Despite a changing marketplace for athletic footwear, we will continue to expand our product lines and marketing reach to become a more powerful global brand. Manufacturers are combating sluggish sales with radical new styles, along with offering more styles at lower price points. The Nike name and associated trademarks have appeared everywhere from players' shirts, pants, and hats to stadium banners and walls. Nike sends their business to the best outlet as far as shoes, sportswear and equipment which is Eastbay. There is also the risk of declining demand when an economy falls into recession, as consumers have lower discretionary spending for non-essential items.
Knight, Chairman and Chief Executive Officer, is the co-founder of Nike, Inc. Industry Entry and Exit Barriers Entry Barriers The athletic footwear industry is a very competitive and mature market. Can Nike protect itself against this threat? If Reebok can expand their appeal to incorporate female consumers who are not currently Reebok customers, Reebok could expand their market share and take customers away from Nike products. Common size balance sheets for Pfizer and Novartis in 1391 words - 6 pages company. The company also has opportunities to rapidly grow by increasing its operations in high-growth developing countries. Former Head Coach, Georgetown University, Washington, D.
DeNunzio President, Harbor Point Associates, Inc. Historically, years of the Olympic Games have demonstrated surges in growth followed by difficult sales periods. Nike has been around for almost five decades and is going strong; no other company in the space matches its popularity and growth. The low cost of producing products in these countries continues to boost the bottom line. Nike Inc net profit margin of 9.
The enterprise began in January of 1964 with the introduction of Blue Ribbon Sports. While establishing these policies is a step in the right direction for Nike, the difficult task at hand will be the implementation of the aforementioned goals of the new labor initiative to ensure the success of the program. We have not catered to a large portion of the new generation that demand the latest trends and styles. However, we are not using our resources to the fullest degree. Market development is a third strategy for consideration due to Nike's ability to geographically expand our product offerings.
The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The combination of retailing in third party outlets and competing brands cutting prices has made the going tough for Nike. It is an innovative brand that is also known for its excellent marketing and for good quality products. Nike prides itself on being a premiere provider of high quality sports footwear and apparel. Acquisitions — Acquisitions can also be a good method to find growth faster. About the author: Value LineSmart investors know Value Line is the go-to source for unbiased, expert analysis and guidance. Currently the company has the ability and the resources to exploit this opportunity.
Industry Profitability The athletic footwear industry is a challenging and saturated market. Read the The Macroeconomic Environment of Nike Macroeconomical factors are those external forces that are uncontrollable and that can affect how a business operates. Evaluation of Performance - Strength Nike thoroughly examines and compares the aforementioned performance standards to the actual results that have occurred as a result of implementing strategies to meet or exceed performance standards. In relation, the company has opportunities to integrate mobile technologies in its products to capture consumers who frequently use mobile technologies, such as mobile apps and online tools. These things are difficult to achieve without the resources of an established manufacturer.
Conclusion Nike remains the dominant force in the global footwear market. The gurus listed in this website are not affiliated with GuruFocus. It is recommended that Nike must pursue a more aggressive approach to international expansion based on free trade policies, with focus on high-growth developing countries. Consumers may be scanning the market for new and different footwear and apparel products. We will do this by focusing our efforts on a broader market. Additionally, the growing middle class in emerging markets, as well as greater China, should keep the demand for its products growing. We had to terminate 51 employees.
Most importantly, we will continue to meet the ever-changing needs of our customers, through product innovation. Such consumer price sensitivity is a potential external threat to Nike. These standards are important to Nike as a comparison of past performance to present performance as well as in our attempt to forecast future results in these areas. In order to have an edge over the leaders, companies must be able to compete at all levels such as reasonable pricing, efficient production, and high product quality. The company was founded in 1964 and is headquartered in Beaverton, Oregon.
Backward integration- Nike currently relies totally on independent manufacturers for the production and supply of its products. In these instances, Nike may choose a defensive strategy to remedy the current situation. The graph below portrays the movement of Nike vs. The following section covers the micro factors of customers, suppliers, shareholders and competitors. Photo: Public Domain Nike Inc. The two alternate marketing strategies will be just as necessary in order to incorporate our products into the shopping habits of consumers. As of May 31, 2014, Nike had roughly 56,500 employees worldwide.