NIKE BRIEF HISTORY Nike is the Ancient Greek goddess of victory “It is one of the most recognized symbols in the world – The Swoosh. Simple. Fluid. Fast.”

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1 NIKE BRIEF HISTORY Nike is the Ancient Greek goddess of victory “It is one of the most recognized symbols in the world – The Swoosh. Simple. Fluid. Fast.” Nike is the world’s largest designer, marketer, and distributor of sports- related apparel, equipment, accessories, athletic footwear and athletic apparel. Nike was founded in 1964 by Bill Bowerman and Phil Knight and opened its first store in Santa Monica, California, in 1966. The company introduced its Nike brand of shoes in 1972. The company officially renamed itself Nike in 1978. BY 1980, the company had reached a 50% market share in the U.S athletic shoe market and had become a publicly traded company. By 1985 new era by introduction of a Michael Jordan-endorsed basketball shoe. By end of 1988 Nike to the top of industry. HQ: Beaverton, Oregon, in Washington County. On 71 hectare, 17 buildings, and houses 600 employees Inside U.S, Nike has 3 significant distribution and service facilities: -Memphis -Tennessee -Wilsonville

2 FINANCIAL INDICATORS Period Ending31-May-0931-May-0831-May-07 Total Revenue$19,176,100$18,627,000$16,325,900 Net income$1,486,700$1,883,400$1,491,500 Fiscal 2009Fiscal 2008FY0 9 vs. FY08 Fiscal 2007FY08 vs. FY07 U.S.Region$6,542,96,414.5%2$6,131.7%5 EMEA Region5,512.25,629.2%-24,764.1%18 Asia Pacific Region3,322.02,887.6%152,295.7%26 Americas Region1,284.71,164.7%10966.7%20 Total Nike Brand Revenues Total 16,661.8 Total 16,096.0 %4Total 14,158.2 %14 Other2,514.32,531.0%-12,167.7%17 Total Nike, Inc. Revenues total 19,176.1 Total 18,627.0 %3Total $16,325.9 %14

3 PROBLEM:OUTSOURCING Nike’s largest problem is outsourcing. Nike produces all of it’s products outside the country like China, Vietnam, Thailand…So they don’t have complete control of production procedure and distribution.This causes a huge miscommunication between nike and it’s customers.And also these countries has kinda bad name of employing kid labors and pushing labors to work extra hours with no payment. A documentary about nike’s labors create a big mess for Nike. They reduce this gap so fast but as you see with numbers they had a big crisis of their revenues.

4 Strenght 1.Nike is the world’s largest sports apparel producer. Nike’s U.S retail stores about 338 outlets, and 336 outside U.S. International branch offices in 52 countries. 2.Fiscal May 31, 2009 revenues increased 2.9% to $19.1 billion.The company’s website allows consumers purchase directly from Nike. 3.Strong financial position,Strong international presence Weakness 1.Nike’s fiscal May 31, 2009 net income decreased 21% to $1.48 billion. 2.Only concentrate in youth and young adult market, from 12to24 years old age. 3.Heavy dependency on footwear sales. Opportunities 1.Should strive to penetrate the new regions that have higher rate of growth such as “Brazil, Eastern Europe, India, and China” 2.Pursue the government to establish Anti-dumping duties on Chinese products. 3.New production line for fashionable footwear to attract new consumers. Threats 1.Adidas contracts with Chinese basketball superstar to produce basketball shoes. 2.The competitors expand their categories and countries with deepen their relationships with customers. 3.Competition in athletic footwear and apparel is fierce.