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Nike

Nike operates 384 retail stores in the US, with 217 being Nike brand factory stores and 29 being inline stores. They also have 109 Converse stores and 29 Hurley stores. Internationally, Nike operates 768 stores outside the US, with 648 being Nike factory stores and 57 being inline stores. They also have 63 Converse stores. In fiscal year 2019, Nike generated total revenue of $39.2 billion, with growth of 7.1% annually. Their largest market is North America, generating 42% of revenue, while international markets like EMEA and Greater China also generate a significant portion of sales.

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230 views

Nike

Nike operates 384 retail stores in the US, with 217 being Nike brand factory stores and 29 being inline stores. They also have 109 Converse stores and 29 Hurley stores. Internationally, Nike operates 768 stores outside the US, with 648 being Nike factory stores and 57 being inline stores. They also have 63 Converse stores. In fiscal year 2019, Nike generated total revenue of $39.2 billion, with growth of 7.1% annually. Their largest market is North America, generating 42% of revenue, while international markets like EMEA and Greater China also generate a significant portion of sales.

Uploaded by

Arpita Sahu
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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TOTAL PRODUCTION

Nike operated 384 retail stores in the United States. Of these, 217 were Nike brand factory stores, while 29 were
Nike brand inline stores. Among the remaining stores were 109 Converse and 29 Hurley stores. Nike had six major
distribution channels across the United States at the end of fiscal 2019.Nike’s international distribution channels, the
company operated 768 stores outside the United States at the end of fiscal 2019. Of these, 648 were Nike factory
stores, while 57 were Nike brand inline stores. The remaining 63 stores were Converse stores. Meanwhile, online
sales have emerged as a key distribution channel for Nike, as well as other companies in the space.

Data (At the end of fiscal 2019)

Total Revenue :US$ 39.2 billion

CAGR (compound annual growth rate) : 7.1 %


DOMESTIC MARKET SIZE & EXPORT (INTERNATIONAL MARKET SIZE & CHARACTERISTICS)

Nike’s footwear division solicits the services of independent contract manufacturers located in fourteen countries
around the world. The bulk of the independent factories I,e 96% are in Vietnam, China, and Indonesia and these
counteries are the source of raw material required for production.

Once the shoes have been manufactured, they are shipped to 57 distribution centers around the globe. In the United
States, the company operates five primary distribution centers in Memphis, Tennessee.

Nike is divided into four major geographical unit

 North America ( domestic market ,where 42% (approx.)of total revenue comes from I,e US$ 16.47 billion
(approx.)
 Europe, Middle East, and Africa (or EMEA) ( International Market ,28% of total revenue I,e US$ 10.98
billion (approx.)

 Greater China( International Market ,16% of total revenue I,e US$ 6.3 billion (approx.)

 Asia Pacific and Latin America (or APLA( International Market ,14% of total revenue I,e US$ 5.45 billion
(approx.)

STRUCTURE OF COMPETITION

Sports and fitness sector is highly fragmented, with many brands competing, from basic discount brands to high-end
fashion names. Even well-established brands have to work hard to maintain their share of the market. Consumers are
demanding more versatility with affordable price .

Nike’s worldwide market share stands at about 27.4% in 2019 .

Key factor that plays role in structure of competition for NIKE

1. Huge Domestic & international competitor in market


2. Innovation of versatile Product range
3. Strong distribution network-for global presence
4. Price of product
5. Advertising and Promotion
6. Market Segmentation and Target
7. Brand Equity
8. Creating new customer base
Nike’s market share stands at about 27.4% in 2019

Factors of production

1. land of setting of new factories


2. effective R&D team to develop new ideas & various range of product
3. Worker –Factory labour & product engineer
4. Capital-highly equipped machines
5. Raw material of production( recyclable material in trends)
6. Packaging & distribution
7. Performance & products of competitor
8. Customer satisfaction & feedback

Related industries

1. Adidas( Germany)
2. Reebok( Germany)
3. Puma( Germany)
4. Fila(Italy taken by south korea)
5. Under armour (US)
6. New Balance(US)
7. Skechers(US)
8. Asics(Japan)

HISTORY

The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman and Phil Knight, and
officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike, the Greek goddess of victory.

It is American multinational corporation that is engaged in the design, development, manufacturing, and worldwide
marketing and sales of footwear, apparel, equipment, accessories, and services. The company is headquartered
near Beaverton, Oregon, in the Portland metropolitan area. It is the world's largest supplier of athletic
shoes and apparel and a major manufacturer of sports equipment. Nike employs over 77,000 people worldwide

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