Group 4:Josh Fernino

Brent HareVictor

HemmatiLance

HollisterChris

KerschenTy Parasiliti

Vincent Ukwu

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.

LeBron James, Tiger Woods, Mia Hamm have been recognized as many of today's

sportsImages that are associated with Nike .

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

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

worldwide.

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

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

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

“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

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

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

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

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

2008Nike 5.47

Adidas Group 2.41Under Armour 4.63

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.

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.

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.

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

Designed Employee Networks to separate them from their competition

Employee Networks promote diversity within the organization

Intended role of network:Foster professional developmentEnhance work performance Identify mentorsAssist in recruiting diverse professionalsDevelop community interactionEncourage increased teamwork

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

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.

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.

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.

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.

Nike has been known for their endorsements of high profile athletes.

Examples included:Michael JordanLeBron JamesKobe BryantTiger Woods

But, some investors worry about Nike’s star endorsements.

Nike is likely to cut the 2009 marketing budget

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.

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.

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.

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.

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 followingAuburn University South Carolina UniversityUniversity of UtahUniversity of DelawareUniversity of HawaiiUniversity of South Florida

In 2008 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).

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.

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.

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.

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.

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

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.

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.

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.

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.

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

Nike has built there competitive advantage to the highest form possible.

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