This acts as a hedge in business swings both regionally and with respect to major customers. The company's sales are split between North America (35.2%), Europe (20.4%), Greater China (9.1%), Emerging Markets (10.7%), Central and Eastern Europe (6%), Japan (4.6%) and "other businesses" (13.3%), the latter including for example its Cole Haan clothing line. This diversification has allowed Nike to enjoy strong performance even with the economic downturn, as increased sales in emerging markets almost completely offset sales declines in Western markets. Nike hopes to increase its degree of geographic diversification in the future in order to better insulate itself from regional economic difficulties.
In its supply chain, Nike typically utilizes third-party producers. These producers are typically dependent on Nike for volume. The company's supply chain is focused on three countries primarily, those being Vietnam, China and Indonesia, which account for 94% of Nike's production. Production is also diversified, with the largest factory accounting for only 5% of total footwear production. The use of low cost provider countries is essential in footwear especially, as that product is labor-intensive. This allows Nike to expend significant amounts of money on marketing expenses, which is the single most significant part of the company's value chain.
Nike has also undertaken a significant effort to boost its image. The company had in past come...
Nike: Financial Analysis The relevance of analyzing the financial stability and health of an entity cannot be overstated especially when it comes to the determination of the future performance of the concerned entity. This text undertakes an in-depth financial analysis of Nike, a well-known footwear, equipment, and apparel designer. In seeking to conduct an in-depth analysis of Nike, I will amongst other things describe the company and its operations in significant detail,
Customer Analysis The customers to which Nike will be marketing its new product are women who are interested in the skinny jeans look and also who are interested in being athletic. Not all women are athletes, but many of them are interested in looking fit and trim. Because they want to maintain a healthy weight and look nice for themselves and others, and because they wish to remain hip and trendy,
Nike Financial Analysis Nike earned a net income of 2.133 billion in fiscal 2011 on revenues of $20.862 billion. A trend analysis of the income statement shows that net income grew 9.7% in FY 2011, whereas the net income grew by 11.8%. In the previous year (FY2010), Nike's revenue actually declined by 0.8%, while the net income increased by 28.2%. The performance over the past two years indicates that Nike has faced
Nike: 1. The facts of the situation are that Nike has faced considerable criticism for its use of foreign contractors, because those contractors operate in low-wage countries. Unions and activists -- the former at least has a dog in the fight -- are behind the PR problems for Nike. However, Nike has begun to pay more attention to its practices, resulting in a much better reputation for ethics. There are many
Nike's Strategic And Financial Position Analysis Nike is a globally recognized multinational corporation founded by the Stanford Graduate School of Business graduate, Phil Knight, and Bill Bowerman who was the track and field coach at the University of Oregon. The two appear to be a natural fit as each hailed from a background that would appreciate the underlying design that goes into creating a quality running shoe. Nike's global operations in aggregate
The case is written in a simple but comprehensive manner, focused on the main highlights of Nike's activity. It is useful for the specialized economists as it presents real and clear facts, but it can also be useful to the novice economist or the simple individual, who wishes to get some insight into the Nike culture and ways. The main purpose of the report is to inform the reader about the
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