Economic Analysis Project

Economic Analysis Project Name Institutional Affiliation Economic Analysis Project Nike is an American multinational company that was founded in 1964. It was founded by Phil Knight and Bill Bowerman. Initially, it was known as Blue Ribbon Sports but the name changed later. Nike is engaged in the manufacture, marketing, and distribution of athletic footwear, attires, equipment, and accessories (Knight, 2016). Nike is the leading athletic wear manufacturer and distributor worldwide. Over the years, Nike has had a lead in the athletic sportswear in most parts of the world. However, in the past two decades, it has been facing enormous competition (Frisch, 2008). For it to maintain its revenue, it has to come up with strategies to overcome the competitors. Nike’s main competitors include Adidas, Puma, and Under Armor. The sportswear which Nike deals with includes shoes, shorts, jerseys, caps, and bags. The sportswear market is quite difficult to enter and exit. This can be attributed to the fact that it is capital intensive (Tucker, 2016). For one, the manufacturing bit needs millions of dollars. Also, there is a need for a well-laid distribution infrastructure to supply sportswear across the globe. Exiting the market can also be quite challenging because of the size of the initial investment made. There is quite a high demand for sportswear in all areas of the world. Many sportsmen and sportswomen take pride in associating with Nike. Besides, sports fans purchase Nike products to associate with the players and the brand. The sportswear also represents a high sense of fashion, and hence most people want to associate with it. Nike has also been able to maintain the supply of sportswear across the world through its established distribution i...