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Essay / Research Paper Abstract
Nike is the dominant sportswear company, this 6 page paper examines the financial performance of the company in terms of profitability, asset utilization and risk management and compares it to Adidas, the company that has recently acquired Reebok and will be able to provide some effective competition for Nike. The bibliography cites 4 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEnikeadidas.rtf
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Unformatted sample text from the term paper:
the last decade as the use has increased from purely sports wear to fashion wear. However, in a competitive industry there will always be casualties. In this market Nike
is the dominant player, the company was then followed by Reebok and then Nike, but with the weaknesses and need to compete Reebok have been acquired by Adidas. If we
look at the background of both companies and the financial performance we will use ratio analysis as with accounts prepared in dollars for Nike and euros for Adidas making a
direct numerical comparison more difficult. Nike is a is a well known brand of sportswear, that was first interpreted in Oregon in
1963 by Philip Knight. The company started out selling only sports shoes at track meetings. Now the company has a wide range of products, with the core products being the
sports shoes that have been marketed by way of association marketing with a focus on the research and development in order to create highly technical shoes. The company has been
developed as a hollow corporation. They are in effect a marketing company that develop and research their own product, but do not manufacture anything. Nike rely on third parties to
undertaker their manufacturing. By outsourcing the company can be seen as specialising in the companies own strengths as well as avoiding many
costs, not just the direct production costs, but also the capital investments that may be required to set up factories such as this and the commitment that goes along with
these investments (Gilley and Rasheed, 2000). This has allowed Nike to invest in other areas, at the same time Nike has a very flexible operation, as if there is a
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