Nike Business Analysis Corporate

The very first of these discussions deals with operational aspects with the 2 firms. Consumer attitudes for the companies and their products are regarded inside second discussion. The last of the three discussions presents details relative on the financial performance of Nike and Reebok.

Reebok International is an American-based company that sources its goods primarily (70 percent) in South Korea, and markets them both in the United States and internationally (Rindos, 1992b, p. 1662). In 1979, BC Recreational acquired the North American license to market a running shoe produced by Reebok, Ltd., a tiny British corporation (Sedgwick, 1989, p. 30). The shoe did not sell well from the United States, and, in 1982, the business created its unique shoe, and marketed it under the name Reebok (by this time, BC Recreational had ceased to exist, and also the surviving company was Reebok International, Ltd.). In 1985, Reebok International bought the original British firm, from which it had obtained its name (Sedgwick, 1989, p. 31). In 1992, Reebok has 4,200 employees and 9,350 shareholders (Rindos, 1992b, p. 1662). Insiders control 18 percent on the outstanding common stock (Rindos, 1992b, p. 1662).

Nike, Inc. is an American corporation based in Beaverton, Oregon near Portland. The company's well-known stock did not start trading publicly.

 

Reebok International went from surely nowhere in 1979 towards dominant business inside the athletic shoe market by 1985 (Sedgwick, 1989, pp. 30-31). The business achieved this success from your computer software of 3 from the procedures employed by Japanese businesses inside development of marketplace dominance. These procedures are (1) the creation of opportunity, (2) adapting to latent buyer preferences, and (3) promotion creativity.

From the time it was founded in 1979, Reebok International, as licensee for the Reebok name in North America, has marketed the Reebok athletic shoe line as being a prestige-good during the athletic shoe market. The company's primary target in this work has been adult women inside the baby-boomer age group (Udis, 1988, p. 1668).

In 1991, Nike sales approximated $3 billion, of which approximately 30 percent ($900 million) represented footware solutions (Rindos, 1992a, p. 1661). Reebok sales in 1991 were approximately $2.7 billion, of which somewhat over half ($1.4 billion) represented footware goods (Rindos, 1992b, p. 1662). Thus, while Nike stands out as the largest organization in terms of total sales, Reebok could be the largest corporation in terms of footware.

Both Nike and Reebok are powerful financially. In late-July 1992, Nike's stock traded at $69.875, though Reebok's traded at $27.875 (The Wall Street Journal, 1992, p. C27). The cost of Nike shares in 1992 has ranged inside the low-fifties on the high-seventies, whilst the cost of Reebok shares has ranged inside high-twenties towards mid-thirties.

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