Nike has become the dominant player in the global athletic footwear and apparel markets, controlling 31% of the footwear market and 7% of the apparel market in 2007. While Adidas is the second largest player, Nike's market share is significantly higher in regions like the US, Europe, and Asia. Nike strives to minimize the environmental impact of its products and has programs to recycle manufacturing waste and convert it into new outsoles. The company places emphasis on technology and innovation to substantiate its higher prices compared to competitors. Nike has formulated a strategic plan focused on marketing, innovation, technology, and manufacturing to build and maintain its competitive advantage.

1. Group 4:
Josh Fernino
Brent Hare
Victor Hemmati
Lance Hollister
Chris Kerschen
Ty Parasiliti
Vincent Ukwu

2.  Nike has become one of most recognizable
companies in the entire world
 Nike is now the most popular brand in, not
just America, but through out the whole
world.
 Nike offers all the athletic shoes, clothes,
and other accessories one would need to
wear in their certain sport.

3. LeBron James, Tiger Woods, Mia Hamm
have been recognized as many of today's sports
Images that are associated with Nike .

4.  Nike’s target market for their shoes, clothes
and other accessories are males and females
between 18 and 35 years old.
 Nike’s Competitive market has expanded and
dominated in the international market.
 Nike disburse TV ads during professional and
college sports events, prime-time programs,
and late-night TV programs

5. The graph below indicates how Nike
manufacturing and sales compete with their
closest rivals in the early 2000’s worldwide.

7. A financial analysis helps us compare a
company’s current performance with it’s
past performance
 Gives us an idea of how the entire industry is
performing as well
 Liquidity ratios, profitability ratios, and
leverage ratios will give us a good basis of
how Nike, Adidas Group, and Under Armour
are performing

8.  Indicator of a firm’s short term liquidity
 Above 1 is usually considered “good”
 Nike and Under Armour have excellent current ratio scores, as the
Adidas Group is abnormally high

9.  Shows how well the working capital is being used
 A higher ratio is usually an indication of better cash collection
management
 As we can see, Under Armour has had a very rapid increase since
2006
 Nike and Adidas Group have good, steady ratio numbers

10.  “Mainstay” for all profits made by the firm
 Higher the better
 Nike trails for below Under Armour and Adidas Group
 Under Armour has a very good gross profit margin

11.  Also known as return on investment
 Shows profitability of company based on total assets
 Nike outperforms its competitors with a drastic increase in 2007
and 2008

12.  Shows profitability of company
 Gives the return with the money shareholders have invested
 Nike leads the competition by a modest amount, as Under Armour
has a sharp decline in the recent years

13.  Measures a firm’s financial leverage
 Can also be looked at as a measure of how much is being financed
through debt than equity
 A high number for the debt equity ratio is not attractive to investors
 Under Armour is the most appealing in this group for the debt equity
ratio

14. 2008
Nike 5.47
Adidas Group 2.41
Under Armour 4.63
 The Altman Z Score is a good way to evaluate a company’s credit
risk
 A score of 1.81 or less is not good
 A score of 2.67 or greater indicates that a company has little
bankruptcy risk

16.  The strengths that Nike takes pride in is
getting the top athletes to wear and sponsor
their products rather than events or
competitions as much.
 The basis of this comes from the idea that
people tend to remember the brand worn by
players and not the brand that sponsors the
event that the players perform at.

17.  The market that Nike participates in is very
price sensitive. Most of Nike’s income comes
from the selling of its products to retailers.
 This usually shows that margins tend to get
squeezed as retailers try to get low price
competition on Nike’s products.

18.  The technology is always changing in the
retail market, as well as the sporting market.
 The ability to have the most recent fashion
trends involved in their sporting equipment,
sunglasses, shoes, and clothing is crucial to
generate more money.
 Nike has a large global market and a large
acceptance of their product all over the
globe.

19.  The retail sector is becoming substantially
price competitive. Ultimately it means that
consumers are shopping around for a better
deal.
 The consumer now maintains the control
over the manufact
 So if a consumer wanted to find the lowest
price on the same exact product, then the
consumer could just walk from store to

21.  Designed Employee Networks to separate
them from their competition
 Employee Networks promote diversity within
the organization

22.  Intended role of network:
 Foster professional development
 Enhance work performance
 Identify mentors
 Assist in recruiting diverse professionals
 Develop community interaction
 Encourage increased teamwork

23.  For every team to be high-performing,
diverse, and inclusive
 To achieve this vision, the strategy is to:
 cultivate diversity and inclusion to develop
world-class, high-performing teams
 ignite change and inspire critical conversations
around diversity, inclusion and innovation
 create venues and environments for open
dialogue, diverse opinions and a multitude of
perspectives

24.  Adidas is about to launch a new innovative
campaign praising the Team Spirit in sports
 "It takes 5IVE" - celebrating the concept of
team over individual or "we over me"
 Nike has always been big on marketing the
individual as the passport to selling
basketball shoes.

25.  Nike owns over 80% of the U.S.'s $2.6 Billion
basketball market and its share is also
growing year over year
 Adidas’ share of the market is only about 14%
 Adidas has a growing market share, but it
remains to be seen whether it will grow at
the cost of Nike, or other lesser brands.

27.  NIKEiD is a sub brand which allows customers to design and
personalize their Nike footwear, and is available online at
NIKEiD.com.
 The NIKEID brand also has boutique stores in New York
City, London, Paris, Osaka, and Berlin. It has been
reported that the NIKEID business has more than tripled
since 2004. Presently, there are over 3,000,000 unique
visitors at NIKEiD.com per month.

28.  On March 10, 2009, Nike introduced the ultimate apparel system for select
college teams as they march into tournament madness with superior
innovation from head to toe.
 Nike is introducing a 360 degree approach complete with new base layer
apparel, unique uniforms and customized footwear.
 Nike will outfit the following University’s:
 Duke
 Gonzaga
 The University of Memphis
 Michigan State
 University of Oregon
 Nike Pro Combat is ergonomically designed to provide basketball-specific
protective padding without restricting mobility on the court for maximum
performance.
 The Nike Pro Combat Deflex short provides padding over the hip and thigh,
and the Nike Pro Combat Deflex elbow pad provides superior protection.
 Both the shorts and sleeve will showcase vibrant team colors for each of the
aforementioned schools.
 Using Nike Aerographic technology, an engineered mesh providing zoned
cooling and dramatically reducing the fabric density, the weight of the
jersey is reduced by 31 percent compared to current uniforms.
 The Aerographic jerseys debuted on the USA Senior National Team during
the 2008 Olympic Games.

29.  Nike has been known for their endorsements
of high profile athletes.
 Examples included:
 Michael Jordan
 LeBron James
 Kobe Bryant
 Tiger Woods
 But, some investors worry about Nike’s star
endorsements.
 Nike is likely to cut the 2009 marketing
budget

30.  One of Adidas biggest Marketing schemes was
to merge with Reebok to compete with the
powerhouse Nike.
 The Germany-based global power announced
a $3.8 billion deal to buy Canton, Mass.-
based Reebok, uniting two of the world's top
sports companies and creating a much
stronger challenge to Nike, particularly on
the global giant's home turf: the prime North
American market that accounts for about
half of the category's sales worldwide.

31.  Adidas Group pro league sponsorships
include:
 Reebok has a deal with the NFL to
exclusively design, market, and sell all on-
field uniforms and licensed consumer
apparel.
 The NHL will also add the Reebok logo to its
uniforms.
 Reebok in 2001 signed a 10-year deal to
outfit the NBA, WNBA and NBA Development
League.
 As of the 2008 football season, Reebok still
has their logo on all NFL jerseys.

32.  In an industry known for motivational
advertising, Adidas' current theme is
"Impossible is nothing."
 It also dominates soccer, having
endorsement deals with superstars such as
David Beckham and sponsorship of top events
including the FIFA World Cup.

33.  According to their Annual Report, their marketing
and promotion efforts begin with a strategy of selling
their products to high performing athletes and teams
on the collegiate and professional levels.
 They implement this strategy through collegiate
sponsorships, individual athlete agreements, and by
selling their products directly to team equipment
managers and to individual athletes.
 As a result, their uniforms, batting gloves, socks and
other items of apparel are seen on the field, giving
their products exposure to various consumer
audiences, through television, magazines and live at
sporting events.
 This exposure to consumers helps them establish on-
field authenticity as consumers can see their
products being worn by high-performing athletes.

34.  They are the official uniform supplier of the
University of Maryland and Texas Tech
Football Team
 They supply uniforms, sideline apparel and
fan gear for the following
 Auburn University
 South Carolina University
 University of Utah
 University of Delaware
 University of Hawaii
 University of South Florida

35.  In2008 hey launched the New Prototype
cross-trainer shoe.
 Analysts hailed the launch as successful, and
the New Prototype outperformed Nike's new
cross-trainer line, which was backed with a
hefty campaign of its own
 (with a tagline "My better is better than your
better," which many observers took for trash
talk).

37.  Nike has historically had some of the most
cutting-edge products on the market.
 For example, Nike teamed up with Apple and
launched the “Nike + iPod” line of products.
 This technology allows consumers to connect
their iPod devices to sensors inside the shoes
to record time, distance, pace, and calories
burned.

38.  Due to cheap labor in foreign countries, Nike
outsources virtually all production to other
areas of the world.
 This behavior has become an industry
standard, with all major competitors also
outsourcing production.
 Consequently, no competitor has a major
advantage in manufacturing.

39.  One of Nike’s most revolutionary technologies comes
through its footwear cushioning.
 The cushioning systems in a shoe serve to distribute
pressure evenly among the foot, absorb shock, and
deliver comfort to the user.
 Nike has patents on four cushioning technologies:
 Nike Air
 Nike Zoom
 Nike Air Max
 Nike Shox
 Although some of Nike’s earlier patents are beginning
to expire, they still hold patents on the newer
technologies.
 In the past, competitors have tried to match rival
Nike’s cushioning systems, but none have matched
their success.

40.  Nike is the single largest producer of athletic
footwear and apparel, allowing them large
cost advantages over competition.
 Larger companies tend to have major
economies of scale over smaller companies in
areas such as distribution and marketing.
 Nike is so large that many of the company’s
suppliers depend on Nike to remain in
business.

41.  Being such a large corporation, Nike relies
heavily on IT in order to manage its supply
chains.
 Nike admits that it is at serious risk if a
breakdown were to happen in these systems,
resulting in bad effects on their business and
financial condition
 This puts them at a disadvantage against some of
their smaller competitors, who do not rely so
heavily on IT
 The very fact that they are such a large company
makes them more likely to have these problems

43.  To move its large and global organization
into organizational learning and sustainable
practices.
 Their goal is to spread the understanding of
sustainability throughout the company and
demonstrate its value to the business and its
customers.
 In 21st century, you must successfully
integrate corporate responsibility into the
heart of the business.

44. Nike was the clear market leader, with 31% of the global athletic
footwear market in 2007 (graphs below). Looking at the market in the
United States, Europe, or Asia reveals a similar picture: Nike's market
share in these regions hovers around 36%, followed by Adidas at 20%,
with Puma and New Balance as distant third and fourth. The global
market for athletic footwear is concentrated, with the top four firms
controlling 71%. By contrast, the market for athletic apparel is both
larger ($49.5 billion in 2005) and more diffuse; the top five firms
control only 27% of the market. Nike is, however, also the global leader
in apparel, with a 7% market share in 2007.

45.  Nike strives to minimize the environmental
impact of each product throughout its product
life cycle from design to manufacturing, post-
consumer use and ultimate disposal.
 NEAT programs now recycle shoe manufacturing
waste.
 Nike shoes produces solid waste. The largest of
these by weight is cured rubber used in shoe
soling. Nike employees engineered a creative
way to keep it out of landfills and convert it into
more outsoles,called REGRIND, is available to the
public.

46.  Nike's products are viewed as higher quality
and command higher prices than its
competitors, sometimes though consumers
do not agree to this line of thinking.
 To substantiate its high quality/high price
lines, Nike is placing emphasis on the latest
technology and applying innovation towards
the development of new products,
particularly the Nike Alpha Project which is a
new line of athletic shoes. In the past, Nike
has overlooked the mid to lower price point
products, which could be a possible
weakness too.

47.  Formulating a strategic plan for the
corporations’ future is key in determining
the all around goals of the company.
 Nike,with there marketing, innovation,
technological advancements, and equitable
manufacturing departments, has created an
al around dominant strategic plan
 Nikehas built there competitive advantage
to the highest form possible.

48. Nike has shown that they are a true force to be
reckoned with.