and Under estimate demand
to some shoes
• System sent flawed datas to
Manufacturers
• Nike couldnt meet the retail demands
• Finally prices of Nike shares fell
sharply
 CONSEQUENCES OF
BREAKDOWN
üNot able to cater demands
üReputation
üLost Market Share
üForced to sell in discounted prices
üHigher shipping costs
üRelations between nike and retailers
was affected
 3. ELEMENTS TO REMEMBER

•Assessing the need for a new system

•Following the 3 stages of
implementation
•Post Implementation Sampling process
•Periodical review of the Implemented
system
ERRORS COMMITTED BY NIKE AND
i2

•Customization
•Improper Implementation
•No Sampling Process
 NIKE’S MOON WALK
TO SUCCESS
Nike was founded in 1964 as Blue Ribbon Sports by
Bill Bowerman and Phil Knight .
In 1966 Blue Ribbon Sports opened it's first retail
outlet selling sportswear , including the Japanese
made Onitsuka Tiger running shoes .
In 1971 graphic design artist Carolyn Davidson
created the famous Nike 'Swoosh' logo and sold it
to the company for $35 . 00 USD .
In 1972 Bill Bowerman used his wife's waffle iron
to mold the sole of a shoe that has better traction ,
creating a shoe called the 'Moon Shoe' and
distributed it to four track & field athletes at
the 1972 Olympic Trials .
That same year the first line of Nike footwear hit
the stores .
In 1978 Blue Ribbon Sports is renamed Nike Inc .
The 1972 Nike 'Moon
Shoe'