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In: Finance

For your company Nike: Firm, Industry and Environment (please be brief, this IS a finance and...

For your company Nike:

  1. Firm, Industry and Environment (please be brief, this IS a finance and accounting course not a history class!)
    1. Description of firm and its management
    2. Discussion of the competitive environment
    3. Economic climate and outlook
    4. Other factors as appropriate, e.g. governmental regulations, labor issues, litigation pending

(Can be answered in bullet points (3 minimum))

Solutions

Expert Solution

Industry:

principal business activity is the design, development and worldwide marketing and selling of athletic footwear, apparel, equipment, accessories and services. NIKE is the largest seller of athletic footwear and apparel in the world. We sell our products through NIKE-owned retail stores and through digital platforms (which we refer to collectively as our “NIKE Direct” operations), to retail accounts and a mix of independent distributors, licensees and sales representatives in virtually all countries around the world. Virtually all of our products are manufactured by independent contractors. Nearly all footwear and apparel products are produced outside the United States, while equipment products are produced both in the United States and abroad.

Competition:

The athletic footwear, apparel and equipment industry is highly competitive on a worldwide basis. We compete internationally with a significant number of athletic and leisure footwear companies, athletic and leisure apparel companies, sports equipment companies and large companies having diversified lines of athletic and leisure footwear, apparel and equipment, including adidas, Anta, ASICS, Li Ning, lululemon athletica, Puma, Under Armour and V.F. Corporation, among others. The intense competition and the rapid changes in technology and consumer preferences in the markets for athletic and leisure footwear and apparel and athletic equipment, constitute significant risk factors in our operations.


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