Strengths And Weaknesses Of Nike

Nike has been a publicly traded company for 32 years, in those there are only a total of five in which this firm has seen revenue declines. During times when most people felt the United States economy was going to fail completely Nike posted an almost $100 billion dollar revenue. As shown in charts attached Nike has seen a very steady holding pattern with in their net income, numbers for the last five years are $2.13, $1.90, $1.49, $1.88, and $1.49 billion dollars. According to these numbers Nike has been efficient in maximizing profits. (All financial information is near the end of the paper.)

Nike’s biggest competitor is Adidas. However, when comparing both firms’ current ratio, which measures a companies capability to pay their debt with current resources over the next 12 months, Nike’s

While Nike has arguably the best brand loyalty and research and development team they do struggle with issues such as inventory and declined liquidity. Nike is also very committed to ensuring they are fulfilling the needs and wants of their customers. Brand loyalty is a big concern for Nike as long as they continue to focus on these needs they will be in business far into the future. There is no other Research and Development team that can replicate Nikes. There was recently an article in Wall Street Journal that states the Nike U.S. Olympic track uniforms “could shave up to .023 seconds off of 100-meter sprint times.” When it comes to dealing with Nike’s down falls they currently hold an extremely high inventory. The firm is hoping that with the upcoming London Olympic Games they will be able to convert this inventory into sales. Nike has also seen a recent decline in liquidity. Nike has recently spend a significant amount of money trying to enhance its revenue stream. While this tactic worked it may not be the most ideal situation in the