- 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 each year to boost demand for its products
- 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 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 slogan follows an inspirational tone, and that is part of its demand generation strategy
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 on consumers’ psychology to be always on top of their mind when making a sport’s purchase. 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 of sustainability a crucial part of its management
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 circumstances 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 Sport 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, a lace-free, hands-free shoe 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, 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 sport as a way 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 occupied by women.
- At least 35% of the U.S. corporate workforce occupied by racial and ethnic minorities.
- 30% representation of racial and ethnic minorities at 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 sport, 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 sport.
Key takeaways:
- Like most companies, one of Nike’s primary objectives is to make a profit and ensure its long-term viability. More broadly speaking, 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 sport 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. What’s more, the company seeks to positively impact communities and improve outcomes for children through sport and play.
Breaking down Nike business model



- Amazon Mission Statement and Vision Statement In A Nutshell
- Apple Mission Statement and Vision Statement In A Nutshell
- Google Mission Statement and Vision Statement In A Nutshell
Other resources:
- What Is a Business Model?
- Business Strategy: Definition, Examples, And Case Studies
- What Is a Business Model Canvas? Business Model Canvas Explained
- Blitzscaling Business Model Innovation Canvas In A Nutshell
- What Is a Value Proposition? Value Proposition Canvas Explained
- What Is a Lean Startup Canvas? Lean Startup Canvas Explained
- What Is Market Segmentation? the Ultimate Guide to Market Segmentation
- Marketing Strategy: Definition, Types, And Examples