Nike Inc.’s Financial and Strategic (SWOT) Analysis

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It is believed that Nike Inc. which has been in operation since the 1960s is a valued company whose stock share has remained above $100 since early January this year. With the ongoing European Football Championships and Olympics, the company expects to increase its sales having spent a lot in marketing and products distribution.

Although there has been continued economic unrest in Europe, I still recommend ‘Strongly buy’ to company’s shares, whose stock traded today at $100.74 going up by 0.33% from the previous day on the New York Stock Exchange because of the oversupply of similar products will not reduce Nike Inc. sales. (Nike Inc. 2012)

Nike Inc. which is the largest supplier of athletic wear with a global market share of 37% started as an importer of Japanese shoes in 1962. The Beaverton, Oregon company’s products are sold in more than 160 countries while in US alone the company has over 22,000 retail outlets.

Besides athletic wear, the company sells footwear, apparel equipment, accessories and clothes among other products. Constant innovation, design of new products and proper marketing have always made the company to remain on the top of the game. Nike Inc. has continued to remain steadfast in its growth and despite the current competition, there are no signs of the company going down. Some of the wholly-owned Nike Inc. subsidiaries include Converse Inc., Cole Haan, Umbro Ltd and Hurley International. (Nike Inc. 2012)

In the Fiscal year 2012 Nike Inc. third-quarter results saw her revenues increase by 15% to $5.8billion.It grew in all its geographical coverage apart from Japan. Nike Inc. brand revenues rose by 16% while revenue for other businesses rose by 12%.The companies net income also increased by 7% to $560 Million leading to an increase in diluted increase per share by 11%.The increase in net income is attributed to a reduced growth rate in the selling and administrative expenses. (Reuters 2012)

Nike Inc. is currently seeking for a buyer for Umbro PLC and also Cole Haan Holdings Inc. In 2011, Umbro PLC acquired Noel Soccer SASU from NOEL France SAS while 2 years before; there was undisclosed acquisition of Umbro PLC-Cheadle headquarters from Nike Inc. On 14th June 2011 Nike Inc. kicked off the Cole Haan, Umbro auction process. Nike Inc. recently held a shareholders meeting last year in 28th June 2011 where the performance of the company was explained. (Nike Inc. 2012)

The company this year launched new athlete foot wears called the Nike Free run and the Nike Free 3.0iD.These type of shoes are comfortable and can provide support when the runner needs it. These products targeted the Olympic Games and has since been sold online and also in the retail accounts.

Nike Inc. has seen various managerial changes in its operation. In January 26th 2012 Nike Inc. made changes in senior management position with Bert Hoyt becoming the new Vice president and GM of Western Europe replacing Brent Scrimshaw who retired after 18 years of service. The appointment of Hoyt saw Roland Wolfram being appointed as the new Vice President and GM of Global football. Tom Peddie replaced Wolfram as the Vice President Global sales while Ann Herbert replacing Tom to become the new Vice President North America sales.

Table 1.

Indicator Value
Share Price Today $100.74
EPS (TTM) $20.85
P/E (TTM) $20.85
Dividends declared $0.36
Market capital $45,845.97
Shares Outstanding 458.37

SWOT Analysis


Nike Inc. is currently listed in NYSE and is the leading sports wear supplier world wide.

Operates over 60,000 retail accounts world wide.

Is one of the leading business doing operations through acquisitions; Umbro, 2008 among others (Business teacher)


Unwillingness to disclose companies partners which has led to a lot of criticisms.

Contracts practice inadequate labor regulations and therefore leading to child labor.


Sportswear are produced from manufacturers waste products.

Adoption of eco-friendly projects.

Ability to manage cooperate marketing through brand promotion. (Business teacher).


A number of Nike Inc. subsidiaries are always faced with financial crisis.

Table on Nike Inc. Compared To Other Companies.

Indicator Nike Inc. Adidas Puma

VF corp.

Share Price Today $100.74 €57.26 €236.40 $139.75
Price Change $-2.20 (-2.15%) $-2.20 (-2.15%) €2.40 (+1.03%) $1.67 (+1.21%)
EPS (TTM) $20.85 €3.59 €15.10 $8.05
P/E (TTM) $20.85 €15.73 €15.49 $17.35
Dividends declared $0.36 €1.00 €2.00 $0.72
Market capital Mil $45,845.97 €11,812.35 €3,527.03 $15,311.84
Share Outstanding 458.37 209.22 15.08 109.57
ROI 20.13 10.70 4.75 13.64
ROE 22.58 14.94 6.13 21.04

From the details given in the table, Nike Inc. still remains to be very lucrative compared to her competitors. Even though today’s price change shows a negative, Nikes Inc. share price has remain stable for quite some times and the negative change is due to financial crisis in Europe as that is the company’s market base.

With a market capital of $45,845.97 against Adidas, Puma, VF corp. €11,812.35, €3,527.03, $15,311.84 respectively Nike Inc. still control a very big market share. Besides Nike Inc. brands VF is doing image wear coalition and also Jeans wear while Adidas products are almost similar to those of Nike Inc. This among other indicators put the company in the best position and the only recommendation is that the company should now focus on Eastern Europe and Asia to overcome the axioms of economic crash with the poor performing Euro.


Business teacher (2012) Nike SWOT Analysis. Web.

Nike Inc. (2012) NIKE, Inc. Reports Fiscal 2012 Third Quarter Results. Web.

Nike Inc. (2012) Nike Inc. NIKE, Inc. announces senior management changes. Web.

Reuters (2012) Company shares. Web.

New York Stork Exchange (2012) NYSE EURONEXT. Web.

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