Nike Case Study

The following report provides a brief history of Nike Inc and its primary product. Founded in 1964, its headquarters are situated in the Portland Metropolitan area of Oregon. Nike is now a Fortune 500 company, located all over the world. Providing a wide range of athletic products their primary product is athletic footwear. The SIC code for this industry is #3021, placing them in the rubber and plastic footwear category. Nike’s primary customers are individuals. They target amateur and professional athletes, providing high-tech athletic footwear. They cater for a wide range of sporting activities including soccer, tennis, and cycling. They spend a considerable amount on the sponsoring of elite professional athletes. Nike has a strong relationship with businesses. This usually involves the sponsoring of sports clubs, such as premier league football teams and, sports competitions and sports associations. This sponsoring has a direct effect on the individual’s consumption. As a Multinational Corporation (MNC), international customers are essential for the continuation of Nike’s success. More than 55% of the company’s total sales come from international customers. In 2008, Nike approximately sold to more than 27,000 retail stores outside the US. They also have international branch offices and subsidiaries located in more than 50 countries worldwide (Nike Annual Report, 2008). Throughout the following question’s we will be focusing on the American athletic footwear industry and Nike’s position within this market.

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Determinants of demand:
? Consumer taste: Advertising can positively affect this determinant, brand awareness is essential when influencing consumers. For example, in an ever increasing health conscious society, sport ...
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