B. The Industry Nike’s NAICS code is 316210 and manufactures rubber and/or plastic footwear ranging from athletic shoes to everyday footwear. Shoes for children, men and women are manufactured. Nike also sells athletic clothing including: shirts, shorts, undergarments, and jackets. Gear such as wristbands, socks, balls and bags are sold as well. Nike has seen a strong increase in demand for its products. The market is split into men’s women’s and children’s. Nike has a global share of 40 %. According to Nike, Inc.’s website their “brands propelled double-digit revenue growth on a currency neutral basis, and diluted earnings per share grew faster than revenue due to gross margin expansion, a lower tax rate and a lower average share count.” As a whole, Nike’s revenue has increased by 9 %t. There is a great potential for growth. Future orders for Nike have been projected to total $9.9 billion which is 6 percent higher than last year. “Nike Brand inventories increased 4 %” (Nike, Inc.). This is to account for future demand which shows there is a potential for the company to grow. The market is separated into four regions including Europe, Asia Pacific, North America and the rest of the world. The region with the highest per capita consumption is Asia Pacific. It has produced 87% of global footwear. Nike has factory outlets, stores and even online websites to distribute their products. “We sell our products to retail accounts, through NIKE-owned retail stores and internet sales, which we refer to as our “Direct to Consumer” operations, and through a mix of independent distributors and licensees, in over 170 countries around the world” (Securities and Exchange Commission). Nike’s distribution centers in the United States including: Greenland, New Hampshire, Foothill Ranch, California, and Ontario, California. A team of athletes, trainers, orthopedist and other experts work with Nike to ensure all safety regulations are being followed. Products are tested during the developmental process and are evaluated.
Nowadays, pressure to make everything “green” is at an all-time high and this includes products such as the one’s sold by Nike. Societal concerns may include the economic state. People may think that spending money on shoes and apparel may not be necessary and may result in lower sales. Nike has also drawn concern over the use of child labor and sweatshops. Nike is taking action to help encourage the elimination of sweatshops through policies and strict procedures. NAICS (2012), “NAICS Code Description,” URL: - search/naicsdescription.php?code=316210 . Date Accessed: April 2, 2013. Securities and Exchange Commission (2011), “Nike, Inc. Commission File,” URL: . Date Accessed: April 2, 2013.
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- Spring '13
- Marketing, Athletic shoe, Nike, Inc., Jordan Brand