It is also the biggest and best sports shoe and apparel brand of the world. A PESTEL/PESTLE Analysis of Nike Inc. identifies key issues that the company must include in its strategic formulation. Nike designs manufacture and sell products in nine main categories. Nike had maintained revenue of about 9 billion since 1997. The papers are not supposed to be submitted for academic credit. [pic] Growth Strategy Nike operates in several market segments. Its consistently superior product has made it the preferred brand and made the Nike family expand internationally as well, with a European, Asian and Australian division. NIKE Inc. is a company that designs, markets and distributes athletic footwear, apparel, and equipment for sports, and they have grown to become one of the largest is their business. Industry Analysis Nike primarily competes in the footwear industry, a subset of the consumer cyclical sector. So far it is the world’s largest supplier of athletic shoes and apparels. CEO and President Philip Knight runs Nike, Inc. Mr. Knight co-founded Blue Ribbon Sports in 1962, which officially became Nike in 1978. challenge Nike one on one.” Sporting Goods Business, Sept 2005 volume38. The Company started out manufacturing running shoes with cushioned mid soles and expanded into a wide range of products including sporting goods and T shirts. Another strength of Nike is that it is a global brand and its logo i.e. 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. The company primarily operates in the Americas, Europe, the Middle East, Africa and Asia Pacific. Nike stock soars as sales jump; Quarterly profit up 32%; ”Running on all cylinders”. Some of our information is provided by third party services and we cannot guarantee that is complete, accurate, current, reliable or appropriate for your needs. (2005). Between January and November this year, the Nike Run Club app was downloaded 15.4 million times around the world, up 45.3% versus the same period in 2019, according to data firm Sensor Tower. The company earned $432.3 million, or $1.61 a share, in the first quarter ended Aug. 31, up from $326.8 million, or $1.21 a share, a year earlier. *      Baugh, Alison. As a result of product and pricing research, Nike has decided to continue to focus on the high end market while increasing its … Operating overhead expense increased 10% to $2.3 billion driven by continued investments in transformational capabilities, particularly in NIKE Direct and global operations. Nike offers different categories of products and accessories like sports shoes and apparel for men, women and children. Joyride is engineered to help keep legs fresh by delivering a personalized underfoot experience with great impact absorption in a surprisingly light, energy-returning package. The information and recommendations on this site are for educational purposes only and should not be used to replace the advice of financial advisors and other professionals. Nike has been enjoying a steady consistent profitability due to its superior sports shoes, diversification of its products and its good relationship with its suppliers and distributors. Later it was changed to Nike Inc in 1978. 4 pages (1000 words). *     Carr, Bob. Nike’s strengths are that the company is extremely competitive; the CEO of the company is often heard saying that business is a war without any bullets. Nike also faces fierce competition as Germany’s Adidas-Salomon prepares to buy Reebok International in a move to boost its U.S. position. Writing Service UK, Essay The company was founded in in 1964 in Beaverton, Oregon by Phil Knight and Bill Bowerman and is listed on the New York Stock Exchange. “ADIDAS And Reebok join forces: neither company alone could. Nike is a leading designer, marketer and distributor of athletic footwear, apparel, equipment and accessories for a range of sports and fitness activities. 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). Nike is considered as one of the most innovative company in the industry [ CITA TION Fas \l 1036 ]. Disclaimer: InspectCompany does not guarantee that any of the information available on our website, APIs or provided by any other means is complete, accurate, current, reliable or appropriate for your needs. Understanding Concepts of Strategy in Business and War, Essay Leddy’s comments were reported by The Associated Press. 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. … *     Lees, Nina. financial and fundamental analysis of Nike - Nike 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. Internal – Strength. 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. Selling and administrative expense increased 9% to $3.3 billion. However, the merger of Adidas and Reebok poses a potent competitive threat for Nike’s future profitability, as also rising gas prices which could impact upon consumer spending. To maintain its position in the athletic shoes market, Nike Inc., must address the opportunities and threats based on the external factors that shape the conditions of its remote or macro-environment. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. During the 1970s Nike developed a variety of sophisticated sports shoes for various markets which were so successful that the Company was able to go public in 1980 with 2 million shares of common stock. In the U.S. markets, Nike has remained the industry leader in the athletic shoe market. This company is sure that women will be the better customers as compared both to men and children. The company has always aimed to promote the idea of success and is in fact taking a As of August 31, 2019, a total of 23.5 million shares had been repurchased under this program for approximately $2.0 billion. The company specializes in athletic wear, providing footwear, apparel, athletic equipment, and accessories. Nike is an incorporated company that operates primarily in the footwear industry. Nike Joyride was released globally on August 15, 2019. All of papers you get at Grademiners.com are meant for research purposes only. Analysts, on average, had expected $1.42 per share, according to Reuters Estimates. Company description Nike, Inc. Is a leader in the design, development, marketing, and distribution of athletic and athletics-inspired footwear, apparel, equipment, accessories, and services worldwide. However, under the laws of the state of … Nike is a giant organization competing in a tough market, but it’s doing incredibly well. (Baugh, 2005). Topics: Athletic shoe, Nike, Inc., Marketing Pages: 10 (2035 words) Published: March 30, 2010. The report also manifests intelligence on Nike's internal weaknesses and external threats that can cripple its growth. This has been the keynote of the Company’s growth strategy. It is a US based company and established in 1962 by Bill Boverman & Philip Knight in the name of Blue Ribbon Sports. In this SWOT analysis tutorial, we will discuss Nike Swot Analysis Strengths, Weaknesses, Opportunities and threats. All our services, information, data and/or recommendations are provided on an "as is" basis and without warranties of any kind, either express or implied. (Gale Database), As of September 20th, quarterly profits had jumped   by 32% and pushed up the value of its stock up to $83.45. Nike competes with numerous athletic and leisure shoe and apparel companies all over the world. Another strength is the excellent brand awareness and a high quality image of Nike’s … Last quarter, the U.S. market was particularly weak for Nike, showing a 3 percent overall revenue gain and a 7 percent increase in U.S. athletic footwear sales, so analysts were eager to see improvement there. The SWOT Analysis of Nike Inc. illustrates the company's key strengths and opportunities from its external environment that can be consolidated to further strengthen the company. 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. However, the company must address concerns regarding competition, labor practices, imitation and patent protection. The Nike Company has women as its major customer base, as it has a belief that an addition of women to the company’s sales and operations will add more financial stability. Analysis of Short-term (Operating) Activity Ratios. (2005).” Nike stock soars as sales jump: quarterly profits up 32%; “running on all cylinders”. 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