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Essay / Research Paper Abstract
A 5 page paper discussing changes in Nike's stock and comparing it with that of Reebok and Skechers. Reebok has grown slowly but steadily over the past three years as Skechers has struggled with managerial problems. Nike had been stalled for some time as investors decided what to do with the ethical charges against it. When Nike finally realized that those problems would not just "go away" and began addressing them, the company's fortunes improved right away. It probably will not grow as rapidly in the future, but Reebok and certainly Skechers will have a difficult time catching up to Nike. Includes 2 charts and 2 tables. Bibliography lists 6 sources.
Page Count:
5 pages (~225 words per page)
File: CC6_KSnikeStock.rtf
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Unformatted sample text from the term paper:
Nikes culture always had been that of maverick, and indeed it was only after Nike had turned 25 or so that CEO Phil Knight admitted that Nike needed to act
like the "grown up" company it was. The facts of the supply chain case demonstrate this maverick attitude that was and largely remains Nike, but it fails to mention
several points salient to Nikes poor sales year in 2000. Already at the height of sweatshop outrage that it was still trying to ignore, Nike missed clues that the
teens to whom it sold most of its shoes were beginning to favor other styles in the late 1990s, most notably hiking boots and other leather styles.
Some of its primary retailers began closing stores, reducing the number of outlets in which Nike was available. Nike also missed the emerging trend of
extreme sports such as skateboarding and snowboarding. Certainly Nikes supply chain problems did nothing to help to neutralize these negative influences, neither was it the only negative influence that
year. The company appears to have overcome these problems, however. Certainly, investors appear to believe that is the case. The Athletic Shoe Industry
Nike and Reebok traditionally have traded the leading position in their industry, at least in terms of sales. Skechers is always present, but it has had an
array of serious problems in the early part of the new century, including suffering a year of declining sales in 2002 and a year of net loss in 2003.
The company attributes its losses to poor cost control, excessive markdowns and other managerial factors, which it believes it has corrected. Figure 1. Stock Price Performance: NKE, RBK and
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