The Nike brand was launched at the U.S. Olympic trials in 1972 and Steve Prefontaine became the first athlete to wear Nike shoes and advertise them(www.trizera.com). Another strength of Nike is that it is a global brand and its logo i.e. Leddy’s comments were reported by The Associated Press. This has been the keynote of the Company’s growth strategy. Nike needs to watch out for threats associated with these weaknesses, and others such as tax clampdowns or counterfeiting. Nike has expanded beyond traditional athletic-shoe stores into sporting-goods and general-merchandise chains, which helped to boost U.S. sales, said John Shanley, an analyst with Susquehanna Financial Group. The Company’s Mission statement is “To maximize profits to shareholders through products and services that enrich peoples’ lives” while their value statement is “To bring inspiration and innovation to every athlete in the world.” John McEnroe, Joan Benoit, Shane Warne and Andre Agassi became some of the famous athletes who promoted Nike products. (Gale Database), As of September 20th, quarterly profits had jumped by 32% and pushed up the value of its stock up to $83.45. Just Do It : An Analysis of Nike Inc. January 22, ... Due to the sheer size of the company, Nike works under a hierarchal system, with the CEO at the top, and then filtering down to all other employees from there. It was found by Bill Bowerman and Phil Knight in the year 1964. The major competitors of Nike are Reebok and Adidas, but any company that sells athletic and leisure footwear, apparel, or sports equipment could be considered a competitor as well. The robust sales marked a turnaround from last quarter, when the world’s largest maker of athletic shoes reported its slowest revenue rise in nine quarters. However, under the laws of the state of … Why do companies engage in international trade? [pic] Growth Strategy Nike operates in several market segments. Nike brand alone is valued at approx 30 Billion in 2017. U.S. consumer confidence dropped to a 13-year low in early September, battered by record gas prices and Hurricane Katrina. As a global company, the organization works on the principle of diversity, enjoying a close relationship with its shareholders, suppliers, distributors and partner companies.(www.nike.com). Share Repurchases: During the first quarter, Nike repurchased 11.9 million shares for approximately $995 million as part of the four-year, $15 billion program approved by the Board of Directors in June 2018. While the Company started out as a part time venture for its founders, the incorporation of the swoosh logo literally lent wings to the growth of the Company. In the U.S. markets, Nike has remained the industry leader in the athletic shoe market. “We’re enjoying the strongest brand position we’ve seen in over five years, and as the marketplace becomes more challenging, we see more of the buying decisions falling our way,” Nike President Charlie Denson said on a conference call with analysts. Operating overhead expense increased 10% to $2.3 billion driven by continued investments in transformational capabilities, particularly in NIKE Direct and global operations. (2005).” Nike stock soars as sales jump: quarterly profits up 32%; “running on all cylinders”. The idea of an athletic shoe was taken by Bill Bowerman whom was a respected track and field coach at the University of Oregon in the nineteen fifties. Quarterly revenue rose 8 percent to $3.9 billion, helped by an 11 percent gain in the U.S. athletic-footwear business and 8 percent growth in total U.S. sales, including apparel and other merchandise. Nike is an American multinational company that deals in the designing, manufacturing, marketing and selling of sports footwear, apparel, equipment and other related accessories. “Certainly buying a high-price athletic shoe is not necessarily a consumer staple,” said analyst Leddy. Who We Are For the past fifty years Nike corporate has been located when it all started, Beaverton, Oregon, which is a suburb outside of Portland, Oregon. Full Text: COPYRIGHT 2005 The Seattle Times Since being founded in 1962, Nike has grown from a small fledgling shoe retailer into a world-wide corporate giant. (2005) “Utah State University: Nike President gives Utah State. The swoosh on the Nike shoe embodies the wing of the Greek goddess Ni-Key who is the goddess of victory sitting beside Zeus, inspiring the most courageous warriors on to victory(www.trizera.com). Moreover, Nike’s market share in U.S. athletic shoes had fallen from 48% since 1997 to 42% in 2000. Writing Service UK, Essay Nike corporate culture remains close knit, as if it is a small company although it operate on a global scale in association with its partners. * Baugh, Alison. The company earned 432.3 million dollars in the last quarter. Environmental Analysis. Writing in Canada, Exporter, Importer, Public Company, Headquarters Location, Liabilities, Stockholder’s Equity, & Shares, CDA/Investment Insider Buying and Selling Activity (000’s) as of 10/08/01, Celebrity endorsements of its athletic products, Consistent profits over the last several years, Profitable collaborations with strategic partners worldwide, Outsourcing through its international subsidiaries and Diversity of products, Price of Nike products generally perceived as pricey, Allegations of labor abuse by Nike corporate subsidiaries, Expansion into sporting goods and general merchandise sales(Sage 2005), Innovative new campaign on running bare feet as sales generator (Lees 2005), Acquisition of starter brand of low priced shoes to expand market (Sage 2005), New strategy and logo for Bauer and Nike Hockey brand (New Strategy, 2005), Rising oil process pinching consumer spending for pricey shoes, Acquisition of Reebok by Adidas-Saloman poses potent competitive threat (Carr 2005). * Sage, Alexandria. Nike currently employs about 24,667 employees worldwide and its annual sales as of May 2005 were $13,739.70 M. Total assets as of May 2005 were 8793.5 million dollars and total liabilities 3149.3 million dollars and revenue rise was slow during the last quarter. (2005). Nike is considered as one of the most innovative company in the industry [ CITA TION Fas \l 1036 ]. Analysts, on average, had expected $1.42 per share, according to Reuters Estimates. Annual | Quarterly. 2. Net income increased 25% to $1.4 billion driven primarily by strong revenue growth and gross margin expansion while diluted earnings per share increased 28% to $0.86 reflecting a 2% decline in the weighted average diluted common shares outstanding. Internal – Strength. Nike had maintained revenue of about 9 billion since 1997. In the Nike PESTLE Analysis, the environmental elements affecting its business are as below: Nike has always focused on having extremely environmentally friendly business processes, whether it is ecofriendly manufacturing products, conducting R&D or reusing waste material for creating footwear. However, the company must address concerns regarding competition, labor practices, imitation and patent protection. Analysis of Short-term (Operating) Activity Ratios. Nike is renowned worldwide as the brand for athletes. University students advice. However as of July 2005, the Company has been included in the social responsibility index because there have been significant efforts within the organization to address the concerns of the critics and take action on the corporate shortcomings (www.nike.com). Gross margin increased 150 basis points to 45.7% primarily due to higher average selling prices and margin expansion in NIKE Direct, partially offset by impacts from changes in foreign currency exchange rates and higher product costs. Nike currently employs about 24,667 employees worldwide and its annual sales as of May 2005 were $13,739.70 M. Total assets as of May 2005 were 8793.5 million dollars and total liabilities 3149.3 million dollars and revenue rise was slow during the last quarter. 4 pages (1000 words). Nike is the leading corporation in the world, which deals in equipment supply & sportswear. A statement popularly known as the Nike mission statement, “Bring inspiration and Innovation to every athlete* in the world (*If you have a body, you are an athlete)”, has become the defining term for the company, Nike. Nike Joyride joins Nike Air and Nike React as the latest proprietary innovation within the company's diverse array of cushioning platforms. 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