Certainly not! The sluggish 2% growth in its largest market – the US (accounting 
for 38.5% of its global sales), is just one among many problems, just as Margaret Mager, Analyst, Goldman Sachs disclosed exclusively to B&E, “A slowdown in US revenue growth, input cost increases, rising overhead & rising inventory levels present the greatest near-term risk to results.” And worse enough, amongst 100 new stores that Nike is planning by 2010, 50% will be in the US! Also it’s worrying that the 3% increase in global profits and 2% increase in future orders are owed to changes in currency exchange rates. Innovation & product development, however, have been the mainstay for the behemoth and with its new products (like the $175 Air Force 25 shoe, I-Pod-synced running shoes & mixed blend T-shirts), it has managed to capture 34% of the branded athletic global footwear market just as Mark Parker, CEO & President, Nike Inc. feels, “We had a strong third quarter. We continue to grow because we’re innovative.”
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
for 38.5% of its global sales), is just one among many problems, just as Margaret Mager, Analyst, Goldman Sachs disclosed exclusively to B&E, “A slowdown in US revenue growth, input cost increases, rising overhead & rising inventory levels present the greatest near-term risk to results.” And worse enough, amongst 100 new stores that Nike is planning by 2010, 50% will be in the US! Also it’s worrying that the 3% increase in global profits and 2% increase in future orders are owed to changes in currency exchange rates. Innovation & product development, however, have been the mainstay for the behemoth and with its new products (like the $175 Air Force 25 shoe, I-Pod-synced running shoes & mixed blend T-shirts), it has managed to capture 34% of the branded athletic global footwear market just as Mark Parker, CEO & President, Nike Inc. feels, “We had a strong third quarter. We continue to grow because we’re innovative.”For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
