Nike Inc.
There are many things that someone needs to take into consideration when one might think about investing money into a corporation. One needs to be able to review and analyze the company’s financial statements and other sources in order to make such an investment of their own money. Nike Inc. is a huge global corporation, and I have the opportunity to invest $5000 or decide not to invest. Throughout this paper I am going to explain ways that I came to my conclusion on whether to invest or not. After carefully looking through the figures and numbers, I decided that I am going to invest $5000 into Nike Inc.
In making my decision, I needed to factor in the negatives or the risks that come with investing money into Nike. One of the major risks of investing in Nike is that their products face intense competition. The athletic footwear, apparel and equipment industry is a very large industry and is very competitive in the United States but also worldwide. They compete internationally with a large number of shoe, apparel and sports equipment companies that is increasing. There is intense competition with the other companies in the areas of product offerings, technologies, marketing, pricing, costs of productions and customer service. If they do not anticipate and respond to their competitors, the consumer demand could decline and the costs of production could increase ultimately resulting in loss of money. Nike has a double sided sword because they utilize high quality endorsers, such as professional athletes and sports teams, to market their products. This can be a risk to investing in Nike if they cannot continue to maintain the relationships with the various athletic stars, sports teams and professional sports leagues who have decided to help promote and utilize Nike’s products. If any of the endorsers of the products decided to stop representing Nike, then Nike would lose a lot of business. Several of the endorsed professional athletes have...