though slow and steady growth will be the trend.
over the near term future.
In October, 2002 the Consumer Price Index rose.
at an annual rate of 2%. While unemployment.
has increased to 5.7% since the historic lows of.
the late 1990's, it seems like these figures are.
starting to come into a healthy balance again.
One unique feature over the recent economic.
downturn is that productivity continually.
increased. In the most recent quarter, this trend.
continued with productivity increasing at an.
annual rate of 4.3% as measured by output per.
hour of all persons working.
Finally, six of the ten leading indicators increased.
in October, 2002. Most notably, the money.
supply increased, manufacturers" orders rose, and.
more building permits were issued.
Industry Analysis.
Nike primarily competes in the footwear industry,.
a subset of the consumer cyclical sector. The.
major competitors of Nike are Reebok and.
Adidas, but any company that sells athletic and.
leisure footwear, apparel, or sports equipment.
could be considered a competitor as well.
Competition within the footwear industry can be.
very intense and change quickly due to rapidly.
changing customer preferences and technology.
With a dynamic industry such as this, it can be.
very challenging to sustain a competitive.
advantage.
While the ability to sustain a competitive.
advantage may be difficult, it is definitely.
possible, and Nike's recent success is evidence of.
Henry Fund.
The University of Iowa.
3.
this. Nike has been gaining significant market.
share in its most profitable segment of shoes over.
the $100 price point.
An industry analysis using Michael Porter's Five.
Forces also yields a positive outlook, especially.
for companies that focus on the marketing and.
distribution segment of the value chain.
As previously stated, Nike sells its products.
through 18,000 retailers in The United States.
alone. Also, in international markets revenues are.
generated through numerous arrangements.
including those with retailers, distributors,.