Nike Company

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NikeCompany

NikeCompany

Nikeoperates as apparel and athletic footwear company headquartered inBeaverton, Oregon and operates globally (Beresin,2010).The BCG matrix classifies companies on four quadrants where a brandfalls under one of the quadrants. Definition of each of the quadrantis based on the intersection between the market growth as wellrelative market shares. Depending on the presented aspect ofclassification, I consider Nike brand as a cash cow in that it has ahuge market share and it is less impacted by competitors as thecompany continually increases its market dominance.

Ofall the players in the footwear and apparel industry, Nike is thelargest and the most recognized brand. The company’s marketcapitalization is about $102 billion and records annual sales of morethan $31 billion (Germano,&nbsp2016).The brand is dominant globally most notably based on the fact that itmaintains the largest market share on average. Although there aresome regions across the globe where Nike’s competitors performbetter than the brand, Nike presence is evidenced in these areas andperforms best on average. The recent past has seen the company makesignificant efforts in repairing public perception on issues that hadtainted its image on the public (Beresin,&nbsp2010).The company had in some instances experienced complaints based on itslabor practices in emerging practices. The complaints related tochild labor and reduced wages below the recommended minimum. However,the manner the company maneuvered and overcame the issue has provedimperative in its achievements. Nike currently is the world leader inthe industry where it operates with the brand recognized as ahousehold name. According to Strider,&nbspJ.(2016), theorganization estimates to register an annual growth of around $50billion by 2020.

References

Beresin,&nbspA.&nbspR.(2010). “Nike, Nike, Who Can Do the Nike?”.&nbspRecessBattles,63-76. doi:10.14325/mississippi/9781604737394.003.0005

Germano,&nbspS.(2016, September 27). Nike Revenue and Profit Rise – WSJ. Retrievedfromhttps://www.wsj.com/articles/nike-revenue-and-profit-rise-1475008802

Strider,&nbspJ.(2016, January 26). Adidas Vs. Nike Vs. Under Armour: Which for 2016?(NKE,UA) | Investopedia. Retrieved fromhttp://www.investopedia.com/articles/markets/012616/adidas-vs-nike-vs-under-armour-which-2016-nkeua.asp