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Nike cloes not rnake its organizational chart ltLrblic but likely a division-by-product or division-by-region type strLrctulc would work rvell sincc the colnl)any reports revcnLtes ancl operatirtg protits both by procluct (fbotwear,

apparcl, ancl equipmcnt) ancl by rcgion (North Anrcrica, Westcrn Europe, Cliitta, and Japan). However, the

cxisting executive titles do not nratch u,cll with eitltcr of these reportable segtnent scenitrios.

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z’ *rt”**x,. \lr ;rl.c 1: i r’ : ” Nikc has built a1 crnpirc basccl on prorluct rlcvclopurent lbllowecl by heavy utarkctittg. Nikc ollcrs proclrtcts irr

rn6s1 ltajor sports playecl u,orlclu,icle and hircs prolessionitl athletes to t’ttarket their prtlcltrcts, even sigrling l\4ichael Jordan. LcBrun.lanres. ancl Cristiano Ilonalclo to lif’etinre endorsenreltt colltracts. Nike has paiclJortlatl

ovcr $475 million in cnckrrscrrcnts ancl the tlcitls rvith.lames and Ronaldo arc valtled ets tlluch as $l billiorl. Thc $l billion nnntbcr ntay sccll high, lrut estinrates are llonalclo’s socierl Ineclia prcseltce alone generatecl $475 ltillion in value lor Nike in 201(r. Anothcr strrtly conchrclcd that Ronalclo gencrates around $175 lnillitln lilr his spopsors apnually, rvhich is sevcn tinrcs lr,hat Stephen Curry, the second top-revetttte getterating athlete 1br

sponsors. Basecl on clatu in 201(r, of the l5 top athlete enclorsement dcals, Nike owns 11, lvith rival Adiclas rc’spgr.rsible fbr 3, ancl Li Nian accounting firr one with their relationshipr with Dwayne Wacle. Nikc also has clcals with ntany prollssional tean-rs arouncl the u,orlcl 1o be thc sole supplierol’their unilorrns.

Nike gscs social meclia hcavily. cspecially rvith thc NikcPlus rncmbership, which is li’ee. Nike oflers trvcr

applications that inclucle Nil<e Ilrrn (llrrb anrl Nil<e l’raining Club rtsecl ott rttobilc devices ancl Apple Watch. wlicreby sscrs can track rhcir progrcss throuirh running or cr’oss trainirtg progralns. Nike hzrs a partnership rvith

Apple wherc the Nikc ltrgo appears on selcct Applc u,atclres. Nike bencflts by trackiug totls of clata on rvorkottts

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6/26/2020 Pearson eText

Iront users across the lr,orlcl. In aclclition to using the apps lbr lice, custonlers earn Nike Fuel points rvhereby they can purcliase iterns at rliscounts on Nil<c’s rvcbsitc and cvert purchase products not yet available to the public in st0res.

Nil<e recently introclucecl thc Air Tech C’hallcnge, a strategy rvhereby thc cotnpany offers tettnis sltocs rvitlt synthetic leather, stabilizers. ancl better hccl cushiuning, all in a Iightcr shoe. Twt’r ncw running shoes clcvelopctl by Nike erre Frec Ftyknit and Frcc Ilypcrlccl.’Ihe llrm also has a new pair of self’-lacing shoes callecl thc IlyperAclapt 1.0.

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Nike proclLrces 97 percent ol’its ltroducts throLrgh contractors iu overseas tnarkets, with Vietnatn, Clhina, and Indoncsia accounting lirr44,29, and 2l percent, respectively. In total, 127 firotwear thctories in l5 diflerent nations supply Nikc, with no sirrgle lactory rcsponsible lbr more than 8 percent ol-total fbotwear sales. Nike is supplied by ovcr 3 69 apparc I luctorics in 3 7 d iltcre nt countries, w ith the largest suppliel accottt.tting fbr I 3 pcrcent olrevenues. Likc shoe procluction, virtLrally all Nike apparel is tnanulactLrrecl or”rtside the Unitecl States with China, Vietnanr, ancl l’hailancl as the threc largest supplicrs of apl”rarel.

\\1ith the Trurnp achrinistratior-r’s incentives to reshore rnanufitcturing back to the United States, Nike has announced plans to bLrilrl aclclitional nlrrrulircturing plants iu Atrericit. Presently, the contpatry has [l rnanufacturing fitcilities in thc Uniterl States, uccountir-tg fbr about 8 percent of the cornpatty’s total n’ranu(acturiug or-rtput. Nike is vcry transparcnt about its nranufitctLrring ol’fbotwear, etpparel, attd eqLtiprnent. Sirnpty click on thc u,ebsitc http://nranulircturingrnap.nikcinc.com/# to see the cornpany’s t-nanttthcturing I aci I itics worldlvide by coLurtry.

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Nikc’s Iiscal year encls on.lune 30. Nikc hatl an cxcellent liscal 2017 with reveltucs Ltp 6 percetrt artd net itrcotl-tc Lrp ncarly l3 percent as inclicatccl in l rlrrl,rt -‘. Ilowever, Nike rcceived a tax beneflt in 2017 or either t’educecl a lax br.rrden liorn 201(r, helping to partially explain the largeriuurp in ttet incotrte than itt revellLtes. Nike’s o\/crseas revenues and profits arc increusing nicely, tlut its North Anterican flnancial resttlts revealed in the contpany’s scgment clata arc problcntatir’.

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