Ratio and Financial Statement Analysis of Nike Essay

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Ratio and Financial Statement Analysis

Table of Contents

Executive Summary.................................................................................................3
1. Nike History.............................................................................................................4
2. Nike Market Share: SWOT Analysis.......................................................................5
3. Nike Financial Report..............................................................................................9
4. Nike’s Future.........................................................................................................10
5. …show more content…
At the Atlanta Olympics, Reebok went to the expense of sponsoring the games. Nike did not. However Nike sponsored the top athletes and gained valuable coverage’ (SWOT Analysis Nike, Inc 2007).
Besides, ‘Nike has no factories. It does not tie up cash in buildings and manufacturing workers. This makes a very lean organization. Nike is strong at research and development, as is evidenced by its evolving and innovative product range. They then manufacture wherever they can produce high quality product at the lowest possible price. If prices rise, and products can be made more cheaply elsewhere (to the same or better specification), Nike will move production’ (SWOT Analysis Nike, Inc 2007). The company’s brands are present in hair salons, pharmacy, market, stores etc. It acquires technological skills, effective management system, and production quality.
2. Strong Research and Development capability.
Sport goods and sports products are the focus of Nike sale strategy (Steinhauer 2004, p. 31). The innovations and quality of sports products is the company’s major competitive advantage. The company invests largely in research and development to display to its clients new products.
3. Brand name popularity.
Nike has strong brand image that contributes greatly to his business. The sales of this brand have been high during the fiscal year 2004 and have enabled the Nike Corporation to emerge as one of the leaders among sports companies. ‘Nike
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