FREE ESSAY ON NIKE

NIKE

HISTORY
In 1958 the beginning of NIKE Inc. came about when Coach Bill Bowermen and business
student Phil Knight, both from the University of Oregon, felt the need for a better
athletic shoe. Through Bowermen's athletic experience and Knight's business background
they designed and tried to sell their model of the perfect running shoe. None of the
major companies trusted the engineering or demand for the new sneaker and therefore would
not manufacture the item. 
In 1964 Bowerman and Knight used their own money to start Blue Ribbon Sports company.
They convinced Onitsoda Tiger to manufacture their sneakers, which they sold from their
cars at track meets. Four years later Blue Ribbon Sports was changed to, the now famous,
NIKE, which was named for the Greek Goddess of victory. In that same year, the NIKE
swoosh logo was designed by Carolyn Davidson, for which she was then paid only $35.
The time came when the owners decided that NIKE could survive on its own. NIKE separated
itself from Onitsoka Tiger in 1972. It was in this year that NIKE convinced Olympic
marathon runners to wear NIKE sneakers for their Olympic event. Later, NIKE was able to
brag that their sneakers won four of the top seven places in this event. The following
year, NIKE designed the waffle sole sneaker which was worn by elite runners around the
world.
The 1980's led to a new era of NIKE sneakers. The popularity of running was declining
rapidly and, therefore, NIKE expanded into a new domain. With endorsements by Michael
Jordan and other professional athletes, new lines of sneakers, such as Air Jordan's and
the Cross Trainer, became available in the market. One of the most influential
advertising schemes for NIKE Inc. was the Just Do It campaign which took effect in 1988.
In the turn of the next decade, NIKE began to expand to more than just sneakers. In 1992,
the first two NIKE concept shops were created, including Niketown. In the mid '90's, NIKE
gained permission to print their logos on NFL uniforms, in addition to soccer and golf
becoming another money market. NIKE is now international with seven Niketowns in the US,
plus one in the UK, Germany, and Japan.
Products/Services
NIKE Inc. produces a wide variety of sporting footwear and apparel. The company places a
large emphasis on the quality and innovative design of their products. As of 1993, the
top-selling products were shoes manufactured for Basketball, Fitness, running, and
children. However, the company also markets products for tennis, golf, soccer, baseball,
football, cycling, volleyball, wrestling, cheerleading, aquatic activities and outdoor
athletic and recreational use. In addition Company often markets footwear, apparel and
accessories in collections of similar design or for specific purpose. Athletic shoes are
not NIKE's sale investment. NIKE Inc. also sells several products under different names.
They sell a line of casual footwear and apparel under the names of i.e. and Cole Haan. In
1993, the company acquired Sports Specialties, Inc. which markets head wear. Nike also
sells plastic products to other manufactures through its wholly-owned subsidiary, Tetra
Plastics, Inc.
Message to Stock Holders
NIKE believes that each sport requires different athletic equipment, especially shoes.
Although NIKE expects to come out on top of the market, the Company expects a few hard
tasks necessary to overcome in the upcoming year. The economic atmosphere in Western
Europe is the worst in NIKE's 13 years. They are establishing their first real futures
program like the one currently in the US. It is designed to improve the long term
profitability of the company and of cooperating retailers. The Company is very excited
about reaching their $1 billion point abroad. Domestically, total revenues grew over $4
billion over the past six years. 
The Company has two main goals for next year. First, they want to get the whole
international division positioned so it can resume faster growth once the underlying
economies improve. Second, they need to keep growth, albeit single-digit growth,
increasing for the NIKE brand in the US. They believe that there is a lot of upside
potential in both the US and abroad and the management understands that it is their
responsibility to reach this potential. They are committed to making improvements in both
their products and policies, and maximizing growth.
Financial Condition
For the sixth consecutive year, NIKE Inc. set new records in revenues and net income in
fiscal 1993. Consolidated revenues rose $526 million to $3.9 billion, an increase of 15%
over the industry record $3.4 billion also set by NIKE in 1992 and an increase of 31%
over the 1991 record. During the six year period, revenues have increased 348%.
International revenues now represent 36% of consolidated revenues, growing 24% over 1992
and 63% over 1991. The revenues have increased 495% during this six year period.
Consolidated net income increased 11% over 1992 and 27% over 1991 in this period. The
Company surpassed the $2 billion level in total assets for the first time during the
fiscal year 1993. The $1 billion mark was achieved in 1990 and during the six year period
referred to above, total assets have increased 917%.
Stock as an Investment
In my opinion, NIKE would be a good investment. NIKE Inc., is internationally known and
is a stable company always on the up rise. As with all companies, objectives cannot be
obtained smoothly. There will be some ups and downs, but the upside growth potential in
the common stock is very probable.