Nike is a footwear powerhouse comprising various brands, including Jordan and Converse. Indeed, Nike generated over $51.22 billion in revenue in 2023 (which included the Jordan brand), compared to Jordan’s $6,59 billion in revenue in 2023. Thus the Jordan brand represented 12.8% of Nike’s revenue in 2023.
| Business Model Element | Nike | Jordan Brand | Similarities | Differences | Competitive Advantage |
|---|---|---|---|---|---|
| Customer Segments | Athletes, sports enthusiasts, lifestyle buyers | Athletes, basketball fans, sneaker enthusiasts | Both target athletes and sports enthusiasts. Nike caters to a broader range of sports and lifestyles. Jordan Brand specializes in basketball culture and sneaker enthusiasts. | Nike has a more diverse customer base spanning various sports and lifestyles. Jordan Brand has a focused customer base centered around basketball culture and sneaker enthusiasts. | Diverse Customer Base (Nike), Basketball Culture Focus (Jordan Brand). |
| Value Proposition | Performance, innovation, iconic branding | Basketball heritage, iconic sneaker designs | Both offer iconic branding and sneaker designs. Nike emphasizes performance and innovation. Jordan Brand highlights its basketball heritage and stylish designs. | Nike’s value proposition extends to a wide range of sports and performance gear. Jordan Brand’s primary focus is on basketball culture and lifestyle, offering limited-edition sneaker releases. | Innovation and Performance (Nike), Basketball Heritage (Jordan Brand). |
| Channels | Retail stores, e-commerce, wholesale | Retail stores, e-commerce, collaborations | Both use retail stores and e-commerce for sales. Nike also sells through wholesale channels. Jordan Brand collaborates with athletes and celebrities for limited-edition releases. | Nike’s distribution network is broader, including wholesale partners. Jordan Brand relies on limited-edition sneaker collaborations to create buzz and drive sales. | Extensive Distribution (Nike), Limited-Edition Collaborations (Jordan Brand). |
| Customer Relationships | Brand loyalty, community engagement | Brand loyalty, sneaker culture engagement | Both brands build strong brand loyalty. Nike engages with its community through events and campaigns. Jordan Brand fosters engagement with basketball fans and sneaker enthusiasts. | Nike has a broader community across sports and lifestyles. Jordan Brand’s community is more focused on basketball culture and sneaker enthusiasts. | Diverse Community Engagement (Nike), Basketball Culture Focus (Jordan Brand). |
| Key Activities | Research, design, marketing, manufacturing | Design, marketing, limited-edition releases | Both engage in design, marketing, and product development. Nike emphasizes research, manufacturing, and global marketing. Jordan Brand focuses on limited-edition sneaker releases and marketing. | Nike’s operations encompass a broader range of sports and product categories. Jordan Brand specializes in basketball footwear and limited-edition releases. | Diverse Product Categories (Nike), Limited-Edition Focus (Jordan Brand). |
| Key Resources | Brand, manufacturing facilities, R&D centers | Brand, design, celebrity endorsements | Both rely on their brand’s strength. Nike owns manufacturing facilities and operates R&D centers for innovation. Jordan Brand leverages iconic designs and celebrity endorsements. | Nike has a more extensive range of products and owns manufacturing facilities. Jordan Brand focuses on iconic sneaker designs and celebrity collaborations. | Manufacturing and R&D Facilities (Nike), Iconic Design Focus (Jordan Brand). |
| Key Partnerships | Sports teams, athletes, retailers | Athletes, celebrities, sneaker boutiques | Both partner with sports teams, athletes, and retailers. Jordan Brand collaborates with athletes and celebrities for signature releases. | Nike’s partnerships extend to various sports teams and retailers globally. Jordan Brand’s collaborations are often tied to basketball culture and limited-edition sneaker releases. | Global Partnerships (Nike), Limited-Edition Collaborations (Jordan Brand). |
| Revenue Streams | Footwear, apparel, equipment sales | Footwear, apparel, limited-edition releases | Both generate revenue through footwear and apparel sales. Nike’s revenue is diversified across various sports. Jordan Brand relies on limited-edition sneaker releases as a significant revenue source. | Nike has a broader range of product categories, resulting in more diversified revenue streams. Jordan Brand generates a substantial portion of its revenue from limited-edition sneaker releases. | Diverse Revenue Streams (Nike), Sneaker Release Focus (Jordan Brand). |
| Cost Structure | Manufacturing, marketing expenses | Design, marketing expenses | Both have costs related to manufacturing and marketing. Nike’s manufacturing expenses are higher due to its broader range of products. Jordan Brand focuses on design and marketing expenses. | Nike’s cost structure includes manufacturing costs across various product categories. Jordan Brand’s expenses are primarily tied to design and marketing efforts, particularly for limited-edition releases. | Broader Manufacturing Costs (Nike), Design Focus (Jordan Brand). |
The Jordan Brand’s popularity has been strong for decades, yet it has increased further since 2019.
Nike has followed a similar pattern.
Overall it’s tough to analyze Jordan separately from Nike and vice-versa, as Jordan is a crucial element of Nike’s success.
In fact, not only Jordan’s brand has passed over 5 billion dollars in direct revenue.
The popularity of the Jordan Brand also spurred the sales of other Nike footwear indirectly.
Take the case of the Nike Jordan 1 and the Nike Dunk, both designed by iconic designer Peter Moore.
The Jordan 1 was first launched in 1985 as a signature shoe for Michael Jordan and was hugely successful.
And in the same year, Nike launched the Dunk, which has a similar design.
The interesting part of the Jordan shoes is that they are iconic and become trendy from time to time, thus spurring the consumers’ interest in buying them and the indirect interest of consumers to purchase similar models released by Nike.
Indeed, in the 2020s, we saw a similar phenomenon with the rise in popularity of the Jordan 1.
The success of the JordaWhich also propelled the sales of the Nike Dunk and other models.
Therefore, the Jordan shoes go through various hype cycles (depending on Jordan’s model, which trends every few years).
This also boosts the sales of Nike’s realized shoes in a more stable form, as Nike can capitalize on this brand’s success in revenue across its various segments!
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