Upon completion of our companies SWOT analysis I was curious to see how external factors (economy etc.) were impacting some of our competitors growth this past year. According to The New York Times, Nike's revenues have increased by 15% this quarter and analysts are projecting steady growth over the next year.
According the article, demand for Nike products have remained strong around most of the globe. For which have helped make up for the higher prices they paid for raw materials and for selling more items at a discount, both of which impacted Nike's profit margins during the period.
This article I found interesting in a number of ways. The first being that despite a recession, athletic apparel is seeing significant growth. This is positive for our company and would suggest that the market isn't too saturated as of yet. Secondly, this article also pointed out that raw material costs have gone up and as a result margins have been decreased. This provides a number of interesting implications for our business for which we may have to revisit our cost structure to determine if premium pricing is our best option given that much of Nike's apparel was sold at a discount.
See the link here.
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