Nike Presentation Essay

2735 Words May 23rd, 2012 11 Pages
I. General Description

Michael Jordan, Tiger Woods, Mia Hamm. Many of today’s sports icons are associated with arguably the greatest footwear and apparel company of all time. Nike has become one of the most recognizable companies in the entire world in a period of only 25 years. With a logo that rivals McDonald’s Golden Arches, endorsements from the likes of Michael Johnson, and a leader that created a Fortune 500 company from a waffle iron, Nike not only dominates their industry, but also has become a major trendsetter in American popular culture. However, criticism has accompanied this success. From questions about its labor practices in Southeast Asia to defending itself against charges of corporate invasion of college campuses,
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Reebok challenged Nike in professional licensing by signing an apparel deal in August 2001 with all NBA, WNBA and NBDL teams. Aside from other athletic shoe companies, Nike also faces competition from companies that manufacture boot style shoes such as Doc Martin (Appendix C).

Financial Indicators

From following Nike’s stock price the past three months, we noticed that while the stock price did not grow exponentially, it also did not drop below our purchase price (Graph A). Nike as a company has faced this situation over the past four years. Total revenues reached 9.187 billion in 1997; however, in 2001 revenues had only increased to 9.489 billion (Appendix D-11). In a letter to shareholders, CEO Phil Knight said, “During that time we have been a growth company that has not grown” (Appendix D-Chairman's Letter). Despite this lack of growth, the release of Air Jordan XVII Experience in January helped stock prices rise immediately (Appendix E-1). Shares rose $1.90 in February when Nike purchased a teenage lifestyle brand Hurley International, in an attempt to penetrate a teenage market it had been struggling in (Appendix E-2).

Corporate Identity Systems

Nike easily has one of the most recognizable logos in all of America. The “Swoosh,” designed by a graphic design student, only cost Knight $35. Ironically, Knight told the graphic designer “I don’t love it, but it will grow on me” (Appendix F). The design is memorable, simple in

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