Nike
.jpg)
Nike, Inc is an American multinational corporation that is engaged
in the design, development and worldwide marketing and selling of footwear,
apparel, equipment, accessories and services. The company is headquartered near
Beaverton, Oregon, in the Portland metropolitan area, and is one of only two
Fortune 500 companies headquartered in Oregon. It is one of the world's largest
suppliers of athletic shoes and apparel and a major manufacturer of sports
equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012
(ending May 31, 2012). As of 2012, it employed more than 44,000 people
worldwide. The brand alone is valued at $10.7 billion, making it the most
valuable brand among sports businesses.
The company was founded on January 25, 1964 as Blue Ribbon Sports
by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30,
1971. The company takes its name from Nike (Greek Νίκη, pronounced ), the Greek
goddess of victory. Nike markets its products under its own brand, as well as
Nike Golf, Nike Pro, Nike , Air Jordan, Nike Skateboarding, and subsidiaries
including Hurley International and Converse. Nike also owned Bauer Hockey
(later renamed Nike Bauer) between 1995 and 2008, and previously owned Cole
Haan and Umbro. In addition to manufacturing sportswear and equipment, the
company operates retail stores under the Niketown name. 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.
Nike already has plans to put its fitness brand on your wrist and
in your living room, but now it'll be found in a lot more pockets — the company
just launched its GPS-powered Nike+ Running app for Android. The release
coincides with the iOS version, Nike+ GPS, being updated to version 4.0 and
taking the new Nike+ Running name. The two apps now share a similar interface,
with new features including starting a run from anywhere in the app, comparing
your last run with the seven previous ones, and — somewhat dubiously — a
"shoe tagging" ability that lets you track your sneakers' progress
and find out when it's time to buy a new pair.
The Android version, meanwhile, has the standard social integration
of the iOS app, along with a convenient home screen widget that'll measure your
distance and let you jump straight into a new run. It's available now for
devices running Gingerbread and above.
Nike wants is for someone to buy the new FuelBand only to discover
they have an old HTC Wildfire with Android 2.3 installed, something that
clearly won’t cater for the automatic syncing enabled by the new
Bluetooth.
.jpg)
Pros :
- The Brand. Celebrity endorsements are not cheap — but they can be
a tremendous way to differentiate a company. Of course, this has been the case
with Nike. Just some of its athletes include Tiger Woods, Kobe Bryant, LeBron
James, Blake Griffin, Ray Rice and Maria Sharapova. As a result, Nike has been
able to maintain its mega brand, which has helped it to create pricing power.
The company has also been able to fight back fierce competition from rivals
like Adidas (PINK:ADDYY) and Under Armour (NYSE:UA). Plus, Nike also has other
notable brands, so as to cater to different market segments. These include
Converse, Hurley and Jordan.
- Innovation. On the earnings conference call, Nike’s CEO Mark
Parker called himself an “unabashed product geek.” No doubt, this has been a good thing for the
company. For example, Nike has gotten lots of traction from its Flyknit
technology, which uses state-of-the-art engineering to weave yarns and fabrics
for a featherweight, formfitting shoe. Then there is the Nike Pro Combat Hypercool,
which has sweat-wicking fabric and much improved ventilation.
- E-Commerce. On the earnings call, Parker noted that the online
business saw a 33% increase in revenues — and that growth should continue for
some time. A key driver is likely to be NikeFuel, which is a wrist band that
tracks a person’s activity. It is hooked to an online community and various
mobile devices, such as the Apple (NASDAQ:AAPL) iPhone. NikeFuel has the
potential to create an engaging social network for fitness, which could lead to
more and more online transaction.
Cons:
- Other Emerging Markets. There is definitely a lot of opportunity
in China and other emerging markets, but success in any will be far from easy.
Even though there will continue to be a general increase in wealth, it will
remain impossible for many consumers to pay the high prices for Nike products.
And while the company could create lower-priced items, that’s dangerous because
it could diminish Nike’s premium brand.
-
Valuation. With the run-up, Nike sure isn’t cheap. It sports a forward P/E
ratio of 19, compared to ADDYY’s forward P/E of 15, for example. So if there is
a slowdown — which could easily happen in China or Europe — the stock could be
vulnerable. Besides, the dividend is a
meager 1.4%
How To Use Nike :
Reference
ليست هناك تعليقات:
إرسال تعليق