Nike Mission Statement and Vision Statement In A Nutshell - FourWeekMBA (2024)

The company paid $5,000 to distance runner Steve Prefontaine to run in the company’s shoes.

A tiny deal compared to the ones it closes now.

Steve Prefontaine represented the athlete who crystallized the approach that Nike would use later on to generate demand for its products.

Today (as I’ll show you), Nike has scaled this approach, but at the time, it had to re-invent it from scratch, as athletes didn’t know who Nike was (the Nike brand shoe was launched in 1972).

Prefontaine was alsoa pupil of Nike’s co-founder,Bill Bowerman.

Bill Bowerman was a coach at the University of Oregon; he was the product guy, always experimenting with new shoes and making technology a key component of the shoes.

Bill Bowerman opened the way to technology as a key component to differentiate the product, thus a key element of Nike’s marketing strategy for decades.

Yet, the most staggering part of Nike’s demand generation is the iconic side.

In 1984 Nike closed a deal with basketball playerMichael Jordan.

Now, Nike has been doing it for decades, leveling up its game, but initially, it did it with minimum budgets.

Breaking down Nike’s vision statement

Nike’s vision statement can be summarized as follows:

To bring inspiration and innovation to every athlete in the world

Therefore, there are three elements to Nike’s vision and mission:

Inspiration

As a consumer company, Nike has learned how to leverage marketing to generate and stimulate demand.

This is at the core of the Nike business model. Indeed, Nike spends billions of dollars yearly to boost product demand.

Innovation

Nike positions itself as an innovative company that is willing to innovate its products over and over.

This is another critical element, as innovation implies the substitution of the old for the new.

Thus it enhances its sales over time; this is part of Nike’s flywheel

To every athlete: Who’s an athlete for the company? According to Nike, “if you have a body, you are an athlete.” This connects to the inspirational element.

Most of Nike’s slogan follows an inspirational tone, part of its demand generation strategy.

Breaking down Nike’s mission statement

Nike’smission in detail is described as:

To do everything possible to expand human potential. We do that by creating groundbreaking sport innovations, by making our products more sustainably, by building a creative and diverse global team and by making a positive impact in communities where we live and work.

In this mission, we can extract three key elements:

Human potential

Once again, Nike has to inspire, and it needs to leverage consumers’ psychology to be always on top of their minds when making the purchase of a sports item. Making a person believe it can get better by wearing the shoe is part of that strategy.

Groundbreaking sports innovations

If you innovate, you can come up with new products, and those products will generate more demand

Sustainability

New generations follow mission-driven companies, and Nike has made sustainability a crucial part of its management

Nike defined its purpose as:

To use the power of sport to move the world forward. We believe in a fair, sustainable future—one where everyone thrives on a healthy planet and level playing field.

Demand generation isn’t an easy game

In Nike Business Model, I highlighted how Nike’s strategy moves around demand generation.

It is important to remark that when I say Nike, I refer to the company which owns several brands in six categories Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Training, and Sportswear (our sports-inspired lifestyle products).

To have an idea of how expensive it can be to demand generation, one of the critical strategies that Nike uses is to stipulate endorsem*nt contracts with athletes.

As you can see from the table above, until 2023, Nike has over $10 billion planned for spending on those endorsem*nt contracts.

Those amounts might be way higher over the next years.

Indeed, Nike highlights:

The amounts listed for endorsem*nt contracts represent approximate amounts of base compensation and minimum guaranteed royalty fees we are obligated to pay athlete, public figure, sport team and league endorsers of our products. Actual payments under some contracts may be higher than the amounts listed as these contracts provide for bonuses to be paid to the endorsers based upon athletic achievements and/or royalties on product sales in future periods. Actual payments under some contracts may also be lower as these contracts include provisions for reduced payments if athletic performance declines in future periods.

Nike objectives

Like most companies, one of Nike’s primary objectives is to make a profit and ensure its long-term viability.

More broadly speaking.

However, there are certain business objectives that define results or outcomes the company endeavors to meet as it grows.

Business objectives are also dictated by a company’s particular strengths, weaknesses, opportunities, or threats and should define how it acts or behaves in the market.

In most cases, objectives do not change until a company’s circ*mstances change.

Let’s now return to Nike and analyze its four key objectives below to get a feel for how the company intends to position itself moving forward.

Create groundbreaking sports innovations

Nike is synonymous with sports innovation.

The company spends vast amounts of time liaising with professional sports athletes and consumers to increase performance and deliver a better product experience.

The Nike Sports Research Lab (NSRL) in Beaverton, Oregon, is a research and development institute that opened in 1980. It has been responsible for innovations such as:

• Cold-weather running apparel that provides temperature regulation and visibility in low-light conditions.
• Nike React technology that provides better cushioning to runners while also being lightweight and delivering better energy returns.
• GO FlyEase sneakers are lace-free, hands-free shoes for consumers with disabilities.

Make products more sustainably

Nike’s sustainability objectives are based on more than 30 years of research into reducing its environmental impact.

By 2025, some of the company’s targets include:

• A 70% reduction in greenhouse gas emissions in owned or operated facilities.
• A 50% increase in the use of environmentally preferred materials across cotton, leather, rubber, and polyester.
• A 10% reduction in per-unit manufacturing waste, is an ambitious goal that encompasses manufacturing, distribution, packaging, and even headquarters.

Build a creative and diverse global team

Nike believes that diversity and creativity in the workplace are intertwined and accelerate innovation.

The company also uses its love of sports to overcome cultural barriers and bring people together.

This is particularly important for Nike as a global company whose teams share and work toward a singular goal.

To help Nike become a leader in diversity and inclusivity, it has set the following 2025 targets:

• At least 45% of global VP positions and above are occupied by women.
• At least 35% of the U.S. corporate workforce is occupied by racial and ethnic minorities.
• 30% representation of racial and ethnic minorities at the Director level and above in the United States. Minorities include American, Indian or Alaskan Native, Asian, Black or African American, Hispanic/Latino, Native Hawaiian, or Other Pacific Islander.

Make a positive impact on communities

Nike serves local communities all over the world through the power of sport.

The Nike Community Impact Fund (NCIF) funds local programs to get kids active in communities where employees live, work, and play.

Each one-year grant ranges from $5,000 to $10,000 per neighborhood.

In Portland, Oregon, where Nike headquarters is located, this number increases to $25,000.

Grants are awarded to local organizations that make a positive impact on the community via sports, play, and other initiatives.

The NCFI also operates in the southern states of Tennessee, Mississippi, and Arkansas to allow children from disadvantaged areas to realize their potential through sports.

Nike’s redefinition of its business model

Nike’s business model is all about demand generation.

In short, if you sell shoes, an item that can be easily commoditized, you need to be able to differentiate your brand from the other brands.

That’s what creates a long-term advantage in a market that is skewed toward commoditization.

Nike has been very good at that by also launching new brands and limited collections (and by acquiring other brands).

An example of that is a Jordan shoe, which for many, it isn’t just a shoe; it’s a piece of art!

And as such, people are willing to get into long lines to get one.

Jordan shoes are not only extremely expensive (some pieces) but very high in demand.

This is the power of demand generation!

The Jordan Brand made Nike over $5 billion in revenues in 2022.

Nike invented influencer marketing way before social media.

And the way Nike did it with the Jordan Brand really creates a business impact.

Jordan isn’t just a brand.

It’s a cultural phenomenon that defines various generations of our times.

This is what demand generation is about.

When you build up a business model from scratch, the most important element to start with, and the element that will work as a glue for your overall business, is value.

And value is comprised of two critical elements: one is about how you help me practically solve an issue, and another one is about perception and desire.

At a commercial level, the latter is as important as the former to enable a brand that survives in the long run.

Key takeaways

• Like most companies, one of Nike’s primary objectives is to profit and ensure its long-term viability. However, business objectives define results or outcomes the company endeavors to meet as it grows.
• One of Nike’s key objectives is to create innovation in sports which it does in the Nike Sport Research Lab (NSRL). The company has also set several ambitious environmental targets to meet its sustainability objectives.
• With a global workforce, Nike also realizes the importance of diversity and inclusivity in the workplace. Moreover, the company seeks to positively impact communities and improve outcomes for children through sports and play.

Key Highlights

• Nike’s Vision and Mission:
  • Vision: Nike’s vision is to “bring inspiration and innovation to every athlete in the world.” This vision focuses on inspiring individuals and driving innovation across the globe.
  • Mission: Nike’s mission is to “do everything possible to expand human potential.” This mission is achieved through creating groundbreaking sports innovations, sustainable product development, building a diverse global team, and making a positive impact in communities.
• Early History of Nike:
  • Blue Ribbon Sports: Nike’s history began as Blue Ribbon Sports, founded by Bill Bowerman and Phil Knight. They started by importing and selling Japanese running shoes.
  • Nike Rebranding: In 1971, the company rebranded as Nike, named after the Greek goddess of victory. The iconic Swoosh logo was also introduced.
  • Innovation, Expansion, and Endorsem*nts: Nike’s success grew as it focused on innovation, introducing new technologies into its products. The company expanded its reach and captured the market’s attention through athlete endorsem*nts.
• Athlete Endorsem*nts and Demand Generation:
  • Nike’s pivotal moment came when it established partnerships with athletes like Steve Prefontaine, utilizing their influence to generate demand for its products.
  • Athlete endorsem*nts like Michael Jordan became a cornerstone of Nike’s strategy, creating an iconic brand that drove sales.
  • Jordan’s influence and Nike’s innovation led to the creation of the Jordan Brand, generating significant revenue and establishing demand generation as a core business strategy.
• Breaking Down Nike’s Vision Statement:
  • Inspiration: Nike aims to inspire through its marketing efforts, stimulating demand for its products and associating its brand with motivation and aspiration.
  • Innovation: Nike’s commitment to continuous innovation sets it apart, allowing the company to consistently introduce new and improved products.
  • To Every Athlete: Nike defines “athlete” broadly, embracing everyone with a body. This inclusive approach aligns with Nike’s inspirational tone.
• Breaking Down Nike’s Mission Statement:
  • Human Potential: Nike’s mission revolves around helping individuals reach their potential, using sports and innovation to drive progress.
  • Groundbreaking Sports Innovations: Innovation is a central part of Nike’s mission, enabling it to push boundaries and deliver cutting-edge products.
  • Sustainability: Nike’s mission includes sustainable practices, emphasizing a commitment to reducing its environmental impact.
• Nike’s Objectives:
  • Create Groundbreaking Sports Innovations: Nike invests in research and development to enhance performance, leading to innovative products that captivate consumers.
  • Make Products More Sustainably: Nike sets ambitious targets to reduce its environmental footprint, focusing on materials, waste reduction, and greenhouse gas emissions.
  • Build a Creative and Diverse Global Team: Diversity and creativity are core to Nike’s culture, fostering innovation and collaboration among its global teams.
  • Make a Positive Impact on Communities: Through initiatives like the Nike Community Impact Fund, Nike aims to inspire and support communities through sports, play, and active lifestyles.
• Nike’s Redefinition of Business Model:
  • Nike’s business model is centered around demand generation, differentiating its brand through innovative products and iconic endorsem*nts.
  • Jordan Brand exemplifies Nike’s demand generation strategy, creating a cultural phenomenon that contributes significantly to the company’s revenue.
  • Nike’s approach to value includes practical problem-solving and perception, with value built through meeting consumer needs and fostering desire.
• Key Takeaways:
  • Nike’s primary objectives include profitability and long-term viability, but it also focuses on key business objectives that define its growth strategies.
  • Innovation, sustainability, diversity, and community impact are central to Nike’s mission and objectives.
  • Demand generation through athlete endorsem*nts, innovation, and branding has been a key driver of Nike’s success over the years.

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