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In the last five years, Nike
has shown a decline from their previous years of dominating the show industry.
Their stock price has drop as much of 20% since the month of August. They
believe the struggle began due to the aggressive increase in competition from Adidas
and Under Armour when it comes to basketball. With the desire to have the new competitor’s
product, revenue has dropped, orders have dropped, and also investors attitude
towards the brand has decreased. Initially, Nike’s future orders started
suffering throughout the year of 2017. In 2017, the company was faced with the
lowest future orders (future contracts) list since 2015. Nike’s footwear
shipments were made through the acted of future contracts and made a total of
67% of the whole sale in the U.S. The last quarter showed Nike that their
company wasn’t able to produce such figures anymore. Due to the focus on web
sales and physical stores causing the metric less relevant. Until Nike can see
an increase in future sales the company will suffer. Moving forward with the
new love of NBA, professional basketball player, Stephen Curry, has driven
Under Armour to increase in sales over the past five years. Curry has produced
numbers that has exceeded over Nike’s top brand ambassadors, LeBron James and Michael
Jordan. Coupled along with Under Armor, Adidas has clinched the fashion
industry with rappers like Kanye West (Adidas Boost) and Pharrell (Colored
Shell Toes). Despite Nike’s short coming in the past five years, the company
remains the top athletic apparel and footwear manufacturer in the world. They
have been successful in expanding across geographic markets and product
categories. In 2014 (which was their last year of leading) the company’s revenues
surpass $27 billion causing them to own 31% of the market share globally and 50%
market share in the U.S.

Pros, Cons, and Risk
Associated with Nike 

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