Industry Analysis-Recent Performance
Industry Analysis-Substitute Products
Common Size Balance Sheet, 1995-1996
Income Statement Information, 1994-1996
Common Size Income Statements, 1994-1996
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 decide whether it wants to remain only a participant in the footwear industry, or whether it wants to expand its activities into other markets, as well. It has enjoyed strong success in the apparel industry, but footwear manufacturers as a whole still command only a small fraction of this potentially lucrative market.
Nike has demonstrated an ability to effectively market its products both domestically and internationally, and has established a structure which enables it to do so profitably. Building on this structure to enter the apparel market, and using this structure to continue to expand its global operations offers strong potential for success in the long-term for this organization.
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 athleti...