Economic Factors Texas Tech University德克萨斯理工大学经济因素.pptxVIP

Team 3: Riley DrummondAndrew RichRick HensonJames EverettBrittany FowlkesAnn-Marie NannyKara vickers Nike, Inc. Company Background Founded Jan. 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight officially became Nike, Inc. on May 30, 1978 The largest publicly traded sportswear equipment supplier the leading supplier of athletic shoes apparel w/ 2010 revenues of over $19 billion Operates over 20,000 retail accounts in the U.S. alone and is known for sponsoring some of the most high profile athletes and sports teams around the world with trademarks of “Just Do It” the Nike Swoosh logo Industry Profile In 1998, American consumers spent approx. $38 billion purchasing more than 1.1 billion pairs of shoes Athletic footwear accounts for 35% of all footwear purchases Due to recession sales in athletic footwear dropped, however, sales are back on the rise Nike is combating this by continuously creating new, cutting edge, quality styles at reasonable price points Industry Profile Sales are improving in the areas of running shoes, cross-trainers, basketball shoes slightly but surely, so companies with strong brands such as Nike, are increasingly turning to international markets for growth Nike Adidas pretty much set the standard currently with Reebok, Puma, Under Armour as lurking competitors Barriers to entry: -There are a few, the athletic footwear industry is a very competitive industry with a mature market and very well established leaders of the industry, namely Nike -Economies of Scale: must compete on all levels such as reasonable pricing, efficient production, and high quality products. This is hard to accomplish without the resources of an already est. manufacturer, which is what Nike has capitalized on Industry Profile Leaders in the footwear industry, such as Nike, have made the industry what it is today it will forever be hard to compete with them Industry is stuck in a red ocean due to it being already so saturated uneasy for ne