Nike

Nike

May 02, 2012 MGT 502 Professor Landuyt

Patrick Flaherty

Company Overview Nike, Inc. (NKE) is the world’s largest seller of athletic footwear, apparel, and equipment with annual revenues of $20.9 billion. The company was founded in 1972 and is headquartered in Beaverton, Oregon. Nike has approximately 38,000 employees located in 170 countries around the world. The market cap of the company is approximately $44.6 billion. Nike products are sold to retail accounts and independent distributors and licensees and are primarily athletic related, although some of the product offerings are for casual purposes. The majority of Nike products are manufactured outside of the United States. Nike owns other affiliate brands such as Cole Haan, Jordan, Converse, Hurley, NIKE Golf, and Umbro. The organization operates in six geographic areas including North America, Western Europe, Central & Eastern Europe, Greater China, Japan, and emerging markets. There are approximately 363 U.S. retail stores and approximately 393 international stores. US sales accounted for 43% of total sales in 2011, a 1% increase from 2010. Nike designs and develops high quality and innovative products for men, women, and children, in the following top-selling categories: running, training, basketball, soccer, sports-inspired casual shoes, and children’s shoes. Footwear is the top selling product category accounting for 55% of revenue. Nike markets apparel for college and professional sports teams. In addition to footwear and apparel, the company sells equipment products, such as bags, sports balls, eyewear, and timepieces. History The origins of the company began with a Stanford University MBA graduate, Phillip Knight, who imported and distributed Tiger athletic shoes from Onitsuka Co. in Japan and later partnered with a University of Oregon track and field coach, Bill Bowerman, to form Blue Ribbon Sports in 1964. These visionaries experimented with ways to improve the products they imported...