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Nike- an Ecnomic Report

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Nike- an Ecnomic Report

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  • October 2009
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CHAPTER 1: COMPANY BACKGROUND
Nike is the world's leading designer, marketer and distributor of athletic footwear, apparel, equipment and accessories for a range of sports and fitness activities. Nike is headquartered in Beaverton, Oregon and owns facilities in Tennessee, North Carolina and The Netherlands. The company operates in the Americas, Europe, the Middle East, Africa and Asia Pacific. Nike’s primary product focus is athletic footwear designed for specific-sport and/or leisure use. Nike is the world's largest supplier of athletic footwear, with an estimated share of 50% of the $20 billion market. Sports apparel and equipment are also sold under the Nike banner. Nike is classified under the Footwear manufacturing and marketing industry with a Standard Industrial Classification Code (SIC) 3021- Rubber and Plastics Footwear and its primary North American Industry Classification System (NAICS) code is 316211 - Footwear Manufacturing in the US. CHAPTER 2: MARKET DEFINITION

Products: Nike primarily caters to the vast market for athletic footwear and athletic apparel in the world. It is the largest seller of athletic footwear worldwide by sales. Its operations can be divided into three product lines: footwear, apparel and equipment. Footwear is Nike's largest product category, representing about 52% of the company's revenue followed by apparel product line (28%) as shown in Exhibit 1.1 (Refer Exhibits). In addition to its namesake Nike brand, the company also develops and markets footwear and apparel products under the Cole Haan, Converse, Hurley International, and Umbro Inc. brand names. Geographical segmentation: Nike sells its products in over 180 countries worldwide through its company-owned retail stores and internet sites, as well as through retailers. The company divides its sales into four regions across the globe- the United States, Europe, Middle East and Africa (EMEA), Asia Pacific, and Central and South America. In 2008, these regions accounted...