Essay on Nike
Nike manufactures and markets sports apparel and equipment on a global scale. They operate in 160 different countries, and have revenues of $18.6 billion. Yet, they are a growth company. Without any significant acquisition, they have consistently grown revenues and profits over the past several years by shifting emphasis on brands they own in growth sectors.
Nike’s marketing strategy revolved around two concepts – premium positioning and everyone with a body is an athlete. These concepts drive their strategies, including endorsements from the world’s most popular athletes, and the development of products for both the serious athlete and the mass market.
Financially, Nike is strong. They are liquid and are on a …show more content…
Nike was founded in 1968 and has grown into a global powerhouse. The companies designs, manufactures, markets and retails athletic footwear, apparel and equipment. Based out of Beaverton, Oregon, Nike today operates in 160 countries and has 32,500 employees. The company is involved in most sports, and also makes some casual footwear. Major competitors include Adidas, Puma, New Balance and Reebok. Nike sells products mainly under its own name, but also owns Umbro, a major soccer brand; Cole Haan, a casual wear subsidiary; Converse, another athletic brand; and Hurley, a player in the board sports industry.
In recent years, Nike has enjoyed substantial success. They have increase revenues, margins and profits consistently, expanding their market share in the process. Their Nike Golf, Cole Haan and Hurley lines have enjoyed tremendous success, the last two with record revenues last year. The firm has strong growth in several key emerging markets, such as China, Brazil and Russia. The company acquired premier soccer brand Umbro and is in the process of integrating that business into the Nike family. Nike has had a couple of failure, however. They have recently divested two of their businesses, Starter and Bauer. The latter, a major hockey equipment manufacturer, represented a major failure for Nike as they failed to