Nike was founded in 1968 by Phil Knight, who is currently the

owner, chairman and CEO of Nike, and his coach Bill Bowerman.
In the late 70, Nike is the most well-known shoe company in the
world, not only producing shoes, they only product other sports
equipments . Nike face a great threat in losing the market. it is
the largest footwear company in the world selling footwear,
apparel, and footwear throughout the world. As the worlds
largest seller of athletic footwear and apparel, Nike is one of the
most recognizable brands in the world . also is a multi-national
company with the biggest market share in the sportswear
industry.
This report will analyze where are Nike made ? and what is the
problem that facing Nike and try to find solution.

The United States (US) is recognized as one of the worlds largest

and most developed sporting apparel markets . The sporting
apparel industry is described as dynamic and fragmented, it is for
these reasons why the United States although strong and active
in nature are aging due to the harsh competition merging from
both Asia and Latin America and the decrease in the US Dollar.
With the US dollar decreasing in value ideally signals consumers
to be more persuaded to favor US goods and hence be more
cautious towards imports, whilst ensuring industry giants stretch
into the European markets to boost potential sales . Within the
US, according to its dominating market share, rapid innovations
and technology and their strategic successes, there are four
industry giants leading the sporting apparel industry. These
compose of Nike, Reebok, Augusta Sportswear and Russel Athlete
. This report will provide an overview of the US sporting apparel
industry in respect to the Porters 5 Forces and the PESTLE

Analysis and will utilize the results of the industry leaders for a
representation of current market results.

Nike relies on the support of the US government for producing

economic policies that help boost the growth of their domestic
and international success. The US government have made no
hesitations to foster to such needs as they have in place policies
which allow for the advancement of Nikes product lines. Such
assistance is evident in the US governments stability in general
macroeconomic environments, the combustion of low interest
rates, currency conditions are stabilized, and guidance of
international competitiveness of the US tax system. Although
multinational corporations understand the importance of reducing
the abuse of child labor and work place injustice, they are still
active in providing work to those living in poor countries. As Tang
explains, MNCs have the opprobrium to exploit workers in their
sweatshops. Those who are activists in the political and legal
environment of the US sporting apparel industry stress that
organizations like Nike request their workers to work in an
environment which is prison like and in turn pay them in
subsistence wages. Nike for instance, recognized as not only the
sporting apparel leader globally but a US sporting goods
influence, only
payed to workers US$0.43 a day to its Indonesian workers back in
1991, which barely scraps the minimum rate for basic living condi
tions .
The environments are hostile and inhumane however into the futu
re this epidemic seems to become
more favourable regardless of organisation size as the labour rem
ains at a minimum cost and of good quality
The power of buyers can be analyzed based on supply versus
demand. The industry leaders have the power to distribute

accordingly due to their global recognition in brand name and are

solely competitive based on product differentiation, which
indicates low switching costs. It is important to recognize that if a
sports apparel retailer in the US such as Foot Locker Inc. (Nikes
largest customer) were to drop an existing and popular brand, it
will result in a drop in sales considering the Sports Apparel
United States.
In US sporting apparel industries, if there is a sudden increase in
price, major brands wouldn't look at reducing inefficient costs,
instead the burden would be passed down to the consumers Nike
will still be reliant on such customers to continue to engage in
sales and purchases regardless of any US economic slowdowns
and the depreciating US dollar. Nike must maintain their end of
the relationship with continuous innovation and differentiation
against its competitors.

-Nike is a solid historical performer with excellent global market

positioning.
Not Restricted on USA . its industry has seen many changes over
the past two decades. he US sporting apparel industry has seen
many changes over the past two decades. Most recently, the

increase in market competiveness which has led to major

acquisitions, leading industry giants and a need for technology
emphasis on product lines. increasing need for globalization and
heavy involvement of environmental issues. This situation only
demonstrates to Nike how the future creates substantial
opportunities for market leaders like Nike but also support for
other minor competitors