The Athletic Footwear Industry

Paper Summary:

This paper looks at the Nike company's rise to prominence within the athletic footwear company and how its business operations abroad have contributed to the company's success. In particular, the paper focuses on Nike's operations in Indonesia and how those operations have impacted that country. The paper also discusses the benefits the that large companies derive from doing business in developing countries as well as the potential problems their business operations create for the host countries.

From the Paper:

"The Athletic Footwear Industry is highly competitive. The market share data shows Nike and Reebok as the major players in the industry. Historically, In 1991, Nike led the way with a 29 percent share. Reebok held 23 percent of the market, while the rest of the industry split the remaining 48 percent. As a group, the industry reported a 4.8 percent increase in sales in 1992, but posted a 19.5 percent decline in profits. During 1992, 94 percent of the profits in this industry were recorded by Nike and Reebok. This is an industry clearly dominated by Nike and Reebok."

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