Nike started out just as plan developed in order to satisfy course work at Stanford University. Mr. Phil Knight a graduate student at Stanford University and a long-distance runner decided that he would make low cost running shoes in Japan and then sell them in the US. Knight solicited the assistance of a past coach Bill Bowerman to assist him in his business venture and in 1964 they started Blue Ribbon Sports. Knight called his first shoe Tiger and began distribution at track meets. Blue Ribbon in 1971 earned it's "swoosh" and Knight introduced the first Nike brand line. In 1978 the Blue Ribbon became Nike and each year their profits grew steadily. Due to Nikes concentration in casual shoes in the 1980's, they missed the trend to aerobic shoes and fell behind allowing Reebok to control the market. Due to poor management in the years following and proceeding Reebok's take over things fell apart. Phil Knight repositioned and reestablished Nike following the bumpy years in the 80's. In 1988 Nike purchased Cole Haan for $64 million which allowed them to increase casual footwear sales by 16%, they also purchased the accessories company in 1990. Nike even expanded by opening their own retail store "Nike Town" in 1990. Nike distributes to 123 retail stores in the US and also in 52 retail stores in countries such as, the UK, Japan, France, Italy, Spain, Germany, and Canada.
II. Situational Analysis
A. General External Environment
o Political/Legal Changes
Due to the industry's strong global presence, there are many legal restraints that must be taken into consideration. There are positive aspects such as those provided by NAFTA and GATT such as, reduced import/export duties when operating in Mexico and Canada, and access to international markets and tariff cutbacks as provided by GATT. However with the new formation of the European Union and the introduction of the Euro, has increased European... [continues]
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