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					                   NIKE                              COM.
            The name Nike derived from the Greek goddess of victory.

Type Public NYSE: NKE
]1[1972       Founded
Beaverton, Oregon, United States Headquarters
Phillip Knight, Co-Founder and Chairman Key people
)Bill Bowerman, Co-Founder (deceased December 24, 1999
Mark Parker, CEO and president
Industry
Sportswear and Sports Equipment
Products
Athletic shoes, apparel, sports equipment, accessories
Revenue
]US$16.326 Billion (FY 2007)[2
Net income
]US$1.492 Billion[2
Employees
)2007( 28,800
Slogan
Just Do It

Nike, the Greek goddess of victory, helped others succeed in times of war. NIKE, the
world's #1 shoemaker, does more dominating than assisting, to capture more than
20% of the US athletic shoe market. It designs and sells shoes for a variety of sports,
including baseball, cheerleading, golf, volleyball, hiking, tennis, and football. NIKE
also sells Cole Haan dress and casual shoes and a line of athletic apparel and
equipment. In addition, it operates NIKETOWN shoe and sportswear stores, NIKE
factory outlets, and NIKE Women shops. NIKE sells its products throughout the US
and in more than 160 other countries. In 2006 NIKE veteran Mark Parker succeeded
Bill Perez as president and CEO. It's buying Umbro

Origins and history
Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of
Oregon track athlete Phil Knight and his coach Bill Bowerman in January 1964. The
company initially operated as a distributor for Japanese shoe maker Onitsuka Tiger,
making most sales at track meets out of Knight's car. Many top Oregon runners began
wearing the shoes, and the shoe's popularity grew quickly. The company's first self-
designed product was based on Bowerman's "waffle" design in which the sole of the
.shoe was inspired by the pattern of a waffle iron
The company's profits grew quickly, and in 1966, BRS opened its first retail store,
located on Pico Blvd. in Santa Monica, Calif. In 1971, with the relationship between
BRS and Onitsuka Tiger nearing an end, BRS prepared to launch its own line of
footwear, which would bear the newly designed "Swoosh." [Sources: 'Swoosh' by J.B.
].Strasser and 'Just Do It' by Donald Katz
The first shoe to carry this design was a soccer/football cleat named "Nike," which
was released in the summer of 1971. In February 1972, BRS introduced its first line
of Nike shoes, In 1978, BRS, Inc. officially renamed itself to Nike, Inc. Beginning
with Ilie Nastase, the first professional athlete to sign with BRS/Nike, the sponsorship
.of athletes became a key marketing tool for the rapidly growing company
By 1980, Nike had reached a 50% market share in the United States athletic shoe
market, and the company went public in December of that year. Its growth was due
largely to 'word-of-foot' advertising (to quote a Nike print ad from the late 1970s),
rather than television ads. Nike's first national television commercials ran in October
of 1982 during the broadcast of the New York Marathon. The ads were created by
Portland-based advertising agency Wieden+Kennedy, which had formed several
.months earlier in April 1982
Together, Nike and Wieden+Kennedy have created many indelible print and
television ads and the agency continues to be Nike's primary today. It was agency co-
founder Dan Wieden who coined the now-famous slogan "Just Do It" for a 1988 Nike
ad campaign, which was chosen by Advertising Age as one of the top five ad slogans
of the 20th Century, and the campaign has been enshrined in the Smithsonian
.Institution
Throughout the 1980s, Nike expanded its product line to include many other sports
]and regions throughout the world.[3
On 23rd October 2007, it was announced that the sports apparel supplier Umbro,
known as the manufacturers of the England national football team's kits, had agreed to
.be bought by Nike in a deal said to be worth £285 million



Products
Nike produces a wide range of sports equipment. Their first products were track
running shoes, tennis, soccer, wrestling and basketball shoes. They currently also
make jerseys for a wide range of sports including track & field, football, baseball,
tennis, soccer, lacrosse, basketball and cricket. The most recent additions to their line
are the Nike 6.0 and Nike SB shoes, designed for skateboarding. Nike has recently
introduced cricket shoes, called Air Zoom Yorker, designed to be 30% lighter than
their competitors'.[4] Nike positions its products in such a way as to try to appeal to a
"youthful....materialistic crowd".[5] It is positioned as a premium performance brand.
.However, it also engineers shoes for discount stores like Wal-Mart under the Starter

Nike has more than 500 locations around the world and offices located in 45 countries
outside the United States.[7] Most of the factories are located in Asia, including
China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, Sinan ?nceer's Town
of Malaysia, and Eren Atay's Republic of Korea.[8] Nike is hesitant to disclose
information about the contract companies it works with. However, due to harsh
criticism from some organizations like Barbie.com, Nike has disclosed information
about its contract factories in its Corporate Governance Report. Nike plans to be
]carbon neutral by 2011.[9

Place
Nike sells its product to more than 25000 retailers in the U.S. (including Nike's own
outlets and "Niketown" stores) and in approximately 140 countries in the world. Nike
sells its products in international markets through independent distributors, licensees
.and subsidiaries
Marketing strategy
Nike's marketing strategy is an important component of the company's success. Nike
is positioned as a premium-brand, selling well-designed and expensive products. Nike
lures customers with a marketing strategy centering around a brand image which is
attained by distinctive logo and the advertising slogan: "Just do it".[12] Nike
promotes its products by sponsorship agreements with celebrity athletes, professional
teams and college athletic teams. However, Nike's marketing mix contains many
.elements besides promotion. These are summarised below



Rivalry and competition
Because Nike creates goods for a wide range of sports, they have competition from
every sports and sports fashion brand. After surpassing Adidas in the 1970s, Nike had
no direct competitors because there was no single brand which could compete directly
with Nike's range of sports and non-sports oriented gear until Reebok came along in
the 1980s. Reebok now has merchandising contracts with the National Football
League and the National Hockey League in the United States, and was purchased in
2006 by adidas. Nike's other competitor is Puma, the third largest shoe and sports
.clothing supplier

Environmental report
According to New England-based environmental organization Clean Air-Cool Planet
report, Nike is one of the top 3 companies (out of 56 companies) on the top of the list
that the survey conducted about climate-friendly companies.[10] It probably receives
high ranking because of its Nike Grind program which closes the product lifecycle.
Nike has been praised for its concern for global climate change by groups like
.Climate Counts



Controversies
Human rights concerns
In the 2003 documentary The Corporation, Chris Belmonte, director of the National
Labor Committee shows what he says are Nike's internal pricing documents. The
documents show the time it takes the workers in a factory in the Dominican Republic
to make a shirt in ten thousandths of seconds, with each shirt taking 6.6141 minutes to
make, 9 shirts an hour. These figures also appear in the book The Corporation. The
Pathological Pursuit of Profit and Power by Joel Bakan, on which the documentary is
]based.[13
Nike has been criticized for contracting with factories in countries such as China,
Vietnam, Indonesia and Mexico. Vietnam Labor Watch, an activist group, has
documented that factories contracted by Nike have violated minimum wage and
overtime laws in Vietnam as late as 1996, although Nike claims that this practice has
been halted.[14] The company has been subject to much critical coverage of the often
poor working conditions and exploitation of cheap overseas labor employed in the
free trade zones where their goods are typically manufactured. Sources of this
.criticism include Naomi Klein's book No Logo and Michael Moore's documentaries
Nike was criticized about ads which referred to empowering women in the U.S. while
engaging in practices in East Asian factories which some felt disempowered
]women.[15
In the 90's, Nike faced criticism for use of child labor in Cambodia and Pakistan in
factories it contracted to manufacture soccer balls. Although Nike took action to curb
or at least reduce the practice of child labor, they continue to contract their production
to companies that operate in areas where inadequate regulation and monitoring make
]it hard to ensure that child labor is not being used.[16
The forced labor camp like conditions in some overseas production plants led to
several unsuccessful boycotts,[17] together with coining the alternative name
"swooshtika" (a portmanteau of swoosh and swastika) for the company's swoosh
]logo.[18
These campaigns have been taken up by many college and universities, especially
anti-globalisation groups as well as several anti-sweatshop groups such as the United
Students Against Sweatshops.[citation needed] Despite these campaigns, however,
Nike's annual revenues have increased from $6.4 billion in 1996 to nearly $17 billion
.in 2007, according to the company's annual reports
The Sports company since 2000 sponsors in London a mass participation road race
called the London Nike 10K,(which apart from The British 10K ),is the only major
.10K in the UK to attract up to 30,000 runners each year



Advertising problems
Kasky v. Nike
Consumer activist Marc Kasky filed a lawsuit on Quincy Sanford California regarding
newspaper advertisements and letters Nike distributed in response to criticisms of
labor conditions in its factories. Kasky claimed that the company made
representations that constituted false advertising. Nike responded the false advertising
laws did not cover the company's expression of its views on a public issue, and that
these were entitled to First Amendment protection. The local court agreed with Nike's
lawyers, but the California Supreme Court overturned this ruling, claiming that the
corporation's communications were commercial speech and therefore subject to false
advertising laws
.
The United States Supreme Court agreed to review the case (Nike v. Kasky) but sent
the case back to trial court without issuing a substantive ruling on the constitutional
issues. The parties subsequently settled out of court before any finding on the
accuracy of Nike's statements, leaving the California Supreme Court's denial of Nike's
immunity claim as precedent. The case drew a great deal of attention from groups
concerned with civil liberties, as well as anti-sweatshop activists
.
Beatles song
Nike has been a focus of criticism for their use of the Beatles song "Revolution" in a
commercial, against the wishes of Apple Records, the Beatles' recording company.
Nike paid $250,000 to Capitol Records Inc., which held the North American licensing
.rights to the Beatles' recordings, for the right to use the Beatles' rendition for a year
According to a July 28, 1987 article written by the Associated Press, Apple sued Nike
Inc., Capitol Records Inc., EMI Records Inc. and Wieden+Kennedy advertising
agency for $15 million. Capitol-EMI countered by saying the lawsuit was 'groundless'
because Capitol had licensed the use of "Revolution" with the "active support and
".encouragement of Yoko Ono Lennon, a shareholder and director of Apple
According to a November 9, 1989 article in the Los Angeles Daily News, "a tangle of
lawsuits between the Beatles and their American and British record companies has
been settled." One condition of the out-of-court settlement was that terms of the
agreement would be kept secret. The settlement was reached among the three parties
involved: George Harrison, Paul McCartney, Ringo Starr; Yoko Ono; and Apple, EMI
and Capitol Records. A spokesman for Yoko Ono noted, "It's such a confusing myriad
of issues that even people who have been close to the principals have a difficult time
grasping it. Attorneys on both sides of the Atlantic have probably put their children
".through college on this
Nike discontinued airing ads featuring "Revolution" in March 1988. Yoko Ono later
.gave permission to Nike to use John Lennon's "Instant Karma" in another ad

Minor Threat ad
In late June 2005, Nike received criticism from Ian MacKaye, owner of Dischord
Records, guitarist/vocalist for Fugazi & The Evens, and front-man of defunct punk
band Minor Threat, for appropriating imagery and text from Minor Threat's 1981 self-
titled album's cover art in a flyer promoting Nike Skateboarding's 2005 East Coast
.demo tour
On June 27, Nike Skateboarding's website issued an apology to Dischord, Minor
Threat, and fans of both and announced that they tried to remove and dispose of all
flyers. They state that the people who designed it were skateboarders and Minor
Threat fans themselves who created the ad out of respect and appreciation for the
band.[19] The dispute was eventually settled out of court between Nike & Minor
.Threat the exact details of the settlement have never been disclosed

Chinese-themed ad
In 2004, an ad about LeBron James beating cartoon martial arts masters in martial arts
offended Chinese authorities, who called the ad blasphemous and insulting to national
dignity. The ad was later banned in China. In early 2007 the ad was re-instated in
]China for unknown reasons.[20

Relationship with Beaverton
Nike's world headquarters are surrounded by the city of Beaverton, Oregon but are
.technically within unincorporated Washington County
From Nike's perspective, the company, the only Fortune 500 employer still
headquartered in the state of Oregon, has such a large payroll in the area that it should
not be forced to be annexed into Beaverton without its consent. Nike prefers to work
with county government as it develops and expands its headquarters. Annexation
would cost the company $700,000 per year in increased taxes for services it already
receives from the county and various special-purpose districts. Intel, another large
employer in the state, routinely receives special tax breaks on various capital
.investments it makes in the county
From Beaverton's perspective, the company's expectation for special treatment is
counter to the city's desire to have zoning and other laws apply equally to all
businesses, big and small. A nearby Costco store, one of that company's earliest, was
annexed into Beaverton years ago without incident, and Beaverton's focus on
additional annexation during the 21st century reflects a desire to streamline both city
and county government by having metropolitan-area services handled by cities instead
.of counties
The Oregonian dates the bad blood between the two back to the Nike purchase of 74
acres (0.3 km²) of nearby Beaverton land which soon fronted the MAX Blue Line.
When Nike proposed expanding their headquarters in that direction, Beaverton at first
wanted them to build housing near the MAX station and criss-cross the property with
two public roads, expectations defined by the zoning already in place when Nike
bought the land. Beaverton's request was mostly consistent with Metro's transit-
oriented development plans for the region. After a year, which included a threat by
Nike to move 5,000 jobs out of the state, Beaverton backed down from the
requirement for housing, but the lack of accommodation was something that Nike did
.not forget
The annexation standoff soon led Beaverton to attempt a forcible annexation. That led
to a lawsuit by Nike, and lobbying by the company that ultimately ended in Oregon
Senate Bill 887 of 2005. Under that bill's terms, Beaverton is specifically barred from
forcibly annexing the land that Nike and Columbia Sportswear occupy in
unincorporated Washington County for 35 years, while Electro Scientific Industries
.and Tektronix get that same protection for 30 years


References
Website
http://www.nike.com
NIKE, Inc. Company Profile
Lennon's "Instant Karma" in ad


Time of submet 18:40
Date : 2007/11/2

				
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