Nike Report

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Executive Summary
Introduction
This report will discuss in detail, the athletic footwear industry, and all aspects of its operations. It will focus on Nike, the industry’s leader, and a selected few of its competitors; Adidas-Salomon and Reebok, Sketchers, and K-Swiss. A brief overview of Nike and its competitor’s company profiles, brand portfolios, and current developments will provide an understanding that leads to an analysis of the external environment. This analysis further discusses the geographic distribution, general environment, industry environment using Porter’s Analysis, Nike’s competitor analysis, its dominant economic characteristics, driving forces, and key success factors. This report will then discuss the internal environment of Nike’s major competitor, Adidas-Salomon and Reebok, and its strengths and weaknesses. These factors will be helpful in creating recommendations and strategies for Nike’s future development. Very pedantic. Make it sound alive! Entice the reader to want to go beyond the Introduction. Industry

This report will discuss in detail, the athletic footwear industry, and all aspects of its operations. It will focus on Nike, the industry’s leader, and a selected few of its competitors; Adidas-Salomon and Reebok, Sketchers, and K-Swiss. A brief overview of Nike and its competitor’s company profiles, brand portfolios, and current developments will provide an understanding that leads to an analysis of the external environment. This analysis further discusses the geographic distribution, general environment, industry environment using Porter’s Analysis, Nike’s competitor analysis, its dominant economic characteristics, driving forces, and key success factors. This report will then discuss the internal environment of Nike’s major competitor, Adidas-Salomon and Reebok, and its strengths and weaknesses. These factors will be helpful in creating recommendations and strategies for Nike’s future development. This paragraph is not needed. The industry overview follows the introduction and should present the history and definition of the athletic footwear industry. Industry Overview

The footwear industry consists of about 100 manufacturers, 15,000 wholesalers, and 30,000 retail outlets, with combined annual retail revenue of $25 billion (Hoovers, 2007). The majority of athletic footwear sales and revenues are generated through large retail segments/distributors such as Foot Locker, Champs, Athletes Foot, Finish Line, and many other physical locations. In addition to this, sales are also generated through online websites such as Eastbay, Amazon, Shoebuy, and Zappos.com. Hoovers states that the demand in the footwear industry is driven by fashion and demographics. The profitability of individual companies depends on their ability to design and market attractive shoe models (Hoovers, 2007). Industry reports who that men purchase more athletic footwear compared to women, and the top purchases are from children. This outcome refers back to the fashion aspect of the athletic shoe-buyer’s intent. In today’s trend, the average athletic shoe is no longer purchased mainly for and by athletes; it is now a fashion statement featured in the hip-hop community. The Apparel & Footwear Industry Survey states that the trend toward retro or classic looks was pronounced, particularly in basketball and running styles. Sales of retro and classic footwear rose 11.4% in 2002, whereas spending on non-retro styles fell about 2.0% (Standard & Poor’s, 2004). Demand is driven by fashion and demographics. The profitability of individual companies depend on their ability to design and market attractive shoe models. Big companies have economies of scale in distribution and marketing. Small companies can compete successfully through superior design or marketing (Hoovers, 2007). Companies

Some of the major companies in the Athletic Footwear Industry are: Nike, Adidas-Salomon and Reebok,...
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