NIKE, Inc. and its subsidiaries engage in the design, development, and marketing of footwear, apparel, equipment, and accessory products worldwide. It designs athletic footwear for running, cross training, basketball, soccer, sport inspired urban shoes, and children’s shoes. The company also offers shoes and sports apparel for tennis, golf, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities, hiking, outdoor activities, and other athletic and recreational uses primarily under the ‘NIKE’ brand name. In addition, it sells sports inspired lifestyle apparel, as well as athletic bags and accessory items. Further, NIKE sells a line of performance equipment, including golf clubs, sport balls, eyewear, timepieces, electronic media devices, skates, bats, gloves, swimwear, cycling apparel, children’s clothing, school supplies, and eyewear. Additionally, the company sells a line of dress and casual footwear, apparel and accessories for men and women. As of May 31, 2005, it operated 184 stores in the United States and 190 stores internationally. The company sells its products to retail accounts, through its owned retail stores, and through a mix of independent distributors and licensees. NIKE was co-founded by Philip H. Knight. The company was incorporated in 1968 and is headquartered in Beaverton, Oregon.
Full time employees: 26,000.
Nike Inc. One Bowerman Drive
Beaverton, OR 97005-6453
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Nike, Inc.NYSE: NKE (pronounced - 'Nigh-Key' in America but usually pronounced to rhyme with "Mike" in the UK) is a major manufacturer of athletic shoes, apparel, and sports equipment, marketing its products under its own brand as well as Air Jordan, Nike Golf, Team Starter (among others), and under brands from wholly-owned subsidiaries including Bauer, Cole Haan, Converse, and Hurley International.
Nike produces the uniform for many of the world's football (soccer)clubs and national teams, including Brazil, Portugal and Manchester United.
Nike's mailing address is in Beaverton, Oregon, part of the Portland metropolitan area; the company's headquarters are in unincorporated Washington County.
The company takes its name from the Greek goddess of victory, Nike.
2Corporate social responsibility
2.2Factory worker conditions
3.1Nike v. Kasky
3.3Minor Threat ad
4Relationship with Beaverton
6.1Dispute with Beaverton
1962 Phil Knight drafts a thesis paper at Stanford University in which he asserts that low-priced athletic shoes made in Japan could compete with more expensive footwear made in Germany. After earning his MBA, Knight travels to Japan, where he meets with executives from Onitsuka Tiger and persuades them to make Knight's company, Blue Ribbon Sports, the distributor of Tiger brand footwear for the western United States.
1964 Knight sends samples of Tiger footwear to legendary University of Oregon track coach Bill Bowerman, for whom Knight ran middle distances while an undergraduate. Bowerman suggests that he and Knight become partners, with Bowerman to provide endorsement clout as well as footwear design ideas. The two shake hands and each pledge $500 to start the new venture.
1965 Jeff Johnson, a former track rival of Knight's, joins as the company's first full-time salesman. He sells shoes out of the back of his van to high schoolers at track meets.
1966 Johnson opens the company's first retail outlet in Santa Monica, California. Knight and Bowerman convert their handshake agreement into a formal, written agreement.
1967 Knight and Bowerman incorporate Blue Ribbon Sports, creating BRS, Inc.
1969 With annual sales approaching $300,000, Knight resigns as a professor at Portland State University to devote himself full-time to BRS, Inc.
1970 Bowerman experiments with rubber spikes, pouring a liquid rubber compound into his wife's waffle iron, which led to the creation of the 'waffle' sole.
1971 The relationship between BRS, Inc. and Onitsuka Tiger deteriorates, causing Knight to begin development of a new athletic footwear brand. A graphic design student at Portland State University named Carolyn Davidson is hired by Knight to design the new brand to put on the side of his company's shoes. She is paid $35 (US), and works for Nike for a few years until they need a full ad agency. Twelve years later, in 1983, Ms. Davidson receives a gold Swoosh ring with an embedded diamond at a luncheon honoring her, along with a certificate and an undisclosed amount of Nike stock, in recognition of the Swoosh design logo.
1971 Along with the new brand, BRS, Inc. needs a name for its new line of footwear. Dozens of suggestions, including Knight's favorite "Dimension Six," are rejected until Jeff Johnson dreams up the name Nike, the Greek goddess of victory.
1972 The first Nike products, adorned with the Swoosh, are delivered to athletes competing in Eugene, Oregon for the US Olympic Track & Field trials.
1973 American record-holder Steve Prefontaine becomes the first major track athlete to wear Nike shoes, and converts many of his fellow competitors to Nike until his death on May 30, 1975.
1974 The Waffle Trainer is introduced, quickly becoming the best-selling training shoe in the U.S.
1977 Nike print ad with the tag "There is no finish line" is introduced, and is so popular that poster versions are created to meet consumer demand.
1978 Tennis 'bad boy' John McEnroe is signed by Nike to an endorsement contract.
1979 Nike's Air technology patented by inventor M. Frank Rudy is introduced in the Tailwind running shoe. Gas-filled plastic membranes are inserted into the sole of running shoes to provide cushioning.
1980 Nike completes an initial public offering of 2,377,000 shares of Class B common stock on December 2.
1981 BRS, Inc. merges into Nike, Inc. on December 31, and the company officially becomes known as Nike, Inc.
1982 Dan Wieden and Dave Kennedy start their own advertising agency, taking with them the Nike account on April 1. In October, Nike airs its first national television ad during the New York Marathon.
1982 The Air Force 1basketball shoe becomes the first Nike court shoe to make use of the Air technology.
The first Air Jordans.
1984 Nike signs Michael Jordan to an endorsement contract. The first model of his signature shoe, the Air Jordan, originally is banned by the NBA, drawing a tremendous amount of publicity. The introduction of the Air Jordan shoe was a key event in Nike's successful development. Also signed by Nike in 1984: Charles Barkley and John Stockton.
1986 Corporate revenues surpass $1 billion for the first time.
1987 The Nike Air Max shoe is introduced, which uses a much larger Air cushioning unit, and for the first time is visible at the side of the midsole. This was the first of many generations of Air Max-branded technologies. A television ad featuring the Beatles' song "Revolution" was the first and only time that a song performed by the Beatles was used in a TV ad.
1988 Nike introduces its "Just Do It" slogan.
1989 Nike introduces a new type of footwear designed specifically for cross-training, and features two-sport athlete Bo Jackson in a series of memorable ads called "Bo Knows."
1990 The first Niketown store opens in downtown Portland. It earns numerous retail design and business awards. Over the next ten years, Nike will open 14 more Niketown stores across the USA and in England and Germany.
1990 Nike opens its world headquarters in unincorporated Washington County, just west of Portland, on 74 acres (0.3 km²) of land.
1993 Nike introduces an innovative sustainability program, Reuse-A-Shoe, which collects athletic shoes, separates and grinds them up into Nike Grind. which is used in the making of athletic courts, tracks and fields.
1993 Charles Barkley appears in a controversial Nike television ad, proclaiming "I am not a role model."
1994 Nike signs a long-term partnership with the Brazilian national football (soccer) team.
1995 Nike launches a television and print ad campaign called "If you let me play" that points out the many beneficial results of encouraging young girls to play sports.
1996 Nike signs Tiger Woods soon after the young golfing phenom gives up his amateur status. Woods becomes the standard bearer for Nike Golf.
1996 Nike causes controversy with its advertising campaign during the Summer Olympics in Atlantawhich features the slogan, "You Don't Win Silver — You Lose Gold." Nike's use of this slogan draws harsh criticism from many sources, including several former Olympic silver and bronze medalists.
1998 Phil Knight formally commits Nike to strict standards for manufacturing facilities used by Nike, including: minimum age; air quality; mandatory education programs; expansion of microloan program; factory monitoring; and enhanced transparency of Nike's corporate social responsibility practices.
1999 Bill Bowerman, co-founder of Nike, dies on Dec. 24 at age 88.
1999 After initially drawing criticism for allegedly contributing to anxiety over Y2K, the Nike ad "Morning After" wins an Emmy Award for best television ad in 2000. The ad spoofed Y2K hysteria by depicting a young man, out for a jog on January 1, 2000, passing by scene after scene where every possible dire prediction for Y2K is coming true.
2000 Nike Shox cushioning/support system is introduced, initially worn by Vince Carter and others on the US Olympic basketball team.
2001 The Casey Martin Award is launched by Nike, an annual recognition of an individual who pursues his/her sport 'despite challenges or barriers - whether physical, mental, societal or cultural.' The award is named for professional golfer Casey Martin, who fought and won the right from the US Supreme Court to use a golf cart during competition due to a rare circulatory condition.
2002 NikeGO launches, a grassroots initiative to increase physical activity among youths aged 9-15.
2002 Rap star Nelly releases a chart topping song about Air Force Ones, a brand of Nike shoes.
2002 Nike earns its second Emmy Award for the television ad called "Move," which featured a series of athletic movements that continued fluidly from one sport to the next.
2003 Nike acquires once-bankrupt rival Converse for $305 million.
2003 For the first time in the company's history, international sales exceed USA sales, as Nike continues to develop into a global company.
2003 Nike is named "Advertiser of the Year" by the Cannes Advertising Festival, the first company to earn that honor twice (also 1994) in the festival's 50-year history.
2003 High school basketball star LeBron James signs with Nike; James is selected as the NBA's Rookie-of-the-Year.
2004 Phil Knight steps down as CEO and President of Nike, but continues as chairman. Knight is replaced by William D. Perez as CEO of Nike, effective Dec. 28.
2004 Nike creates the Exeter Brands Group, a wholly owned subsidiary for athletic footwear and apparel brands for lower price points. Brands include Starter, Team Starter, Asphalt, Shaq and Dunkman.
Air Jordan XX.
2004 Annual revenues exceed $12.3 billion.
2004 Nike launches the "LIVESTRONG" campaign to raise money for the Lance Armstrong Foundation. Yellow rubber wristbands are sold for $1 each, with proceeds going to the now 7-time Tour de France champion's foundation to 'inspire and empower people with cancer to live strong.' As of September 2005, more than 55 million yellow bands have been sold.
2004 In June, Chinese animator Zhu Zhiqianq, of Xiao Xiao fame, files a lawsuit against Nike for plagiarizing his cartoon stickmen in their commercials. Nike representatives deny the accusations, claiming that the stickman figure lacks originality, and is public domain. Zhu eventually wins the lawsuit, and Nike is ordered to pay $36,000 to the cartoonist.
2005 Nike launches the Air Jordan XX, the 20th edition of the Air Jordan basketball shoe series.
2005 Nike introduces the Nike Free shoe, which is designed to provide many of the benefits of barefoot training while minimizing the hazards.
2005 Nike reports annual revenue for fiscal year 2005 (ending May 31) of $13.7 billion, a 12% increase over the previous fiscal year.
Corporate social responsibility
Nike received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign in 2002, 2003, and 2004.
Factory worker conditions
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Nike has been criticised by some for using sweatshop labor in countries like Indonesia and Mexico. The company has been subject to much critical coverage of the often poor working conditions and exploitation of cheap overseas labor employed in the free trade zones where their goods are typically manufactured. Sources of this criticism include Naomi Klein's book No Logo and Michael Moore's documentaries. This criticism is reflected in the novel Jennifer Government, in which an amoral Nike executive is the story's villain.
The forced labor camp like conditions in some overseas production plants led to several called-for boycotts (), together with coining the alternative name "swooshtika" for the company's swoosh logo ().
Nike was criticized about ads which referred to empowering women in the U.S. while engaging in practices in East Asian factories which some felt disempowered women ().
These campaigns have been taken up by many college campuses, especially free trade groups as well as the United Students Against Sweatshops.
Nike v. Kasky
The company faced criticism when it claimed immunity from a false advertising lawsuit filed by Marc Kasky in California based on the claim that it enjoyed First Amendment rights, as if the corporation were a human being. The dispute proceeded all the way to the U.S. Supreme Court Nike v. Kasky, but was sent back to California courts without a substantive ruling and subsequently was settled out of court.
Nike has been a focus of criticism for their use of the Beatlessong "Revolution" in a commercial, against the wishes of Apple Records, the Beatles' recording company. Nike reportedly paid $250,000 to Capitol Records Inc., which held the North American licensing rights to the Beatles' recordings, for the right to use the Beatles' rendition for a year.
According to a July 28, 1987 article written by the Associated Press, Apple sued Nike Inc., Capitol Records Inc., EMI Records Inc. and Wieden+Kennedy advertising agency for $15 million. Capitol-EMI countered by saying the lawsuit was 'groundless' because Capitol had licensed the use of "Revolution" with the "active support and encouragement of Yoko Ono Lennon, a shareholder and director of Apple."
According to a November 9, 1989 article in the Los Angeles Daily News, "a tangle of lawsuits between the Beatles and their American and British record companies has been settled." One condition of the out-of-court settlement was that terms of the agreement would be kept secret. The settlement was reached among George Harrison, Paul McCartney, Ringo Starr and Yoko Ono, and Apple, EMI Records and Capitol Records. A spokesman for Yoko Ono noted, "It's such a confusing myriad of issues that even people who have been close to the principals have a difficult time grasping it. Attorneys on both sides of the Atlantic have probably put their children through college on this."
Nike discontinued airing ads featuring "Revolution" in March 1988. Yoko Ono later gave permission to Nike to use John Lennon's "Instant Karma" in another memorable ad.
Minor Threat ad
The original album cover.
The Nike advertisement.
In late June 2005, Nike came under fire from independent music fans for their use of an easily identifiable Minor Threat album cover slightly modified into a promotional tool for their line of skateboardingshoes. With Minor Threat being emblematic of undergroundpunk rock culture, and their former frontman Ian MacKaye (of Fugazi and Dischord Records) being an outspoken champion of true independent music and the DIY ethic, Nike's move to use this image struck many as a cynical attempt by a large, money hungry corporation to target an untapped demographic, undermining what Minor Threat stood for, and what Dischord continues to represent.
On June 27th, Nike Skateboarding's website issued an apology to Dischord, Minor Threat, and anyone else who was offended by their act, and announced that all usage of the image would be removed.
Relationship with Beaverton
Nike's world headquarters are surrounded by Beaverton, Oregon but are technically within unincorporated Washington County. This technicality reflects a dispute that The Oregonian characterized as an increasingly personal disagreement between Phil Knight and Beaverton mayor Rob Drake.
From Nike's perspective, the company, the only Fortune 500 employer still headquartered in the Portland metropolitan area, has such a large payroll in the area that it shouldn't be forced to be annexed into Beaverton without its consent. Nike prefers to work with county government as it develops and expands its headquarters. Annexation would cost the company $700,000 per year in increased taxes for services it already receives from the county and various special-purpose districts. Intel, another large employer in the state, routinely receives special tax breaks on various capital investments it makes in the county.
From Beaverton's perspective, the company's expectation for special treatment is counter to the city's desire to have zoning and other laws apply equally to all businesses, big and small. A nearby Costco store, one of that company's earliest, was annexed into Beaverton years ago without incident, and Beaverton's focus on additional annexation during the 21st century reflects a desire to streamline both city and county government by having metropolitan-area services handled by cities instead of counties.
The Oregonian dates the bad blood between the two back to the Nike purchase of 74 acres (0.3 km²) of nearby Beaverton land which soon fronted the MAX Blue Line. When Nike proposed expanding their headquarters in that direction, Beaverton at first wanted them to build housing near the MAX station and criss-cross the property with two public roads, expectations defined by the zoning already in place when Nike bought the land. Beaverton's request was mostly consistent with Metro's transit-oriented development plans for the region. After a year, which included a threat by Nike to move 5,000 jobs out of the state, Beaverton backed down from the requirement for housing, but the lack of accommodation was something that Nike did not forget.
The annexation standoff soon led Beaverton to attempt a forcible annexation. That led to a lawsuit by Nike, and lobbying by the company that ultimately ended in Oregon Senate Bill 887. Under that bill's terms, Beaverton is specifically barred from forcibly annexing the land that Nike and Columbia Sportswear occupy in unincorporated Washington County for 35 years, while Electro Scientific Industries and Tektronix get that same protection for 30 years.
Current members of the board of directors of Nike are: John G. Connors, Jill Conway, Alan Graf, Douglas Houser, Jeanne Jackson, Phil Knight, Orin Smith, John Thompson.
Nike's corporate/investor website
Nike Town Nike's Full Range of Products.
Niketalk.com - Independent Site
The NikeWatch Campaign
http://www.ReclaimDemocracy.org/nike (information on Kasky v. Nike )
FairLabor.org annual report
 Anti-Sweatshop student movement begins by focusing on Nike
Pitchfork Media News - 6/23/05 (indie music review site reporting on the Nike/Minor Threat logo controversy)
NIKE, Inc. is engaged in the design, development and worldwide marketing of footwear, apparel, equipment and accessory products. The Company sells its products to retail accounts and through a mix of independent distributors, licensees and subsidiaries in over 160 countries around the world. Its athletic footwear products are designed primarily for specific athletic use, although some of its products are worn for casual or leisure purposes. The Company creates designs for men, women and children. Running, basketball, children's, cross-training and women's shoes are the Company's top-selling product categories. It also markets shoes designed for outdoor activities, tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling, aquatic activities, hiking and other athletic and recreational uses. Its apparel and accessories are designed to complement its athletic footwear products, feature the same trademarks and are sold through the same marketing and distribution channels.
The Company's principal business activity is the design, development and worldwide marketing of high quality footwear, apparel, equipment, and accessory products.
Financials & Ratios
Book Value/Share ($)
Cash Per Share ($)
Indicated Annual Dividend ($)
Latest Div. Date
Sep 8, 2005
Price/Cash Flow (TTM)
Most recent data TTM: trailing 12 months ¹ Units in millions
The asterisk is a quote from Bill Bowerman. Who is he? Legendary track & field coach at the University of Oregon. A teacher who showed athletes the secrets of achievement. Co-founder of Nike. Husband, father, mentor. From him we derive our mission. Through his eyes we see our future
Founders: There are two: Bill Bowerman, the legendary University of Oregon track & field coach, and Phil Knight, a University of Oregon business student and middle-distance runner under Bowerman. The long-lived business partnership began in 1962 as Blue Ribbon Sports (BRS). First-year sales totaled $8,000. In 1972 BRS changed its name to Nike, named for the Greek winged goddess of victory.
Employees: Nike employs approximately 23,000 people worldwide, from its World Headquarters in Oregon and European Headquarters in The Netherlands, to nearly every region around the globe. Including manufacturers, shippers, retailers and service providers, nearly one million people help bring Nike to athletes everywhere.
Revenue FY'03: Nike reported revenues of $10.7 billion, an 8 percent increase from FY'02. The best year of the company's 31-year history.
Stock Symbol: NKE. Went public in December 1980 and is traded on the New York Stock Exchange.
Facilities: Nike owns facilities in Oregon, Tennessee, North Carolina and The Netherlands, and operates leased facilities for 15 Niketowns, over 80 Nike Factory Stores, 2 NIKEgoddess boutiques and over 100 sales and administrative offices.
Cole Haan, purveyor of men's and women's casual luxury footwear and accessories, has its international headquarters in Yarmouth, Maine and its design headquarters in New York City.
Bauer Nike Hockey, based in Montreal, Quebec, is the world's leading manufacturer of hockey equipment.
Hurley International, a premium teen lifestyle brand founded by 20-year industry veteran Bob Hurley is based in Costa Mesa, California.
Converse, the globally recognized footwear brand with nearly a century of sports heritage, and home of the perennially popular Chuck Taylor All-Star and Jack Purcell footwear is based in North Andover, Massachusetts.
Headquarters: The 16 buildings at World Headquarters in Oregon are a soft-spoken testimony to the beauty of sports. Nike employees are typically active people who take full advantage of the fields, trails and gyms that dot the 175-acre spread. Each building is named after an athlete who is key to Nike's growth over the years.
Retail: The first Niketown opened in Portland, Ore. in 1990, setting the standard for interactive, immersive brand environments. Averaging 30,000 square feet of selling space, Niketowns attract millions of consumers every year and employ 4,000 Nike retail associates in the United States alone. Currently, there are 13 U.S. and four international Niketown stores: Atlanta, Boston, Chicago, Denver, Honolulu, Las Vegas, Los Angeles, Miami, New York, Orange County, Portland, San Francisco, Seattle, Berlin, London, Melbourne and Toronto. In addition, Nike has been operating Nike Factory stores around the world since 1984, with more than 80 stores now in the United States. In October 2001, Nike opened the first of two NIKEgoddess stores, dedicated exclusively to active women.
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Overview: The U.S., namely the Pacific Northwest, is the home of Nike: The company's inception was at the University of Oregon in Eugene, where co-founder Phil Knight went to college and co-founder Bill Bowerman coached track. The first track star to wear Nike shoes was running legend Steve Prefontaine, a native of Coos Bay, Oregon, who ran for U. of O. Now the company's World Headquarters are in Beaverton, Oregon, a suburb of Portland. The company also operates distribution centers in Wilsonville, Oregon, and Memphis, Tennessee.
Employees: There are approximately 12,000 Nike employees in the United States; 5,850 work in Oregon at the World Headquarters, Wilsonville distribution center, and various retail venues; around 5,100 work in the Memphis distribution center and other retail stores around the country, and 1,000 in a variety of regional locations.
Revenue FY'03: For the full fiscal year, U.S. revenues were $4.7 billion. 44% of Nike revenue was generated by sales in the U.S.
Manufacturing: There are approximately 109 apparel contract factories and 12 equipment contract factories in the U.S., providing more than 13,000 jobs to local communities. In FY'01, approximately 14% of Nike apparel was made in the U.S. The remainder is manufactured by independent contractors located in 33 countries.
Distribution: Nike U.S. has three distribution centers: a 540,000-square-foot center in Wilsonville, Oregon, that distributes primarily footwear and some equipment, and two Memphis facilites. In Memphis, one center is 805,000 square feet and handles only footwear, while the other is a 1,216,000-square-foot facility that handles all of the apparel for the U.S., plus some equipment and footwear. On an average day, the Memphis apparel facility ships 500,000 units.
Cole Haan: Cole Haan designs and sells a line of high-quality men's and women's dress and casual shoes and accessories. Cole Haan has over 800 employees spread out among its international headquarters in Yarmouth, Maine, its design headquarters in New York City, and 287 retail stores throughout the U.S. and Canada. Nike, Inc., acquired Cole Haan in 1988 as a wholly owned Nike subsidiary.
Hurley: In 2002, Nike partnered with Hurley International, a premium teen lifestyle brand founded by 20-year industry veteran Bob Hurley based in Costa Mesa, California. The partnership helped propel the continued growth of the Hurley brand and expand product distribution into international markets.
Converse: Nike completed the acquisition of Converse in 2003, securing the continued growth and popularity of this globally recognized footwear brand with nearly a century of sports heritage, and home of the perennially popular Chuck Taylor All-Star and Jack Purcell footwear. Converse is based in North Andover, Massachusetts, and shares Nike's passion for sports. Nike will support them as they continue to implement their growth strategy.
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Overview: Nike first sold footwear in Europe in 1978. Two years later, the first Nike European Headquarters opened. Then, in 1994, Nike centralized European distribution at the Laakdal [Belgium] Customer Service Center. The current EMEA headquarters, a state-of-the-art complex designed by William McDonough + Partners, opened in 1999 in Hilversum, The Netherlands.
The Middle East has been included in the region since the beginning as a geographical area followed by the Nike Partners organization. (Nike Partners was the subsidiary in charge of dealing with local distributors located in Eastern Europe and Middle East, including Israel.) The region's latest addition, Africa, came under the control of the European region in the middle of 2000.
In terms of revenue, the EMEA region is Nike's second largest region after the U.S.; it is the third largest in terms of manufacturing.
Employees: At the beginning of 2003, 5,358 employees work in the EMEA region; an additional 31 EMEA employees work at Nike's World Headquarters in Beaverton, Oregon.
Countries where Nike offices are located: Nike offices are located in 23 countries in the EMEA region: Austria, Belgium, Croatia, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy, the Netherlands, Norway, Israel, Poland, Portugal, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Turkey, and United Kingdom.
Countries with most employees: With 1,476 employees working at EHQ in Hilversum (a suburb of Amsterdam), the Netherlands has the most employees of any EMEA country. Belgium is a close second, with 1,200 employees working at the Laakal Customer Service Center.
Countries with fewest employees: Slovenia is the country with the fewest Nike employees: 8 employees.
Revenue FY'03: $3,241,700,000, up 20% from FY'02 (constant dollar). 30.3% of Nike revenue was generated by sales in the EMEA region in FY03.
Retail presence: Niketowns are located in Berlin and London.
Distribution: Centralized since 1994 at the $138 million Laakdal customer service center.
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Overview: Nike's roots run deep in the Asia Pacific region: Phil Knight first began doing business in Japan in 1963, importing shoes. Nike Asia Pacific has been in operation since 1977, when it began selling footwear in the region and subcontracted factories in Taiwan and Korea. Nike Japan was established in 1981. In 1997, two major customer service centers opened outside Seoul and Tokyo, and China became both a source country and a vital market for Nike. The Asia Pacific region is Nike's third largest in terms of revenue, but number one in terms of manufacturing.
In 2000, Australia played host to the 2000 Olympic Games, and in 2002, Japan and Korea co-hosted the World Cup.
Employees: About 3,000 employees are based in the Asia Pacific region. 50 employees of the Asia Pacific region work at Nike's World Headquarters in Beaverton, Oregon.
Countries where Nike offices are located: Nike has 11 offices in the Asia Pacific region. Nike offices are located in: Australia, China, Hong Kong, Japan, Korea, New Zealand, Southeast Asia (Singapore, Malaysia, Philippines, Thailand), and Taiwan. In addition to these offices, Nike also has manufacturing offices in Vietnam and Indonesia.
Country with most employees: Nearly 400 people work for Nike Japan, based in Tokyo, making Japan the country with the greatest number of Nike employees in the Asia Pacific region.
Revenue FY'03: $1,358,000,000, up 19% from FY'02. 13% of Nike revenue was generated by sales in the Asia Pacific region in FY'03.
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Overview: Canada was Nike's first foreign market: The company started selling shoes there in 1972. Nike expanded its business to South America in 1978. While the Americas is Nike's smallest region by revenue, it is the second largest in terms of manufacturing. The first Nike shoe ever contracted out was done in Mexico in 1971. It was a soccer shoe manufactured by Calzados Canada in Guadalajara, Mexico.
Employees: 1,008 Nike employees are based in the Americas region; 86 additional Americas region employees work at Nike's World Headquarters in Beaverton, Oregon.
Countries where Nike offices are located: Canada, Mexico, Brazil, Argentina, and Chile. (All the other countries are managed through partner organizations based in Panama, Equador and Paraguay.)
Country with most employees: 568 Nike employees work for Nike Canada, based in Toronto, Ontario. Canada has the largest number of employees in the Americas region.
Country with fewest employees: Chile is the country in the Americas region with the fewest employees - 62. These 62 employees are based in Santiago.
Revenue FY'03: $527,000,000, down 7% from FY'02. 5% of Nike revenue was generated by sales in the Americas region.
Bauer Nike Hockey: Bauer Nike Hockey is a wholly owned subsidiary of Nike, Inc., purchased in 1995. The company's research, design, and development center, as well as a manufacturing source, is in St. Jerome, Quebec. Fifty percent of Bauer Nike Hockey's worldwide employees are located in Quebec.