Introduction: Financing and accounting is a major part of any business without proper financing it will kill your business having good accounting, is crucial to all businesses. Nike has financed their ideas from the beginning with almost nothing. Oregon natives Phil Knight and Bill Bowerman took an idea and five hundred dollars and an idea became the biggest shoemaker ever. They have athletic footwear, apparel, and accessories for a variety of sports and fitness activities. Nikes subsidiaries are Converse, which designs, markets, distributes athletic lifestyle footwear, apparel and accessories also Hurley International LLC, which designs, markets, and distribute surf and youth lifestyle footwear, and apparel. The accounting used then were just them two and this idea today they bring in enough cash flow to finance all of their ideas and internally they have their own accounting department that controls and takes care of their financials. Nikes Financial Position: There is only one way to describe Nikes financial position, that is strong and grew from a five hundred dollar idea to a billion dollar industry. Nike is known everywhere and its products are distributed worldwide, its geographies include North America, Western Europe, and Japan, NIKE expects to generate average annual growth at a high single digit rate for the four-year period from fiscal 2014. The Company expects North America and Western Europe to reach over $14 billion and $6 billion, respectively, by fiscal year 2017. In its developing geographies in Greater China, Central & Eastern Europe, and Emerging Markets, the Company stated it expects to grow at a low double-digit average annual growth rate. For the Company’s Emerging Markets geography, it expects to grow at ... ... middle of paper ... ... other opportunities in this area. NIKE Golf – play a significant role in Nikes future growth plans. As of Q1 FY14, Converse is reported as separate segment while Hurley and Nike Golf are included in the overall financial results for the NIKE Brand (Nike 2013) Conclusion: Nike is a major power structure in the global economy, a financial land marketing powerhouse. On every level, they practice diversity, they are socially responsible, and Nike gives back to those who are less fortunate. Nike seems to keep improving on every level of business there innovative and never seem to stop looking for new ideas to keep the consumer excited waiting to see what next. Financially Nike has come from nothing five hundred dollars and an idea. This is what America is made of entrepreneurial-minded individual, which believes in an idea and make it come true with just a few dollars.
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.
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.
SHORT CASE SUMMARY Nike, Inc. (503-671-6453, www.nike.com) is the worlds #1 athletic shoe and apparel seller. Nike currently employs 20,700 employees, with total sales of $8.78 billion. Nike and the athletic shoe industry have evolved into one of the most competitive market in recent years. But, analysts believe that athletic shoe sales will slow down over the next few years. The slowdown will come with the change in consumer trends. For instance, the younger market is beginning to buy more casual shoes and work boots. Another reason for the slowdown is that people are buying more medium priced athletic shoes and not going for the high price brand name shoes. As a result, this is bringing Nike a lot more competition to surpass. In order for Nike to remain on top of the athletic shoe industry they must establish an exceptional global strategy. If Nike penetrates the global market successfully than this will give the company an overall competitive advantage. Nike doesn't only sell athletic shoes, but a wide variety of sporting goods and clothing. They also design, develop, and market high quality active sports apparel, equipment, and accessory products. Their huge lines of products are designed for just about every sport in existence. Their products are made for men, women, and children of all ages. Nike has 20,000 retail accounts throughout the U. S. using independent distributors and also has contracts with 110 other countries. The company also has agreements with Internet companies and subsidiaries. Nike, Inc. has many retail outlets around the world, including their famous outlet "NIKETOWN" located in major cities. "NIKETOWN" gives customers the experience to become more educated on the company's goals and objectives for their products. The store educates its customer while at same time entertaining them too. This store gives customers a chance to become more brand loyal to Nike, Inc. Over the years Nike has gained an enormous amount of consumer awareness that they have eliminated the company name from all other products. The "swoosh" logo is automatically associated with the company name by just about anyone in the world. The meaning for Nike has lived up to the company's expectations. Nike means "the goddess of victory," which is exactly what the company has had since its creation. HISTORY A competitive runner, Ph...
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.
When looking at the market share globally, Nike owns more than other large companies such as Adidas, there closet competitor. An example of this comes from the chart on the next page (Bain, 2015). Nike controls 20.8% of the market share in an area that is one of the main revenue sources, sports footwear. Secondly, even though the Nike is close to fellow competitor Adidas, it is an area that is continuously growing for Nike. Moreover, Nike owing the market share is even more evident when looking at the market shares for the United
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 sports apparel and footwear company which first introduced their shoes in 1972. “At an investor meeting at its world headquarters in June 2011, NIKE, Inc. announced an increase to its fiscal 2015 revenue target to a new range of $28-30 billion, up from its previous target of $27 billion announced in May 2010. The company also increased its fiscal 2015 revenue target for the NIKE Brand to $24-25 billion, up from its previous target of $23 billion.” (Nike, 2014)
Nike’s Asian operations had previously continued to soar generating US$300 million in 1994 in revenues to a whopping US$1.2 billion in 1997. However based on the Asian economic crisis, this had adversely affected revenues, while regional layoffs were inevitable. Nike also performed well in the European market generating about US$2 billion in sales and a good growth momentum was expected, however, some parts of Europe were only slowly recovering from an economic downturn. In the Americas (Canada and the U.S.A.), Nike experienced a growth rate for several quarters. The U.S. alone generated approximately US$5 billion in sales. The Latin American market at this point was exposed to economic volatility; however Nike still saw them as a market with “great potential for the future”.
Our primary product focus is athletic footwear designed for specific-sport and/or leisure use(s). We also sell athletic apparel carrying the same trademarks and brand names as many of our footwear lines. Among our newer product offerings, we sell a line of performance equipment under the Nike brand name that includes sport balls, timepieces, eyewear, skates, bats, and other equipment designed for sports activities. In addition, we utilize the following wholly-owned subsidiaries to sell additional sports-related merchandise and raw materials: Cole Haan Holdings Inc., Nike Team Sports, Inc., Nike IHM, Inc., and Bauer Nike Hockey Inc. Our most popular product categories include the following:
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.
The organization reduced prices for its products even though the amount charged for its shoes was still higher than in the past. Nike realized exceedingly high revenue in the past, and the Nike brand was the best seller in first quarter of 2016 making the organization profits of $2.9 billion (Hill, 2009). This is about 6.4% higher than the last quarter of 2015, allowing for a prediction of about $10 billion pre-tax income for the full year 2016 (Hill,
Executive Summary Introduction Kimi Ford, a portfolio manager at NorthPoint Group, a mutual-fund management firm, was considering buying shares in the fund she manages, the NorthPoint Large-Cap Fund, with an emphasis on value investing. Ford held an analysts’ meeting to disclose its fiscal-year 2001 results and, most importantly, to communicate a strategy for revitalizing the company. Nike has maintained revenue of about $9 billion since 1997. However, its net income had fallen from almost $800 million to $580 million. Moreover, Nike’s market share in U.S. athletic shoes has fallen from 48% in 1997 to 42% in 2000.
Nike, Inc is one of the leading companies in the world that is known for its brand of athletic footwear, apparel, equipment and accessories.