INTRODUCTION Founded in 1968 in Oregon, Nike's business activities involve design, development and the worldwide marketing of high quality apparel, equipment, footwear and accessory products.
Nike sells to approximately 140 countries around the world and currently boasts an approximate revenue of $8,776,900,000 These revenues are based on product sales of shoes, clothing, and other sports products. Advertising expenditures currently total $223,300,000 and include the following allocations: $64,975,000 for network television, $31,447,000 for consumer magazines, $7,700,000 for spot television, $343,000 for newspapers, $134,000 for outdoor postings, and $36,000 for radio. (Reed Elsevier) Most footwear products are made outside of USA. However apparel products are produced in the USA and abroad. (www.statcan.ca) In this article we will try to explore the interaction between the company Nike and its external business environment, as well as the internal strengths and weaknesses of the company. We will attempt to discover some of the significant changes and events in the external environment that have occurred in the last 5 years and have directly impacted Nike.
We will describe how the company adapted and responded to these changes and what the effects of these events were. Also we will identify and describe some of Nike's internal strengths and weaknesses.
CHANGES AND EVENTS IN THE EXTERNAL ENVIRONMENT INTERNATIONAL CRISES One of the most recent global environmental changes are the events of September 11th 2001, when airplanes crashed into each of the World Trade Center towers in New York, the Pentagon near Washington, D.C., and near Pittsburgh, P.A. (www.geocities.com/Athens/Acropolis/5232/) U.S. government officials reported that the crashes were a coordinated terrorist attack. Since this catastrophe was not expected, no one was ready to respond to it. Cole Haan store (owned by Nike), located in the World Trade Center plaza has been completely demolished. However, all of approximately 250-260 Nike...