Nike Competitive Advantage

* 1. MGMT65000 – Strategic Management – spring 2011 Test 1 By: Divya Mishra School of Management Purdue University Calumet Submitted to: Dr. Arifin Angriawan1|Page * 2. Company profile & backgroundNIKE, Inc. is engaged in the design, development and worldwide marketing of footwear,apparel, equipment and accessory products. . It sells its products to around 18,000 retail accountsin the United States and through a mix of independent distributors, licensees and subsidiaries innearly 200 countries. NIKE is the largest seller of athletic footwear and athletic apparel in the world.The Company creates designs for men, women and children. The top selling product categoryincludes running, basketball, childrens, cross-training and womens shoes. It also designs shoesfor outdoor activities like tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling,cheerleading, aquatic activities, hiking and other athletic and recreational uses.Index membership Sector Industry EmployeesS&P 500 Consumer Cyclical Footwear 23,300ProductsNIKE sells sports attire and accessories relevant to each sport mentioned above as well as othersports-inspired lifestyle apparel, like bags, socks, sport balls, eyewear, protective equipment,basic sport equipment, etc.In addition to NIKE’s footwear, apparel, and accessories businesses, the Company sells productsunder other brand names in particular markets. NIKE wholly-owns five footwear and apparelcompanies that specialize in different sports: Cole Haan, Converse Inc., Hurley InternationalLLC, Umbro Ltd., and NIKE Golf. These subsidiaries combined together account for 13% oftotal revenues, $2.5 billion, in fiscal 2009.Manufacturing Footwear & ApparelAll of NIKE’s footwear is manufactured outside the United States in the factories of China,Vietnam, Indonesia, and Thailand and account for 98 percent of total NIKE brand footwear in2009. The main raw materials used in NIKE footwear are rubber, plastic compounds, and