Essay on Nike Business

1122 Words5 Pages
NIKE Inc. principle business activities are the design, development, and worldwide marketing of high quality footwear, apparel, equipment, and accessory products. They sell their products through NIKE owned retail stores and internet sales, and through a mix of independent distributors and licensees worldwide. Virtually all products are manufactured by independent contractor, with all footwear and apparel manufactured outside the US, while equipment products are mostly manufactured within the US. Nike has therefore no factories. It does not tie up cash in buildings and manufacturing workers. This makes a very lean organization. Nike is strong at research and development, as is evidenced by its evolving and innovative product range.…show more content…
Subsidiaries: NIKE IHM Inc. wholly owned sells small plastic product to other manufacturers. Cole Haan, is a wholly owned subsidiary that designs and distributes dress and casual footwear, apparel and accessories for men and women under the brand names of Cole Haan and Bragano. Converse Inc. is a wholly owned subsidiary that designs, distributes, and licenses athletic and casual footwear, apparel and accessories under the brand names: Converse, Chuck Taylor, All Star, One Star, John Varvatos, and Jack Purcell. Hurley International LLC is a wholly owned subsidiary that designs and distributes sports apparel and accessories under the Hurley brand On March 3, 2008 NIKE acquired all of the capital stock of Umbro which designs distributes and licenses athletic and casual footwear, apparel and equipment primarily for soccer. Industry: http://www.fairolympics.org/background/Company_Profiles.pdf from page 5 Competition: NIKE recognizes PUMA and ADIDAS was its main competitors Risks: 1. Products face intense competition. 2. If they are unable to anticipate consumer preferences and develop new products, they may not be able to maintain or increase their net revenues and profits. 3. They rely on technical innovation and high quality products to compete in the market for their products 4. Failure to continue to obtain high quality endorsers of their products could harm their
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