strategic-management

Nike Customers and Price Points
Because Nike competes primarily in athletic footwear, apparel, and related sporting
equipment, its sales are heavily concentrated in the youth and young adult market. In particular,
Nike sales are heavily skewed toward the 12- to 24-year-old age bracket.
Younger consumers are also less price sensitive in this age bracket and generally
spend more on casual and athletic footwear than older consumers. After the age of 40,
the typical consumer is not willing to pay more than $35 to $40 per pair for athletic
footwear. Nike is the dominant competitor for athletic footwear priced above $60 per
pair, holding better than a 50 percent market share for athletic footwear priced $85 per
pair or higher.
Key Executives
The chairman of the board for Nike is Phil H. Knight, age 70, one of the cofounders of
the company. Knight has been with the company since its beginning in the 1960s. He
holds an MBA from Stanford University and has been a certified public accountant as
well an assistant professor of business administration at Portland State University.
As indicated in Exhibit 8, the chief executive officer (CEO) of Nike is Mark G.
Parker, age 52. Parker has been with the company since 1979 and was appointed CEO in
January 2006. Prior to being named CEO, Parker had been president of the Nike brand
from 2001 to 2006.
The president of the Nike brand is Charles D. Denson, age 52. Denson has also been
employed by the company since 1979 and had been an assistant manager of Nike’s first
retail store in Portland, Oregon. Denson was credited with pioneering Nike’s expansion
into China, India, and Brazil.
The chief financial officer (CFO) for Nike is Donald W. Blair, age 50. Blair arrived
at Nike in November 1999. Prior to joining Nike, he held several positions at Pepsico, Inc.,
and had been a certified public accountant with Deloitte, Haskins and Sells.
Nike characterizes its organization as a collaborative matrix organization.
Executives often report in several areas, such as by region of the world, by product or by
global function. Exhibit 8 presents an organizational chart for the company and the key
executive officers.
Exhibit 9 presents Nike’s balance sheets from fiscal 2006 to 2009. Note the company
has very little long-term debt.
EXHIBIT 8 Nike Organizational Chart, 2009
Gary M. De Stefano
President of Global
Operations
Hansvan Alebeek
Vice President,
Global operations &
Technology
Source: Nikebiz.com.
Donald W. Blair
Vice President and
CFO
David J. Ayre
Vice President
Global Human
Resoursces
Ronald D. McCray
Vice President
Chief Administrative
officer
Phillip H. Knight
Chairman of
the Board
Mark G. Parker
CEO and President
Bernard F. Pliska
Vice President
Corporate Controller
Charles D. Denson
President Nike Brand
Trevor Edwards Vice
President Global
Brand & Category
Management
CASE 27 • NIKE, INC. — 2010 267
Lewis L. Bird III
President Affiliates
John Slusher
Vice President
Global
Sports Marketing
Eric D. Sprunk
Vice President
Global Footwear