Access over 20 million homework & study documents

4616219 nike edited

Content type
User Generated
School
University of Aberdeen
Rating
Showing Page:
1/6
1
Nike Is An Attractive Company To Invest In
Student’s Name
Course
Name of the professor
Date

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/6
2
Nike is a key player in America’s sports market. It was initially named Blue Ribbon
Sports. However, in 1978, its founders Bill Bowerman and Phil Knight, changed the name to
Nike, and they launched the first product under this brand in 1972. Since then, this company has
achieved significant growth and profitability. Nike has many outlets and distributors in America
and overseas markets. Its logo (swoosh) has greatly enhanced its popularity across the globe.
Secondly, Nike is a good company to invest in because it is a reputable retail brand. It also has a
strong financial position to drive and maintain growth. However, like other companies, the
COVID-19 pandemic caused lockdowns in many parts of the world which affected sales for
many companies. Despite the challenges, Nike transformed its supply chain significantly to
respond to consumer shopping patterns. Following the pandemic, many consumers were forced
to shop online as many companies shut down physical stores. As a result, companies were forced
to respond to these trends to maintain sales and promote long-term growth. Nike took decisive
actions to digitalize its supply chains to achieve sustainability. These efforts contribute to Nike’s
suitability for investing and reaching diverse customers in different locations.
Nike’s financial performance is attractive to investors. According to Kester (2022),
Nike’s dividend-payout ratio was over 30% in fiscal 2022, which means Nike is financially
flexible to invest back its capital. It has the flexibility to pursue acquisitions, repurchase shares,
and repaying its debts. These are fundamental perspectives that can greatly influence investors to
invest in this company (Kester, 2022). Furthermore, Nike’s strategy in the new retail concepts
enhances its suitability as an investment option. It is a dominant player in the sportswear industry
and has plans to maintain this position. The primary concept is increasing its retail presence by
investing in e-commerce to increase its revenues. Nike is also opening more retail shops to sell
more directly to consumers and avoid third-party marketplaces such as Amazon. According to

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/6

Sign up to view the full document!

lock_open Sign Up
Showing Page:
4/6

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 6 pages?
Access Now
Unformatted Attachment Preview
1 Nike Is An Attractive Company To Invest In Student’s Name Course Name of the professor Date 2 Nike is a key player in America’s sports market. It was initially named Blue Ribbon Sports. However, in 1978, its founders Bill Bowerman and Phil Knight, changed the name to Nike, and they launched the first product under this brand in 1972. Since then, this company has achieved significant growth and profitability. Nike has many outlets and distributors in America and overseas markets. Its logo (swoosh) has greatly enhanced its popularity across the globe. Secondly, Nike is a good company to invest in because it is a reputable retail brand. It also has a strong financial position to drive and maintain growth. However, like other companies, the COVID-19 pandemic caused lockdowns in many parts of the world which affected sales for many companies. Despite the challenges, Nike transformed its supply chain significantly to respond to consumer shopping patterns. Following the pandemic, many consumers were forced to shop online as many companies shut down physical stores. As a result, companies were forced to respond to these trends to maintain sales and promote long-term growth. Nike took decisive actions to digitalize its supply chains to achieve sustainability. These efforts contribute to Nike’s suitability for investing and reaching diverse customers in different locations. Nike’s financial performance is attractive to investors. According to Kester (2022), Nike’s divi ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Really useful study material!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4