Nike- an Ecnomic Report

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

Obviously, there is a big number of driving forces in the athletic footwear industry. Each of these driving forces has different impacts—some of them can have a more considerable effect than others on figuring out how much cross-company differences influence market shares and a number of units sold. The first line of most influential factors includes comparative prices, S/Q ratings, and a number of models offered among the footwear competitors. These three most important competitive forces affect customer decisions of which athletic footwear brand to choose. Furthermore, the decisions of customers whether to purchase one brand or another are also influenced by such forces as advertising, celebrity endorsements, the number of independent retail

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

Another factor that Competitive Shoes took into consideration was the existence of barriers to entry. Competitive Shoes knew that barriers to new entry were very strong. For one thing the high capital

A newcomer is going to have to build its way up the same way all the famous sporting goods brands have done it. Under Armour, Nike and Adidas/Reebok are aware of the possibility of new entrants in the market and that is why they keep advertising, establishing distribution channels, making marketing agreements, and keeping up brand loyalty in their customers.

Nike, Inc. is known worldwide for its exquisite line of footwear, apparel, equipment, and many other various athletic products. This company is the largest and most successful seller of footwear for people of all ages and all types of recreational, athletic and outside activities. Nike’s diversity in design and development has gained the company global popularity, selling its products to about 20,000 retailers in the United States and nearly 20 countries. Their main objective focuses on providing quality sportswear and equipment to people all around the world.

Introduction Originally founded by Phil Knight and Bill Bowerman, Nike is now the market leader in the manufacturing of sportswear and gear and enjoys possessing more than 47% of the market share across the globe. Nike's mission is to bring inspiration and innovation to every athlete (Nike Inc., 2015). According to them, you are an athlete if you possess a body. The company has over 600 shops around the world and has offices situated in 43 countries outside the United States. Most of its factories are located in Southeast Asia, including China, Indonesia, Taiwan, India, Vietnam, Thailand, Philippines, Pakistan, and Malaysia.

Nike is a strong brand at the global market and it normally sells the product in the market with high price to get higher margins and profit value. However, many competitors cost of the footwear

Nike is as major US footwear, clothing and sportswear supplier based in Beaverton, Oregon. In this era, Nike is considered the world’s leading supplier

There is strong competition from Adidas, Under Armour, Reebok, and Puma with all companies vying for market share. There is a high dependence on the footwear part of the business along with the threat of counterfeit products. There is always the possibility of consumers no longer paying the high premium prices that Nike charges for their products. Finally there are image issues and issues concerning the high costs of advertising that need to be resolved.

Introduction Nike has developed to be the world’s leading seller of athletic shoes and apparel. Beginning in Beaverton, Oregon, Nike now has roughly 48,000 employees worldwide and 1.01 million workers in contract factories. Holding 38% of the global sports footwear market, Nike has become the most successful sports footwear manufacturer in the world. Not only is Nike the world’s top footwear manufacturer, Nike is continually growing each year. Over the past ten years alone, Nike has doubled their revenue.

Many of the big established shoe brands have seen consolidation and hence they have become bigger and more powerful in terms of competing with the rest.

The second threat is the threat of rivalry, which is the intensity of competition among a firm’s direct competitors, is high for this industry. The main factor of the competitiveness of the industry is due to the fact that industry rivals compete aggressively against one another for vital market share. The athletic shoe industry is very old and companies must focus on market share rather than concentrating on market growth. The athletic footwear market is expected to grow at a continual annual growth rate of 1.8% from 2011 to 2018 to reach 84.4 billion by 2018 (PRWeb). Non-athletic footwear is the largest market segment and is expected to grow faster than the athletic footwear sector. Various fashion trends in the market, such as demand for innovative designs and styles and celebrity endorsement, is driving the non-athletic footwear market (PRWeb). This new trend in the footwear industry makes the way companies compete vary vastly from company to company. Innovative companies such as Nike strive for product differentiation as well as massive marketing strategies, but other brands such as Sketchers attempt to capture the low budget appeal. 70% of the market share is made up of the top five players which include Nike, Adidas, Reebok, Puma and New Balance (PRWeb). Other key companies are

The threat of new entrants in the athletic shoe industry is very weak. Currently the market is dominated by three major competitors, and

INTRODUCTION Founded in 1968 in Oregon, Nike's business activities involve design, development and the worldwide marketing of high quality apparel, equipment, footwear and accessory products.