Running head: NIKE 1KELLER BUSINESS UNIVERISTYNIKE Inc. WACC PROJECTPROFESSOR TOM WICHERFINANCE 515LATORA LATSONAPRIL 9, 2016
NIKE INC., WACC PROJECT2Nike Inc., is a company that is a common household name, a globally known organization in the athletic wear industry. The company is well known for importing Japanese footwear. In the US alone Nike is known for apparel as well as shoes. Famous athletes are endorsed heavily with this company, which also brings notice that the global market share is approximately 37 percent. “Nike originated in 1962, a product of the imagination of Philip H. Knight, a Stanford University business graduate who had been a member of the track team as an undergraduate at the University of Oregon. Knight, a business college graduate made contact with a Japanese firm that made athletic shoes, the Onitsuka Tiger Co., partnered with the company to import some of its products to the United States on a small scale. Knight was interested in competing with the German athletic footwear the dominated the American market with possible introduction of the Japanese running shoes. In the course of setting up his agreement with Onitsuka Tiger, Knight invented Blue Ribbon Sports to satisfy his Japanese partner's expectations that he represented an actual company, and this hypothetical firm eventually grew to become Nike, Inc., [Ref16].When the jogging craze in the United States had started to slow down half of the running shoes bought in the United States contained the Nike trademark. The company was well insulated fromthe effects of a stagnating demand for running shoes, however, because it gained a substantial share of its sales from other types of athletic shoes, notably basketball shoes and tennis shoes, thecompany was in a sustaining moment. Nike benefited from strong sales of its other product lines,which included apparel, work and leisure shoes, and children's shoes throughout the years as well.
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