Economic recession is the biggest threat Nike might face in the near future. Nike Inc.’s economic profit decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level. During the recession time labor and material cost also face an increase. The company’s pricing power is supported through premium innovation and a …
The US and Asian economic recession can affect Nike since the company is manufacturing its products in Asia and the US. Statement of Comprehensive Income Comprehensive income is the change in equity (net assets) of Nike Inc. during a period from transactions and … The income statement (statement of earnings) reports on the performance of Nike Inc., the result of its operating activities. This study includes an economic analysis of Nike and an analysis of the various economic aspects of the firm. Economic profit: Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital. Nike has a competitive market, generating more revenue means low labor cost. The analysis shows that Nike strongly depends on the supply and demand conditions, and in particular, the strategies are made in line with market needs. This essay provides an economics analysis of Nike; covering various economic factors, including price elasticity of demand, competitive advantage, supply and demand, substitute, market share, and market structure. What Does Nike Do Nike, Inc. was founded on September 8, 1969, as a business engaged in the design, development, and global marketing as well as selling of apparel, footwear, accessories, … The price flexibility of Nike is high due to the large number of spare parts on the market, such as Reebok-Adidas, Puma and so on. Huge Customer base – Nike has millions of customer from around the world who loyally follow Nike’s trends, participate in Nike events, and even provide customer feedback.
The majority of Nike's revenue is derived from North America. Nike … Analysts estimate that Nike's revenue will grow nearly 25% through the fiscal year 2021 to $45.4 billion, a compounded annual growth rate of almost 8%, as earnings rise 52%.
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Due to its huge customer base, Nike’s market cap has grown to $115.19 billion as of 2018. Nike is the world's largest supplier of athletic apparel and footwear in the world. Nike’s pricing power gives it a competitive advantage over its peers.
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