Chapter 34 Chapter 10 Competition (3)

At this time, Knight, who was no longer involved in the company's specific business operations, had to come back again to rebuild the company's order.He raised the sword of change again.First, Knight poached a large number of talents from companies such as PepsiCo to rebuild the management team.Second, he spent 500 million US dollars to strengthen the original chaotic supply chain system, shortening the time to market of new products from 9 months to 6 months, and increasing the gross profit from 39.9% to 42.9%.Third, Nike has expanded its product line, and in addition to basketball, it has also strengthened its golf and football sports series.Fourth, add new brands.Nike has successively acquired high-end casual shoe brand Cole Haan, ice hockey shoe brand Bauer, Converse sports shoes, and Hurley international skateboard shoes, and let each brand operate independently.By 2003, the performance of the new brand increased by 51%, reaching 1.4 billion US dollars.

Under Knight's reorganization, Nike has become a well-organized and performance-oriented new enterprise.At the end of the 2004 fiscal year, Nike's operating income reached 13.7 billion US dollars, an increase of 15%, setting a new record in history.Nike, with its strong innovation and organizational reengineering capabilities, is considered by McKinsey to be a benchmark for corporate learning around the world.Knight once said to the media: "The only way to beat Nike is to imitate us comprehensively and accurately, and then find out the differences to break through each one." William Perez serves as CEO.Knight hopes to give full play to his experience in selling multiple brands in SC Johnson and make new contributions to creating better performance for Nike's secondary brands.However, at the beginning of the new year in 2006, the 68-year-old Phil Knight quickly fired his hand-picked successor, William Perez, only 13 months after the latter became the company's CEO.Next, Knight used Parker, a former cross-country runner at the University of Pennsylvania.He joined Nike's "campus" as early as 1979, and once served as design director and co-president of Nike.This is a new president who is considered to be in harmony with Nike's culture, and is also good at developing new products and attracting young people.

In 1980, Nike entered China and established its first representative office. In 1996, Nike officially established a wholly-owned subsidiary in China and began to vigorously expand the Chinese market.Nike did not go well in China at first. In 1997, Nike mass-empted its products ahead of the Asian financial crisis and flooded the market with cut-price sneakers, a move that lost a large number of retailers and brought them into the hands of Adidas. In 1999, in order to adapt to the consumption power of the Chinese market at that time, Nike lowered its body and developed a pair of canvas sneakers for the Chinese market for only $15, but in fact these shoes were not popular at all.

Nike quickly adjusted its strategy, took American culture as its selling point, and used advertising to challenge China's traditional culture-collectivism.Nike's "cool attitude" once again appeals to the individualistic minds of China's baby boomers.The American culture that Nike sells fits perfectly with today's Chinese desire for freedom and individuality. In 2003, Nike finally caught up with the local No. 1 "Li Ning" in the Chinese market and became No. 1 in the market. Nike also "reserved" other victories in China in the early days. In 1999, Nike signed a four-year contract with Yao Ming, a shy basketball player at the time, but Nike later lost the contract. million dollar contract.In order to make up for this loss, Nike quickly found 18-year-old Yi Jianlian and signed a seven-year contract. They believed that this young man had the hope of becoming the next Yao Ming. In 2000, Nike signed Liu Xiang and started a whole set of systematic marketing for this potential athlete.

In the spring of 1983, Knight traveled extensively in Asia.This entrepreneur who made his fortune selling Japanese sneakers loves Japan very much. He has studied Japanese Zen culture for a long time and often falls into meditation. His office is also arranged as a Zen room, and guests come in and take off their shoes first.Japanese management scientist Ken Ohmae had a profound influence on him.It can be said that he is one of the few entrepreneurs in the American corporate world who has a deep understanding of oriental culture.This understanding is likely to help Nike gain points when it competes in China in the future.Knight is a wild man, and in the future China, he will not change Nike's offensive style.In the two major markets of Europe and the United States, the market share battle between Nike and Adidas has been in a stalemate.The fast-growing Chinese market has become the biggest variable in the future.

Anta is catching up with the market. It is not uncommon for those winners who rely on their own huge strength to get most of the share, but there are also some seemingly weak and wise men who dominate the roost because of their agility and good at playing short positions.So despite the many advantages, the life of the international giants in China is also very worrying.When they have occupied the No. 1 and No. 2 positions in the Chinese market, in addition to Li Ning, there are two domestic sporting goods companies that also have the strength to challenge.The development of local companies is really too fast.