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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 takes its name from Nike, the Greek goddess of victory It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment The brand alone is valued at $10.7 Billion making it the most valuable brand among sports businesses
Products
Their first products were track running shoes They currently also make shoes, jerseys, shorts, baselayers, etc. for a wide range of sports, including track and field, baseball, ice hockey, tennis, association football (soccer), lacrosse, basketball, and cricket Nike recently teamed up with Apple Inc. to produce the Nike+ product that monitors a runner's performance via a radio device in the shoe that links to the iPod nano
PORTFOLIO OF BRANDS
Converse Inc.
Hurley International
Jordan Brand
Nike Golf
Sold Starter in 2007 and Bauer Hockey in 2008
2) Supplies
A. Raw Materials -fabric -plastic -rubber -foams -metallics B. Textiles and Leathers
3) Cutting
In this department, the top part of the shoe or the "upper" is made
CUTTING
SEWING
STOCK FITTING
CUTTING
SEWING
LASTING
STOCK FITTING
HEELING
8)Finishing
Machines smooth out the excess material hanging over the insole by tucking it back in underneath the shoe
CUTTING
SEWING
LASTING
STOCK FITTING
FINISHING HEELING
TREEING
Price Breakdown
Using a typical Nike Shoe from production to retail:
-Production Labor $2.75 -Materials $9.00 -Rent, equipment $3.00 -Supplier's operating profit $1.75 -Duties $3.00 -Shipping $0.50 -Cost to Nike $20.00 -Research and Development $0.25 -Promotion and Advertising $4.00 -Sales, Distribution Administration $5.00 -Nike's operating profit $6.25 -Cost to Retailer $35.50 -Retailer's Rent $9.00 -Personnel $9.50 -Other $7.00 -Retailer's Operating Profit $9.00 -Cost to Consumer $70.00
Conclusion
Nike does not directly own any factories; they hire factory owners to produce the shoes using the materials and designs provided by Nike. The largest producers of Nike shoes are the factories located in China, Vietnam and Indonesia. Malaysia, Pakistan, India and Thailand are other major producers The Nike Company focuses almost exclusively on designing the shoes and, after the manufacturing, advertising and marketing them in the most appealing way possible. Though their facilities comply with local labour standards, generally, they have not met U.S. standards.