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Category: Business and Industry
Date Submitted: 05/05/2013 09:26 AM
Nike: The Global Leader
BUSI 433
September xx, xxxx
Nike: The Global Leader
Nike, Inc.’s principal activities are to design, develop and market high quality footwear, apparel, and equipment and accessory products. It sells its products to retail accounts, through Nike owned retail including stores and Internet sales and through a mix of independent distributors and licensees, in over 170 countries around the world. It operates in the United States, Europe, Asia, Africa and Canada.
Nike, Inc. competes on a number of fronts: footwear, non-store retail, Internet retail, apparel and sporting goods and equipment. Its apparel business competition is fragmented but its footwear business is consolidated where only a few viable competitors exist. Nike has competitors everywhere it looks. They exist in its small share of apparel and in its large share of footwear. One might assume that Nike could influence the apparel industry simply because of its strength in footwear; however, market share numbers show differently.
According to US Athletic Retail Market Report, 2009 Edition, Nike had approximately 31% of the global market share of athletic footwear at yearend 2008 and Adidas, Nike’s biggest competitor, had only 16% of the share. The other 53% of the market share was divided among Puma (7%), New Balance (6%), ASICS (5%), Converse (4%), K-Swiss (2%), Sketchers (5%). The remaining share (18%) was divided among a variety of other smaller athletic shoe companies. ("Us athletic retail," 2009)
Nike’s global market share of athletic apparel, however, looked very different. Nike had only approximately 7% of the market. Adidas had 6%; Reebok, Quicksilver, Columbia and Puma each had 2%; and Quicksilver had 3%. The remaining market share, a huge 75%, was spread among a variety of smaller companies. One such company, Under Armour, based in Baltimore, Maryland, cannot be ignored. Its products resonate with consumers and are growing rapidly in the marketplace....