The document provides an initiating coverage report on Nike Inc. by analysts from Temple University's Investment Association. It includes an overview of Nike's business segments, products, markets, and industry trends. The analysts see opportunities for growth in Nike's direct-to-consumer sales and believe the stock is undervalued relative to its peers based on financial metrics. However, they note risks such as economic trends, competition, and challenges executing their retail strategy.
This report analyzes Nike Inc. by four analysts from Temple University's Investment Association. It provides an overview of Nike's operations, financials, strategies, and risks. Nike generates most revenue from footwear but is growing its direct-to-consumer sales. The report recommends buying Nike due to its brand strength, growth in China, and potential for increased revenue and profits through expanding direct online sales and retail stores. However, risks include economic downturns, competition, and reliance on international suppliers.
This document summarizes a case study about Nike and its dispute with Foot Locker over product assortment. Foot Locker wanted to reduce orders of Nike's premium shoes that sold for over $100, believing consumers wanted mid-priced shoes instead. When Nike refused to change its product mix, Foot Locker cancelled $150 million in orders. The feud escalated as Nike cut Foot Locker's allocations and gave rival FootAction exclusive access to products. Nike faced the challenge of replacing the lost Foot Locker sales while competition from brands like Reebok and Adidas intensified amid a slowing economy.
The athletic apparel industry is worth approximately $168 billion worldwide in 2017 and is estimated to reach $231.7 billion by 2024. Major players like Nike and Adidas dominate the market but new entrants are expected to join. The industry is facing trends like activewear lines from fashion retailers only accounting for 10% of the market. The North American sports apparel market is expected to grow at a compound annual growth rate of 5.9% from 2016-2022.
Nike is reorganizing its global women's fitness business to better target the $13 billion women's fitness market. The reorganization will transition decision making from a centralized to decentralized structure and establish a semi-virtual organization with regional and functional leadership teams. It will also align Nike's women's fitness brands and collections into a cohesive long-term strategy to make Nike the dominant brand for women in the fitness space.
Nike is a major publicly traded sportswear and equipment supplier headquartered near Portland, Oregon. It is the world's leading supplier of athletic shoes and apparel, with over $16 billion in revenue in 2007. Nike markets products under its own brand as well as several subsidiaries. While Nike has been present in India since 1996, it has faced challenges gaining market share due to its initial partnership model and lack of aggression, with competitors like Reebok and Adidas having larger shares of the Indian sportswear market. More recently, Nike has opened its largest Indian store in Bengaluru to provide customized shopping experiences through foot scanning and feedback on workouts.
My group created an Integrated marketing strategy plan for Nike athletic shoes, based on the data collected from Nike 10K report, Statista, IBISWorld, and etc. in 2018. This slides include but not limited to industry analysis, market analysis, competition analysis, business analysis, recommendations for 2019.
Nike Stock Pitch: Analysis and ValuationAyan Sengupta
Nike's revenue in fiscal year 2017 was distributed as follows: 57% from footwear, 27% from apparel, 6.5% from equipment, 2% from global brand divisions, and 6.5% from Converse. Geographically, Nike's sales were distributed as: 47% from North America, 19% from Western Europe, 6% from Central & Eastern Europe, 10% from Greater China, 3% from Japan, and 15% from emerging markets. Nike has strengths in its brand reputation and global presence but relies heavily on the footwear market. It faces opportunities in emerging markets but also threats from competition and negative public perceptions.
This document provides a case analysis of Nike, Inc. It begins with an overview of the company's history and operations, including its founding in 1964 and global expansion. The next sections examine Nike's challenges from tightening competition and losing market share in China. The analysis also explores Nike's competitive advantages, marketing strategy, industry forces, SWOT analysis, and recommendations. In conclusion, it summarizes that Nike has performed well financially but still faces threats from competitors and should focus on improving working conditions.
This report analyzes Nike Inc. by four analysts from Temple University's Investment Association. It provides an overview of Nike's operations, financials, strategies, and risks. Nike generates most revenue from footwear but is growing its direct-to-consumer sales. The report recommends buying Nike due to its brand strength, growth in China, and potential for increased revenue and profits through expanding direct online sales and retail stores. However, risks include economic downturns, competition, and reliance on international suppliers.
This document summarizes a case study about Nike and its dispute with Foot Locker over product assortment. Foot Locker wanted to reduce orders of Nike's premium shoes that sold for over $100, believing consumers wanted mid-priced shoes instead. When Nike refused to change its product mix, Foot Locker cancelled $150 million in orders. The feud escalated as Nike cut Foot Locker's allocations and gave rival FootAction exclusive access to products. Nike faced the challenge of replacing the lost Foot Locker sales while competition from brands like Reebok and Adidas intensified amid a slowing economy.
The athletic apparel industry is worth approximately $168 billion worldwide in 2017 and is estimated to reach $231.7 billion by 2024. Major players like Nike and Adidas dominate the market but new entrants are expected to join. The industry is facing trends like activewear lines from fashion retailers only accounting for 10% of the market. The North American sports apparel market is expected to grow at a compound annual growth rate of 5.9% from 2016-2022.
Nike is reorganizing its global women's fitness business to better target the $13 billion women's fitness market. The reorganization will transition decision making from a centralized to decentralized structure and establish a semi-virtual organization with regional and functional leadership teams. It will also align Nike's women's fitness brands and collections into a cohesive long-term strategy to make Nike the dominant brand for women in the fitness space.
Nike is a major publicly traded sportswear and equipment supplier headquartered near Portland, Oregon. It is the world's leading supplier of athletic shoes and apparel, with over $16 billion in revenue in 2007. Nike markets products under its own brand as well as several subsidiaries. While Nike has been present in India since 1996, it has faced challenges gaining market share due to its initial partnership model and lack of aggression, with competitors like Reebok and Adidas having larger shares of the Indian sportswear market. More recently, Nike has opened its largest Indian store in Bengaluru to provide customized shopping experiences through foot scanning and feedback on workouts.
My group created an Integrated marketing strategy plan for Nike athletic shoes, based on the data collected from Nike 10K report, Statista, IBISWorld, and etc. in 2018. This slides include but not limited to industry analysis, market analysis, competition analysis, business analysis, recommendations for 2019.
Nike Stock Pitch: Analysis and ValuationAyan Sengupta
Nike's revenue in fiscal year 2017 was distributed as follows: 57% from footwear, 27% from apparel, 6.5% from equipment, 2% from global brand divisions, and 6.5% from Converse. Geographically, Nike's sales were distributed as: 47% from North America, 19% from Western Europe, 6% from Central & Eastern Europe, 10% from Greater China, 3% from Japan, and 15% from emerging markets. Nike has strengths in its brand reputation and global presence but relies heavily on the footwear market. It faces opportunities in emerging markets but also threats from competition and negative public perceptions.
This document provides a case analysis of Nike, Inc. It begins with an overview of the company's history and operations, including its founding in 1964 and global expansion. The next sections examine Nike's challenges from tightening competition and losing market share in China. The analysis also explores Nike's competitive advantages, marketing strategy, industry forces, SWOT analysis, and recommendations. In conclusion, it summarizes that Nike has performed well financially but still faces threats from competitors and should focus on improving working conditions.
This document discusses a new product called H2o Considered, a bottled water product that filters and cools water. It aims to target generation Y consumers with an environmentally friendly alternative to disposable plastic water bottles. The product will feature innovative cooling and filtering technology, superior design aesthetics leveraging the strong brand image of Nike, and a planned June 2010 release at a $34.95 retail price point. Market research shows high demand for bottled, filtered, and chilled water, as well as a shift toward more eco-friendly options.
The following report examines three key players in the U.S. athletic footwear market: Nike, adidas Group and VF Corporation. By analyzing the industry in terms of size and understanding meta trends, this report evaluates and projects how the future of the industry will grow.
This document contains a strategic plan for Nike created by a group of students. It includes:
1) An overview of their strategic planning process including external/internal analyses and SWOT analysis.
2) Details of their strategic thinking process with pre-session, session, and post-session brainstorming of recommendations.
3) Their strategy making including a TOWS matrix matching strategies to threats and weaknesses and strategic recommendations.
The document provides information on the strategic analyses and recommendations developed by the students for Nike to address strengths, weaknesses, opportunities, and threats.
Lululemon vs under armour business strategy analysisSophie Michelot
This document provides an analysis of Under Armour and lululemon athletica, two companies in the performance apparel industry. It discusses the industry information, key issues, trends, companies' goals, challenges, performance, business strategies, differences in business models, and competitive advantages. Recommendations are made for each company, including intensifying geographic expansion for lululemon and boosting sales/gaining market share through innovative products for Under Armour. Financial data and exhibits are provided in the appendices.
This document provides an overview of Lucky Raincoat company and their process for developing a new product called "Shoes Plus". It describes how the idea was generated, the product innovation charter that was created, and the new product development process undertaken. This included concept generation, evaluation, development, market segmentation, distribution strategy, promotion planning, budgeting, pricing, and cost analysis. The goal of "Shoes Plus" is to provide shoe covers that protect footwear from water and weather.
Assignment on Marketing Plan of Nike shoes Al Shahriar
Nike is the largest seller of athletic footwear and apparel in the world. It designs, develops, and markets athletic footwear, apparel, equipment, and accessories. Nike's marketing strategy focuses on creating a lifestyle brand through innovative product design, sponsorship of athletes and teams, and large marketing campaigns. The marketing mix discusses pricing, placement in distribution channels, extensive advertising and promotion, and high-quality customer service. The target markets are recreational athletes, fitness enthusiasts, competitive athletes, sports fans, and students across various age groups and demographics globally.
This document provides an overview of Nike's global business operations and strategies. It discusses Nike's distribution channels, product lines, and marketing approach. It then analyzes the political, economic, social, and technological factors affecting Nike. Next, it examines Nike's challenges with labor issues at overseas factories. The document concludes by recommending that Nike work more closely with governments and unions to ensure ethical labor practices globally.
Nike is a leading athletic footwear and apparel company that focuses on athletes between 13-40 years old. It has a strong global brand and uses innovative marketing campaigns featuring star athletes. A SWOT analysis found Nike's strengths are its brand recognition, global operations, and marketing, but weaknesses include over-reliance on footwear and past labor issues. Opportunities lie in new products and markets, while threats include competition, price sensitivity, and maintaining reputation.
The document provides an analysis of The North Face brand. It describes the company's history, founding in 1966 and operations focused on technical outerwear. The North Face sponsors major athletic events and saw profits rise in 2010. While successful overall, areas for improvement include product technology communications and increasing customer loyalty. The analysis covers the brand's internal environment, external factors, target customers, identity, and a proposed brand plan.
Nike has a long history dating back to 1962 and is now a dominant player in the athletic shoe and apparel market, controlling around 40% of the market. The document outlines Nike's target market as those aged 25 on average but focusing more on teens, and discusses Nike's various pricing strategies. It also summarizes Nike's extensive global supply chain and $1 billion annual marketing budget focused on unique online promotions.
Nike is a major American company that designs, markets and sells athletic footwear, apparel, equipment and accessories. It was founded in 1969 and has headquarters in Beaverton, Oregon. Nike sells products under several brands including Nike, Jordan, Hurley and Converse. It has operations worldwide and manufactures products through independent contractors. Nike focuses on categories like running, basketball, football, training and sportswear. It competes with companies like Adidas, Puma and Under Armour. Nike aims to be the most authentic, connected and distinctive brand through innovation and inspiring athletes globally. It has strong brand recognition but also faces weaknesses like labor issues and limited presence in emerging markets.
Nike is the largest seller of athletic footwear and apparel, founded in 1972. It has a diverse product portfolio including shoes, apparel and equipment for various sports sold in over 160 countries. Nike pursues a strategy of acquisitions of complementary brands and diversification to protect its premium brands and revive struggling brands. It focuses on innovation through R&D, celebrity endorsements, and targeting specific consumer groups through localized marketing. Issues around working conditions at some supplier factories have led to increased monitoring and transparency efforts.
Nike is the market leader in the US footwear market, holding a 16.2% market share in 2013. It successfully segments customers and products, allowing it to price discriminate. Nike also outsources manufacturing to lower costs while maintaining quality. Through innovation, celebrity endorsements, and responsive strategies, Nike is able to charge premium prices and follow a price leadership approach over competitors like Adidas.
International Marketing Strategy of Nike Inc.Ananya Jain
The Nike ethos is characterised by an emphasis on the role of internationalisation as an entrenched component of their business strategy. This is reflected by their mission statement, which aims to “bring inspiration and innovation to every athlete* in the world” with the caveat that “*if you have a body, you are an athlete” (Nike.com, 2017). Significantly this emphasises a global outlook, that transcends the elementary definition of international marketing - “the marketing of goods, services and information across political boundaries” (Albaum et al., 2005). Many firms take mercantile approaches to marketing that “satisfy customer requirements profitably” (Marketing and the 7Ps, 2015). Nike, however, follows more holistic principles - “11 maxims” (Farfan, 2017) - that allow it to achieve its fundamental premise - to inspire its global consumer base, albeit in a financially rewarding manner. Armed with a global marketing orientation, Nike caters to a range of customers that have a plethora of demands, which vary along demographic, geographic, and cultural lines. Thus, their marketing model is predicated upon nuanced strategies that consider domestic market variables (domestic and foreign controllables & uncontrollables) (Ghauri & Cateora, 2014). Consequently, and because of the large role that internationalisation has played in Nike’s success story, this paper evaluates its marketing strategy; with a focus on micro, macro, and task analysis.
Under Armour is a sporting goods company founded in 1996 that sells sports apparel and equipment. Their products are worn by athletes of all levels and are sold worldwide. The company was founded by Kevin Plank and is driven by his vision to create innovative, technical fabrics and apparel. Over time, Under Armour has expanded globally and through acquisitions like MapMyFitness to strengthen their business. They differentiate themselves from competitors like Nike through their technical performance products.
Success report on_marketing_strategy_for_nike_incNeenad Mba
Nike has grown from a small importer of Japanese shoes into the world's largest athletic shoe and apparel company. It achieved this success through sponsoring high-profile athletes, developing innovative products, and investing heavily in marketing with slogans like "Just Do It". While Nike dominates the footwear market, it faces threats from increasing competition and counterfeiting. It also struggles with issues around labor conditions in its overseas factories. To maintain its leading position, Nike must address these labor issues, stay ahead of competitors through product development, and leverage opportunities in new online markets.
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.
This document provides a strategic analysis of Nike. It begins with an external environmental analysis, noting Nike's strong brand and emerging growth opportunities in markets like China, Brazil, and home fitness. An internal analysis identifies strengths in innovation and brand recognition, and weaknesses in competition. A SWOT analysis further examines strengths, weaknesses, opportunities, and threats. The document then discusses Nike's current strategy, and strategic options for success, including market penetration, diversification, and adapting to local markets. It concludes that Nike has strong global presence but needs strategies to establish itself in emerging markets.
This is a case study done by Cloud9media in helping Nike increasing its customer base by shaping conversation around nike through EPL and manchester United.
This document discusses a new product called H2o Considered, a bottled water product that filters and cools water. It aims to target generation Y consumers with an environmentally friendly alternative to disposable plastic water bottles. The product will feature innovative cooling and filtering technology, superior design aesthetics leveraging the strong brand image of Nike, and a planned June 2010 release at a $34.95 retail price point. Market research shows high demand for bottled, filtered, and chilled water, as well as a shift toward more eco-friendly options.
The following report examines three key players in the U.S. athletic footwear market: Nike, adidas Group and VF Corporation. By analyzing the industry in terms of size and understanding meta trends, this report evaluates and projects how the future of the industry will grow.
This document contains a strategic plan for Nike created by a group of students. It includes:
1) An overview of their strategic planning process including external/internal analyses and SWOT analysis.
2) Details of their strategic thinking process with pre-session, session, and post-session brainstorming of recommendations.
3) Their strategy making including a TOWS matrix matching strategies to threats and weaknesses and strategic recommendations.
The document provides information on the strategic analyses and recommendations developed by the students for Nike to address strengths, weaknesses, opportunities, and threats.
Lululemon vs under armour business strategy analysisSophie Michelot
This document provides an analysis of Under Armour and lululemon athletica, two companies in the performance apparel industry. It discusses the industry information, key issues, trends, companies' goals, challenges, performance, business strategies, differences in business models, and competitive advantages. Recommendations are made for each company, including intensifying geographic expansion for lululemon and boosting sales/gaining market share through innovative products for Under Armour. Financial data and exhibits are provided in the appendices.
This document provides an overview of Lucky Raincoat company and their process for developing a new product called "Shoes Plus". It describes how the idea was generated, the product innovation charter that was created, and the new product development process undertaken. This included concept generation, evaluation, development, market segmentation, distribution strategy, promotion planning, budgeting, pricing, and cost analysis. The goal of "Shoes Plus" is to provide shoe covers that protect footwear from water and weather.
Assignment on Marketing Plan of Nike shoes Al Shahriar
Nike is the largest seller of athletic footwear and apparel in the world. It designs, develops, and markets athletic footwear, apparel, equipment, and accessories. Nike's marketing strategy focuses on creating a lifestyle brand through innovative product design, sponsorship of athletes and teams, and large marketing campaigns. The marketing mix discusses pricing, placement in distribution channels, extensive advertising and promotion, and high-quality customer service. The target markets are recreational athletes, fitness enthusiasts, competitive athletes, sports fans, and students across various age groups and demographics globally.
This document provides an overview of Nike's global business operations and strategies. It discusses Nike's distribution channels, product lines, and marketing approach. It then analyzes the political, economic, social, and technological factors affecting Nike. Next, it examines Nike's challenges with labor issues at overseas factories. The document concludes by recommending that Nike work more closely with governments and unions to ensure ethical labor practices globally.
Nike is a leading athletic footwear and apparel company that focuses on athletes between 13-40 years old. It has a strong global brand and uses innovative marketing campaigns featuring star athletes. A SWOT analysis found Nike's strengths are its brand recognition, global operations, and marketing, but weaknesses include over-reliance on footwear and past labor issues. Opportunities lie in new products and markets, while threats include competition, price sensitivity, and maintaining reputation.
The document provides an analysis of The North Face brand. It describes the company's history, founding in 1966 and operations focused on technical outerwear. The North Face sponsors major athletic events and saw profits rise in 2010. While successful overall, areas for improvement include product technology communications and increasing customer loyalty. The analysis covers the brand's internal environment, external factors, target customers, identity, and a proposed brand plan.
Nike has a long history dating back to 1962 and is now a dominant player in the athletic shoe and apparel market, controlling around 40% of the market. The document outlines Nike's target market as those aged 25 on average but focusing more on teens, and discusses Nike's various pricing strategies. It also summarizes Nike's extensive global supply chain and $1 billion annual marketing budget focused on unique online promotions.
Nike is a major American company that designs, markets and sells athletic footwear, apparel, equipment and accessories. It was founded in 1969 and has headquarters in Beaverton, Oregon. Nike sells products under several brands including Nike, Jordan, Hurley and Converse. It has operations worldwide and manufactures products through independent contractors. Nike focuses on categories like running, basketball, football, training and sportswear. It competes with companies like Adidas, Puma and Under Armour. Nike aims to be the most authentic, connected and distinctive brand through innovation and inspiring athletes globally. It has strong brand recognition but also faces weaknesses like labor issues and limited presence in emerging markets.
Nike is the largest seller of athletic footwear and apparel, founded in 1972. It has a diverse product portfolio including shoes, apparel and equipment for various sports sold in over 160 countries. Nike pursues a strategy of acquisitions of complementary brands and diversification to protect its premium brands and revive struggling brands. It focuses on innovation through R&D, celebrity endorsements, and targeting specific consumer groups through localized marketing. Issues around working conditions at some supplier factories have led to increased monitoring and transparency efforts.
Nike is the market leader in the US footwear market, holding a 16.2% market share in 2013. It successfully segments customers and products, allowing it to price discriminate. Nike also outsources manufacturing to lower costs while maintaining quality. Through innovation, celebrity endorsements, and responsive strategies, Nike is able to charge premium prices and follow a price leadership approach over competitors like Adidas.
International Marketing Strategy of Nike Inc.Ananya Jain
The Nike ethos is characterised by an emphasis on the role of internationalisation as an entrenched component of their business strategy. This is reflected by their mission statement, which aims to “bring inspiration and innovation to every athlete* in the world” with the caveat that “*if you have a body, you are an athlete” (Nike.com, 2017). Significantly this emphasises a global outlook, that transcends the elementary definition of international marketing - “the marketing of goods, services and information across political boundaries” (Albaum et al., 2005). Many firms take mercantile approaches to marketing that “satisfy customer requirements profitably” (Marketing and the 7Ps, 2015). Nike, however, follows more holistic principles - “11 maxims” (Farfan, 2017) - that allow it to achieve its fundamental premise - to inspire its global consumer base, albeit in a financially rewarding manner. Armed with a global marketing orientation, Nike caters to a range of customers that have a plethora of demands, which vary along demographic, geographic, and cultural lines. Thus, their marketing model is predicated upon nuanced strategies that consider domestic market variables (domestic and foreign controllables & uncontrollables) (Ghauri & Cateora, 2014). Consequently, and because of the large role that internationalisation has played in Nike’s success story, this paper evaluates its marketing strategy; with a focus on micro, macro, and task analysis.
Under Armour is a sporting goods company founded in 1996 that sells sports apparel and equipment. Their products are worn by athletes of all levels and are sold worldwide. The company was founded by Kevin Plank and is driven by his vision to create innovative, technical fabrics and apparel. Over time, Under Armour has expanded globally and through acquisitions like MapMyFitness to strengthen their business. They differentiate themselves from competitors like Nike through their technical performance products.
Success report on_marketing_strategy_for_nike_incNeenad Mba
Nike has grown from a small importer of Japanese shoes into the world's largest athletic shoe and apparel company. It achieved this success through sponsoring high-profile athletes, developing innovative products, and investing heavily in marketing with slogans like "Just Do It". While Nike dominates the footwear market, it faces threats from increasing competition and counterfeiting. It also struggles with issues around labor conditions in its overseas factories. To maintain its leading position, Nike must address these labor issues, stay ahead of competitors through product development, and leverage opportunities in new online markets.
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.
This document provides a strategic analysis of Nike. It begins with an external environmental analysis, noting Nike's strong brand and emerging growth opportunities in markets like China, Brazil, and home fitness. An internal analysis identifies strengths in innovation and brand recognition, and weaknesses in competition. A SWOT analysis further examines strengths, weaknesses, opportunities, and threats. The document then discusses Nike's current strategy, and strategic options for success, including market penetration, diversification, and adapting to local markets. It concludes that Nike has strong global presence but needs strategies to establish itself in emerging markets.
This is a case study done by Cloud9media in helping Nike increasing its customer base by shaping conversation around nike through EPL and manchester United.
The document discusses the results of a study on the effects of exercise on memory and thinking abilities in older adults. The study found that regular exercise can help reduce the decline in thinking abilities that often occurs with age. Specifically, older adults who exercised regularly performed better on memory and thinking tests compared to those who did not exercise regularly.
This document is a resume for Bamidele Ali, an experienced business leader and engineer with over 20 years of experience leading organizations through transformations and developing new technologies. It summarizes his qualifications including extensive experience developing commercialization strategies, optimizing new product development through lean principles, and holding leadership roles in companies focused on additive manufacturing, materials development, and medical imaging. His background includes engineering roles at large companies like GE Healthcare and Danaher, as well as founding his own consulting firm and serving as a director or vice president at several startups focused on new materials and technologies.
Este documento presenta un calendario de eventos comunitarios que tendrán lugar en mayo de 2012 en Telde, Gran Canaria. Incluye eventos culturales, deportivos y educativos como obras de teatro, conciertos, exhibiciones deportivas, juegos y talleres en centros educativos y otros lugares de la comunidad. Los eventos están organizados por instituciones locales como ayuntamientos, centros educativos y asociaciones con el objetivo de promover la participación y el intercambio cultural entre los miembros de la comunidad.
This document discusses a Carboniferous reef from the Serpukhovian period located in the Dnieper-Donets basin. It describes the application of 3D seismic data processing techniques like noise reduction, frequency filtering, spectral decomposition, and 3D modeling to better resolve the structure and facies of the reef at different scales, revealing details of its mushroom-shaped bioherm development.
Alliteration draws attention to phrases by repeating initial consonant sounds in neighbouring words. It is often used for emphasis. Metaphor compares two different things in a figurative sense by using descriptive language rather than "like" or "as". Synecdoche uses a part to represent the whole or vice versa in a figurative expression that is closely associated.
Este documento describe el método IPLER para el estudio efectivo. El método IPLER se divide en cinco etapas: inspeccionar, preguntar, leer, expresar y revisar. La inspección implica obtener una visión general del material antes de leer. Preguntar significa formular preguntas para motivar el aprendizaje. Leer implica comprender el material de manera dinámica. Expresar ayuda a retener la información a través de resúmenes o notas. Revisar permite recordar el contenido.
Tables are arranged in columns and rows with data encoded as text. They work best for looking up or comparing individual values when the data is precise and includes multiple units of measure. Best practices for tables include using whitespace, color, and typography efficiently; arranging data horizontally or vertically; including abbreviations, tooltips, row numbers, and zebra strips.
Nike is the largest seller of athletic footwear and apparel in the world. It was founded in 1964 and officially became Nike Inc. in 1971. Nike designs, develops, manufactures and markets footwear, apparel, equipment, accessories and services. It operates through five brands: Nike, Jordan, Converse, Hurley and Nike Golf. In 2014, Nike had over $27 billion in revenue and a brand value of $19 billion. Nike focuses on innovation through research and development and achieves brand loyalty through celebrity endorsements and marketing strategies. It faces competition from companies like Adidas but maintains a dominant market share through continuous product improvements.
Nike began as Blue Ribbon Sports in 1964 and changed its name to Nike in 1972. It has maintained its position as the global market leader in athletic footwear and apparel through continuous innovation, strategic endorsements, and tight retail control. While Nike faces challenges from competitors and needs to expand its direct retail business, opportunities exist through upcoming global sporting events and strengthening its online presence. Nike aims to solidify its position through brand marketing at events like the World Cup while exploring new digital strategies.
Nike dominates the global athletic footwear and apparel markets, holding approximately 31% of the footwear market share in 2007. While Nike faces competition from companies like Adidas and Puma, it maintains significant advantages through massive economies of scale, innovative technologies like Nike Air cushioning, and iconic athlete endorsements. However, Nike also faces challenges as a large corporation such as risks from disruptions to its IT systems and pressures to improve sustainability and reduce environmental impacts throughout its global supply chain. Overall, Nike has established itself as the clear market leader through a strategic focus on performance innovation, brand marketing, and organizational strengths.
ProblemThis is a comprehensive problem all contained on this sprea.docxbriancrawford30935
ProblemThis is a comprehensive problem all contained on this spreadsheet tab. FACTS:1. Elliott Incorporated manufactures garden tools, and although the manufacturing equipment is perfectly functional, it is not modern.2. Upgrading to modern equipment would speed up the manufacturing process such that direct labor and variable manufacturing costs would be reduced by 40% on a per-unit basis. Hint: You do not need current units produced to calculate this problem.3. The cost of such an upgrade would equal $1,500,000 per year for depreciation and financing costs net of tax benefits of these costs.4. The additional costs would be accounted for as fixed manufacturing overhead.5. Elliott is currently operating at full capacity and management believes they could increase sales to $6,000,000 at current prices if they had additional capacity.Elliott's current sales and costs are as follows:Sales$4,500,000Direct materials790,000Direct labor1,530,000Manufacturing overhead–variable364,500Manufacturing overhead–fixed750,000Selling expenses–variable110,000Selling expenses–fixed230,000Administrative expenses–variable60,000Administrative expenses–fixed200,000a. Prepare a CVP for Elliott based on the current production.b. Compute contribution margin ratio for current production.c. Compute breakeven dollars for current production.d. Prepare a CVP based on the proposed equipment upgrade.e. Compute contribution margin ratio based on the proposed equipment upgrade.f. Compute breakeven dollars for current production.g. Should Elliott proceed with the proposed upgrade?
RUNNING HEAD: NIKE1
Nike20
Nike
Anita Orzel
Southern New Hampshire University
October 9, 2016
Purpose of the Paper
The aim of the paper is to apply the microeconomic models in the functioning of Nike to ensure that the firm undertakes effective business decisions. The paper will focus on analyzing the history of the Nike Company since its existence until today and evaluate the supply and demand conditions that Nike encounters in the sale of its products. Further, the paper focuses on the price elasticity demand by analyzing the available information that can affect the customer’s responsiveness to purchase their commodities (Distelhorst, Hainmueller, & Locke, 2016). In addition, the paper will discuss the cost of the production by analyzing the cost incurred by the Nike Company in the production process and explore its market performance to ensure that higher profit is generated. This can be done by avoiding and addressing the barriers that are encountered by the company in the marketplace. Finally, the paper will provide effective recommendations that are required to be addressed by the company to manage its future production. This is essential to ensure that the firm achieves its set goals through the evaluation of the demand trends and the price elasticity (Distelhorst, Hainmueller, & Locke, 2016). This paper, therefore, seek to critically analyze th.
Shoes On Nike
1
Executive Summary:
Situational analysis
▪ Background data on sales & costs.……………………………………………....Pg. 2
▪ Competitors………………………………………………………………………....Pg. 4
▪ Customers…………………………………………………………………………..Pg. 5
▪ Company …………………………………………………………………………...Pg. 6
▪ Community …………………………………………………………………………Pg. 8
Marketing strategy
▪ Mission ……………………………………………………………………………..Pg. 9
▪ Marketing and financial objectives ……………………………………………...Pg.10
▪ Target Market & Positioning ……………………………………………………..Pg.10
Marketing tactics
▪ Product Offering…………………………………………………………………..Pg. 11
▪ Distribution………………………………………………………………………...Pg. 13
▪ Promotion………………………………………………………………………….Pg. 15
▪ Pricing ……………………………………………………………………………..Pg. 17
Financial projections
▪ Break Even Analysis ……………………………………………………………..Pg. 18
▪ Cost Forecast……………………………………………………………………...Pg. 18
▪ Sales Forecast………………………………………………………………….....Pg. 18
References
▪ References………… ……………………………………………………………..Pg. 20
2
Part 1: Situational Analysis
1.1 Background data on
sales and cost
Nike was founded in the
State of Oregon in January
1996, by a track athlete, Phil
Knight and his coach, Bill
Bowerman (Nike 2017 10-K
Form, 2017).
Being the leader in the
athletic industry, Nike is the world’s largest supplier of athletic wear. Nike’s products are
divided into footwear, clothing, and training accessories. There are eight main
categories of Nike’s brand products. They are: running, soccer, basketball, action
sports, sports-inspired lifestyle products, golf, men’s and women’s training (Nike 2017
10-K Form, 2017).
Comparing Nike’s and
Adidas’ market capitalization
provides evidence of how Nike
grew as a company in athletic
wear during the past 17 years.
In 2001, both Nike and Adidas
started with a market
capitalization of close to 4
3
billion. In 2005, Nike, Inc. gained its lead in the industry, with its market capitalization
grew at a faster rate than Adidas. By 2010, Nike gained a market capitalization of 63.45
billion, and an annual revenue of 19 billion. In 2015, Nike’s market capitalization was
82.6 billion, while market capitalization of Adidas lagged behind at 17.1 billion (image
and text, Leach, 2015). During the 2017 fiscal year, the annual revenue for Nike, Inc. is
$34.4 billion, which rose 8% from the previous year on a currency-neutral basis (Nike
news, 2017).
Nike’s “swoosh” symbol was developed in 1971, and was registered with the
United States Patent and Trademark Office in 1974. Over the years, the Nike brand
became one of the strongest brand in the world. Currently, the Nike brand ranks as the
18th strongest in the world, estimated to be worth 27.0 billion dollars (Interbrand, 2017).
Along with its long-stand slogan “Just Do it,” the Nike brand became the face of the
company. Consumers associate the Nike brand with “superior quality, style, and
reliability” (De.
Nike is the world's largest athletic footwear and apparel company based in Oregon. It commands about 10% of the global athletic apparel market and 35% share of the footwear market. Nike uses an integrated marketing communications approach including advertising, digital marketing, celebrity endorsements, sponsorships, customer service and promotions. Key aspects of Nike's promotion strategy are heavy investments in social media platforms like Facebook, Twitter and Instagram and using star athletes and celebrities to promote its brand and products.
The document provides information about Nike, including its vision, mission, overview, product categories, brands, and latest innovative products. It discusses Nike's group members for a project, lists its top 10 brand ambassadors such as Michael Jordan and LeBron James. It also includes analyses of Nike's competitive advantage, marketing strategy, Porter's 5 forces model, countries it operates in, and SWOT analysis.
Nike is an American corporation that designs, develops, and markets athletic footwear, apparel, equipment, and accessories. It was founded in 1964 and is headquartered near Portland, Oregon. Philip Knight co-founded the company and served as chairman, while Mark Parker currently serves as CEO. Nike utilizes various marketing strategies like celebrity endorsements and sponsorships to promote its products and maintains a strong brand image. However, these strategies also carry risks if market and consumer trends change rapidly. Nike must continue innovating and adapting to stay ahead of competitors in the sportswear industry.
Nike produced strong Q1 EPS growth of 23% and revenue growth of 5% overall and 14% on a currency-neutral basis. Future orders grew 17% on a currency-neutral basis across key geographies and categories. The analyst maintains a Buy rating on Nike with a December 2016 price target of $140, believing Nike's brand equity and growth opportunities justify its valuation.
This document is a project report on digital marketing in the sportswear industry. It includes an introduction to the industry, describing trends like the growth of fitness clubs and the blurring lines between sportswear and casual wear. It then analyzes the macro environment factors like legislation and the economy that influence the industry. The next sections provide micro environmental analyses of major brands Nike, Adidas, and Under Armour, describing their collaborations, suppliers, customers and digital marketing strategies. The report aims to understand how these brands use social media to increase revenues.
The document provides a report on a study conducted to analyze the effectiveness of promotional strategies and reasons for reduced sales at a Nike store in Brigade, Bangalore. Some key findings from the study include:
- 65% of respondents had visited the store 1-3 times previously
- 54% of respondents preferred the Brigade store over another local store
- TV and social media were the most effective promotional channels
- Many respondents were not fully satisfied with products available
- Suggestions to improve sales included regular product updates, reasonable pricing, and better parking availability.
Nike is analyzed in this case study. It provides an overview of Nike's history, brands, vision, mission, financial performance, and SWOT analysis. The external environment facing Nike is also examined, including competitors, opportunities, and threats in the athletic footwear and apparel industry. Various strategic analysis tools are applied to Nike, such as BCG matrix, IE matrix, and comparative financial statements. Potential strategies for Nike going forward are discussed.
Nike is the world's largest athletic footwear and apparel company. It was founded in 1964 and has evolved from distributing Onitsuka Tiger shoes to becoming a global leader in designing and marketing athletic footwear, apparel, and equipment. Nike focuses on innovation through product research in areas like biomechanics and uses high-profile athlete endorsements and aggressive marketing to promote its brand. While Nike dominates the industry, it faces challenges from increasing competition and changing consumer preferences.
Nike was founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman to import and sell athletic shoes. It was renamed Nike in 1971 and went public in 1980. Today Nike is the largest seller of athletic footwear and apparel worldwide, with over $21 billion in revenue. It has strong brand recognition and focuses on innovation through research and development. However, Nike relies heavily on footwear sales and faces challenges from competitors and issues with working conditions in some factories.
An American multinational corporation, Nike, Inc. is one of the most leading brands which designs, develops and sells footwear, apparel, accessories, equipment and other services worldwide.
For more details:- https://myassignmenthelp.com/case-study/nike-swot-pest-analysis-case-study.html
Nike is the largest seller of athletic footwear and apparel in the world. It designs products for consumers and athletes in categories like running, basketball, soccer, and other sports. Nike sells its products to over 18,000 retail accounts globally through subsidiaries and distributors. While Nike has strong brand recognition and market share in athletic shoes, it faces threats from competition and economic challenges. Its SWOT analysis identified opportunities to expand into growing international markets and increase online and social media marketing to engage younger consumers.
Running head GLOBAL STRATEGIC ANALYSIS-NIKEGLOBAL STRATEGIC ANA.docxcowinhelen
Running head: GLOBAL STRATEGIC ANALYSIS-NIKE
GLOBAL STRATEGIC ANALYSIS-NIKE 20
Global Strategic Analysis-Nike
Name
Institution
Executive Summary
In the business world today, organizations have decided to market their products at an international level. This means that there is the use of bigger resources in terms of manpower, technology, and other resources which support the industrial business activities. However, despite the fact that most of the MNEs have the resources and capabilities to take their businesses global, there still is a need for them to develop strategies which will be used as guidance for the entire activities of the business both in the local market environments and in the global markets. This report hence is meant to give a global strategic analysis of a firm, in this case, the Nike Company, and provide a suitable internationalization plan for the company. First, a global strategy can be defined as business activities in organizations which act as the organization's strategic guide to globalization. This means that as the world becomes much more interconnected, businesses too are allowed to expand their revenue areas to outside the borders of the company's parent nation. Globalization does not just mean having a business in one foreign nation but several. This comes with milestones such as changing cultures, laws, and competitors who the MNE has to be able to handle in order to be successful in its expansion plans. A global business strategy such as the one used by the Nike Company is meant to ensure the business has the ability to benefit from the vast opportunities and rewards which come with worldwide trading (Marc J. et al 2010)
In order to proficiently write this analysis, the main elements were divided into some eight groups which include an overview of our chosen company together with its strategic background, the condition of the industry of the company, the company's capabilities and strengths internally, its cultural conditions as an institution, analysis of the company's industrialization efforts, and finally, an analysis of the governance and corporate social responsibility of the company.
Contents
Executive Summary 1
Overview and Key Strategic Background of Nike 3
Characteristics 3
Current International Operations 5
Recent Strategic Initiatives 6
Domestic and International Rivals 7
Tripod 1: Industry Conditions. 8
Top five markets 8
Five forces affecting Nike's industry. 8
Key Competitiveness of Nike in Value chain. 10
Competitiveness of Generic Strategy. 10
Strategy Tripod 2: Internal Resources and Capabilities. 11
Strategy tripod 3: Institutional and Cultural Conditions. 12
Entrepreneurship and Internationalization of the Firm. 14
Internationalization 15
Internationalization: Structure, Strategy, and Learning. 16
Strategizing governance and Corporate Social Responsibility. 17
References. 19
Appendices 20
Overview and Ke ...
Nike is one of the largest athletic shoe and apparel companies in the world that began in 1962. It focuses on designing high-quality running shoes and has established a large customer base globally through its products and marketing. Nike offers a wide range of footwear and apparel for multiple sports as well as everyday use. It utilizes a multifaceted marketing approach including product design, competitive pricing, widespread distribution channels, and high-profile promotional activities to remain successful.
brand elements and how nike use brand elements.Aqib ali
The document discusses the key elements of the Nike brand including its name derived from the Greek goddess of victory, its iconic swoosh logo, use of famous athletes in advertising, and focus on the "Just Do It" slogan. It provides details on Nike's revenues, operations in India, and strategies for global growth including new store openings and investments in retail. However, it also notes Nike is closing some Indian stores as products are expensive for local customers.
1. INITIATING COVERAGE REPORT Temple University Investment Association
The Fox Fund
November 10th, 2016
Tyler McMahon: Lead Analyst
Tyler.mcmahon@temple.edu
Andrew Cutrona: Lead Analyst
Andrew.cutrona@temple.edu
Kevin Vo: Associate Analyst
Kevin.vo@temple.edu
Amine Aouom: Associate Analyst
Amine.aouom@temple.edu
COMPANY OVERVIEW
Nike Inc. is an apparel and footwear company that conducts
operations in the design, development, marketing, and sale of
sports and lifestyle footwear (61% of FY 2016 revenue),
apparel (28% of FY 2016 revenue), equipment (5% of FY 2016
revenue), and accessories and services (6% of FY 2016
revenue). Nike markets product designed for athletic and
recreational uses. The company’s athletic footwear products are
designed primarily for specific athletic use, although a large
percentage of the products are worn for casual or leisure
purposes. The company wholly-owned subsidiaries include
Converse Inc., and Hurley International LLC. Nike’s business
has been primarily concentrated in the United States, which
accounted for 42% of the company’s total sales in FY 2016.
The company also derived FY 2015 revenue from China
(10.8%), Germany (3.8%), Canada, (3.6%), United Kingdom
(3.3%), France (2.8%), Japan (2.7%) and in other locations
(31%). NKE reports Q2 2017 earnings on December 27, 2016.
INVESTMENT THESIS
Nike Inc. is currently trading at 19.1% discount to its average
three-year forward P/E multiple of 20.33x, and a 10.5%
discount to its average three-year forward EV/EBITDA
multiple of 15.42x. Despite significant growth in revenues and
earnings, investors began devaluing Nike when it missed
analysts’ quarterly estimates at the end of Q3 2016, due to (1)
the economic slowdown in China in 2015 and early 2016, and
(2) the emerging competition from Under Armour and Adidas
in the North America segment. Nike is recognized as one of
the most well-known and valuable apparel brands around the
world. Nike reported higher sales and revenue growth in the
Greater China segment, in part from the country’s growing
middle class, its role in the 2008 Summer Olympics and the
upcoming 2022 Olympics, and rising demand for the Nike
brand footwear and apparel. Through Nike’s direct-to-
consumer channels, it will provide more online and retail
services to consumers in all geographical segments, which
consists 24.3% of total revenue in FY 2016. Looking forward,
Nike’s strong revenue and EPS growth, additional store
openings, international brand recognition, and rising market
share in China will generate more revenue growth and higher
dividend returns for its investors in the next two years. Nike’s
target share price is expected to reach $57.38, yielding a 13.2%
return.
CONSUMERDISCRETIONALRY:ATHLETICAPPAREL
Nike Inc.
Exchange: NYSE Ticker: NKE Target Price: $57.38
Sector Outperform
Recommendation: BUY
Key Statistics: values in mm except per share
Price $50.69 52 Week Low $49.80
Return 13.2% 52 Week High $68.20
Shares O/S 1.665 Yield 1.25%
Market Cap $85.06 EnterpriseValue $81.67
One-Year Price Graph
Earnings/Revenue Surprise History:
Quarters EPS Revenue Δ Price
2Q16 5.20% (1.60)% (2.38)%
3Q16 13.4% (2.10)% (3.79)%
4Q16 2.30% (0.30)% 3.84%
1Q17 30.7% 2.20% (3.78)%
Earnings Projections:
Fiscal
Year
Q1 Q2 Q3 Q4 Total
2015 $0.55 $0.37 $0.45 $0.49 $1.86
2016 $0.67 $0.45 $0.55 $0.49 $2.16
2017 $0.73 $0.43e $0.61e $0.59e $2.37
2018e $0.74 $0.55 $0.72 $0.69 $2.70
All prices current at end of previous trading sessions from date of
report. Data is sourced from local exchanges via FactSet, Bloomberg
and other vendors. The Fox Fund fund does and seeks to do business
with companies covered in its research reports.
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SEGMENTS OVERVIEW
Geographic Segments
North America Market
Nike Brand & Converse sales in the
United States accounted for
approximately 45% in its 2015 and
2014 fiscal years. Nike Brand, Jordan
Brand, Hurley and converse products
are sold in thousands of retailers
around the country. Products are
found in various footwear stores,
sporting goods stores, athletic
specialty stores, department stores,
skate, tennis and golf shops and other
retail accounts. Nike has 185 Nike
Brand factory stores, 33 Nike Brand
in-line stores, 92 Converse stores, and
29 Hurley stores operating within the
United States.
International Market
For both fiscal 2015 and fiscal 2014, non-U.S. NIKE Brand and Converse sales accounted for 54% of total revenues.
Nike sells its products to retail accounts, through its own Direct to consumer operations as well as through a mix of
independent distributors, licensees and sales representatives around the world. Nike sells to thousands of retail accounts
and ships products to 45 distribution centers outside the United States. Nike has 512 Nike Brand factory stores, 73 Nike
Brand in-line stores, and seven Converse stores operating internationally.
Product Segments
Footwear
Nike’s athletic footwear products are designed primarily for specific athletic use, although a large percentage of the
products are worn for casual or leisure purposes. Nike focuses on innovation and high-quality construction for all of
their products. Sportswear, running, the Jordan Brand and soccer are currently Nike’s best-selling footwear categories.
Apparel
Nike sells apparel covering the above-mentioned categories, which are sold predominantly through the same marketing
and distribution channels as athletic footwear. Footwear, apparel and accessories are often marketed in “collections” of
similar use or by category. Nike apparel is also marketed with licensed college and professional team and league
logos. Nike’s sports apparel, similar to our athletic footwear products, are designed primarily for athletic use and
exemplifies the company's commitment to create innovative and high-quality products. Sportswear, men’s training,
running, soccer and women’s training are currently Nike’s top-selling apparel categories.
Equipment
Nike sells a line of performance equipment and accessories under the NIKE Brand name, including bags, socks, sport
balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, golf clubs and other equipment designed
for sports activities. The company also sell small amounts of various plastic products to other manufacturers through
our wholly-owned subsidiary, NIKE IHM, Inc.
Other
The Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly
focused on basketball using the Jumpman trademark. Hurley, a subsidiary of Nike, designs and distributes a line of
action sports and youth lifestyle apparel and accessories under the Hurley trademark. Sales and operating results for
Hurley are included within the Nike Brand Action Sports category and within the North America geographic operating
segment. Another of Nike wholly-owned subsidiary brands, Converse, designs, distributes and licenses casual sneakers,
apparel and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks.
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INDUSTRY OVERVIEW
Footwear Market
The global footwear market has seen
diversified trends across different geographic
regions such as North America, Europe, Asia
Pacific, and Rest of the World. The global
footwear market is driven by factors such as
growing demand for new design of footwear
and growing awareness about healthy and
active lifestyle. Increasing population,
propensity of people to spend more and
emerging retail outlets have also attributed to
the growing demand for footwear across the
global market. Also, there are certain
restraints which are slowing down the growth
of the global footwear market. Increasing
environmental concerns and rising prices of
raw material are the main factors which are
acting as restraints for the global footwear
market. The footwear market has been
divided into three segments: by types of
footwear, by consumer group, and by
geography. Further, the by types of footwear
include athletic footwear and non-athletic
footwear. The report also offers competitive
analysis about sub-segment of athletic
footwear and non-athletic footwear. Athletic
footwear segment offers products of four
categories which include insert shoes, sports
shoes, hiking shoes and backpacking boots.
Sports shoes are expected to have the largest
market in terms of volume globally from
2014 to 2020.
Industry/Consumer Trends
Consumer group, which includes men,
women, and kids. The men's footwear
market accounts for maximum market share
followed by women and kids. In terms of
value, North America is expected to have the
largest market share for consumer group
footwear market from 2014 to 2020.
Globally, Asia Pacific accounts for the
maximum share for consumer group
footwear market in terms of volumeduring
the forecast period. This market research
study analyzes the global footwear market
and provides estimates in terms of revenue
(USD Million) and volume (Million Units)
from 2014 to 2023. It recognizes the drivers
and restraints affecting the industry and
analyzes their impact over the forecast period
from 2015 to 2023. Moreover, it identifies
the significant opportunities for market
growth in the years to come.
MOATS
Pricing Power: As the leading player in the $320 billion global athletic
footwear, apparel, and equipment market (according to NPD Group
estimates), we believe Nike has developed a wide moat via its superior
product-development capabilities, universally recognized brands, and
economies of scale. Nike's global brand reach, including a strong presence in
emerging markets, is the result of core research and development capabilities
and a marketing budget of more than $3 billion (including endorsements from
some of the most popular global athletes). As a result, consumers have shown
a propensity to pay premium prices for Nike's products. With leading market
share in a variety of categories including sportswear ($6.6 billion), running
($4.9 billion), basketball ($3.7 billion), and athletic training ($3.8 billion in
annual sales), Nike can exert a significant amount of influence over retailers,
many of whom rely on its products to drive customer traffic.
Rights & Endorsements: Nike is a company driven to provide innovative
and quality products for athletes all over the world. Its powerful brand puts
them in position to have rights with and endorsement deals with the biggest
names in sports. Nike has renewed its massive NFL on-field apparel rights
contract, adding three years to the five-year deal that took effect in 2012. The
on the field rights extension also blocks competitors like Under Armour from
the valuable partnership until 2019. Nike also has endorsements deals with
some of the largest athletes in sports that include Lebron James, Kevin
Durant, Cristiano Ronaldo and Rodger Federer. Their ability to have
endorsements with players in all different sports gives their brand exposure in
all athletics. This influential marketing strategy will continue to build Nike’s
brand as well as increase sales for all of their products.
RISKS
Economic Trends: Nike's intrinsic value can be influenced by global
economic trends, including discretionary spending patterns and exchange
rates. Industry competition, particularly from Under Armour, Adidas, and
Puma is always present and could also come from new entrants in developing-
market economies such as China. Changes in consumer tastes and preferences
are always a risk in athletic footwear and apparel categories, and despite
performance attributes, products do have a strong element of fashion. As
sportswear and women's segments grow faster than core sports apparel, sports
footwear and equipment, we believe there could be greater volatility and
fashion risk. With more than half of its sales coming from outside the U.S.
and a heavy concentration of Asia-based suppliers, the firm does face the risk
of increased import costs and currency volatility, which cannot be hedged
indefinitely.
Future Growth: Nike has experienced strong growth in its home market as
the brand's popularity has been ever increasing in recent years. We note that
some athletic segments, such as basketball where Nike is dominant, tend to be
somewhat cyclical with fashion trends and investors should be wary of
extrapolating trends too far into the future. Other categories, such as running,
have a more functional component and brand loyalty as runners are wary of
switching brands for fear of injury. Currently, Nike appears to be gaining from
an increase in sports participation globally. Although the company has always
succeeded with a wholesale-dominated strategy, recent gains and increasing
management emphasis on direct-to-consumer channels pose execution risks.
Retail channels require greater investment and higher overhead; profits also
tend to be more cyclical with the economy. In the near term, direct-to-
consumer sales could increase growth and profitability, but investors run the
risk that such investments could dilute returns in the longer term.
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CATALYSTS
Direct-to-Consumer Sales
Nike’s (NKE) DTC (direct to consumer)
channel includes sales made online on
Nike.com and through its own retail stores.
Nike’s direct to consumer operations sell
NIKE Brand, Jordan Brand, Hurley and
Converse products to consumers. At the end
of FY 2015, Nike had about 931 retail
locations, in which it expanded its store
count by 73 in FY 2015. At the end of FY
2016, Nike had about 1045 retail locations,
expanding its store count by 114 in its most
recent FY. In contrast, Adidas (ADDYY)
closed a net total of 191 stores in 2015.
While wholesale revenues remain the largest
component of overall NIKE Brand
revenues, Nike continues to expand its DTC
businesses in each of its geographies. Nike's
direct-to-consumer business helps cut out
the middleman that would normally pocket a
percentage of sales. Through e-commerce, Nike can eliminate much of the fixed cost associated with physical stores
while also increasing its ability to up-sell products. For instance, the company's NikeID service allows customers to
create custom shoes with their own designs and colors, for a fee of course. The contribution from the DTC channel has
been rising steadily over the past few quarters for Nike. For FY 2016, DTC revenues represented approximately 26% of
total NIKE Brand revenues, up from 20% in FY 2014 and 23% in FY 2015. It is likely to make up even more of the top
line in the future as the company continues to invest in digital infrastructure and increase its numberof owned stores.
On a currency-neutral basis, DTC revenues increased 25% for FY 2016, driven by strong online sales growth, the
addition of new stores and comparable store sales growth of 10%. While total sales rose 8%, Nike.com sales increased a
full 49% YoY. This follows a 46% rise between FY 2015
and 2016. In FY 2016, online sales represented
approximately 22% of total NIKE Brand DTC revenues. In
2015, Nike outlined a goal of reaching $50 billion in revenue
by 2020, an increase on the top line of $20 billion from
$30.6 billion in FY 2015. Half of that growth is expected to
come from the direct-to-consumer (DTC) channel, which
includes Nike's own stores and e-commerce as it expects
DTC to grow from $6.6 billion in FY 2015 to $16 billion in
FY 2020. In other words, the burden on futures orders or
wholesale to deliver growth will be significantly less than it
has been in the past. E-commerce will be a key driver of
that growth. Nike expects E-commerce revenue to reach $7
billion by FY 2020. The surge in online sales comes not only
from the growing trend toward online shopping, but also from some key investments Nike has made. A few such
investments include creating seamless ways to shop both in Nike stores and online by having tablets in store to order
anything not in stock at that time. Another investment has been building out a series of mobile apps that connect with
consumers more personally and to allow them to make purchases easily from their smartphone. The next generation of
Nike's mobile shopping plan was recently launched called Nike+. Nike+ is a mobile app that allows users to track
workouts, contact Nike support, see trending news, and utilize the in-app shopping feature, which makes
recommendations based on the user's activities and habits. The gross margin Nike enjoys on its direct-to-consumer sales
is higher than when its items are sold wholesale, Nike gets to charge a higher selling price for online customized NikeID
gear without much change in material or manufacturing, and Nike is expanding internationally by building out more
robust online sales channels and doubled its number of local online storefronts in specific countries from 20 to 40. All
of these initiatives will continue to grow Nike's online sales which will directly benefit the company's bottom line.
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China Emerging Market
Nike is a leader in the sportswear industry and its brand visibility is growing immensely in China as fitness is becoming a
staple in Chinese daily life. In June, China’s State Council approved a National Fitness Plan which sets ambitious targets
to improve national fitness, increase sports participation and encourage people to incorporate regular physical activities
into their weekly routines. The government will invest in the construction of new public sports facilities such as fitness
centers, sports venues and stadiums, and implement fitness and sports activities programs. Assuming, rather
conservatively, that China's fitness industry grows in line with the country's GDP, it is likely to be worth more than $200
billion by 2020. Currently, China accounts for $3,785 million dollars in sales (11.7% of total sales) which is 32% of all
international sales. Sportswear, basketball and Jordan have all been driving revenues for Nike in China. As it stands,
footwear is Nike's leading revenue contributor in China but apparel could reduce the gap with the rise of the Chinese
fitness industry. Since FY 2014 Nike’s sales in China have from $2.602 billion to $3.785 billion, a 45.5% increase over
two years. This will boost demand for Nike's athletic merchandise immensely. Analysts believe global name brands such
as Nike who endorse big name athletes are dominant players for accelerated growth as China brands have yet to
successfully penetrate the market. Nike endorses iconic athletes and sports teams around the world such as LeBron
James, Christiano Ronaldo, FC Barcelona, etc. contributes heavily to their commitment to innovative products and
continued sales growth around the world. Nike’s sales in China are projected to rise to $4,967 billion in FY 2018, a 29%
increase from sales in 2016. We believe this is a conservative estimate as China has a growing middleclass of nearly 220
million citizens compared the United States 121 million. Due to Nike’s strong brand reputation and awareness, we
believe Nike has an extreme growth opportunityin China as it is the global leader in sports footwear, apparel and
equipment internationally. Nike will continue to have great international growth as it isn't a business that merely sells
apparel or athletic footwear, it thrives by selling its brand.
Seasonal Revenue Headwinds
Retail industries benefit particularly well from the Thanksgiving to New Year’s period. Retailers do 20 to 30 percent of
the year’s business during the holiday season. Nike has seen superb growth after the holidays in Q3 (November to
February) as it reported earnings growth of 17.1% YoY growth from FY 2014 to FY 2015 and 23.6% YoY growth from
FY 2015 to FY 2016. Holiday spending is expected to increase 10% compared to the 2015 holiday season which is its
highest point since the Great Recession. Consumer purchases climbed 0.5% in September, the most in three months as
incomes grew, signaling momentum in the biggest part of the U.S. economy. We believe this trend will continue into the
holidays as consumer will spend an average of $935.58 during the holiday season. The increase in spending will certainly
help boost retail sales especially for a leading footwear and apparel retailer like Nike.
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FINANCIALS
Revenue
Nike derives its revenue from five
segments: Footwear (61.4% of FY 2016
revenue), Apparel (28.0%), Equipment
(4.5%), Global Brand Divisions (0.2%),
and Converse (6.0%). Since FY 2013, total
revenue has grown from $25.3 billion to
$32.4 billion, illustrating an 8.5% CAGR.
Sales from its Footwear segment increased
by 8.5% YoY, accounting 51.1% ($3.6
billion) of all revenue growth since 2013.
Every geographical segments are expected
to generate higher sales for FY 2016, in
part from its direct-to-consumer channels
consisting 22.4% of total revenue. Due to
high demands for the company’s brand
products, its strong initiative for
innovation will develop further brand
connections and compelling retail experiences to consumers online and across NIKE-owned and retail partner stores.
International success is a key factor to Nike’s growth as every international region achieved double-digit growth in sales
on a currency neutral basis. Going forward, Nike will increase its revenue at 8.31% CAGR from $32.4 billion to $37.9
billion in FY 2018, driven by innovation and strong growth in brand product lines.
North America (45.5% of FY 2016 Revenue)
The North America segment increased its revenue from $11.2 billion to $14.8 billion from FY 2013 to FY 2016, at a
CAGR of 9.7%. Sales of footwear accounted 63.0% of total revenue in FY 2016, which grew 9.3% YoY from $8.5
billion in FY 2015 to $9.3 billion. The company’s strength in footwear sales, due to higher demand and preferences for
the Jordan Brand footwear, have generated higher revenue growth in this segment. With the emergence of direct-to-
consumer channels through online shopping and retail stores, Nike has the advantage to drive up sales in the domestic
market.
Europe (22.6% of FY 2016 Revenue)
The Europe segment reported revenue of $7.31 billion at the
end of FY 2016, an increase of 34.9% from $5.42 million in
FY 2013 (10.5% CAGR). Revenues in Western Europe
increased by 14% with double-digit growth in every territory,
leading the pack by UK & Ireland, and AGS (Austria,
Germany and Switzerland), with growth rates of 12% and
16% respectively. Sales from DTC grew 28% for FY 2016,
due to the strength of online sales growth, the addition of
new stores, and the growth of comparable store sales at 13%
within this segment.
Greater China / Japan (14.4% of FY 2016 Revenue)
Revenue from the Greater China and Japan segment have
grown at a CAGR of 4.5%, from $3.35 billion in FY 2013 to
$3.82 billion in FY 2016. Sales in China attributed all of
revenue growth with $1.3 billion, offsetting losses of $7
million from the Japanese market since 2013. China’s massive
market size, with the growth of the country’s middle class and rising popularity of basketball, will provide the advantage
to boost demand for Nike’s products. With the company’s market share over 10% in China, Nike is expected to drive
higher revenues and sales in this segment.
Emerging Markets (11.4% of FY 2016 Revenue)
Revenue from the Emerging Markets segment fell from $3.8 billion in FY 2013 to $3.7 billion, the only geographical
segment to report revenue losses.
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Margins
From FY 2014 to FY 2016 gross margin has expanded
from 44.8% to 46.2%, operating margin has expanded
from 13.2% to 13.9% and profit margin has expanded
from 9.7% to 11.6%. NIKE, Inc. gross margin
expanded 20 basis points between FY 2015 and FY
2016. Gross margin increased primarily due to higher
full-price average selling price and the favorable impact
of growth their higher-margin direct to consumer
(DTC) businesses. However gross margin expansion
was partially offset by higher product costs, primarily
due to shifts in mix to higher-cost products and labor
input cost inflation, higher off-price mix and
unfavorable changes in foreign currency exchange rates.
NIKE Brand product’s higher full-price average selling
price (ASP) increased gross margin approximately 190 basis points in FY 2016 due to innovative premium products with
higher prices and, to a lesser extent, inflationary price increases. Growth in Nike’s higher-margin direct to consumer
(DTC) business increased gross margin approximately 20 basis points in FY 2016. Higher NIKE Brand product costs
decreased gross margin approximately 70 basis points in FY 2016 due to a shift in their product mix to higher-cost
products and input labor cost inflation which was only slightly offset by lower input material costs. Clearing excess
inventory in North America through off-price products decreased gross margin approximately 30 basis points in FY
2016. Unfavorable changes in foreign currency exchange rates decreased gross margin approximately 40 basis points in
FY 2016. Higher product design and development costs decreased gross margin approximately 20 basis points in FY
2016. Converse’s shift to a lower-margin product mix decreased gross margin approximately 20 basis points in FY 2016.
In FY 2015, Nike’s gross margin expanded 120 basis points over FY 2014. Nike’s gross margin benefited from
delivering innovative, premium products that command higher prices while maintaining a balanced price-to-value
proposition for consumers. Nike has been steadily changing its sales mix toward higher priced products which has
helped to increase sales revenue faster than sales volume. For example, in FY 2015 Nike increased footwear unit sales
9% while growing revenue 13% and 17% excluding foreign currency fluctuations, showing the effect of Nike's pricing
power in footwear. The company forecasts re
aching $50 billion in annual sales by 2020. At its current profit margin, that would mean net income of $5.81 billion, a
35% increase over fiscal year 2016. From the premium pricing to efficiency gains and cost management, Nike is likely to
see its profit margin increase even further as net income continues to increase. Currency exchange rate fluctuations and
excess inventories or inventory shortages could result in lower revenues and higher costs which could hinder future
margin expansion.
Earnings
CVS Health has missed earning in Q1 and Q2 on FY
2016. Although the official earnings numbers reflected a
decrease from the prior-year-periods, the news was not
surprising or that concerning. The negative comparisons
stemmed from the costs related to the acquisitions of
Omnicare and Target’s in-store pharmacies and clinics
that took place in December of 2015. As mentioned
before, besides paying $542 million of debt and $114
million in interest expense during Q2 of FY 2016
compared to Q2 of FY 2015, the company reported $81
million more in integration costs related to these
acquisitions. On a positive note, non-GAAP earnings
per share grew from $1.32 from $1.22 in the prior year
period, which exceeded investors’ expectations. Prior to
Q1 & Q2 of FY 2016, CVS Health has surpassed earnings expectations 17 out of last 18 periods with an average
earnings surprise of 15.92%. Our sector has forecasted EPS of $5.08 in FY 2016 (9.7% YoY growth) and $6.18 in FY
2017 (21.7% YoY growth). CVS Health has shown the ability to consistently grow earnings and we are very bullish that
the company will continue to do so going forward as it continues to expand and see success in both of its segments.
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Free Cash Flow
Nike expects to grow its Free Cash Flow, or FCF, at a faster pace compared to net income over the next five years
through fiscal 2020. In fiscal 2015, FCF grew by ~74%, compared to the 21.5% growth in net income. The growth in
FCF has been supported by Nike’s expanding margins, and a slight fall in capital expenditure relative to sales.
Shareholder Return
Nike currently has a dividend yield of 1.27%. The company paid $266.4 million of cash dividends as of Q3 2016, with
quarterly payments of $.16 per share spanning back to the first quarter of 2016. As of November 19, 2015, the company
approved a four-year repurchase program of shares worth $12 billion, in addition to a 2-for-1 stock split for class A and
class B shares. Since the stock split will not have any effect on the company’s equity, the repurchasing of shares signifies
the increase in value of remaining shares, thus boosting the potential of higher returns for investors and shareholders.
Debt
As of May 31, 2016, Nike has a total debt outstanding of $9.14 billion, an
increase of 2.8% YoY from $8.89 billion in FY 2015. The change in
Nike’s total debt illustrates the rise of long-term debt as the company
sold more 10- and 30-year corporate bonds, thus increasing from $1.08
billion in FY 2015 to $2.01 billion. Short-term debt, on the other hand,
eventually decreased from $6.33 billion in FY 2015 to $5.36 billion. Nike
has debt principle payments of $500, $1000, $500, $1000, and $500
million due in 2023, 2026, 2043, 2045, and 2046 respectively. The
company also has a $2 billion revolver expiring in 2020. Overall, its Debt
to Equity (D/E) ratio holds at 74.5% as of FY 2016, along with the S&P
credit rating of AA-, well above investment grade.
VALUATION
Peer Group Analysis
The competitor gaining the most ground as of 2015 is Under Armour. The company is actively pursuing lucrative U.S.
sponsorship deals similar to Nike’s, giving it a growing piece of market revenue. In Europe, Adidas is developing new
products to compete head to head with the giant. Chinese companies Anta and Li Ning show a steady increase in sales
within China. Nike's goal is to grow its annual revenues to $50 billion by 2020. It intends to accomplish this by
significantly increasing its direct sales and e-commerce revenues in developed markets. The company also sees significant
growth opportunities in China and in its women-focused product lines.
Adidas expects to grow its top-line revenue by 15% annually through 2020. It plans to create this growth through
investments to increase its speed of new products to market, which will allow the company to adapt more quickly. It also
intends to invest strategically in marketing in growing urban cities across the globe, as the company recognizes the
movement of population, particularly younger and more athletic segments of the population, to urban areas. The
company boasts a market capitalization approaching $19 billion and trailing 12-month revenues over $16 billion. The
stock ended 2015 priced around $48 per share and with a price-to-earnings (P/E) ratio just over 8. The stock ended
2015 near its 52-week high, which was approximately $50 per share. It also yields a dividend around 1.8%.
Under Armour has a market capitalization around $15.5 billion and trailing 12-month revenues of $3.6 billion. The
stock ended 2015 trading around $80 per share with a P/E ratio of approximately 40. As a younger growth-phase
company, the stock does not currently pay a dividend. the company has consistently found ways to innovate products
that penetrate mature markets. It tends to appeal to younger market segments, and it often prices its products at a
premium for its perceived quality of innovative materials and designs.
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Undervaluation
Nike, Inc. is currently trading at 19.5% discount to the company’s average three-year forward P/E multiple of 24.21x. In
Q1 of FY 2016, Nike reported $9.1 billion in sales, a 8.3% YoY increase. Despite surpassing top line expectations,
investors began discounting Nike when it reported single-digit growth for future orders in Q1 of FY 2016. Although
sales were impressive, many analysts were concerned with Nike’s ‘future order’ numbers. Future orders are a Nike-
invented system that gets distributors to agree to future contracts for the sale of products before Nike ships it. Those
numbers were down to 5% growth worldwide and 1% in North America YoY. Analysts believe these numbers indicate
short-term growth within the company. The primary reason future orders are down being due to Nike’s decreasing
market share within footwear and apparel to competitors like Under Armour, Adidas and Lululemon Athletica Inc.
Future orders figures serve to be misleading and outdated as it is just one of many revenue streams for Nike and
therefore Nike has decided to stop reporting it after this quarter. Future orders do not take into account Nike’s direct-to-
consumer sales. The contribution from direct-to-consumer sales has been steadily rising over the past few quarters,
making up 24% of the Nike brand’s revenue in Q1 & Q2 of FY16, compared to 22% in FY15. We believe that with the
news that Nike will no longer report “future orders” this will keep analyst more optimistic about short term growth. The
combination of our valuation methodologies, strong Q1 earning results and the attractive growth of both e-commerce
and China sales solidifies our opinion that Nike is a value opportunity with favorable growth prospects.
Fair Value Calculations
To calculate a fair target price, we used two different valuation multiples/methodologies to see the various ranges of
target prices. Our sector calculated our fair value estimates using forward P/E and historical EV/EBITDA multiples.
Using consensus NTM EPS of $2.37 estimates with an average three-year forward P/E multiple of 24.21x we calculated
a fair value estimate of $57.38. Using consensus LTM EBITDA estimates of $13,192 million with an average one-year
historical EV/EBITDA multiple of 19.98x we calculated the fair value estimate of 56.27$. Our sector decided to derive
our target price using the company’s average three-year forward P/E multiple of 24.21x, which calculates a fair value of
$57.38, implying Nike Inc. is trading 18.21% below its intrinsic value.
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APPENDIX
Exhibit I: Three-year price graph
Exhibit II: Three-year historical and forward P/E
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Exhibit III: Three-year historical and forward EV/EBITDA
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DISCLAIMER
This report is prepared strictly for educational purposes and should not be used as an actual investment guide.
The forward looking statements contained within are simply the author’s opinions. The writer does not own any
Nike stock.
TUIA STATEMENT
Established in honor of Professor William C. Dunkelberg, former Dean of the Fox School of Business, for his
tireless dedication to educating students in “real-world” principles of economics and business, the William C.
Dunkelberg (WCD) Owl Fund will ensure that future generations of students have exposure to a challenging,
practical learning experience. Managed by Fox School of Business graduate and undergraduate students with
oversight from its Board of Directors, the WCD Owl Fund’s goals are threefold:
Provide students with hands-on investment management experience
Enable students to work in a team-based setting in consultation with investment professionals.
Connect student participants with nationally recognized money managers and financial institutions
Earnings from the fund will be reinvested net of fund expenses, which are primarily trading and auditing costs
and partial scholarships for student participants.