Budget Issue : What Kinds Of Costs Can You Have And How / Where Will You Get The Money

The advertising strategy differs from company to company. Generally, Nike believes in spending 5-7% of its revenues in advertising and endorsement. Nike has planned to spend $4.2 Billion until 2014 for endorsements alone. With the huge size of Nike, it is tough for other companies to allocate a big amount for their marketing expenses. Moreover, Nike has always an edge when it comes to advertising and marketing. The table below shows the advertising strategy for the major players in the industry.

In 2010 Nike basked in all its glory as it was its best financial year as per record as they reached $19 Billion and Market Capital roared to $63.45 Billion while its rival walked in the hall of shame for having the finished way behind financially.

Nike is the leading and yet renowned supplier of athletic apparel and shoes. The company controls close to 33% of the global athletic shoe market (Dogiamis & Vijayashanker,2009).Nike was founded by Bill Power and Phil Knight in 1962 as a Blue Ribbon Support and then was later on renamed to Nike in the year 1968 (Patrow,2003).The company supplies very high quality product in close to 100 countries with major markets being located in the U.S,U,K, Asia Pacific as well as in the Americas. The company has managed to attain its lead and legendary position via the application of innovative and yet attractive product design which is backed by quality production as well as well crafted marketing strategies.

In terms of revenue, the EMEA is Nike's second largest region. EMEA region contributed about $4.3 billion in revenues for Nike. Of these, footwear revenues contributed $2.5 billion, apparel revenues contributed $1.5 billion and equipment revenues contributed $284.5 million. FY'05, 31% of Nike brand revenue was generated by sales in the EMEA region. This region is also the third largest in terms of manufacturing. EMEA region employs about 6,000 Nike employees, and has about 104 contract factories. These factories in addition, employ 29,242 workers.

            By the year 2000, Nike had sold $12 billion dollars of merchandise.  The stocks have steadily rose until the 2000’s when sales began to sky rocket and stocks have soared ever since ("Nike History and Timeline.”).

Nike’s net accounts receivable had increased from $2,494.7 million on May 31, 2007 to $2,795.3 million on May 31, 2008. They has been dealing with a higher accounts receivable balance as a result of a longer collection cycle, reflecting a more challenging retail environment experienced by their customers in the EMEA and U.S.

Today Nike Inc is the largest manufacturer of sports footwear, apparel and equipment with worldwide revenue in excess of $25 billion in 2012 under various labels including Nike, Nike Golf, Converse and Hurley. Seventy percent of the company’s value is derived from footwear and apparel sold under the main brand Nike with Nike footwear commanding a market share

One of the primary financial results is the increase in net income from fiscal year 2014 to fiscal year 2015. The percentage increased 2% from $337.6 million to $344.2 million, which may be accounted for by a liquidation of assets, due to the sale of the plane as well as an increase in sales. This change is verified and observed by seeing that, according to the Executive Summary, net sales also increased 10% from $6,213.2 million to $6,814 million. This was primarily due to store expansion and same store sales.

Nike (NKE): $16.3 billion in total revenues. Nike competes also only in the athletic footwear market. Though it only competes in one aspect, Nike has an advantage when it comes to finances because it is much wealthier. It also controls 31% of the market share of athletic footwear.

Nike still has some room before any of their competitors decreases the gap. They are aggressively planning to reach $50 billion in worldwide revenue by 2020, with a fast paced and expanding operation. To achieve this, it will expand its store base in new ways, focused on attentiveness to making the customer experience more personal, buoyed by a more robust digital

During the beginning of the first quarter which was reported on September 25, 2014, Nike reported their revenues going up fifteen percent at eight billion dollars. The earnings per share went up twenty seven percent with $1.09, and the worldwide future order were said to increase eleven percent excluding currency changes. Conveniently the revenue of Nike whent up fourteen percent as of August 31, 2014. Even after the dramatic change in the currency changes, the demand of Nike and their products went up making Nike earn more revenue (Yahoo Finance)("Morningstar Investment Research Center." Morningstar Investment Research Center. Morningstar, 29 Nov. 2015. Web. 29 Nov. 2015.)

Nike is a worldwide powerhouse in the athletic shoe and apparel industry. Nike's short, but yet effective mission

Nike is a $280 billion industry that is highly competitive in the mature market. Some of their main competitors are companies such as Adidas and Puma, which we will analyze in this report to compare and contrast their financial position in the market. As of now, the following graph shows the market share for Nike and our competitors:

Nike, a transnational corporation located in Oregon; the leading supplier and developer of athletic shoes and apparel goods; with $27.04 billion USD in sales revenue for 2014 (http://www.forbes.com/companies/nike/) in contrast to Adidas, which has a sales revenue of $19.24 billion USD in 2014(http://www.forbes.com/companies/adidas/); experienced an explosive growth since the 1970s, the industry has globalized widely

Nike, Inc. is an American multinational corporation which is headquartered in the Portland metropolitan area Oregon, Unites States. Nike designs and manufactures its products and is also involved in marketing and sales of its products like sports equipment, apparel, footwear and accessories. It is one of the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipments, with excess revenue of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, Nike has worldwide employed more than 45,000 people. In 2014, Nike was valued at $19 billion and it was the valuable brand in its category.