Nike Financial Analysis

Financial Analysis: Nike

Coley Argue

Grand Canyon University

Financial Analysis: Nike

Nike is an American multinational company; it is also the global market leader of the sports footwear, apparel, and equipment industry. Over the years, the company has managed to redefine the industry and this continuous innovation has allowed the company to sustainably grow and develop (which in turn has made it possible for the company to diversity and thus become more and more profitable). This brief document seeks to assess the company’s financial position in the context of its goals, strategies, and its most recent 4-year plan for promoting global growth.

Apart from being the global market leader in its industry, Nike’s goals ultimately come down to driving global growth and profitability through innovation and international expansion. It is also important to highlight that the company has sustainability as one of its core goals. The company recognizes that it competes in an increasingly competitive and globalized market place, and so it turns to innovation and quality to enhance its value proposition; it turns to international expansion and sustainability to consolidate its position as market leader.

As already mentioned, Nike’s strategy revolves around international expansion and product innovation. At the same time, it is important to highlight that the company has made changes to its sales and marketing strategies. First, the company modified its sales strategy by altering its sales mix, moving in the direction of its core business units (e.g. the NIKE Brand) and the design and manufacturing of its higher margin direct-to-consumer products. Second, the company has made alterations to its marketing strategy in specific markets. For example, product positioning in China presents Nike as a premium brand, which is a different brand positioning than that pursued in North America and Europe.

Over the years Nike has become a global leader in the industry of sports...