Questions On Nike

Submitted By haeyonglee
Words: 1878
Pages: 8


- Nike should increase its financial leverage to minimize its weighted average cost of capital.

1. Describe your firm. Briefly describe your firm and its main lines of business.
NIKE Inc. involves not only in the marketing, development, and design, but also sale of footwear, equipment, clothing, and accessories for male, female, and kids globally with mission “to bring inspiration and innovation to every athlete in the world”.
Including running, football, basketball, male’s training, female’s training, action sports, and NIKE sportswear, Nike deals with at least seven categories. Also, Nike sells their goods that are aimed for kids. In addition, Nike sells products that are for entertaining uses or uses for other athletic such as golf, tennis, baseball, football, cricket, lacrosse, volleyball, outdoor activities, and running, all over the world. Additionally, the firm markets athletics clothing and accessories, and sports bags, as well as sells clothing with expert team, permitted college and league symbols. Moreover, it markets a variety of performance equipment, such as eyewear, sport balls, gloves, golf clubs, socks, bats, bags, digital devices, timepieces, protecting equipment, and extra equipment for athletic activities under the Brand name of Nike and numerous plastic goods to other manufacturers. The firm has license arrangements that allow unaffiliated other groups to manufacture and market clothing, digital equipment, and as well as other equipment planned for athletics activities. Nike not only merges Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks into the firm, but also controls their designs, allocates, and licenses sporty and casual clothing, accessories, and footwear. Under the Hurley trademark, the firm designs and supplies numerous actions athletic and kids or juniors lifestyle clothing and accessories. The firm markets its goods to through Internet sales, its retail shops, as well as sales representatives, independent suppliers, and licensees.
2. Place the firm in its industry. Briefly describe your firm’s industry and its place in it. Is your firm the largest by sales revenues or equity market capitalization? Is it a leader in innovations? Or a laggard? Is it more or less profitable than its main competitors?
Currently, NIKE is ranked at the top of sports industry by manufacturing and providing a diverse range of sports product including the athlete footwear, apparel and equipment not only for runners but also for basketball players, and so on. Nike is unrivaled in the world for its challenging and innovative marketing activities as well as superior quality of its products by being recognized as the best sports brand.

Nike is clearly innovating. Nike is no longer a company that sells shoes and although we could easily argue they’re a progressive technology company. Nike is commonly recognized as one of the most valuable brands in the world and as being one of the world's most responsible green companies. Nike has found a way to attract customers, retain and foster a community of talent that consistently welcomes adversity and insists on disruption in effort to innovate. Nike’s challenge now is to innovate constantly and systematically all over their business; from design to manufacturing to marketplace to recapturing, recycling and reusing.

Nike is the largest by market capitalization and sales at over twenty times greater than the industry average. Nike’s most similar comparable companies are Adidas and Puma. NIKE’s Market Capitalization is 53.45B compared to 16.34B of leading competitor Adidas and Puma.
As the world’s largest footwear manufacturing company by revenues, Nike accomplishes significant economies of scale and scope among its manufacturing and distributing. Over the past years, Nike has become one of the most viable corporations in the world. Each year it is the top seller in athletic product. Because