Nike As A Power Company Of The World
Nike is one of the most known fitness apparels of sports and training. I have always been a Nike buyer ever since I started playing sports in middle school. Nike products for me provides the comfort and style I want to use for wearing it. Nike products can be found and displayed almost everywhere you go worldwide and are bought worldwide. The Nike check sign logo is well known and can be distinguished from its competitors. Most sports teams choose from Nike, Adidas, and Under Armor brands for their athletes. All three are known and loved for their marketing strategies, and the way they connect to their customers. Most athletes would choose between Nike and Adidas since it is advertised with the big-name athletes and professional teams. Nike has been leading the world in sales for years and does not look on being beaten out because of how they promote their business, the big-name athletes that sponsor them, and the product durability and comfort provided. Nike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon Sports. Their modest goal then was to distribute low-cost, high-quality Japanese athletic shoes to American consumers. The company name comes NIKE, pronounced NI-KEY, is the winged goddess of victory in Greek mythology. It employs more than 33,000 people globally, including more than 5,500 at its worldwide headquarters in Beaverton, Oregon. It sells products in more than 180 countries around the globe, and it reported revenues of $19.2 billion for the fiscal year ending May 31, 2009.
Nike’s main driver is in its emphasis on sports; however, it is in the apparel industry. At the end of fiscal 2011, Nike, Inc.’s affiliate businesses contributed around $2.7 billion of the company’s $20.9 billion in revenue (Bowerman, 2011). In this fast-paced industry run, Nike tops the apparel world beating out a fashion icon in Ralph Lauren, Jansport, The North Face, Wrangler, Timberland, Calvin Klein, and Tommy Hilfiger (Fortune, 2012). The fact that NIKE is able to beat out these large businesses shows just how much product they sell, keep in mind the prices NIKE sell their product for compared to these organizations. The competition existing in an industry arises out of forces that make the industry attractive for investment. These forces affect the costs, prices of its products thus affecting its profitability. The threat by these contractors is moderate. Since NIKE has been in business so long it has shown they can compete with the best and still profit at the top. Nike sources most of its products from independent contractors in China and Taiwan (Edgar Online 4). China makes up a large amount of the product sold in the U.S. thus making Nike the world’s no. 1 shoemaker. It designs and sells shoes for various sports including baseball, golf, cheerleading, volleyball, tennis, and football. Almost every athlete dream of becoming a NIKE athlete because they know becoming one would open a lot of doors for other sponsors. Nike uses a “Make to Stock” customer order that provides a fast and reliable service to their clientele from their stock. Nike operates Nike Town shoes, Nike factory outlets, and Nike Women shops. Nike provides it services throughout the US and in more than 180 countries. Nike is strong at investigation and expansion, as is demonstrated by its developing and ground-breaking product range.
Nike arranges a lot of plans to reach their goals with their immediate users, athletes and sportsmen. This marketing strategy of Nike is so successful because of its competence and ability to reach many athletes and celebrities. Once the sports team manager displays a kind of track shoes manufactured by Nike, there is no choice but to purchase them. Nike representatives do a great job in going and showing their product and closing deals with large businesses. A sports team can purchase the track shoes in a large number and deliver them to the members of the team. The company does this by associating triumph with apparel. Since NIKE does this so good, it had made them a power company of the world.