Nike was originally known as Blue Ribbon Sports (know known as aisics) which was started by a Japanese native, Onitsuke Tiger, who made and sold running shoes. In 1963-1964 a Portland track coach and middle distance runner, Bill Bowerman and Phil Knight united with tiger to import and sell cheap high quality shoes to track runners. At the time most of the shoes were coming from Germany and the shoes were much more expensive then what Blue Ribbon Sports shoes were. Bill Bowerman was always trying to make quality shoes for his track athletes but never had much success. While Phil knight was a runner for Bowerman and went on to get his MBA the two joined together to join up with Tiger to import and sell Blue Ribbon Sports Shoes. By 1965, Blue …show more content…
My first reason would be because Nike has shown historically that they are willing to grow their company to be the best sports retail company in the world. Just like it did in 2003 when it bought converse shoes who were in debt over 300 million dollars. The second reason I would recommend someone to purchase stock from Nike is that Nike is a safe investment. Even though there is a very low yield there is also a very low risk of losing your money is also very low. Therefore there is only money to be made with your stocks. However, if your needing a quick return back on your investment this would not be the best stock for you. However if your willing to be patient Nike is a great stock. My third and final recommendation for purchasing stock in Nike is that Nike still has deal with some of the greatest basketball players in America. Even though they lost their deal with Stephen Curry they still have some of the brightest names in the NBA such as Lebron James or Carmelo Anthony. This will affect the stock positively because the NBA over the past three decades have made huge efforts and gains to globalize their own brand. Therefore, the larger the NBA brand with great athletes the larger the Nike brand can
Nike generally has the largest earnings and highest gains to its share holders among all their American competitors (excluding adidas which is a German corporation). Nikes rising popularity creates a major stock demand and trade because it is one of the best performing mega-cap stocks rising 700%. Nikes Profit margins has expanded to 45% which which gives them and opportunity to
Nike's marketing strategy is in many ways the reason for the company success. Nike is now positioned as a premium-brand. Nike advertising is one of the most effective emotional branding examples in the advertising marketing in today’s world. Their customer loyalty is off the charts. All credit goes to the Nike brand strategy and masterful application of the emotional branding. That's exactly the kind of shrewd marketing attitude that drove Nike's past success. After perfecting in the art of big branding, Nike has now moved into a world in which its consumers want to be told less and just do more. Which is in a way, is such a big change after all.
For our final project we chose to analyze Nike Inc.’s stock performance over the past 15 years (year 2000 - 2015). We were interested in what the different variables had an effect on on their stock movement, primarily variables that included competitors, macroeconomic indicators, internal financial measurements, and worldwide sporting events.
Nike is a solid company in 2009, from a profitability stand point. This was apparent in the Rates of return on sales, assets, and common stockholder equity. I would recommend Nike to a potential investor because of the reasons listed above, in this analysis. I would also recommend a thorough analysis of the Industry by researching at least tow of Nike's closest competitors.
Nike knows how the game is played they have been a large competitor in the market for a long time. Where as Under Armour began its business in the late 90’s, coming into the game with little resources under a significant goal to make. As the CEO and founder of Under Armour, Kevin Plank says, “Boy there’s a lot of talk out there.” He was talking about a large tweet that had been going around saying that Under Armour was going to sell to Nike. According to Daniel Roberts a reporter at Cable News Network (CNN) that the enormous $21-billion-in-sales Nike, was going to buy the $1.4 billion lower competitor Under Armour. Now just look at those numbers for a second and ask yourself, which company looks more successful. Nike has the potential to wipe Under Armour off the face of the market; Nike has also spread to a variety packed market.
The name Nike is derived from the Greek goddess of victory which is exactly what Nike has over its competitors. Nike has been around for 53 years starting in 1964 and is the leading revenue sports goods company in the world with 34.35 billion US dollars in revenue in 2017. It is not only the biggest sports brand but also one of the three largest apparel companies in the world along with Christian Dior and Zara. It is such a prominent brand that almost everyone has used a Nike product in their lifetime. CEO Mark Parker wrote, “like athletes all over the globe, Nike’s future holds nothing but limitless potential”. Everyone is confident in Nike and their ability to continue creating and producing high quality products that everyone can enjoy.
The corporation should invest more money in research and innovation since this is what has helped them to make a product that rivals their competitors. At the same time, it is imperative for them to improve their machinery for cheap labor costs which will help the company increase its production allowing it to meet the demand in the market. By improving production leading to lower costs of making shoes, apparel, and equipment, Nike will achieve higher demand assuming a quality product is maintained in that process. They will stand a better chance of competing in the industry (Hill, 2009). The organization is already in a better position for meeting the demand, customer taste, and needs. The company should improve quality by focusing on developing lightweight products that are more durable compared to those offered by the competitors. Also, Nike can keep up their success by continuing to reinvent and improve their items and continue to meet the current demand by using new technology. It can also use the Internet to communicate with consumers (Hill, 2009). By developing new technology, Nike will allow the customers to suggest and design their shoes online. To achieve this goal, it is fundamental to enhance areas such as their website to make it more user-friendly. Finally, the company should pay attention to small startup organizations that enter the
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 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).
One thing I like about Nike is how accessible it is. You can find Nike products just about anywhere such as Nike outlets, Dicks Sporting Goods, Khols, Macy and other big department stores, as well as online. Some companies don’t make it as easy to find and buy their products which can be a struggle. I hate when I’m in need of a certain product but companies limit their access, and I can’t get what I need when I need it. Nike makes it easy to find and buy their products at any
Nike American Sportswear generated revenue of 7495 million US dollars in 2014, which was almost double of 2009 revenue of Nike Sportswear (Statista, 2015).The sales of (Athletic) Sportswear of Nike 90 million US dollars, however, the sale of Adidas Sportswear (Competitor of Nike) was 25 million US dollars, which was not even one third of Nike Sportswear sales (Statista, 2015).Nonetheless, the return on assets and equity are 13.41% and 26.43% respectively (Yahoo Finanace, 2015).
The sensitivity analysis revealed that Nike was undervalued at a discount rates below 11.17%, when we calculated the WACC our solution was 9.87%. Any estimate below the prescribed discount rate means the stock is undervalued, therefore, it is undervalued and this implies that Nike is a buy stock.
Nike, Inc is one of the leading companies in the world that is known for its brand of athletic footwear, apparel, equipment and accessories.
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 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.