Nike Business Model | How Does Nike Make Money?

Nike Business Model | How Does Nike Make Money?
Nike Business Model | How Does Nike Make Money?

Nike is one of the most well-known names in athletic footwear, apparel, and accessories. Among the many things that have contributed to Nike's success, the company's well-thought-out business model stands out as the main cause for its continued success in the marketplace.

This article will explore the business model and revenue model of Nike in detail, helping readers understand how it has been important in the company's rapid rise to the top.

About Nike

Founded in 1964 under the name Blue Ribbon Sports, the company was later renamed after the Greek goddess of success. It was founded by former University of Oregon track and field athlete Phil Knight and his coach Bill Bowerman.

Back then, all they did was distribute the shoes of the well-known Japanese company Onitsuka Tiger. Nike made around $8,000 in their first year of operation. With stores in 170 countries, the brand's net worth is $191.79 billion now. There is little question that the net worth of the corporation will keep increasing in the future, based on trends from the past few years. Currently, the company's main office is situated in Beaverton, Oregon, USA.

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Nike Business Model

Athletes and customers throughout the world have been attracted by Nike's innovative products and designs, marketing and branding strategy, and retail and distribution methods. Another essential component of Nike's business model is the company's approach to marketing and branding. The corporation has long been an investor in celebrity endorsements, teaming up with A-list athletes and actors.

Nike has a long history of partnering with legendary players, such as Serena Williams of tennis and Michael Jordan of basketball, solidifying its position as a symbol of excellence in sports. The retail and distribution channels are also crucial to Nike's business model. To meet every requirement of its customers all around the world, the company runs both physical stores and an effective online marketplace.

Nike makes sure its products are available to people all over the globe with its strong retail presence. To further broaden its reach, Nike collaborates with a network of authorized retailers and distributors, in addition to its locations.

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How Nike Makes Money | Nike Revenue Model

By controlling several revenue streams and continuously pushing the limits of innovation and design, the worldwide sportswear giant Nike has become an industry powerhouse. The foundation of Nike's revenue streams is, without question, footwear sales. Nike has won over millions of customers all over the globe with their extensive assortment of fashionable lifestyle shoes and performance-driven sneakers.

The brand has become a preferred choice for footwear across every group due to its capacity to accommodate the diverse requirements of athletes and trendy individuals. Although shoes are Nike's main product, the company has also found success in the apparel and equipment markets. Athletic performance and comfort are two primary goals of Nike's extensive line of athletic apparel, which includes outerwear, accessories, and sportswear.

Additionally, Nike manufactures a wide variety of sports goods, such as soccer balls, basketballs, and training apparel. Nike has strengthened its position in the athletic goods industry and accessed new sources of income by expanding its product range. In addition to selling shoes, clothes, and equipment, Nike also makes money by sponsoring sporting events and teams and entering into licensing deals with other businesses. Through these licensing arrangements, Nike can expand its reach even further by allowing other companies to utilize its distinctive logo and brand image on their products.

Another important revenue generator for Nike has been its relationships with world-class athletes, teams, and leagues. Nike not only increases its visibility but also solidifies its reputation as a symbol of genius and achievement by linking its name with the most renowned athletes in the world. Because of this, customer confidence and loyalty are boosted, leading to more sales.

Nike’s Revenue Worldwide From the Fiscal Years of 2013 to 2023
Nike’s Revenue Worldwide From the Fiscal Years of 2013 to 2023

USP of Nike

"Just Do It" is Nike's tagline and also its unique selling proposition. The brand has been using a powerful yet simple slogan, which conveys a message of empowerment, since 1988. Regardless of the obstacles people encounter, this USP encourages them to pursue their dreams and ambitions.

Nike SWOT Analysis

Nike SWOT Analysis
Nike SWOT Analysis

Nike Strengths

  • With a presence in almost every country on Earth, including the United States, the United Kingdom, Asia, and many more, Nike is unmatched as a global leader in athletic footwear and gear.
  • Nike has been named one of the world's 50 most innovative corporations.
  • One way Nike stands out is through its unique products, which are recognized all over the world.
  • The firm has built its brand equity through its effective global business relationship-building.

Nike Weaknesses

  • The expansion of the company's market share is hampered by the constant risk of competition.
  • Nike is more known as a sportswear and footwear label than a major player in the fashion industry.

Nike Opportunities

  • The development of new, highly profitable products, such as a sharper focus on eyewear, athletic apparel, etc.
  • Even in developing economies, Nike can open stores in tier 2 cities.
  • Open sports academies all around the globe to encourage talent and raise brand awareness.
  • Like its sporting division, Nike has room to grow in the fashion industry.

Nike Threats

  • Many different brands compete for consumers' attention in the footwear industry.
  • Since it is an international brand, Nike is impacted by the ups and downs of national currencies.
  • A company like Nike regularly has to deal with the issue of counterfeit goods.
  • Other brands incorporate new approaches and innovations to directly compete with Nike.


If you want to see how to maximize money while still providing excellent customer service, look no further than Nike's business strategy. Nike has been the world's most popular sportswear brand for a long time because the company's founders emphasized marketing and innovation from the start.


Who are the founders of Nike?

Nike was founded by Phil Knight and Bill Bowerman in the year 1964.

What is the tagline of Nike?

The tagline of Nike is Just Do It which is also its USP.

What are the main components of the Nike Business Model?

Nike's business model revolves around product innovation, strong brand presence, global supply chain management, direct-to-consumer sales, celebrity endorsements, and strategic marketing partnerships.

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