Under Armour and Nike

Under Armour and Nike

This paper discusses the business of Nike and Under Armour. It also has discussed the mission statement and vision statement of these companies. Moreover the accounting practices that are used by these companies are also discussed in this paper. The marketing strategy of the Nike's shoes is also highlighted for the better understanding about the consumer behaviour and to better understand the business strategy of the Nike's shoes. In the start of its business the Nike was also known as the Blue Ribbon Sports (BRS). It was founded by two people named Philip Knight and his coach Bill both of them are athletes; Knight was an athlete of the University of Oregon and they founded Nike in January 1964.

Business of Nike

Initially the company started its business through the distribution of the Onitsuka Tiger (a shoe maker of Japan). The first pair of shoes made by the Nike was made by the coach of the University of Oregon, Bill Bowerman. In its first year, Blue Ribbon Sports (BRS) made $ 8,000 by selling 1300 pair of athlete shoes. Next year that is 1965 the company start hiring of permanent employees and in that year the revenue jumped to $ 20,000. The first store of the company was opened in 1966. In the next year the sales of the company have increased that much that they had to expand their operations and distribution. The association between the Blue Ribbon Sports (BRS) and the Onitsuka Tiger came to an end in 1971. So in June 1971 Blue Ribbon Sports (BRS) start selling its own athlete shoes. The company recruited John Brown in 1976 to work for the company as an advertising agency (Hopwood & Fries, 2010). Next year which means in 1977 the advertising agency made the first band ad for the Nike, which it named, “There is no finish line”. By the end of the 1980 Nike captured the market share of 50 % of the athlete shoes. Nike has become the public limited company in 1980. The famous slogan of the Nike, “Just do it” was developed in 1988 during an ad campaign. In the era of 1980's the Nike started to expand its product line to target the athletes of different sports. Nike has also gone global in the same era.

Mission and Vision

The Mission statement of the Nike is to bring the innovation and inspiration among every athlete in the world. Moreover Nike believes that if an individual has body he or she is an athlete. The Vision statement of the Nike reflects and believes that every human being is an athlete. Their vision and mission statement clearly reflects in their business operations. The company's potential customers are all human beings who have a body. It makes the mass market for the company.

Nike produces an extensive variety of games gear. Their first features were track running shoes. Granted that the principle Nike central station is found in Beaverton, Oregon, the sports ...