Nike is one of the most famous sports brands in the world. This American multinational corporation is a leader in sports products including footwear, apparel, equipment, accessories, and more.
This company was established in 1964 by Bill Bowerman and Phil Knight, a coach and his track athlete. Until 1971, Nike went by the name “Blue Ribbon Sports” which started off as a distributor for Japanese shoe maker, Onitsuka Tiger. Today, it is a valuable sports brand which is valued at almost $30 billion (2017).
Other than its famous slogan, “Just Do It”, Nike has a leading worldwide recognition thanks to its powerful marketing campaigns and celebrity endorsements. Famous faces including the likes of Michael Jordan and Roger Federer are known to have endorsed this brand.
Despite its global strength, Nike has also faced a few challenges in its lifetime. For example, it gained negative press coverage for manufacturing its products in factories with questionable working conditions (long working hours, poor payments, child labor, etc) in countries like China, Indonesia and Mexico.
However, Nike has also been praised for being exceptionally environmentally friendly. For instance, its Reuse-A-Shoe program reuses handed-down tennis shoes to create sports courts.
There are several factors that can affect Nike’s stock value:
- Competing brands like Adidas and Under Armour have led to a market share decline. Adidas is one of Nike’s main rivals as it competes for the same market dominance.
- Consumers are not opting for athletic clothing as a form of leisure wear and this is impacting Nike sales.
- Celebrity endorsers like Tiger Woods, who have recently been involved in scandals, have affected Nike’s advertising efforts.
- Nike’s performance can be determined by currency fluctuations. This is because it depends on international sales, but its revenue is reported in U.S. Dollars. This leads to increased or decreased profits even when sale volumes are consistent.
- Regional import taxes can also affect Nike’s revenue.
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