Nike Competitive analysis

Description
Nike has become one of most recognizable companies in the entire world
Nike is now the most popular brand in, not just America, but through out the whole world.
Nike offers all the athletic shoes, clothes, and other accessories one would need to wear in their certain sport.

Group 4:
Josh Fernino
Brent Hare
Victor Hemmati
Lance Hollister
Chris Kerschen
Ty Parasiliti
Vincent Uku
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Nike has become one of most recognizable
companies in the entire world
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Nike is now the most popular brand in, not
just America, but through out the whole
world.
?
Nike offers all the athletic shoes, clothes,
and other accessories one would need to
wear in their certain sport.
LeBron James, Tiger oods, !ia "amm
ha#e been recognized as man$ of toda$%s sports
&mages that are associated with Nike .
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Nike's target market for their shoes, clothes
and other accessories are males and females
between () and *+ $ears old.
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Nike's ,ompetiti#e market has e-panded and
dominated in the international market.
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Nike disburse T. ads during professional and
college sports e#ents, prime/time programs,
and late/night T. programs
The graph below indicates how Nike
manufacturing and sales compete with their
closest ri#als in the earl$ 0111's worldwide.
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A financial anal$sis helps us compare a
compan$'s current performance with it's past
performance
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2i#es us an idea of how the entire industr$ is
performing as well
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Li3uidit$ ratios, profitabilit$ ratios, and
le#erage ratios will gi#e us a good basis of
how Nike, Adidas 2roup, and 4nder Armour
are performing
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&ndicator of a firm's short term li3uidit$
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Abo#e ( is usuall$ considered 5good6
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Nike and 4nder Armour ha#e e-cellent current ratio scores, as the
Adidas 2roup is abnormall$ high
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7hows how well the working capital is being used
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A higher ratio is usuall$ an indication of better cash collection management
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As we can see, 4nder Armour has had a #er$ rapid increase since 0118
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Nike and Adidas 2roup ha#e good, stead$ ratio numbers
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5!ainsta$6 for all profits made b$ the firm
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"igher the better
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Nike trails for below 4nder Armour and Adidas 2roup
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4nder Armour has a #er$ good gross profit margin
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Also known as return on in#estment
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7hows profitabilit$ of compan$ based on total assets
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Nike outperforms its competitors with a drastic increase in 0119
and 011)
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7hows profitabilit$ of compan$
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2i#es the return with the mone$ shareholders ha#e in#ested
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Nike leads the competition b$ a modest amount, as 4nder Armour
has a sharp decline in the recent $ears
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!easures a firm's financial le#erage
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,an also be looked at as a measure of how much is being financed
through debt than e3uit$
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A high number for the debt e3uit$ ratio is not attracti#e to in#estors
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4nder Armour is the most appealing in this group for the debt e3uit$
ratio
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The Altman : 7core is a good wa$ to e#aluate a compan$'s credit
risk
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A score of (.)( or less is not good
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A score of 0.89 or greater indicates that a compan$ has little
bankruptc$ risk
2008
Nike 5.47
Adidas
Group
2.41
Under
Armour
4.63
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The strengths that Nike takes pride in is
getting the top athletes to wear and sponsor
their products rather than e#ents or
competitions as much.
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The basis of this comes from the idea that
people tend to remember the brand worn b$
pla$ers and not the brand that sponsors the
e#ent that the pla$ers perform at.
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The market that Nike participates in is #er$
price sensiti#e. !ost of Nike's income comes
from the selling of its products to retailers.
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This usuall$ shows that margins tend to get
s3ueezed as retailers tr$ to get low price
competition on Nike's products.
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The technolog$ is alwa$s changing in the
retail market, as well as the sporting market.
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The abilit$ to ha#e the most recent fashion
trends in#ol#ed in their sporting e3uipment,
sunglasses, shoes, and clothing is crucial to
generate more mone$.
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Nike has a large global market and a large
acceptance of their product all o#er the
globe.
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The retail sector is becoming substantiall$
price competiti#e. 4ltimatel$ it means that
consumers are shopping around for a better
deal.
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The consumer now maintains the control
o#er the manufact
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7o if a consumer wanted to find the lowest
price on the same e-act product, then the
consumer could just walk from store to
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;esigned
 

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