Nike — the strategy behind it | Stratrix

Company profile

Industry: Rubber & Plastics Footwear
Listed: NYSE: NKE
Incorporated: OR
Headquarters: Beaverton, OR
Fiscal year end: May 31

The analyses

The Asset-Light Bet · Boundaries of the Firm

Nike Doesn't Make Shoes. It Makes Desire, and Rents the Factories.

Nike doesn't own a single one of the hundreds of factories that make its shoes - yet it earns a ~44% gross margin on $51 billion in sales. That gap is the whole strategy: Nike decided the money was in the swoosh, not the stitching, and rented out everything else. The same bet built its margins and its worst scandal.