Nike, Inc.

A Research Paper by Joseph Pilc Business Policy & Strategy Fordham University Graduate School of Business Professor Dr. Rubina Mahsud December 9, 2013

Nike Nike, Inc. (Nike) is a leading designer, marketer and distributer of sports apparel, footwear, equipment and accessories. Geographically, Nike operates in more than 170 countries through its retail stores, independent distributers and online.i Nike is headquartered in Beaverton, Oregon and employs roughly 44,000 people.ii Today, Nike prides itself on always being on the offensive, with a relentless drive to innovate, inspire and grow.iii

Origin In 1962, Philip H. Knight, a former track star at the University or Oregon as well as an alumnus of Stanford Graduate Business School, realized that Japanese running shoes were not being utilized in the US market and were being outperformed by lower quality German-manufactured Adidas sneakers. As a result, Knight purchased roughly 200 pairs of sneakers from Onitsuka Tiger Co., a Japanese firm that manufactured high-quality and low-cost running shoes, which he stored in his basement and showcased at local track meets in his hometown of Portland, Oregon. In January 1964, Knight went into business with his former track coach at Oregon, Bill Bowerman, and named their budding company Blue Ribbon Sports.iv Throughout the late 1960s Blue Ribbon saw sales drastically increase as their distribution expanded. By 1971, the relationship between Blue Ribbon and Onitsuka Tiger had begun to deteriorate. Blue Ribbon was not receiving the cash required for expansion of the US market. Furthermore, Knight and Bowerman were ready to transition from distribution to design and manufacturing. Blue Ribbon and Onitsuka split later that year, and with financial backing from the Japanese trading company Nissho Iwai Corporation, Blue Ribbon was able to start its own line of overseas manufacturing through independent contractors. It was at this time that Knight decided to name his new product line Nike, named after the Greek Goddess of Victoryv, and commissioned its now-iconic Swoosh logo from a Portland State University graphic design student for $35.vi 1

In 1972, their first year of distribution, Nike sneakers generated $1.96 million in product sales. Much of this early success can be attributed to effective marketing and product promotion at the 1972 U.S. Track & Field Trials in Eugene, Oregon where Nike gave their sneakers to top-tier athletes, such as Steve Prefontaine, a track and field record holder who had attended the University of Oregon.vii Throughout the 1970s, Blue Ribbon continued to expand sales of Nike branded sneakers through partnerships with superior athletes in their respective sports. It also capitalized on the popularity of jogging in the late 1970s.viii The company changed its name from Blue Ribbon Sports to Nike in 1978, and by 1979, Nike had accounted for almost one half of all running shoes purchased in the US.ix In 1979, Nike leveraged its growing brand name to move into other similar markets, such as athletic apparel, shoes geared towards other sports including basketball and tennis, work and leisure shoes and childrens shoes. This proved to be an excellent strategy as the jogging craze in the US started t o subside. Nike also looked to expand their international presence through partnerships with Japanese distributors, marketing relationships with European soccer clubs as well as the creation of manufacturing plants in Ireland, Austria and England.x While Nikes entrance into Japan proved to be successful, its entrance into European markets wasnt as fruitful. Domestically, Nike also began to struggle, seeing an 11.5% drop in sales in 1984. Combined with the expenses it incurred to increase their global presence, Nikes profits were down roughly 30% by the end of 1984.xi A change in their marketing campaign towards a more global brand than their traditional method of promoting star athletes and major events didnt do much to reverse the decline in sales. As sales continued to drop through 1985, Nike made a number of strategic changes. First, they reduced the size of their product line and cut back on inventory. Second, they vastly reduced

administrative costs by consolidating a number of their different divisions that had been spread out not only within the US but also internationally. Nike also closed a number of manufacturing plants and laid off about 10% of their full time employees. Towards the end of 1985, Nike closed is last two US manufacturing plants, resulting is all manufacturing being done overseas.xii It was around this time that Nike must have realized that they had no real strategy. They had relied on the success of a good product, but didnt have a clear vision as to how they would distribute their product and who they would distribute it to. As a company, Nike had the mentality of a sprinter; they wanted to get to the finish line as quickly as possible. But as they started to learn, the athletic apparel and footwear industry would be a long marathon with hills and valleys along the way. To succeed, they had to structure their company to withstand the changing markets. To combat the change in consumer preference from jogging to a vast array of activities including aerobics, weightlifting and golf, Nike create a New Products Division in 1985 to keep pace with the evolving industry. They also made a commitment towards aggressive and abundant marketing campaigns, featuring ads with influential individuals including basketball star Michael Jordan and director/actor Spike Lee.xiii To differentiate themselves from their closest rival, Reebok, Nike portrayed its products as fashion accessories by promoting the person wearing the product rather than the products themselves. Their brand slogan, Just Do It, has been heralded by Advertising Age as the fourth best advertising campaign of the century.xiv In 1989, Nikes marketing budget reached $45 million, its largest to date. Nike sold 41 million pairs of Air Jordan sneakers in 1990, and they had surpassed Reebok as the market leader in the US.

Growth and Expansion As Nikes presence in Europe finally began to take shape, they captured second place market share behind Adidas, with Reebok and Puma close behind. As the growth of the US market began to flatten, companies within the industry looked to expand into new areas. Nike and Reebok tried to capitalize on Adidas lack of identity in the 1990s when they had too many products diversified across too many industries, causing their share of the US market to shrink to 7%.xv In 1992, Nike aimed to capture the womens athletic shoe and apparel market, of which it had only owned a 20% share, by appealing to activities such as walking and aerobics and emphasizing the beauty and emotional rewards of exercise.xvi The same year, Nike opened its second NikeTown location in Chicago, the first of which opened in Portland two years earlier. NikeTown was a retail space that enthralled sports enthusiasts similarly to how a theme park captured a thrill seeker.xvii This was a vertical forward integration strategy that enabled Nike to distribute their products directly to consumers. One year later, Nike entered into two new markets; event promoter and athlete agent. As an event promoter, Nike would organize and manage sporting events. And as an agent, Nike would handle all of an athletes business related actions, including contract negotiation and licensing agreements. In 1996, Nike would eventually withdraw from this venture under intense scrutiny claiming that they face motives other than that of the best interest of the client.xviii From a business perspective, event promoter and agent were never good ideas as they are too far from Nikes core competency athletic footwear and apparel. Just because they featured athletes in their marketing campaigns doesnt make them qualified to manage their daily lives.

In 1994, Nike acquired Canstar Sports Inc., the worlds largest manufacturer of ice skates and hockey equipment, for $400 million. Nike leveraged the expertise gained from the acquisition of Canstar (later named Bauer - Nike) to move into the sports equipment industry.xix Setbacks & Recovery In 1997, Nike started to face intense scrutiny around its global workforce. Protestors claimed that the international factories in which Nike outsourced the manufacturing of its shoes and apparel, most of which were located in Asia, had problems related to child labor and worker abuse. While Nike claimed that it had little control over these outsourced factories, protesters boycotted Nike products nevertheless. It wasnt until 2002 that Nike began to take critical steps towards regulating its global workforce. It helped start the non-profit Fair Labor Association which establishes and monitors a code of conduct amongst international manufacturing plants, which includes a minimum age and a 60-hour work week, amongst other things. Between 2002 and 2004, the Fair Labor Association had conducted over 600 audits of Nike contract factories. By 2004, human rights activists had acknowledged that progress had been made but issues still remained.xx In 2002, Nike invested in state of the art logistics and supply chain systems. They also diversified their brands into different market sectors and price points making them less reliant on the markets ability and willingness to purchase high-priced / high-performance shoes. Additionally, Nike acquired a number of competitors in varying markets to further diversify the brand. Converse, a centuryold footwear company and maker of the historic Chuck Taylor All Star shoe, was acquired in 2003 for $305 million.xxi Hurley International, a surf and action sports apparel company was acquired for $95 million.xxii Nike also purchased Official Starter LLC, an athletic apparel firm focused on low-priced apparel and accessories.xxiii Correlating this diversification strategy to Porters Strategic Advantage

Approach, it allows Nike to embrace diversification as well as a low-cost strategy at the same time. By operating under different products lines (Jordan, Cole Haan, Unbro, etc.) within the Nike umbrella, Nike is able to offer a unique value proposition to varying types of consumers. In August 2005, Adidas purchase Reebok for $3.8 billion. After the acquisition, Adidas accounted for roughly 20% of the athletic apparel and footwear market, still trailing Nike who owned roughly one third of the market.xxiv This was a smart move for Adidas as Reebok had a strong presence in the US. In all likelihood, this is an acquisition that Nike wouldnt have made. Nike and Reebok operated in the same market and were both predominantly strong in the US. Nikes acquisitions had concentrated on diversifying their brand and not just getting bigger. There would have been no value behind a Nike acquisition of Reebok. In 2006, Nike began to bolster their presence in technology, partnering with Apple and Google to create technology that syncs with Nikes footwear, apparel and accessories. Today, this technology is known as Nike+ Fuel, an armband that tracks your athletic movements, gives real time feedback and promotes a healthy lifestyle.xxv At the moment, Nike+ technology represents Nikes blue ocean of competitive advantage as no other company is able to duplicate Nikes fusion of apparel and technology. Furthermore, this strategy has a clear focus (association of apparel and health), is divergent from anything else and is extremely compelling (The smart, simple and fun way to get more active).

The company undertook a large reorganization in 2009 when it restructured the Nike brand into a model consisting of six geographic regions each with less layers of bureaucracy and more focus on the 6

strengths of each region. These six regions consisted of North America, Western Europe, Eastern/Central Europe, China, Japan and Emerging Markets.xxvi As long as this reorganization isnt bound by the red tape of bureaucracy and these six organizations are able to make decisions on their own, it presents a smart way to keep pace with different consumer preferences around the world. Market Overview The sporting apparel and footwear industry is a $120 billion market that has been growing on average 4% per year globally. That 4% increase is expected to continue through 2019.xxvii In 2012, the industry increased at the following percentages throughout the world: Middle East and Africa: + 15% Asia: + 7% Americas: + 4% Europe: + 1%

The popularity of companies within the industry varies amongst geographic location. Adidas, which originated in Germany in the early 1900s, is strongest in Europe and Asia. Nike, which started in Oregon in the 1960s, is most popular in North America. Neither Nike nor Adidas, the two overall market leaders, have a strong presence in South America which is dominated by second-tier brands such as Fila, Puma and Diadora.xxviii The following is a breakdown of the two market leaders (Nike & Adidas) regional market share by percentage:xxix

World Nike Adidas 17% 16%

North America 32% 23%

Europe, Middle East & Africa 21% 25%

Asia Pacific 18% 22%

Latin America 3% 2%

Athletic Apparel ($100B)

adidas, 11.20% Nike, 9.90% VF Corp, 4.90% Gildan, 2.40% Billabong, 2.30% Hanes, 2.00% Puma, 1.80% New Balance, 3%

Athletic Footwear ($20B)

Other, 25%

Other, 60.50%

Nike, 50% Asics, 3% Puma, 3%

adidas, 16%

Lululemon, 1.60%
xxx

Under Armour, Columbia, 1.70% 1.70%

Nike Global Market Share: $19.9 Billion or 16.58% Adidas Global Market Share: $14.4 Billion or 12%

General Environmental Factors Growing Obesity Ratesxxxi Obesity rates in the US have increased from 13% of the population in 1962 to 36% in 2010. The US was the most obese country until it was surpassed by Mexico surpassed it in early 2013. Childhood obesity (ages 6-11) in the US has tripled from 6.5% in 1980 to 19.6% in 2010. This growing obesity rate vastly impacts the athletic apparel and footwear industry because it implies that people are being less active, therefore requiring less athletic apparel and/or footwear. Companies handle this issue in varying ways. Nike, for example, manufactures a large selection of items in an abundance of sizes, including up size 22 for women, in order to appeal to the masses. Conversely, Lululemons strategy is to only manufacture healthy sizes like up to womens size 12. Although this healthy size strategy doesnt work for Nike who relies on mass production, it does work as a differentiation strategy for Lululemon. Changes in Athletic Preferences 8

Consumer preference in athletic activities is constantly changing. Jogging was immensely popular in the US in the late 1960s, but became less popular in the 1970s as aerobics and weightlifting became increased in popularity.xxxii Today, 20.4 million Americans practice yoga compared to 15.8 million in 2008, a 29% increase.xxxiii On the decline is football which has seen a 9.5% drop in youth football participation between 2010 and 2012. This decrease can largely be attributed to growing safety concerns amongst parents.xxxiv Global Outsourcing In an effort to reduce costs, most sports apparel and footwear companies outsource production to independent third-party suppliers, primarily located in Asia. In 2012, Nike outsourced 98% of its footwear production to three countries (China, Vietnam and Indonesia) and 99% of its apparel manufacturing to 28 countries, including China, Thailand Vietnam, Sri Lanka, El Salvador and Mexico.xxxv With outsourced manufacturing, companies have little control over the production quality of the products as well as the safety and ethical treatment of laborers. Economic Factors Branded athletic apparel and footwear can be considered items consumers only purchase when they have some degree of disposable income. If less disposable income exists, consumers are more likely to purchase low-priced athletic gear, reuse apparel and footwear they already own or stop exercising entirely. SWOT Analysis Strengths Market Leader Nike owns roughly 16.58% of the entire athletic apparel and footwear market, with its next closest rival, Adidas, owning 12%. Within that market, Nike owns roughly 50% of the athletic footwear segment which is a much greater percentage than their next closest competitor, Adidas, with 16%.

Strong Brand According to Interbrand, a leading global branding consulting company, the Nike brand ranks as the 24th strongest global brand, valued at $17 billion.xxxvi

Global Presence Strong Research & Development Capabilities Fast Company magazine recognized Nike as the worlds most innovative company in 2013.xxxvii Nike employs specialists in biomechanics, chemistry, engineering, exercise psychology and other related fields as well as utilizes research committees made up of athletes, doctors and industry specialists in order to drive their R&D program.xxxviii This allows them to stay on top of changes in consumer preference and requirements.

Weaknesses Global outsourcing concerns o o o Worker safety Product recalls Over reliance

High Priced Nike tends to be more expensive than its closest rival, Adidas.

Opportunities Growth in Athletic Apparel Although Nike dominates the global athletic footwear market, they trail Adidas in the athletic apparel market (9.9% Nike to 11.2%Adidas). New and Emerging Markets Consumer spending in emerging markets is expected to outpace spending in developed economies, especially in China and India. Global sporting events, such as the World Cup (2014 Brazil) and the Summer Olympics (2016 also in Brazil) present a huge global stage for Nike to showcase their brand. 10

China The sporting apparel and footwear industry saw a 7% overall growth in Asia in 2012. While Nike owned a 12.1% market share in China in 2012 compared to Adidas 11.2%, the trend appears to be reversing. As of August 2013, Nike saw sales drop in five straight quarters compared to Adidas growth of 6% over the same period of time.xxxix Adidas has been able to adapt to the changing of consumer preference from performance excellence to style better than Nike. Additionally, Nikes marketing strategy of utilizing athletes to appeal to consumers is not resonating well with the Chinese consumer who places a strong emphasis on academic importance. Adidas, by contract, has been able to quickly shift their marketing focus from an intense sports message to one more focused on fashion and lifestyle.xl Nike still needs to figure out how to best manage its brand in this $20 billion market which is expected to grow 7.8% per year through 2016.xli

India When India removed its foreign direct investment (FDI) limitations in September 2012, it allowed foreign firms to own and operate 100% of their business in India compared to previously 51%. The $2.5 billion Indian footwear market expected to have a compound annual growth rate of 15.1% over the next five years.xlii

Europe, Asia and Latin America Adidas is currently the market leader in Europe and Asia. Latin America is dominated by second tier brands such as Fila, Gola, Puma, Lotto and Diadora.xliii

Threats Fierce Industry Competition

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As a name brand, Nike is susceptible to generic brands capturing market share with low priced goods. The athletic apparel and footwear market is overrun with competition, especially on the apparel side where Nike owns only 9.9% market share. Counterfeit Goods Counterfeit goods not only move business away from Nike, but they place low-quality products into the marketplace that can affect consumer confidence and tarnish the brand. Since 1982, the global counterfeit market as a whole has increased from $5.5 billion to $600 billion annually.xliv Nike also relies on its brands exclusivity, such as with its NFL apparel contract. Economic Recession In an economic recession where consumers have less spending power, they may decide to cut back on high-priced sporting apparel and footwear, causing them to move towards Nikes low-end brands or to another companys brand entirely. Financial Comparison Nike & Adidasxlv

%
12 10 8 6 4 2 0 2008

Profit Margin, Current & Quick Ratios

Nike Profit Margin Nike Current Ratio Nike Quick Ratio Adidas Profit Margin Adidas Current Ratio 2009 2010 2011 2012 Adidas Quick Ratio

With a much higher profit margin percentage (net profit/net sales), we see that Nike is more efficient at turning revenue into actual profit.

With a higher current ratio (assets/liabilities), we see that Nike is more capable of paying back its debts.

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With a higher quick ratio ((current assets inventories)/ current liabilities), we see that Nike has more liquidity than Adidas, and therefore can be considered to be in a better short-term financial situation.

%
25 20 15 10 5 0 2008

Return on Assets & Return on Equity

Nike ROA Nike ROE Adidas ROA Adidas ROE 2009 2010 2011 2012

Nike has a higher return on assets (net income/total assets) than Adidas which implies that Nike is using its assets more efficiently.

Nike has a higher return on equity (net income/shareholder equity) than Adidas. Additionally, Nikes ROE has been consistent over the past five years which is much more appealing to investors.

%
0.60 0.40 0.20 0.00 2008 2009

Debt to Equity Ratio

Adidas Debt to Equity Nike Debt to Equity 2010 2011 2012

Nike has had a lower debt to equity ratio (liabilities/equity) than Adidas for quite some time. In 2006, Adidas D/E ratio was almost 1, so they have been getting better at utilizing equity to fund their operations and reducing debt, but Nikes ratio has been consistently low for a long time.

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Other notable financial observations: Both firms keep their inventory levels at roughly 20%. Because consumer preferences change frequently, its important for both firms not to exceed the other by that much in this category. Adidas was close to 30% inventory in 2003, but has since brought that number down. This relatively low inventory level allows companies to capitalize on R&D product innovations. If a new advanced technology were released to the market, it would make the existing product obsolete and unable to sell. While Adidas PP&E has been slowly increasing since 2003 (from 8.2% of the balance sheet to 10.9%), Nikes PP&E has reduced from 20% to 14.5% over the same period. While the explanation behind this is not clear, one can assume that Nike is either relying more on outsourced production or managing their stores more efficiently. Unlike Adidas, Nike doesnt disclose their R&D spend on their income statement. I believe this is because R&D is one of Nikes major competitive advantages and they do not want competitors to copy them in this respect. Overall, the financial comparison between Nike and Adidas show Nike being stronger in just about every category. Although Nikes average revenue growth over the past ten years (9%) is slightly higher than Adidas (8.6%), Adidas average revenue growth over the past 3 years (12.76%) is higher than Nike (10.01%). Since 2012, Nike reported growth in every market except China.xlvi Conversely, Adidas sales in China increased 15% in 2012 as a result of opening 800 new retail stores (12% increase) as well as adapting a strategy that caters to Chinese consumers preferences. Adidas sports-casual high-fashion brand Neo has been extremely successful with teens, as has their strategy of opening segmental retails stores that focus on niche areas, such as basketball and kids apparel, rather than one-size-fits-all stores. Chinas growing market, with its increased quality of living, exposable income that is expected to double in ten years and young demographics represents a huge market.xlvii Nike must quickly alter its strategy in China or risk losing out on long term profitability. 14

Recommendations for Nike 1. Chinese Partnership The success of Nikes entrance into the Chinese market is still undecided. While they are still the market leader, recently their lead has been shrinking as consumers are more attracted to competitor brands that have done a better job of catering to the Chinese consumers preferences. By partnering with Chinese apparel company Meters/bonwe, Chinas leading casual wear company that targets 18 to 25 year old males and females with their slogan Be Different, Nike can operate with a company already successful at understanding the Chinese consumer and their preferences. In turn, Nike will bring to the table its strong synergy with technology, a trait well received by consumers within the 18 to 25 year old demographic. With Nikes strong financial status, they are one of the only companies currently in the market capable of making a big acquisition/partnership within the Chinese market. Furthermore, this partnership fits with Nikes strategy of diversifying their brand without straying too far from their core competency. 2. Further Concentration on Physical Stores Nike is the most innovative company in its market, through both its superior products as well as its fusion with technology. It is consistently coming out with original products. The problem with new technology is that people often cant realize the value in it unless they use it. For Nike, this means getting people to try your product. The best place for consumers to learn about Nikes new products is in one of their 756 retail locations worldwide. At these retail stores, customers must be able to experience Nike+ technology, feel the comfort of Nike footwear, exercise in Nike apparel, and so on. The benefits of these products cannot be relayed through online transactions. If the benefits cant be realized, then consumers will not be willing to pay the premium price that Nike products typically call for. While Nike must look to optimize the number and location of their retail stores, they must also make more of an effort to invite customers into the store, similarly to Apples retail stores.

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Conclusion Nikes core competency is the design, marketing and distribution of athletic apparel, footwear and accessories. While that in itself can be a red ocean of competition, Nikes blue ocean lies in leveraging their strong R&D and powerful brand reputation to create products that adhere to the VRIO framework of being valuable, rare, hard to imitate and well organized through Nikes strong management team.

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References
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Nike, Inc. Financial and Strategic Analysis Review, GlobalData, April 2, 2012 MarketLine Strategy, SWOT and Corporate Finance Report, MarketLine.com, October 2013 iii Mike Parker, 2012 Letter to Shareholders, Nike Inc., July 24, 2012 iv "NIKE, Inc." International Directory of Company Histories. Ed. Jay P. Pederson. Vol. 75. Detroit: St. James Press, 2006. Business Insights: Essentials. Web. Retrieved on 11/19/13 v Nike Inc.: History and Heritage, www.nikeinc.com, Retrieved on 12/1/13 vi "Origin of the Swoosh". Nike, Inc. Archived from the original on 2007-10-23. Retrieved 2007-04-13. vii Nike Inc.: History and Heritage, www.nikeinc.com, Retrieved on 12/1/13 viii Nike Inc.: History and Heritage, www.nikeinc.com, Retrieved on 12/1/13 ix "NIKE, Inc." International Directory of Company Histories. Ed. Jay P. Pederson. Vol. 75. Detroit: St. James Press, 2006. Business Insights: Essentials. Web. x "NIKE, Inc." International Directory of Company Histories. Ed. Jay P. Pederson. Vol. 75. Detroit: St. James Press, 2006. Business Insights: Essentials. Web. xi "NIKE, Inc." International Directory of Company Histories. Ed. Jay P. Pederson. Vol. 75. Detroit: St. James Press, 2006. Business Insights: Essentials. Web. xii "NIKE, Inc." International Directory of Company Histories. Ed. Jay P. Pederson. Vol. 75. Detroit: St. James Press, 2006. Business Insights: Essentials. Web. xiii Ben Weixlmann, Air Jordan: The Best Sports Marketing Campaign Ever," Bleacher Report, May 30, 2008. xiv Adapa Srinivasa Rao, Digital Marketing at Nike: From Communication to Dialogue, IBS Center for Research Management, 2012 xv Where Nike and Reebok Have Plenty of Running Room, Businessweek Archive, March 10, 1991 xvi Kathy Tyre, Nike Looks to Secure Foothold on Women's Fitness Market. Adweek, February 8, 1993 xvii "NIKE, Inc." International Directory of Company Histories. Ed. Jay P. Pederson. Vol. 75. Detroit: St. James Press, 2006. Business Insights: Essentials. Web. xviii Nike to End Sports Agency,, Lodi News Sentinal, December 12, 1996 xix Harriet King, COMPANY NEWS; Nike in Accord to Purchase Hockey Equipment Maker , The New York Times, December 15, 1994 xx Max Nisen, How Nike Solved Its Sweatshop Problem, Business Insider, May 9, 2013 xxi Leslie Wayne, For $305 Million, Nike buys Converse, New York Times, July 10, 2003 xxii Tanzina Vega, Nike Tries to Enter the Niche Sports It Has Missed, New York Times, June 1, 2011 xxiii "NIKE, Inc." International Directory of Company Histories. Ed. Jay P. Pederson. Vol. 75. Detroit: St. James Press, 2006. Business Insights: Essentials. Web. xxiv Andrew Russ Sorkin, Adidas Agrees to Acquire Reebok in $3.8 Billion Deal, New York Times, August 3, 2005 xxv MarketLine Strategy, SWOT and Corporate Finance Report, MarketLine.com, October 2013 xxvi MarketLine Strategy, SWOT and Corporate Finance Report, MarketLine.com, October 2013 xxvii Matthew Frankel, In Athletic Footwear, the Biggest Is Still the Best Investment , The Motley Fool, Online, June 12, 2013 xxviii Brandon Gaille, 20 Sports Apparel Industry Sales Statistics and Trends, BrandonGaille.com, October 11, 2013 xxix Malcolm Newbery, Global market review of active sportswear and athletic footwear - forecasts to 2014: 2008 edition: Supply to the market, ProQuest Industry Report, January 2008 xxx Athletic Apparel Vendors Ranked by Global Market Share of Apparel Revnue 2011, statista.com, 2013 xxxi Overweight and Obesity Facts, Centers for Disease Control and Prevention, Web , August 16, 2013 xxxii Shelly McKenzie, The Seventies in America, December 2005 xxxiii Yoga Statistics, StatisticBrain.com, July 28, 2013 xxxiv Steve Fainaru, Youth Football Participation Drops, ESPN.com, November 14, 2013 xxxv MarketLine Strategy, SWOT and Corporate Finance Report, MarketLine.com, October 2013 xxxvi Best Global Brands 2013 - Nike, Interbrand.com, Accessed December 4, 2013 xxxvii Austin Carr, Nike: The No. 1 Most Innovative Company of 2013, Fast Company, February 11, 2013 xxxviii MarketLine Strategy, SWOT and Corporate Finance Report, MarketLine.com, October 2013
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Anita Chang Beattie, Adidas Gains on Nike in China By Balancing Performance With Fashion , AdAge, August 14, 2013 xl Nike Just Doesnt Do It With Lost Sales Year in China, Bloomberg News, July 17, 2013 xli MarketLine Strategy, SWOT and Corporate Finance Report, MarketLine.com, October 2013 xlii MarketLine Strategy, SWOT and Corporate Finance Report, MarketLine.com, October 2013 xliii Malcolm Newbery, Global market review of active sportswear and athletic footwear - forecasts to 2014: 2008 edition: Supply to the market, ProQuest Industry Report, January 2008 xliv Nike, Inc. Financial and Strategic Analysis Review, GlobalData, April 2, 2012 xlv Morningstar Financials, Morningstar.com, Accessed December 5, 2013 xlvi Wang Zhuqiong, Nike reports strong revenue growth except for China, China Daily Asia, September 27, 2013 xlvii Max Koh, Driving Adidas growth in Greater China, The Edge Malaysia, August 16, 2013

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