Nike is one of the most successful manufacturers of athletic footwear, competing with Reebok, L.A. Gear and Adidas, as well as with manufacturers of casual footwear. In recent years, the company has expanded into the apparel market, to lessen its dependence on the highly fickle athletic footwear market, and has also seen significant opportunity in the international arena. Nike survived the stagnation in the industry of the early 1990s well, and is now one of the strongest companies in the industry from a financial standpoint.
However, the company must now faces challenges which did not exist in this industry only a few years ago. The recent upheaval in financial markets in Asia (one of Nike's primary markets) has brought into question the company's ability to continue its global expansion plans. In addition, there is currently a worldwide glut of shoes, causing price and profit pressure throughout the industry. This research considers Nike's strategic position in light of various tools used in strategic management, including traditional competitive analysis, strengths and weaknesses, and financial analysis.
The company was begun in 1964 as Blue Ribbon Sports; the name was changed to Nike in 1978. It began as a partnership between an MBA candidate and a former track coach who had manufactured running shoes in his spare time. The company built its reputation on its technological breakthroughs in athletic shoes, and helped to introduce specialized shoes for different sports. Prior to companies such as Nike bringing forth this concept, most athletes used general purpose athletic shoes regardless of the sport in which they were participating, or the strains it put on their feet.
In addition to technology, Nike also brought comfort and fashion to the industry, although Reebok, a competitor, was more closely attuned initially to the effect that stylish shoes could have on fashion-conscious consumers. The company has a high p...