Jordan Hirsch AF 495 October 18‚ 2012 Nike Executive Summary Executive summary In this report I will focus on Nike’s Inc. Cost of Capital and its financial importance for the company and future investors. The management of Nike Inc. addresses issues both on top-line growth and operating performance. The company’s cost of capital is a critical element in such decisions and it is important to estimate precisely the weighted average cost of capital (WACC). In my analysis‚ I will examine
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Michael Porter’s five forces is a model used to explore the environment in which a product or company operates Five forces analysis looks at five key areas mainly the threat of entry‚ the power of buyers‚ the power of suppliers‚ the threat of substitutes‚ and competitive rivalry. New Entrants Suppliers Industry competitors and extent of rivalry Buyers Substitutes Introduction to Porter’s 5 forces The model of the Five Competitive Forces was developed by Michael E. Porter in his book „Competitive
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Porter’s Five Forces: Travel Agency : Industry Rivalry : Highly Fragmented Industry with Intense Rivalry Highly Fragmented Industry. Organized players would barely have 15-20% of the marketplace Most of organized players are present in metros & mini-metros Large disposable incomes in towns like Lucknow‚ Jaipur‚ Coimbatore etc. serviced by family run unorganized players Industry rivalry is intense but not cutthroat Rivalry Intense because of low switching costs‚ low levels of product differentiation
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Article Review: The Five Competitive Forces That Shape Strategy Porter’s Lesson: Michael E. Porter’s article‚ the five competitive forces that shape strategy‚ is an article that dissects the true underlying factors of competition and industrial structure. Throughout the context of the article‚ Porter thoroughly explains how competition and profitability does not only derive from production of goods and services or the level of sophistication of a firm. Instead‚ he claims that in order for an
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‘Take an industry of your choice‚ perhaps one you would like to work for‚ and assess it in terms of: (a) concentration (b) Porter’s model of five forces. From this analyze one or more of the major competitors in terms of their chosen competitive strategies’ Introduction Since the nineteenth century‚ ice cream with its beautiful‚ cold‚ happy and sweet feeling has been loved by people all around the world. In 2007‚ data shows that the ice cream consumption in the
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providing consumers with a superior experience with respect to the interactive flow of information (Santos‚ 2003). Online service delivery is very different from service delivery through other channels‚ whether they be “bricks” channels‚ as is often the case for retailing‚ post and mail order‚ telephone‚ or “on location” as for many leisure experiences. E-service can be usefully conceptualized as an interactive information service. Information provided by or collected from and about customers can be gathered
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associated with Nike`s core marketing strategy? Answer: Nike’s Core Marketing Strategy: Nike’s excellence marketing strategies are their energy to achieve their market goals. Nike believes the "pyramid influence" that the preferences of a small percentage of top athletes influence the product and brand choice. So Nike contracted with many athletes’ spokesperson‚ professional teams and college athletic teams to advertise and promote their products to customers. One renowned example of Nike marketing strategy
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matter which industry your business is in‚ you can assess the forces that influence your business‚ including its strengths and weaknesses‚ using this set of five Market Forces‚ in order to leapfrog over your competition by better understanding the industry you and your rivals operate in. Created by Harvard Business School professor Michael Porter to analyze the attractiveness and likelihood of profitability of an industry‚ Porter’s Five Forces are a simple but powerful tool for understanding where power
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ANTONIO‚ PAUL ERIC G. 03 JUNE 2012 BUSINESS POLICY Case Study Analysis: Nike‚ Inc. Executive Summary Nike‚ Inc. has had three years of shifts of revenue and profit increases. During the case years studied (1999-2001)‚ the net income in 2001 for Nike‚ Inc. (589.7M) increased by only 1.8% over 2000. Increases from 1999-2000 were much more significant 28.3% (579.1M). For the year 2001‚ revenues at Nike increased by 5.5% over 2000 to 9.489B. Since 1997‚ the company’s success include
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The five forces – general assumption The threat of the entry of new competitors Profitable markets that yield high returns will attract new firms. This results in many new entrants‚ which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents‚ the abnormal profit rate will fall towards zero (perfect competition). * The existence of barriers to entry (patents‚ rights‚ etc.) The most attractive segment is one in which entry
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