Nike Financial Analysis Nike is a company that has thoroughly embedded itself into the psyche of people around the world. It's a company that started with humble origins from selling footwear in the basement to becoming the behemoth in the athletic industry. Bill Bowerman, University of Oregon track & field coach, and Phil Knight, middle-distance runner under Bowerman co-founded Nike. Nike was first established as Blue Ribbon Sports in 1964 as a partnership and the name Nike was officially adopted on May 30, 1978. The infamous Nike Logo - Swoosh, was created for a fee of $35 by Carolyn Davidson, a graphics design student. In 1980, Nike becomes a publicly traded company with the completion of its Initial Public Offering of 2,377,000 shares …show more content…
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. The Asia Pacific region is Nike's third largest in terms of revenue, and the largest in terms of manufacturing. Nike has 13 branch offices and subsidiaries in the Asia Pacific region. China has become both a source country and a vital market for Nike. Asia Pacific region has 3,282 Nike employees approximately. The region also has 252 contract factories located in North Asia, and 238 contract factories located in South Asia. Combined, these factories employ 550,821 workers. Nike's revenues for year 2004 from its Asian operations were about $1.6 billion. Of these revenues, approximately $855 million were from footwear sales, $612 million from apparel sales and $146 million from equipment sales. The Americas region is the smallest in terms of revenue 2nd largest in regards to manufacturing. The first Nike shoe ever contracted out was done in Mexico in 1971. For year 2003, the region provided Nike with
Nike, Inc. is an American multinational corporation that is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is the world 's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 Billion making it the most valuable brand among sports businesses. Nike and Precision Castparts are the only Fortune
NIKE Inc. main headquarters are located in Beaverton, Oregon. Mark Parker leads the executive team of NIKE Inc. NIKE website says that, “Parker joined NIKE as one of our first footwear designers back in 1979, and he’s been at the center of NIKE innovation ever
NIKE, Inc., is a company that was founded in by William Jay Bowerman and Philip H. Knight in 1964, and was originally called Blue Ribbon Sports, Inc. It’s name was changed to Nike, Inc. in 1971. It’s base of operation is located in Beaverton, Oregon. NIKE, Inc., is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities worldwide. Entirely owned Nike subsidiaries include Converse Inc., a brand that develops, advertises, and sells athletic apparel and accessories; and also Hurley International LLC, which designs, markets and sells surf and youth lifestyle clothing and many different accessories. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. Nike offers products in many different categories such as men’s/women’s training, running, basketball, golf, and more. The company also sells products designed for children and youth athletic activities such as baseball, cricket, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling. Also, Nike sells sports apparel and accessories; and markets apparel with licensed college and professional team and league logos. Further, it sells a line of performance equipment and accessories, including sports bags, balls, eyewear, digital devices, bats, gloves, protective equipment, golf
The first subject to be considered is what exactly the CSR issue is and why it is significant. Nike is the largest producer and seller of sports outfit and apparel in the world. Phil Knight established the organization in 1964 by offering running shoes out of the storage compartment of his car at track and field competitions meets. The company grew radically and since then, Nike has developed and now possesses over $19.2 billion in revenue with its products sold in about 180 countries in the world. These products are sold solely through the Nike brand name to about 19,000 retail stores only in the US. Nike has approximately 33,000 employees in the world including about 5,500 employees at their global headquarters situated in Beaverton, Oregon. Majority of these products are produced in contracting factories in less developed countries such as Vietnam, Indonesia, china, Malaysia, Bangladesh and other Asian countries.
Nike Inc. was established in 1972, from Blue Ribbon Sports Company that was formed earlier in 1964, by Bill Bowerman and Philip Knight. The company first specialized in athletic footwear until in 1979, when it introduced the apparel line. The equipment division was later introduced in 1996. The company grew spontaneously to become the world's largest supplier of all sportswear, equipment, and apparel. The level of its infrastructure could only be compared to that of Adidas, which has been its main competitor over the decades. Currently, Mark
Financially Nike has seen a massive growth from its humble beginnings of selling products from the trunk of a car to having revenue of $24.148 billion and a income of $ 3.040 billion in 2012 (United States Securities and Exchange Commission, 2011) Nike has been extremely effective at expanding beyond its domestic market of the United States to become a global brand that boasts 44,000 employees worldwide.
Nike is based in Beaverton, Oregon but operates more than 930 retail owned stores worldwide. In the United States, Nike owns a full product line distribution center in Memphis, Tennessee, as well as four other distribution centers that are currently leased. This distribution
Nike does not own any of the factories that produce its products in Asia, and subsequently they do not directly employ the workers or management. They contract out work to factories that make all of the products and run all of the factories. They have a massive amount of leverage when
The key economic factor that we have over here that Nike company dose not involve in production in any kind of form , instead; it will design the logo or the format and it’s contracts with several hundred factories around the world to manufacture ( Just Do It ).
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 Incorporated is the number one leading sportswear and equipment provider in the world. They manufacture anything from casual clothes to sports equipment, shoes to socks, and basketballs to golf balls. As a result of its massive success, Nike employs nearly 30,000 people worldwide while manufacturing in 700 shops around the globe and has 45 offices outside the United States. Its extensive reach into the global market has Nike producing more exclusive products than any other manufacturer in the world. Nike’s headquarters is located in the metropolitan area of Portland, Oregon.
Nike soon realized that the two manufacturing facilities they owned in the United States were not obtaining enough profit and had to shut them down. This caused the company to lose 10 million in 1977 and they only saw a profit of 5 million that year. Today most of Nike's factories are in Asia, Indonesia, China, Vietnam, and Thailand. In these
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
Since many materials that Nike uses to make their shoes originates from Eastern Asia, many of the production lines and manufactures are in those areas that are far from the U.S. Following my last source, the article talks
Nike was established as Blue Ribbon Sports in the year 1964 by Bill Bowerman and Phil Knight. It was distributing for a Japanese shoe company Onitsuka Tiger. The name Blue ribbon sport was later changed to Nike in the year 1971. In next nine years Nike captured 50% share in the American athlete shoe market. The company started its first public offering in the year 1980. Nike was always able to outshine other players in the market due to its global marketing campaign complemented by celebrity athletes and professional sports teams. The company spent $1.09 billion on advertising in the United States in the year 2013.