Nike : The Largest Brands Across The World Essay

Bill Bowerman and Phil Knight started Nike Inc. in 1971, formally known as Blue Ribbon Sports. Bill Bowerman was a former track and field coach at the University of Oregon, and Phil Knight was a student-athlete at the University of Oregon. After numerous years of supplying under Blue Ribbon Sports, the two decided to enter the athletic shoe manufacturing business. The first employee of the company was Jeff Johnson, who helped them with branding what is known today as NIKE Inc.

The report focuses on the Economic Value Added of Nike Inc. The analysis is conducted through a detailed assessment of the financial statements including income statement, balance sheet, and cash flow. Such financial statements are then applied to derive common-size statements for income statement and balance. The trends and predictions obtained from the common-size statements predict the future economic value. Similarly, the Pro-forma financial statements derived provide vital future economic performances of Nike Inc. According to the regression analysis and the assessment of the common-size and Pro-forma financial statements; Nike Inc. has a growth in revenue and earnings per share. The EVA computed using WACC, Net Operating Profit after Taxes (NOPAT), and Invested Capital is positive (+$391.24); this shows that Nike Inc. is financially stable and will grow in the next three years.

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’s target market for their shoes, clothes and other accessories are males and females between 18 and 35 years old. Nike’s Competitive market has expanded and dominated in the international market. Nike disburses TV ads during professional and college sports events, prime-time programs, and late-night TV programs. A financial analysis helps us compare a company’s current performance with its past performance Gives us an idea of how the entire industry is performing as well as liquidity ratios, profitability ratios, and leverage ratios will give us a good understanding of how Nike, Adidas Group, and Under Armour are performing.

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

Nike, Inc. is a world’s leading supplier and a major manufacturer of athletic shoes and sports apparel. It was founded on January 25th, 1964 as Blue Ribbon Sports by Philip Knight and Bill Bowerman. It officially became Nike, Inc. in 1978. Currently their brands include Nike Golf, Nike Pro, Nike+, Air Jordan and Nike Skateboarding, while their subsidiaries are Cole Haan, Hurley International, Umbro and Converse. During this stage, the Nike brand has become so strong as to place it in the list of recession-proof consumer branded giants, in the company of Coca-Cola, Gillette and Proctor & Gamble.

Nike’s stock market worksheet shows us in general that their financials are in a rising trend. First, their stock value today is 58.43 (positive). In addition, the analysts recommendations are that 14 recommend to buy shares, 5 recommend to hold shares, and 0 recommendations to sell them. Thus, our group’s recommendation is to invest in Nike as a result of the terms above.

As the world’s leading athletic footwear, apparel and equipment company, NIKE, Inc. is dedicated to inspiring every athlete to reach their full potential. Nike was previously known as Blue Ribbon Sports (RBS) founded in 1964 by Phil Knight and Bill Bowerman. Phil Knight was a middle distance runner from Portland who trained under track at the University of Oregon and field coach Bill Bowerman. It initially operated as a distributor for the Japanese shoe maker Onitsuka Tiger (now known as Asics). It officially became Nike Inc. in 1971 with just $1,200 in the bank. Over the last 10 years, Nike has more than doubled their revenue and also an impressive increasing amounts of employees. To see whether or not Nike is a fortune company to invest in, analyzing financial ratios will help us to make the choice better.

Since being founded in 1962, Nike has grown from a small fledgling shoe retailer into a world-wide corporate giant. During its first year, sales for Nike were $8000, but as of November 30th, annual sales for Nike were over 12 billion dollars. (hoover) Although Nike already dominates the sporting world, there are many opportunities for growth. According to our research, key strategic challenges facing Nike are increased competition from Adidas with their technological shoe, the Adidas One, and a potentially fatal inability to enter a new growth market such as the extreme sports market. Our recommendations to help Nike confront these challenges consist of developing a product to remain competitive with Adidas, and also an aggressive move

The company I am presenting is Nike which was founded in 1965 by the athlete Phil Knight. Nike is a well known brand which is selling its products worldwide and has 36% of the market share.

Analysis of Nike Basketball players “wanna be like Mike”, but shoe companies “wanna be like NIKE.” NIKE is the worlds #1 company and controls more than 40% of the US athletic shoe market. The company designs and sells shoes for just about every sport, including baseball, volleyball, cheerleading, and wrestling. NIKE also sells Cole Haan dress and casual shoes and a line of athletic wear and equipment, such as hockey sticks, skates, and timepieces.

- “Nike brand’s share among leading footwear brands in the U.S. athletic shoe market, its top market, has risen 1.6 percentage points this year through June 18 to 43.1%, according to SportScanInfo data compiled for Susquehanna Financial Group” (Market Watch).

Competition is very fierce due to the number of companies competing for sales. Lots of money goes to marketing and promotions using various channels to reach the young demographic group of consumers who spend the most money on Nike’s products. Growth is slowing down in the athletic footwear industry. But new markets are emerging with high growth rates. These markets include extreme sports market and the corporate merchandise market.

Nike began as Phil Knight’s semester-long project to develop a small business, which included a marketing plan. This project was part of Phil Knight’s MBA course at Stanford University in the early 1960s. Phil Knight had been a runner at the University of Oregon in the late 1950s. His idea for his project was to develop high quality running shoes. He thought that high quality/low cost products could be produced in Japan and then shipped to the United States to be sold at a profit. His professor thought that Knight’s idea was interesting, but not much more than a project.

Mythology to society is just ancient past, but essentially it’s not. It’s thriving and very alive. Take a trip to your local mall and check the footwear department of any sporting store and there you’ll find the goddess. The name Nike characterizes the goddess who exemplified victory on the battlefield. In retrospect, if persons were asked the name Nike, Greek mythology is least expected to arise. The name Nike is now renowned as the most iconic brands around the globe. Though, not many people know the story it all began selling shoes from the trunk of a car. The crazy idea that emanated from Phil Knight that grew to become the global phenomenon today. This study will give insight into the creation, growth, and evolution of Nike.