NIKE COMPANY PROFILE

Nike produces 90 million pairs of sports shoes every year. In 1998, revenue increased by 4% to a record $9.6 billion, after revenue increases of 42% and 36% respectively in the two preceding years. Nike is still the number one producer of sports shoes, with Adidas close behind. Nike is not only the biggest producer of sports shoes, but also spends the largest amount of money on advertising and promotion. In 1998 the company spent $1.13 billion for this purpose. *4) Famous sportsmen such as Michael Jordan, Andrew Agassi and Tiger Woods have their names linked to Nike products and received, respectively, $45 million, $10 million, and $28 million in endorsements in 1998. The company designs and produces shoes for just about every sport. Nike's presence in soccer (being the world's biggest sport) became stronger after entering into new partnerships with top European club teams such as FC Barcelona and Inter-Milan. At the 1998 World Cup, six teams (Brazil, Holland, Italy, Nigeria, South Korea, and the United States) competed in kits designed by Nike. In November 1999 Nike negotiated a new contract *5) with the Dutch soccer association, KNVB, and the Dutch team will be playing with the swoosh on their shirts until 2006, for about 10 million guilders a year. Outline of the industry