Sailendra Gurung

Name of the Company- NIKE Brief Introduction of Company: Nike, Inc. is an American multinational association that is involved in the design, development, manufacturing and worldwide marketing and sales of apparel, footwear, accessories, equipment and services. The company’s world headquarters are situated near Beaverton, Oregon, in the Portland metropolitan area (USA). It is a major producer of sports equipment and one of the world’s largest suppliers of athletic shoes and apparel. It employs more than 44,000 people worldwide and in 2014 the brand alone was valued as $19 billion (€17,5 billion), making it the most valuable brand between sports businesses.Founded by Bill Bowerman and Phil Knight on January 25 1964, as Blue Ribbon Sports, the company became officially Nike, Inc. on May 30 1971. The company was named after the Greek goddess of victory, Nike (Νίκη). Apart from its own brand, Nike market its products under Nike Pro, Nike+, Nike Golf, Nike Blazers, Air Jordan, Air Max and other as well as subsidiaries including brands Jordan, Hurley Int. and Converse. Nike sponsors many high-profile athletes and sports teams around the world, with the highly recognized trademarks of “Just Do It” and the Swoosh logo (which represents the wing of the Greek goddess Nike). What are the NIKE’s Produsts? As of May 31, 2016, the Company focused its NIKE brand product offerings in nine categories; • • • • • • • • • Running Nike Basketball The Jordan Brand Football (Soccer) Men’s Training Women’s Training Action Sports Sportswear( its sports-inspired lifestyle products ) Golf Competitors of NIKE: Nike is the leading sports footwear brands in the world and is known as one of the top 3 amongst the trio leading the sports footwear market across the world – Adidas, Reebok and Nike. All three of them are known and loved for their marketing strategies and the way they connect to their customers. Adidas and Reebok are the top two Nike competitors but there are many others in the sports footwear market as well. Many of the top sports footwear companies have concentrated on other products besides shoes such as apparels, deodarants and perfumes, sports accessories etc. Top 10 Competitors OF NIKE: 1. Adidas – Worldwide Revenue: $16 billion Brand Valuation : $7 Billion Adidas is one of the topmost Nike Competitors. One of the key advantages of Adidas is that it operates via both – the Adidas brand and also has a strong subsidiary in Reebok. The combination of both gives a strong valuation to Adidas as a top competitor of Nike. Not only does Adidas compete with Nike on the basis of footwear, it also competes on the basis of clothing and accessories. 2. Rebook - Worldwide Revenue : $3 Billion Brand Valuation : $1 Billion Reebok is a subsidiary company of Adidas which operates independently. Reebok is known for its excellent design for sports footwear. Some of the really cool shoes from Reebok were the Reebok Reezig, Reebok Pump and others. Reebok is known mainly to sponsor kits of various Football, cricket or other events. Reebok is considered the 2nd biggest Nike competitor across the world. 3. Puma- World Wide Revenue: $3.4 Billion Brand Valuation: $2.3 Billion Puma is the third Nike competitor which is known for its running shoes as well as apparels and Clothing. Interestingly, the founder of Adidas and the founder of Puma were brothers. However, they had falling out long back in 1948, which gave rise to two major footwear brands – Adidas and Puma. It is quite clear that Adidas is far ahead then Puma. But globally, Puma is still one of the strongest Nike competitors. It lacks for an equal level of sports sponsorships which Adidas and Nike have. But it is evident from the revenue generated by Puma that the brand is loved by many 4. Fila- Worldwide Revenue: $1.2 billion Brand Valuation: $2.7 billion Fila is also one of the largest manufacturing companies of Sports footwear and is one of the top competitors of Nike. However, Fila is not as premium as Nike and its products are known be cheaper then the top three brands. It is more into penetrative pricing and promotes products which are good in quality at lower prices. It is known more for its cost advantage then its design or differentiation advantage. Fila originated from Italy but in 2007, it was taken over by Fila Korea, resulting in the complete Fila group operating from South Korea. 5. Converse- World Wide Revenue: $2 Billion Converse shoes are known more for their unique style and looks rather than their sporting abilities. Everyone loves how a converse shoe looks on their jeans or in casual clothing. This is a company which has made footwear beautiful. Besides casual shoes, Converse is also known for its sports shoes line up, especially for tennis shoes and sneakers. It has launched its clothing line up as well It has a whopping revenue of $2 billion from across the world. But majority of it is made up from its casual shoes line up. 6. New Balance- World Wide Revenue : $3.7 Billion New Balance is a premium sports shoe manufacture which is much costlier then Adidas, Reebok or Nike. It is a strong Nike competitor in the US and the UK, from where it derives its major revenues. New balance shoes are costlier because it carries out all its manufacturing within the US or UK, and does not export the manufacturing like Nike or Adidas group. New Balance is also involved in the sale of Apparels but the sale of footwear is far more then apparels. New Balance is known to take part in sponsorships of Olympic sports, cricket, basketball, cycling and many others. It is also known for innovative design as its shoes are far advanced in design then any of its competitors – another reason that New balance demands a premium and is one of the toughest Nike competitors in US or UK. 7. Under Armour- Worldwide Revenue $4.5 Billion Brand Valuation: $4 Billion Under armour has a fantastic brand valuation because of its fantastic sales in the US market. Under armour is the official uniforms provider for American football, Basketball as well as American Soccer. Besides this, it has a wide product portfolio comprising or Athletic shoes, Apparels like Tshirts, hoodies, pants and even protective gear for sports. It has presence in more then 50 countries across the globe and is known to have a premium brand image. Under armour is also known for its product placements across many television serials and movies. 8. K-Swiss - Worldwide Revenue- $10 million K-swiss is again an American footwear brand but one which is concentrated towards tennis shoes and Sneakers. It specialises in these two types of sporting shoes. Besides the shoes, K-swiss has its own clothing line up and apparels. K-swiss carried out a rebranding exercise in 2014 to target itself as America’s heritage tennis brand. The company wants itself to be recognized as the go to brand for Tennis players and Tennis lovers. 9. Asics- ASICS is a brand originating out of Japan and is known for its varied design of sports shoes. It has major concentration on the Asian markets and on Australis. Besides these 2, ASICS also sells its product to the UK, the USA and several other countries. Asics has a plethora of sponsorships up its sleeve majority of it being in the US, UK or Australia where it is concentrated. It has sponsored cricket and football teams, hockey, tennis, Rugby, Netball, swimming and many others. 10. Li Ning- Worldwide Revenue : $1.1 Billion Li Ning is known to be amongst the top Nike competitors because not only does it manufacture sports shoes, it also manufactures sporting goods – majorly Badminton racquets, ping pong equipment as well as scarves and gloves for various sporting events. It is known to be very good in its apparel line up. Li Ning originates from China has a major focus on its home ground. Because the Asian market is large, Chine being the largest amongst them, Li Ning has a great chance to become a top Nike Competitor in the next few years. Advantage of the Nike Products: One advantage is that Nike is an internationally known brand and can thus sell shoes all over the world. Nike also can keep labor costs down by using laborers in the developing world—this allows the company to maintain large profits and thus keep investors happy. Athletes are as willing to partner with Nike as Nike is to partner with athletes. This enables athletes and Nike to build international brands. • • Some of the advantages to Nike as a company because of international business are that they can: promote environmental sustainability by "decoupling" growth from "constrained resources." ensure ethical sustainability by monitoring and regulating international labor forces. • increase revenue profits by increasing global market share. • initiate cost reduction by being globally selective about resource supply chains and delivery. • generate market share increase. • develop job creation. • create consumer value to the athlete in everyone. • cultivate global potentialities for meeting challenges`