Although Nike Inc. is not required to release information on any one individual endorsement contract, as of fiscal year 2006, Sports Business Journal reported that the company valued its endorsement contracts to be worth over a staggering $1.9 billion (Kaplan, 2006). For its two major endorsers, Tiger Wood (PGA) possesses a 5-year, $100 million contract and LeBron James (NBA) possesses a 7-year, $90 million contract.
The sneaker that revolutionized Bowerman and Phil Knight’s business was 1974′s Waffle Trainer, which we know today as the Waffle Racer. Bowerman had been looking for a lightweight sole design that would be efficient on University of Oregon’s new artificial surface track, as well as other running surfaces. A moment of brilliance came in 1971 when he realized that a waffle iron’s imprint, when reversed, would provide great traction on the underside of a shoe. After three years of tinkering, Nike’s revolutionary track shoe was born and an empire began.
In Kasky v. Nike, Inc., Nike was accused of making false representations concerning its labor practices in Asian factories. The advertisements that gave rise to this suit were responses to public attacks concerning Nike’s labor practices.The California Supreme Court held that the statements rebutting the public attacks were commercial speech, and as a result the First Amendment did not prevent the filing of false advertising claims.
NIKE enforces its standards through daily observation by NIKE staff members. Every factory in the world that manufactures NIKE components and finished goods has NIKE staff assigned to it who are responsible for monitoring adherence to the Memorandum of Understanding. The next level of enforcement is a system of third-party audit, conducted by Ernst & Young. These thorough reviews conducted over several days include interviews with workers, examination of safety equipment and procedures, review of free health-care facilities at the work site, investigation of worker grievances and audits of payroll records.
(In 1999) realizing that it's subcontracting policies were perceived as unethical, Nike's management took a number of steps. These included establishing a code of conduct for Nike subcontractors and setting up a scheme whereby all subcontractors would be monitored annually by independent auditors.
According to company legend, Nike's business model was developed by Knight while he attended Stanford Business School in the early 1960s. By designing and marketing high-performance athletic shoes in the United States but outsourcing production to lower-cost Japanese producers, Knight believed that Blue Ribbon Sports could undersell its competitors and break into this market.
The Oregon company controls nearly 53 percent of the $6.5 billion U.S. running shoe market and more than 65 percent of the $750 million U.S. running apparel market, according to Matt Powell, analyst with SportsOneSource. Among nine competitors, only Asics' share in either category exceeds single digits: nearly 11 percent in shoes, about 15 percent in clothing.
Worldwide futures and advance orders for NIKE Brand athletic footwear and apparel, scheduled for delivery from June through November 2011, were $10.3 billion compared to $8.8 billion for the same period last year. This futures and advance order amount is calculated based upon our forecast of the actual exchange rates under which our revenues will be translated during this period, which approximate current spot rates. Reported futures and advance orders are not necessarily indicative of our expectation of revenues for this period.
Nike Inc. had 4th quarter 2012 revenues of $6.5B. This missed the $6.5B consensus estimate of the 17 analysts following the company. This was 10.7% above the prior year's 4th quarter results. Nike Inc. had revenues for the full year 2012 of $24.1B. This was 15.7% above the prior year's results.
(The Swoosh Logo Graphic Designer) Carolyn Davidson, received just $35 for her work. Nike made up for it a decade or so later, however, giving her a diamond Swoosh ring and 500 shares of stock. She held on to those shares, and now they're worth a cool $650,000