c 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 profile in the international market, and ranked number one among American athletic shoe manufacturers in 1990. Annual rates of change for the five years ending 1996 were an impressive 17.5 percent for sales and 13 percent for profits; over the ten-year period ending in 1996, sales increased at an annual rate of 18 percent while earnings increased at 28 percent (Chappell, 1997, p. 1670).
Nike markets athletic shoes in distinctive and fashionable styles to adults. The shoes are well made and are designed for the various demands of different sports. Altogether, the company markets 300 models of shoes in 900 color combinations for 20 sports, including hiking, tennis, general fitness, running, basketball, cycling, volleyball, baseball and walking. In addition, the company also markets the casual footwear under its Cole-Haan subsidiary. Recent product introductions have left the core athletic shoe business and include sports clothing, additional casual shoes, and hiking shoes.
Industry Analysis-Recent Performance
The domestic footwear market encountered four years of stagnation that ended in the mid-1990s. During that time, Nike adopted a strategic position of maintaining low inventory levels, with the result that the company kept low inventory costs and outperformed the rest of the market (Dukesherer, 1996, p. 4). Sales declines in the company's overseas markets, including France, Germany and Japan, also put downward pressure on the company's overall growth and revenue potential during that time.
Buyers of athletic footwear are often not using the shoes for athletic purpose...