Nike Case Analysis

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History Nike Incorporated is an American conglomerate that is engaged in the design, development, manufacturing and global marketing and sales of sporting footwear, apparel, equipment and accessories. Originally, the company was known as Blue Ribbon Sports (BRS); this was founded by Philip Knight a former track team member at University of Oregon. The core of the company was crafted in 1962 when Knight made a deal with Onitsuka Tiger Company, a Japanese shoe company, to import their shoe to the United States. Knight had the idea to sell a low cost shoe with a very high quality while having high aspirations of becoming the standard in the athletic shoe market over Adidas. In 1964, University of Oregon coach Bill Bowerman decided to join Knight…show more content…
The company manufactures footwear for all sports known to the general population, globally covering athletic and recreational purposes. As of 2009, Nike's geographic market consists of the Lion’s share of major markets throughout the globe such as North America, Europe, Asia and greater emerging markets. Due to aggressive marketing, Nike has made their products easily available through the sales of its retail stores, independent distributors and also through e-commerce. In Nike’s marking environment there are many factors which affect its interaction to build and maintain successful relationships with its customers. Economic Nike Incorporated faced a great threat due to the economic downturn which resulted in lower purchasing power of the world population, which in affected global sales. Along with the lower sales margin, the company has now be plagued with a surge in labor cost and raw material prices, which in turn will affect the company’s profit margin. Being a global entity, Nike is exposed to a wide array of international currencies and their instability as the company trades; therefore, costs and margins are not stable over long periods of time due to changing exchange rates. It is greatly noted in the more emerging markets of Europe that there is the use of 1 single currency, but not 1 stable pricing mechanism across…show more content…
The industry leaders are Nike, followed by Adidas, and then a handful of smaller competitors, primarily Reebok, Asics, and Puma. Their positions in the global market are to some extent less diversified across segments, yet they are focused on the most profitable sport niches. Also, there are other smaller players, like K Swiss, New Balance, Mizuno, Diadora and Umbro, who are concentrated on one or few sport categories. In the market for athletic footwear, Nike is the volume leader while Adidas is second worldwide, also Reebok is third in the overall sale
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