When asked how to sum up Nike’s culture, Brandon Burrough, Nike’s product manager, simply stated, “One of my fears is being this big, slow, constipated, bureaucratic company that’s happy with its success.”
Innovative would be one way to describe Nike. When asked to describe Nike’s future, CEO Mark Parker states, “Just imagine if your body could control or change the music that you’re listening to–if your movement could actually change the cadence of the music, the tempo, or the beat. Sound–there’s a lot of things going on in that area that are very exciting … So there could be new ways to get feedback–through audio feedback–for how your body is performing. The same could happen with heart rate.” Read more: http://www.nasdaq.com/article/six-reasons-to-buy-nike-stock-for-long-term-gains-analyst-blog-cm362079#ixzz41fFTc677
Nike, a vying and ever-growing contender in this free-market economy, has aways been on the cutting edge of design, technology, and advertising. Nike’s gross income in 2015? 13.49 billion.
Everyone aspires to be fit, fashionable, and healthy. Creating a need for Nike products is virtually effortless; the product sells itself. Provided Nike keeps growing in the unprecedented direction they already have and continues to employ extremely talented publicists and designers, Nike will be well on its way to monopolizing the fitness industry; not only with its athletic wear and state-of-the-art technology, but with fitness fashion as well.
Nike truly seeks to expand beyond its core competency; an important characteristic of a company worthy of investment.
What makes Nike stand apart from other athletic apparel brands, according to Nasdaq.com, “Nike is on the cutting edge when it comes to the digital transformation of the physical world. As Forrester Research analyst Sarah Rotman Epps put it, “Nike has broken out of apparel and into tech, data, and services, which is so hard for any company to do.”
|Fiscal year is June-May. All values USD millions.||2011||2012||2013||2014||2015|
|Cost of Goods Sold (COGS) incl. D&A||11.47B||13.62B||14.41B||15.34B||16.75B|
|COGS excluding D&A||11.12B||13.23B||13.95B||14.82B||16.15B|
|Depreciation & Amortization Expense||351M||395M||452M||518M||606M|
|Amortization of Intangibles||16M||22M||14M||–||–|
Being well-rounded is just one trait that instils confidence in investors. With a steady growth chart, Nike also exemplifies long-term viability. In terms of size and product, Nike has a higher profit than any other company in it’s class. It also doesn’t hurt that Nike’s business model is simple to understand:
According to Nike Inc., “Our vision for SB&I is to enable NIKE, Inc. and our consumers to thrive in a sustainable economy, one where people, planet and profit are in balance. To do this, we will:
- Innovate to deliver enterprise-level sustainability solutions
- Integrate sustainability into the heart of the NIKE, Inc. business model
- Mobilize key constituents (civil society, employees, consumers, government and industry) to partner in scaling solutions”
What also makes Nike so successful is that it’s athletic and fashion branding has a global reach. When you are looking to invest in something, isn’t global growth key? In regards to Nike’s business model as a sustainable and innovative platform, Nike Inc. stated, “We completed a major reorganization at the end of FY09 and emerged a flatter, simpler organization aligned across geographies, categories, functions and retail.”
That is clean, powerful global growth.
Just Do It.