Deals in athletic shoes, apparel, sports equipment and Accessories
Listed on New York Stock Exchange(NYSE).
Founded: 1972
Headquarters: Beaverton, Oregon United States
CEO and President: Mark Parker
Co-Founder: Bill Boverman
Industry: Sports wear and sports equipment
Corporate Records: [Finance] For FY 2006
Net Income: $1.392 Billion
Total Revenue: $15 Billion
Total Employees: 26,700
Market Share: 47% in footwear industry
Market Capitalization: $13.4Billion
STRENGTHS
- Management is destined and focused on creating performance opportunities fro those who could benefit.
- There has been a 380% increase in market capitalization of Nike.
- Wide range of products including tract and field, football, basketball, golf, etc.
- Products are promoted by celebrity athletes like Tiger Woods, Roger Federer, Rafael Nadal and many others.
- More than 500 locations in the US, Middle East, and Asia Pacific Region.
- Manufactures 30% lighter shoes than their competitors making them preferred by consumers.
- Nike Grind Program is the company’s recycling program meant for eliminating wastes during production.
- High performance fabrics and FIT(Fitness Information Technology) technologies are used to manage temperature and moisture which is helpful for athletes to compete in any condition.
OPPORTUNITIES
- Dynamic consumer behavior regarding fashion brands means that Nike would be an ongoing concern.
- To develop products such as jewelries, sunglasses, etc.
- Developing countries like India and some of the Asian countries are also keeping their fingers crossed because increasing disposable income enhances chances of corporate growth.
- Market share and market capitalization of adidas and reebok is less than that of Nike’s which is 47%,13.4Billion
Adidas 6%,$8.4Billion
Reebok 16 %,$ 4Billion
WEAKNESSES
- Offers mostly high priced products or the price range is quite high, normally the retail starts at $100.
- Online purchase is not preferred because the rates are even higher.
- Higher percentage of market share depends upon the foot wear so eroding of the market share could bring down the company’s name.
- Huge shipping and insurance cost creates hindrance in imports.
THREATS
- Numerous competition from every sports fashion brands.
- Reebok and Puma are giving high geared competition in sports industry.
- Reebok is the second largest shoe and sports clothing supplier .
- Not able to stop illegal manufacturing of shoes by some other companies with the same brand nameLong term debt has increased from $380.4M in 2006 to $420.9M in 2007 .
