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Nike Company’s Performance Management & Logistics

The conceptualization of Nike as a company dates back to the year 1962 when its founders, Bill Bowerman and Phil Knight, where it was motivated by the notion that there was a market gap for sports shoes. Its initial name was Blue Ribbon Sports, whereby its desired goal was to distribute affordable and high-quality athletic shoes to American consumers. However, Nike directed its operations to manufacture and distribute its own shoes as a brand, thus breaking the dominance of German products in the local market (Nica et al., 2021). Its growth has been consistent through the years despite competition from other companies such as Reebok, therefore, dominating the American market and extending its product distribution worldwide.

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Nike has played a crucial role in the sporting industry, with its continuous creativity in designing, developing, and distributing a wide scope of products that help athletes and sports teams to enhance their performance. The brand itself, Nike, has been a motivation in marketing sport-inspired products targeting children and competitive games. It is estimated that 60 percent of its sales are from Western Europe and in emerging markets such as China and Brazil selling through 1090-owned retail stores and online sale platforms (Nica et al., 2021). The Nike Company has involved thousands of independent distributors and sales representatives. However, the local market, that is, the US, accounts for 40 percent of its revenue collection (Nica et al., 2021)s.

Up to date, Nike has been a key economic bliss being a source of livelihood to both American and non-American persons. For example, they have more than 30,000 employees worldwide operating as sales representatives and designers. With its partnership strategy, Nike has gone a milestone in working with over 600 factories competent in manufacturing sports gear. Therefore, they have managed to revolutionize industrialization, producing quality merchandise that serves more than 30 major sports and consumer lifestyles (Nica et al., 2021). Generally, Nike’s progressive growth has been influenced by its efficient logistical approaches in information, financial, and product flow, becoming the most trusted brand in the world.

Information Flow

The elaborate nature of the logistics involved proves to be instrumental in the flow of its information, financial aspects, product, and service delivery. Strategic communication reputably instrumented the logistics behind the flow of information in Nike. Since becoming public in 1980, Nike has capitalized on communication strategies in marketing its brands and services. The administrative structure also influenced the flow of information, whereby a top-down communication form is used to delegate duties to personnel who must execute to deliver the desired results (Nica et al., 2021). Nike uses strategic communication to keep in touch with their esteemed customers for relevant information about their products.

Financial Flow

Nike’s financial status can be deduced to be of good health. The company has attracted many investors globally since it went public in 1980. Therefore, it is set in a position in which it can pull funds from investors in return, giving share equity of the firm that corresponds with the value of the amount an individual has invested. Nike also partners with subsidiary industries that depend on Nike’s products and brand, becoming a source of revenue stream.

Product Flow

The company has shown an increase in the sales of its products and services, which over time has boosted its profit margin (Nica et al., 2021). Nike’s strategic marketing practices such as adverts, promotion, and sponsorship allow creating its brand’s awareness to its esteemed customers on a personal level, thus brand loyalty. However, Nike’s shipping network allows customers to access their products and services appropriately, keeping in mind the intelligence of their shipping cost.


The company should venture into using social media platforms to outreaching its customers. This is a compatible means, given that the company is a global franchise. This form of mass media gives it a chance to seek information from its customers through opinions and comments, enabling them to make improvements to its products. Regarding this, the company should capitalize on social media influencers in selling its values and, more so, its products (Nica et al., 2021). However, in communicating with various regional offices, it would be beneficial for the firm to implement teleconferencing, cutting expenses in traveling, and the tedious sending of emails and postal letters, which proves to be economical.

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In improving the company’s financial health, Nike should venture into a more aggressive approach in the online sale of their products and services. Though sales representatives are effective, online sales of its products and services would maximize consumer engagement. In this case, customers would access Nike’s products easily and make direct inquiries or place their orders which in return they are delivered to them on time (Nica et al., 2021). This would bring consumers close to contact with the company. As a result, good customer relations would enhance consumer loyalty leading to the likelihood for sales to increase to extreme levels.

With these recommendations, it would be satisfying that Nike is projected to increase its sustainability. However, with the sporadic and unpredicted market, it is felt that these recommendations would curb loopholes that are a hindrance to Nike thriving to its full potential. With the adoption and proper piloting of these recommendations, Nike would improve its featured logistical flows, thus maintaining its market share.


Nica, I., Chiriță, N., & Ionescu, Ș. (2021). Using of KPIs and Dashboard in the analysis of Nike company’s performance management. Theoretical & Applied Economics, 28(1). Web.

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