COMMON STOCK INVESTMENT ANALYSIS: Nike and Reebok

Both Nike and Reebok participate in the same industrial classifications. Financial performance for each company is reported with other firms competing in the shoe industry, although both Nike and Reebok also design, develop, and market apparel products (Rindos, 1992a, p. 1661; Rindos, 1992b, p. 1662). Both firms market high-quality leisure and athletic footware products.

The data required for this comparative analysis were obtained from published sources. Indexes of business and financial publications were consulted to identify appropriate sources. Additionally, the Value Line Investment Survey and The Wall Street Journal were consulted to obtain the most recent and detailed financial data.

The Nike equity stock traded in the stock market is the company's Class B common stock (Rindos, 1992a, p. 1661). The stock is traded on the New York Stock Exchange, where its identifying symbol is "NKE" (Rindos, 1992a, p. 1661). Reebok's common stock is also traded on the New York Stock Exchange. The stock's identifying symbol is "RBK" (Rindos, 1992b, p. 1662).

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ivity; the company placed its new shoe on the feet of the "slim and sexy" instructors of aerobics classes (Sedgwick, 1989, p. 31). Reebok, significantly, did not attempt to place its shoes on television aerobics instructors, but, rather, on those instructors who were in front of actual aerobics classes around the country. Sales zoomed in the last-half of 1983, and, within two years, Reebok had displaced Nike as the industry leader. Reebok created an opportunity for itself by going outside the athletic shoe segment of the shoe market to develop its market share. The company actually gained more customers from the casual shoe segment than it did from competitors in the athletic shoe segment (Sedgwick, 1989, p. 30). This strategy was given huge boosts by Cybill Shepherd's wearing of Reeboks to the Emmy Award Ceremony, and by Mick Jagger wearing Reeboks in a rock video (Sedgwick, 1989, p. 31). The company also displayed marketing creativity in 1986, when one order received from a Korean source arrived with shoes made of wrinkled leather. In 1986, wrinkled leather became the fashion look in athletic/casual shoes (Sedgwick, 1989, p. 31). From the time it was founded in 1979, Reebok International, as licensee for the Reebok nam
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Approximate Word count = 1698
Approximate Pages = 7 (250 words per page)

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