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NIKE, Inc. Message Board

  • stocksforlife stocksforlife Mar 12, 1998 5:25 PM Flag

    Another thought for Valuemart.

    Thank you for your thoughts regarding Nike and others. I agree with your thoughts regarding Coke and Gillette, but I'm not
    sure about the Levis issue. Yes, Levis sells blue jeans which are a product most consumers buy, but why do they buy Levis and not
    some of the host of other brands available? Levis has increased sales quite convincingly over the last decade, and seem to be
    continuing with that trend. This in spite of lots of competition in the Jeans market. Nike sells sneakers - seemingly a product many
    people need or want. Can Nike be assured of the same success as Levis over the long term, or is it's future dependant on the whims
    of the consuming public? What stops firms from eating into Levis market share and how can Nike do the same thing?? Any thoughts
    would be appreciated.

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    • hi stocks, your question regarding levis is a good one. the two company's are both large although nke is larger. both nike
      and levis face the challenge of "how does such a large dominant company get larger?" levis i know has benefited recently from
      the trend in society towards a more casual workplace. the levis "dockers" brand of men's casual slacks has been a huge success.
      the dockers brand has helped levis to become less dependent on selling blue denim levis product. nke has had their own successes
      outside of their core athletic shoes business. apparel is now a major contribution to nke revenues. other nke advances include the
      growth of their cole- haan brand dress shoe division and their skyrocketing golf (shoes and apparel) division. unfortunately the
      cole haan and the golf are too small a market size to significantly impact nikes mammouth- size overall company/bottom line. nike
      apparel was a great growth story five years ago but now it too has grown into a multi billion dollar nike product category. at this
      time nike is kind of a victim of it's own success. their two biggest divisions (athletic shoes and athletic apparell) are so huge
      that it is a heck of a challenge to keep growing these two divisions. sorry i can't be more specific about levis situation, the
      founding family took levis private about ten years ago and company information is no longer public. the family went private partly
      because they did not like the constant wall st. pressure to grow revenues/profits every single quarter.

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