Calvin Luu
Finance 4610 – Professor Wang – Fall 2015
Current Event Summary Report - Due Decemeber 8th, 2015 Nike beats expected earnings by a landslide
Nike was founded on January 25th, 1964 as Blue Ribbon Sports, by Bill Bowerman and Phil Knight. They officially changed their name to Nike on May 30th, 1971, deriving it’s name from the Greek goddess of victory. By 1980, Nike wage rapidly growing and obtained about 50% of the market share in the U.S. athletic shoe market. The company went public in December of that year. NIKE, Inc., along with its subsidiaries sells athletic footwear, apparel, equipment, and accessories for men, women, and kids worldwide. The company offers products in many different categories, some of which include basketball,
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Nike sells their products to these retailers oversea independent distributors, licensees and sales representatives around the world. They sell to thousands of retailers and ship products from 45 distribution centers outside of the United States. During the fiscal of 2015, NIKE’s three largest customers outside of the United States totaled for approximately 12% of total non-U.S. sales. Their business goes directly from Nike itself to the customer, with their own brick and mortar stores. They operate a number of retail stores internationally, outside the United States. In addition to Nike and Converse owned e-commerce websites in over 25 countries, we can see their non-U.S. retail stores in the chart …show more content…
The projected EPS was $1.19 and projected revenue was $8.22 Billion. The actual projected EPS and revenue is $1.34 and $8.41 Billion, respectively. Wall Street analysts say that sales this quarter was boosted by its basketball and casual running footwear, with a majority of its revenue coming from back-to-school sales. With the upcoming Christmas holidays, many project and predict a huge surge in stock price, due to theholiday sales. If there is a huge rise in stock prices, Nike’s revenue and earnings will rise
In 2015 Nike made a total of 98 billion dollars! And Under Armour made a total of about 21 billion dollars. So around the world most people chose Nike but Under Armour’s still made a ton of money.
It all started with a simple handshake between two running geeks in Eugene, Oregon and now they own the world's most competitive sports and fitness company. The Pacific Northwest is Nike's hometown but like so many ambitious souls, they have expanded their horizons to every part of the world. Nike has two headquarters; it’s World Headquarters in Oregon and its European Headquarters in The Netherlands.
Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.
Nike is a worldwide known business that many people around the globe are attracted to purchase. They make a variety of products ranging from shoes and clothes to sports gear, sports products, and many different accessories. Nike is designed for everyone ranging from infants to elderly. Because of their range of age for products, this makes them a huge competitor. Being able to appeal to all ages and styles of people.
...fected by print advertising even if they don’t realize it. Nike uses all different forms of advertising to appeal to all audiences.
Nike Incorporated is the number one leading sportswear and equipment provider in the world. They manufacture anything from casual clothes to sports equipment, shoes to socks, and basketballs to golf balls. As a result of its massive success, Nike employs nearly 30,000 people worldwide while manufacturing in 700 shops around the globe and has 45 offices outside the United States. Its extensive reach into the global market has Nike producing more exclusive products than any other manufacturer in the world. Nike’s headquarters is located in the metropolitan area of Portland, Oregon.
Nike is one of the biggest footwear and apparel manufacturing companies in the word. The company came into existence in 1964 by Bill Boweman and Phil Knight and named it as the Blue Ribbon Sports. The company changed the name to Nike, which is Greek word meaning victory, in 1972 after producing a good brand of shoes that became popular among the athletes (NIKE, Inc., 2001). Since then, the company has been successful, dominating the world market of athletic shoes. The company’s products are sold in more than 170 countries across the world. The company also sponsors various sports events at national and international levels. The company slogan “just do it” is catchy and attract many people tom buying its products. This makes the company to grow continuously due to wide and stable customer base.
Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.
Nike is a worldwide global corporation that has its shoes manufactured on a contract basis in places like Asia, China, and Vietnam. Although it does not actually own any of the manufacturing locations, it has long been accused of having its products manufactured in facilities that exploit workers. Although Nike admits some wrongdoing in the manufacturing facilities of its contractors, it claims to have started a commitment to improve working conditions in those facilities.
From their marketing strategies to their selling philosophies, Nike has developed one of the most recognizable and demanded name and logo tandems ever created.
Nike’s positioning in the market has more of a mass appeal compared to their main competitor Adidas who strive to make products for elite athletes. The positioning strategy for Nike is currently working at a satisfactory level as Nikes global annual sales between 2013-2014 was reported as 27.8 billion (Statista, 2014) compared to Adidas’ 19.95 billion (Statista, 2014). The global market for sports apparel is expected to grow at a compound annual growth rate of 4% between 2012-2019, Nikes compound annual growth rate during 2010-2012 was 12.3% which is an excellent result as the brand’s growth was larger than the market as well as outgrowing Nike’s closest competitors Adidas, Puma and Asics (Forbes,
Nike recruits brand ambassadors from different parts of the world who top in athletes and who are having a good following in the public, which helps them to reach the audience that influences them to purchase the Nike sportswear. (MichaelSam85, 2011)
Nike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon Sports. Our modest goal then was to distribute low-cost, high-quality Japanese athletic shoes to American consumers in an attempt to break Germany's domination of the domestic industry. In 2000 Nike Inc. not only manufactured and distributed athletic shoes at every marketable price point to a global market, but over 40% of our sales came from athletic apparel, sports equipment, and subsidiary ventures. Nike maintains traditional and non-traditional distribution channels in more than 100 countries targeting its primary market regions: United States, Europe, Asia Pacific, and the Americas (not including the United States).
Manufacturing in foreign countries typically means cheaper production costs resulting in higher profit margins. Nike operates manufacturing plants worldwide, with most of their clothes and shoe...
Nike is the world famous company. It is an American multinational corporation which is occupied in the design, development, manufacturing and worldwide marketing and selling of the footwear, equipment and many more other services. The Nike Company was founded on 25 January 1964. The first founder Bill Bower man and the second founder Phil Knight. The Nike name comes from the Greek word goddess of victory. The mission of the Nike Company is to bring inspiration and innovation to every athlete in the world. There are two sides to Nike: the public face and hidden misery. It is the number one shoe maker in the world. This Company creates designs for all age groups, for instance, for men, women and for Children.