in the late 1990s as the company faced adverse publicity regarding labor practices in Asia, but this policy of producing shoes overseas keeps the company's cost structure in line with the industry as a whole. As the market leader, Nike can also command favorable terms from its suppliers.
Nike dominates the athletic footwear industry, although Adidas is also a strong participant. Other competitors include Reebok and L.A. Gear. Nike has a strong financial position relative to the industry as a whole, with higher gross margins and significantly higher net profits than its competition. In addition, its long-term debt is well beneath the industry average, since it has eliminated nearly all of its long-term obligations. Nike also has the advantage of having strong brand recognition for its products, a position that it intends to maintain through its use of sponsorship of international soccer teams who perform well
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