Nike has become one of most recognizable

companies in the entire world

Nike is now the most popular brand in, not

just America, but through out the whole

world.

Nike offers all the athletic shoes, clothes,

and other accessories one would need to

wear in their certain sport.

LeBron James, Tiger Woods, Mia Hamm

have been recognized as many of today's sports

Images that are associated with Nike .

Nike’s target market for their shoes, clothes

and other accessories are males and females

between 18 and 35 years old.

Nike’s Competitive market has expanded and

dominated in the international market.

Nike disburse TV ads during professional and

college sports events, prime-time programs,

and late-night TV programs

The graph below indicates how Nike

manufacturing and sales compete with their

closest rivals in the early 2000’s worldwide.

A financial analysis helps us compare a

company’s current performance with it’s past

performance

Gives us an idea of how the entire industry is

performing as well

Liquidity ratios, profitability ratios, and

leverage ratios will give us a good basis of

how Nike, Adidas Group, and Under Armour

are performing

Indicator of a firm’s short term liquidity

Above 1 is usually considered “good”

Nike and Under Armour have excellent current ratio scores, as the Adidas Group is abnormally high

0

2

4

6

8

10

12

14

16

18

2006 2007 2008

Nike

Adidas Group

Under Amour

Shows how well the working capital is being used

A higher ratio is usually an indication of better cash collection

management

As we can see, Under Armour has had a very rapid increase since

2006

Nike and Adidas Group have good, steady ratio numbers

0

1

2

3

4

5

6

7

8

9

10

2006 2007 2008

Nike

Adidas Group

Under Armour

“Mainstay” for all profits made by the firm

Higher the better

Nike trails for below Under Armour and Adidas Group

Under Armour has a very good gross profit margin

38%

40%

42%

44%

46%

48%

50%

52%

2006 2007 2008

Nike

Adidas Group

Under Armour

Also known as return on investment

Shows profitability of company based on total assets

Nike outperforms its competitors with a drastic increase in 2007

and 2008

0,00%

2,00%

4,00%

6,00%

8,00%

10,00%

12,00%

14,00%

16,00%

18,00%

2006 2007 2008

Nike

Adidas Group

Under Armour

Shows profitability of company

Gives the return with the money shareholders have invested

Nike leads the competition by a modest amount, as Under Armour has a sharp decline in the recent years

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

30,00%

2006 2007 2008

Nike

Adidas Group

Under Armour

Measures a firm’s financial leverage

Can also be looked at as a measure of how much is being financed through debt than equity

A high number for the debt equity ratio is not attractive to investors

Under Armour is the most appealing in this group for the debt equity ratio

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

2006 2007 2008

Nike

Adidas Group

Under Armour

The Altman Z Score is a good way to evaluate a company’s credit risk

A score of 1.81 or less is not good

A score of 2.67 or greater indicates that a company has little bankruptcy risk

2008

Nike 5.47

Adidas Group 2.41

Under Armour 4.63

The strengths that Nike takes pride in is

getting the top athletes to wear and sponsor

their products rather than events or

competitions as much.

The basis of this comes from the idea that

people tend to remember the brand worn by

players and not the brand that sponsors the

event that the players perform at.

The market that Nike participates in is very

price sensitive. Most of Nike’s income comes

from the selling of its products to retailers.

This usually shows that margins tend to get

squeezed as retailers try to get low price

competition on Nike’s products.

The technology is always changing in the

retail market, as well as the sporting market.

The ability to have the most recent fashion

trends involved in their sporting equipment,

sunglasses, shoes, and clothing is crucial to

generate more money.

Nike has a large global market and a large

acceptance of their product all over the

globe.

The retail sector is becoming substantially

price competitive. Ultimately it means that

consumers are shopping around for a better

deal.

The consumer now maintains the control

over the manufact

So if a consumer wanted to find the lowest

price on the same exact product, then the

consumer could just walk from store to

Designed Employee Networks to separate

them from their competition

Employee Networks promote diversity within

the organization

Intended role of network:

Foster professional development

Enhance work performance

Identify mentors

Assist in recruiting diverse professionals

Develop community interaction

Encourage increased teamwork

For every team to be high-performing,

diverse, and inclusive

To achieve this vision, the strategy is to:

cultivate diversity and inclusion to develop

world-class, high-performing teams

ignite change and inspire critical conversations

around diversity, inclusion and innovation

create venues and environments for open

dialogue, diverse opinions and a multitude of

perspectives

Adidas is about to launch a new innovative

campaign praising the Team Spirit in sports

"It takes 5IVE" - celebrating the concept of

team over individual or "we over me"

Nike has always been big on marketing the

individual as the passport to selling

basketball shoes.

Nike owns over 80% of the U.S.'s $2.6 Billion

basketball market and its share is also

growing year over year

Adidas’ share of the market is only about 14%

Adidas has a growing market share, but it

remains to be seen whether it will grow at

the cost of Nike, or other lesser brands.

NIKEiD is a sub brand which allows customers to design and personalize their Nike footwear, and is available online at NIKEiD.com.

The NIKEID brand also has boutique stores in New York City, London, Paris, Osaka, and Berlin. It has been reported that the NIKEID business has more than tripled since 2004. Presently, there are over 3,000,000 unique visitors at NIKEiD.com per month.

On March 10, 2009, Nike introduced the ultimate apparel system for select college teams as they march into tournament madness with superior innovation from head to toe.

Nike is introducing a 360 degree approach complete with new base layer apparel, unique uniforms and customized footwear.

Nike will outfit the following University’s:

Duke

Gonzaga

The University of Memphis

Michigan State

University of Oregon

Nike Pro Combat is ergonomically designed to provide basketball-specific protective padding without restricting mobility on the court for maximum performance.

The Nike Pro Combat Deflex short provides padding over the hip and thigh, and the Nike Pro Combat Deflex elbow pad provides superior protection.

Both the shorts and sleeve will showcase vibrant team colors for each of the aforementioned schools.

Using Nike Aerographic technology, an engineered mesh providing zoned cooling and dramatically reducing the fabric density, the weight of the jersey is reduced by 31 percent compared to current uniforms.

The Aerographic jerseys debuted on the USA Senior National Team during the 2008 Olympic Games.

Nike has been known for their endorsements

of high profile athletes.

Examples included:

Michael Jordan

LeBron James

Kobe Bryant

Tiger Woods

But, some investors worry about Nike’s star

endorsements.

Nike is likely to cut the 2009 marketing

budget

One of Adidas biggest Marketing schemes was

to merge with Reebok to compete with the

powerhouse Nike.

The Germany-based global power announced

a $3.8 billion deal to buy Canton, Mass.-

based Reebok, uniting two of the world's top

sports companies and creating a much

stronger challenge to Nike, particularly on

the global giant's home turf: the prime North

American market that accounts for about

half of the category's sales worldwide.

Adidas Group pro league sponsorships include:

Reebok has a deal with the NFL to exclusively design, market, and sell all on-field uniforms and licensed consumer apparel.

The NHL will also add the Reebok logo to its uniforms.

Reebok in 2001 signed a 10-year deal to outfit the NBA, WNBA and NBA Development League.

As of the 2008 football season, Reebok still has their logo on all NFL jerseys.

In an industry known for motivational

advertising, Adidas' current theme is

"Impossible is nothing."

It also dominates soccer, having endorsement

deals with superstars such as David Beckham

and sponsorship of top events including the

FIFA World Cup.

According to their Annual Report, their marketing and promotion efforts begin with a strategy of selling their products to high performing athletes and teams on the collegiate and professional levels.

They implement this strategy through collegiate sponsorships, individual athlete agreements, and by selling their products directly to team equipment managers and to individual athletes.

As a result, their uniforms, batting gloves, socks and other items of apparel are seen on the field, giving their products exposure to various consumer audiences, through television, magazines and live at sporting events.

This exposure to consumers helps them establish on-field authenticity as consumers can see their products being worn by high-performing athletes.

They are the official uniform supplier of the

University of Maryland and Texas Tech

Football Team

They supply uniforms, sideline apparel and

fan gear for the following

Auburn University

South Carolina University

University of Utah

University of Delaware

University of Hawaii

University of South Florida

In 2008 hey launched the New Prototype cross-trainer shoe.

Analysts hailed the launch as successful, and the New Prototype outperformed Nike's new cross-trainer line, which was backed with a hefty campaign of its own

(with a tagline "My better is better than your better," which many observers took for trash talk).

Nike has historically had some of the most

cutting-edge products on the market.

For example, Nike teamed up with Apple and

launched the “Nike + iPod” line of products.

This technology allows consumers to connect

their iPod devices to sensors inside the shoes

to record time, distance, pace, and calories

burned.

Due to cheap labor in foreign countries, Nike

outsources virtually all production to other

areas of the world.

This behavior has become an industry

standard, with all major competitors also

outsourcing production.

Consequently, no competitor has a major

advantage in manufacturing.

One of Nike’s most revolutionary technologies comes through its footwear cushioning.

The cushioning systems in a shoe serve to distribute pressure evenly among the foot, absorb shock, and deliver comfort to the user.

Nike has patents on four cushioning technologies: Nike Air

Nike Zoom

Nike Air Max

Nike Shox

Although some of Nike’s earlier patents are beginning to expire, they still hold patents on the newer technologies.

In the past, competitors have tried to match rival Nike’s cushioning systems, but none have matched their success.

Nike is the single largest producer of athletic

footwear and apparel, allowing them large

cost advantages over competition.

Larger companies tend to have major

economies of scale over smaller companies in

areas such as distribution and marketing.

Nike is so large that many of the company’s

suppliers depend on Nike to remain in

business.

Being such a large corporation, Nike relies

heavily on IT in order to manage its supply

chains.

Nike admits that it is at serious risk if a

breakdown were to happen in these systems,

resulting in bad effects on their business and

financial condition

This puts them at a disadvantage against some of

their smaller competitors, who do not rely so

heavily on IT

The very fact that they are such a large company

makes them more likely to have these problems

To move its large and global organization into

organizational learning and sustainable

practices.

Their goal is to spread the understanding of

sustainability throughout the company and

demonstrate its value to the business and its

customers.

In 21st century, you must successfully

integrate corporate responsibility into the

heart of the business.

Nike was the clear market leader, with 31% of the global athletic

footwear market in 2007 (graphs below). Looking at the market in the

United States, Europe, or Asia reveals a similar picture: Nike's market

share in these regions hovers around 36%, followed by Adidas at 20%,

with Puma and New Balance as distant third and fourth. The global

market for athletic footwear is concentrated, with the top four firms

controlling 71%. By contrast, the market for athletic apparel is both

larger ($49.5 billion in 2005) and more diffuse; the top five firms

control only 27% of the market. Nike is, however, also the global leader

in apparel, with a 7% market share in 2007.

Nike strives to minimize the environmental impact of each product throughout its product life cycle from design to manufacturing, post-consumer use and ultimate disposal.

NEAT programs now recycle shoe manufacturing waste.

Nike shoes produces solid waste. The largest of these by weight is cured rubber used in shoe soling. Nike employees engineered a creative way to keep it out of landfills and convert it into more outsoles,called REGRIND, is available to the public.

Nike's products are viewed as higher quality and command higher prices than its competitors, sometimes though consumers do not agree to this line of thinking.

To substantiate its high quality/high price lines, Nike is placing emphasis on the latest technology and applying innovation towards the development of new products, particularly the Nike Alpha Project which is a new line of athletic shoes. In the past, Nike has overlooked the mid to lower price point products, which could be a possible weakness too.

Formulating a strategic plan for the

corporations’ future is key in determining the

all around goals of the company.

Nike, with there marketing, innovation,

technological advancements, and equitable

manufacturing departments, has created an

al around dominant strategic plan

Nike has built there competitive advantage

to the highest form possible.

Nike has shown that they are a true force to be

reckoned with.