Nike Stock Analysis

Only available on StudyMode
  • Download(s) : 259
  • Published : October 14, 2011
Open Document
Text Preview
“On January 25, 1964 Nike, formerly known as Blue Ribbon Sports was founded by Bill Bowerman and Phillip Knight. It officially became Nike Incorporated on May 30, 1978”(Nike Business). During the late 70s to early 80s Nike’s initial focus was Track and Field but later expanded into various sports such as : soccer, golf, hockey and basketball just to name a few.” In 1980, Nike entered the decade on the success of its Nike Air technology, and at the end of that year Nike completed its initial public offering (IPO) and became a publicly traded company on the New York Stock Exchange. The reason for going public was typically viewed as a means of raising addition capital without having to borrow, and also increase the company’s profile by having the public be more aware of their company. Also by that time Nike had acquired 50 % market share in the US sports shoe market, which was more than double its closest competitor Adidas”(Nike Business). Other major competitors in the shoe market included Rebook, Converse and Fila, but in 2003 Nike acquired Converse which earned them a greater share of the market. Nike is now the leading apparel company in the world since its expansion into the clothing market. They have a wide range of target audiences but the main focus is on people who are active and enjoy high quality athletic goods, especially footwear. “Nike also believes in the ‘big ad, big athlete’ philosophy to help market their product, and this had proven to be very successful over the years”(Nike Business). Consumers synthesize the Nike brand name with success because of the athletes who typically endorse the product are very successful. “Nike intends to grow its business from $19.2 billion to $27 billion by 2015. Nike plans to target the emerging global middle class, leverage digital media (including e-commerce and NikeID customization programs) and create more retail experiences, both with partners and in its own stores. Nike also plans to grow its Nike affiliate...
tracking img