Just Do It!

Nike, Operation Management



Nike was founded by Phil Knight and Bill Bowerman in Eugene, Oregon, originally known as Blue Ribbon Sports. The company’s operations started off by selling shoes out of a car at track meets. Today Nike has many retail stores located all over the world selling their products and is known to be one of the best suppliers of athletic shoes and apparel. Not only do they supply athletic apparel and shoes but they are a major manufacturer of athletic equipment. How was Nike able to become so successful? By having great management and operations to develop and enhance their great product.

In the beginning Nike operated on instinct, they took a guess on how many shoes to produce to put on the shelves at local retail shops. But since then they have overhauled its computer systems to supply more quickly to more places with the correct amount of product. Not only has Nike improved their supply of product but on their growth as a company. Nike has added to its portfolio brand which includes Converse, Hurley, and Jordan Brand. It has also grown by sponsoring many of the best athletes and sports teams in the world. Over the past few years Nike has really been devoting as much energy as it does to its marketing strategy and sneaker design to developing supply chain management and top-tier information system.

I have previously worked at one of Nike’s retail stores in Chicago. Most people may know it as Niketown Chicago however as it reopened a little over a year ago it is now known as Nike Chicago. It may not seem like there is a difference but there is by the kind of store it has become. Changing over to Nike Chicago has now made it one of the Brand Experience stores, which means it will carry some of the newest and best of Nike’s products that some Nike stores won’t carry. The presentation of the product as well as “Premium” customer service is also provided. While working for Nike I realized they really care about the consumers making sure the employees were taking care of them. “Premium” service was really emphasized at Nike, to provide consumers with the best experience they will ever have.

Not only was I able to see how Nike has improved their product and provide “Premium” customer service but I was able to learn and see the operational aspect of a Nike retail store. In class we learned about some of the basic functions of operations managers which is planning, organizing, staffing, leading, and controlling. I worked in operations for Nike for over a year and contributed to some of the functions to help out my operations manager. I contributed to the operations team by helping out with scheduling, budgeting, and with staffing. I have learned a lot being in that position and it will definitely help me out in the future.

Why do you think Nike has become so successful over the years? Do you think the Nike store in Chicago has changed? If so better or worse?



5 thoughts on “Just Do It!

  1. Hey Sergio, huge fan of Nike here. I enjoyed reading your blog post. In regards to Nike and management, I would have to say that Nike has become so successful over the years because of its effective products combined with management. I say this because Nike has one of the best sporting clothes and shoes out on the market today, and that does not just happen with mediocre management. I have been to the Nike store in Chicago before and after they moved/remodeled it. I have to say I personally love the new store compared to the old one. The new store is more modern and everything flows together nicely compared to the floors on floors of different Nike shoes that were often displayed in different rooms. I also liked how the Nike chicago was decked out in Chicago sports team gear. As a Chicagoan, I felt compelled to buy something because it was so Chicago-esque which correlates with how they market to their customers. Im sure a New York City Nike store would display NY Giants, Yankees, and Jets gear to attract customers appeal as they walk through the store.

  2. Great read, Sergio. I am currently an employee at the Nike Store on Michigan Avenue and agree that their great management and operations is key to being successful. I think the store has changed for the better. I also think another reason why Nike has become so successful is due to their products, not only do they look good, but they feel good when using Nike Products. Working out and playing sports, like when using the new Nike soccer cleats, just gives feelings of increased performance. The time and effort put into their products pays off.

  3. I think the initial rise of Nike can be attributed to one person; Michael Jordan. As for recent years I think marketing has been the main factor attributing to its growth. No over athletic wear company can match what Nike is doing, just ask Under Armour who recently lost their deal with Kevin Durant because Nike not only matched their offer but increased it. I also like the new store more than the old store. There is more of an open-space flow to the store which facilitates a better customer experience. The old store was very compartmentalized so at times it was difficult to find products if you were not already seeking for it.

  4. Such a great read Sergio. I have always been a fan of Nike, not only because of their product but their service and marketing approaches. And I truly believe that it is their marketing efforts that continue to make their product so successful. Their strategic plan to choose athletic ambassadors to market the Nike product makes it more relatable to consumers who aspire to be like those athletes. I have not been to the Chicago store yet, but most Nike stores I have shopped at are filled with employees who know the product, sell the product well, and have great presentation. Despite past threats to the company, Nike still seems to stand strong because of the great management and consistency.

  5. Even though it was an interesting post to read, I do not agree with the fact that Nike is a great company. The managers might have been successful in making profit, but they do not care about the people who make the shoes for them. I am referring to the Sweatshops they own in Indonesia. One of the first things we learned in our class was about ethical issues. Do you still think that Nice is still a successful company?

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