NIKE FINANCIAL ANALYSIS
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The footwear industry is characterized by a small number of large competitors who operate on an international basis. Shoes are not durable goods, and are a necessary purchase for consumers in nearly all countries. Beyond providing protection, shoes--like other forms of apparel--are purchased by consumers because of fashion and other non-economic reasons, and shoes can be discarded in favor of a new pair well before their useful life is over. This is particularly true of athletic footwear; many of those who purchase athletic footwear are not serious athletes, yet they are willing to spend in excess of $100 for a pair of shoes. Despite this, the American market for footwear is considered saturated, and the industry has expanded into the international market. In addition, companies such as Nike and Reebok have also created apparel product lines to diversify their markets (Galeotafiore 1693). The industry underwent significant consolidation in the 1990s: in 1987, the industry included 120 companies, but that number dropped to 84 by 1992. The industry also reduced the number of American manufactur
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Approximate Word count = 777
Approximate Pages = 3 (250 words per page)
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