Price of the product requires greater understanding in the global scenario. Having price differentials between two countries causes markets to be gray which makes buying and selling non- competitive and un attractive. Achieving higher economies of scale by minimizing on the manufacturing costs so as to meet the finances of the company by regulating the market prices is the challenge for Nike in the global front.
Nike created its niche by charging premium price and generating an image which helped it to create a value for its strategic implementations. But with every positive move of Nike, its copy cat competitors try to bring down the prices of the product there by decreasing on the market share. Nike (NKE): It is known to be the quintessential international company which has its stocks in the mind of every consumer and have succeeded to perform consistently by providing consistent returns on the investments.
NKE is known for its performance as a big blue chip firm seeking huge growth in the international market there in gaining exposure globally by being an active player in the stocks which are very cheap in their valuation with a PE of 18. 6 and with its 10% increase in the
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By adding Umbro in its kitty, Nike has enlarged its European soccer market share although it had to sell of its existence from the hockey market. Product Line: Nike known for the Greek goddess of victory is the largest shoemaker capturing the heavy share of US athletic shoe market. It has a huge collection under its ambit as it designs and sells shoes for sports like basketball, golf, hiking, volleyball, cheerleading, football, tennis. It also sells Cole Haan dress and casual footwear and having a collection of equipment and athletic apparel.
Marketing Channels: Nike operates through their own retail outlet NIKETOWN and their other sportswear outlets which include NIKE factory outlets and NIKE Women stores. Market Presence: Nike has its operations of selling the products throughout US and in more then 180 other countries. Competitors: Adidas, Fila Korea and New Balance are the major rivals. Recent Facts and Figures: For the fiscal year ending May 2008, Nike has total sales of $18,627. 0M with its one year growth touching to 14. 1% with net income of $1,883. 4M and the income growth rising to 26. 3%.