Industry Structure Memo Nike

This paper provides a review of Nike, Inc. The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. NAICS was developed under the auspices of the Office of Management and Budget (OMB), and adopted in 1997 to replace the Standard Industrial Classification (SIC) system. The primary NAICS code classification for Nike is 316211 Rubber and Plastic Footwear Manufacturing (http://business.highbeam.com/company-profiles/info/306325/nike-inc; web, December 9, 2010). This U.S. industry comprises establishments primarily engaged in manufacturing rubber and plastics footwear with vulcanized rubber or plastics soles, molded or cemented to rubber, plastics, or fabric uppers, and rubber and plastics protective footwear. Upon initial investigation of Nike, the scope of business is far beyond the initial NAICS classification as they also provide sporting goods equipment and athletic apparel. The company profile for Nike attempts to classify the business in a broader sense by including the business in additional sectors of industry, such as:
Primary: 316211 - Rubber and Plastics Footwear Manufacturing
315228 - Men's and Boys' Cut and Sew Other Outerwear Manufacturing
315999 - Other Apparel Accessories and Other Apparel Manufacturing
316219 - Other Footwear Manufacturing
448210 - Shoe Stores
This paper will attempt to limit the analysis to the initial sector for Nike’s breakthrough of Rubber and Plastics Footwear Manufacturing.
Although included in the general category of Rubber and Plastics Footwear Manufacturing, the category is so broad that further analysis of product lines within the category is warranted. Specifically, Nike would contribute to the product line of 31621141 Shoes, athletic, soles vulcanized/molded/etc. to fabric uppers. According to industry data,