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product sales in the near future. However, they also market shoes designed for outdoor activities, tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities, hiking, and other athletic and recreational uses.They sell active sports apparel covering most of the above categories, athletically inspired lifestyle apparel, as well as athletic bags and accessory items. Nike apparel and accessories are designed to complement their athletic footwear products, feature the same trademarks and are sold through the same marketing and distribution channels. They often market footwear, apparel and accessories in “collections” of similar design or for specific purposes. They also market apparel with licensed college and professional team and league logos.They sell a line of performance equipment under the Nike ® brand name, including sport balls, eyewear, skates, bats, gloves, and other equipment designed for sports activities. They also have agreements for licensees to produce and sell Nike brand swimwear, women’s sports bras, cycling apparel, maternity exercise wear, children’s clothing, school supplies, timepieces, and electronic media devices.11
2.3 Nike business modelA business model is a critical element for any startup success as it is what unlocks value in the long-term. In a way, developing a business model isn’t only about monetization strategies but it is how the company chooses to operate their business.Based on the statement that been made by [Gen17], he stated that Nike makes money by primarily selling footwear via wholesale customers that distribute the Nike brands across the globe. As of 2017, over 60% of revenues came from footwear and over 28% in apparel. The remaining comprised equipment and the Converse Brand. One of the critical ingredients of Nike business model success is its ability to create demand for its products. In fact, as of 2017 Nike spent over $3.3 billion in demand creation campaigns.Furthermore, he also stated that Nike has six significant distribution centers located inMemphis, Tennessee, two of which are owned and four of which are leased. Nike is supplied by approximately 127 footwear factories located in 15 countries. The largest single footwear factory accounted for about 8% of total 2017 Nike Brand footwear production. All of Nike footwear is manufactured outside of the United States by independent contract manufacturers who often operate multiple factories. In 2017 Vietnam, China and Indonesia manufactured approximately 46%, 27% and 21% of total Nike Brand footwear, respectively.12
2.4 Nike corporate strategyFrom the statement that been made by [Placeholder1] he stated that Nike corporate strategy is to become the leader in their market. There are many ways that Nike use in order for them to become a leader in the market. Firstly, Nike has established their brand and logo through extensive marketing investment. There is statement that been made by [Chr15] that stated there is no company in the world spends as much money on sports sponsorships as Nike, which has spent a staggering total of $8 billion since 2002 alone. This shows that Nike