For this assignment, you will write an Economic Market Analysis for a business idea. You may select a publicly traded company of your choice. You can use Yahoo! Finance to help you verif
Please make sure you understand the assignment this is a PowerPoint assignment please read all the instructions
I have attached an example at the bottom
Objectives:
- Apply marginal thinking to improve decision making
- Use Graphs and illustrations to represent Economic data
- Illustrate how decision making differs based on the nature of market competition
- Everyone needs to turn in a presentation for a grade
Instructions:
- It must be done as an APA paper or as a Keynote presentation.
- Keynote presentations are preferred. If you decide to write a paper it must be done using APA. You can use the Microsoft Word APA template to help you and use ProjectAPA.info. There is also more information on how to use APA at One.Fullsail.edu. Support. Here’s the link to the recordings to help you:
- https://one.fullsail.edu/support/knowledge_base_articles/administrative/814 https://attendee.gototraining.com/4vk51/recording/2258708443323512834
You’ll register to watch and then the video will stream for you. - Slides need to be colorful, informational (put wordy slides in your Presenter's Notes), and creative. Instructor does not like a lot of words on slides. A picture or graph tells 1,000 words. All information needs to be current.
- DO NOT NARRATE SLIDES!
For this assignment, you will write an Economic Market Analysis for a business idea. You may select a publicly traded company of your choice. You can use Yahoo! Finance to help you verify the company you selected is a publicly traded company. Search here: Yahoo! Finance
If you are not familiar with the newest edition of APA, check out Purdue Owl's APA 7th edition:
Below is a description of what is expected to be included in your presentation or paper.
I. Title Slide with business name on it and students names.
II. Introduction and Overview- Describe your business. Include the geographic region. Maps and a video of the business
III. Market Description
A. History of the market (this company if it is not a startup, or the history of the industry). Illustrate
B. Top Competitors- How close substitutes are they? Who are they?- top 2 or 3 is fine. Use logos and their sales figures
C. Revenue Streams- Whom do you charge and how (hourly, by the item, etc.)? You may find you have multiple sets of customers. How many sources of income does this business have? List them. Include graph of Sales for the past 3-5 years as well as photos of the products.
D. Competition Structure- Is your firm in a monopoly, oligopoly, competitive, or monopolistically competitive market? Monopolies are not legal in the USA.
IV. Factors Affecting Demand
A. Consumer’s income- how would a change in your potential customers’ incomes affect Demand for your product?
B. Price of related goods- what are some substitutes and complements to your goods or services and how much do they cost? How would a change in their price affect Demand for your product? Use logos
C. Tastes within the market- what trends or changes should you watch for? Graphs are good.
D. Expectations within the market- What do consumers think is going to happen, and how does this change their buying habits? Note: this is not what they expect of your product, but what they expect to happen in the future which could effect their buying decision now.
E. Number of buyers- What may increase or decrease the number of potential customers?
F. Elasticity- How strongly (not which direction) will raising or lowering the price affect your business? What are key characteristics about your consumers and business environment that affect their elasticity? Good that are necessities tend to be inelastic. Luxury items are elastic.
IV. Factors Affecting Supply
A. Input prices-. What changes could you expect in the prices you pay for your inputs (wages, materials, rent, etc.) and how would they affect your decisions to supply?
B.Technology- what new technology is coming out that will decrease your company’s costs? Illustrate
C. Expectations- what are your company’s expectations of how the market for your good or service will change? How do these expectations affect your business decisions?
D. Entry/exit- How easy and how long would it take for new competitors to enter your market once they see you are doing well? Or, what might make some of your competitors leave the market which would mean more business for you?
E. Number of Establishments in the U.S. You can also use the number of stores, offices and employees if appropriate. You should show where the headquarters is located.
F. What impact has COVID had on your business? Graphs
V. References- You need at least 5. Be sure they are written using APA (aligned to the left on the page and in alphabetical order by the author's last name).
Please cite your sources in APA format and use at least 5 resources. There will be a 10-point deduction if less than 5 references are provided.
Hint: Your Instructor loves colorful creative slides. Use Presenter's Notes if needed.
NIKE
ECO2005-O – Microeconomics Group Presentation
Fedir Kulbak Amy Cook
NIKE
FOUNDERS
Bill Bowerman
Phil Knight
NIKE – The winged goddess of victory; in both war and peaceful competition.
Never Settle, Never Done | Nike
1964
Blue Ribbon Sports, a shoe retailer – Founded by two college friends in Eugene, OR
1971
Renamed Nike and began manufacturing shoes
1979
Nike introduces “Air” technology
1980
Nike goes public
1988
First “Just Do It” campaign begins
2002
Nike acquires Hurley
2004
Nike acquires Converse
2012
Nike becomes the official apparel supplier for the NFL
2015
Nike becomes the official apparel supplier for the NBA
1090 Stores
530 Factories
170 Countries
Worldwide Organization
Cultural popularity began with Converse’s Chuck Taylors in 1921
Adidas & Puma compete with Nike for the most cutting edge & stylish designs
Nike’s revenue streams include footwear, apparel, and equipment
Nike’s target demographic are those ages 11-45
Nike emphasizes marketing to teens to cultivate long-term customers
Market Description
Nike operates in an Oligopoly Market
Substitution – Nike’s competitors offer products that could be substituted for theirs
Few Sellers – Nike has few competitors that operate at the same scale
Barriers to Entry – It would take considerable skill and capital to compete against them
Interdependence – Any adjustment to product or price would greatly affect competitors
Prevalent Advertising – Nike frequently advertises on a global scale and is a sponsor of major events
Factors affecting demand
Passions
Sports
Health
Adventure Activities
Financial
Unemployment rates
Disposable income
Regional economic states
Competition
Trends
Social Media fashion
Regional preferences
If the customer's incomes decrease that wouldn’t hurt Nike's demand for shoes since they have a very diversified price range for their items making them available for many people. Nike also operates discount stores where customers may find older products for a much cheaper price.
Nike's competitors Adidas and Puma have relatively similar prices ranging from all pf their products. I don't think that a change in their price would harm Nike so much since Nike has a much more customer loyalty.
7
Tastes within the market
Trends
Sustainable & ethical production
Comfort & style
“Athleisure” wear
Social media “word of mouth” marketing
Expectations
Social media introducing new competitors
Non-target consumers’ market share growing
Since Nike is a sportswear company, Nike must follow many trends to keep itself in trend. First and foremost, they look out for different seasons, and based on the season, like summer or winter, they maximize their efforts in those areas of sportswear making. Nike has now also entered hype fashion and now collaborates with brands like Off-White and Louis Vuitton to target their products to a broader consumer base.
8
Expectations within the market
There aren’t many scenarios where Nike would likely fail due to external events. Nike is an incredibly large sportswear company and supplies its goods all over the world. There is always constant supply and demand for their products because of their high popularity.
9
6.71% market growth 2022-2027
Most revenue generated in the US
Global revenue of $6.69 per capita
Athletic footwear segment expected volume of 16.3% in 2023
Buyer Habits
Factors that increase buyers
Outlet retail stores
Seasonal Sales
An increase in disposable income
More affordable choices
Factors that decrease buyers
An increase in price
An increase in unemployment
A decrease in quality
Nike may experience an increase in sales due to following sporting events like the World Cup. When the soccer World Cup is usually taken place all the sportwear companies which supply the international teams with sports gear will get an increase in sales, mainly from the fans.
Nike is also known for their marketing campaigns in their advertising where they try to connect with the viewer while also displaying their products.
On the other hand, Nike's sales may go down due to its competitors having substitute products for a cheaper price.
Nike may also lose customers due to labor scandals like they did couple of years ago in China, hiring labor for an incredibly small salaries.
10
Elasticity
Nike shoes have a strong and constant demand
Nike is known to produce the most expensive basketball shoes on the market
Raising their prices is a common and expected practice of Nike and would not affect their market share
Lowering prices would not strengthen their popularity among target & non-target consumers
Key Characteristics
Innovative Technology
High Quality & Stylish Products
Joy & Celebration of Sports
Maximum Performance
Self-Empowerment
Inspiring
Involved Socially
Globally Responsible
Factors affecting supply
Increase in price and a decrease in availability
Nike has relatively cheap spending when it comes to raw materials, wages and rent. The materials and labor for the product making is being outsourced from cheaper countries in Asia. In some cases, there can be employee backlash about low pay checks and that may make Nike want to rise the salaries of some workers.
13
Covid
Manufacturing plant closures
Supplier factory closures
Cotton & Rubber
Crop destruction by drought
Ethical employment
Minimum wage increases
Technology
Nike will introduce a new technological innovation center to improve logistics and their supply chain in 2023
Mobile apps
Virtual stores
Automated quality control
Nike is an innovative company when it comes to technology. Nike has made many facilities that are fully robot-operated and made progress in the material making like the “Flyknit” technology, which reduces the material making for some shoes up to 50%.
14
Expectations
Nike is expected to grow by “low single digits” in 2023
Focus on Nike Direct as the growth is largest in this area
Continued technological expansion
Increase in acquisitions
Global domination of marketing and sponsorship
15
Competing in the industry
Broad supply chain of raw materials and labor.
Large marketing spending to compete with the industry giants.
Ability to outsource some of their endeavors from cheaper places.
Create a logo or a slogan that can compete with the “Nike Swoosh.”
Entering
Exiting
Inability to market on a global scale
Inability to offer a state-of-the-art product
Inferior marketing
Lacking capital to diversify revenue streams
Nike is:
An oligopoly
A brand with a “cult-like” customer base
A technological leader in its market
A luxury item with elasticity
Diversified to meet any supply issues
A dominant force in its market
Socially and ethical conscious
A major global employer
Citations
Athletic Footwear – Worldwide | Statista Market Forecast. (n.d.). Statista. https://www.statista.com/outlook/cmo/footwear/athletic-footwear/worldwide#:~:text=Revenue%20in%20the%20Athletic%20Footwear
Athletic Footwear Industry: Trends and Consumer Behaviour – News and Statistics – IndexBox. (n.d.). Www.indexbox.io. https://www.indexbox.io/blog/Athletic-Footwear-Industry-Trends-and-Consumer-Behaviour/
Brief Description of Nike, Inc – 2814 Words | Research Paper Example. (n.d.). Free Essays. https://ivypanda.com/essays/brief-description-of-nike-inc/#:~:text=The%20company%20is%20operating%20under
NIKE- Company Research Report. (2021, August 27). Business Upside. https://businessupside.com/2021/08/26/nike-company-research-report/
Lim, J. (2022, June 28). Nike forecasts low growth in 2023 amid drop in fourth quarter revenue. The industry.fashion. https://www.theindustry.fashion/nike-forecasts-low-growth-in-2023-amid-drop-in-fourth-quarter-revenue/
Nike and Adidas Products: Price and Income Elasticity | Business Paper Example. (n.d.). Business-Essay.com. https://business-essay.com/nike-and-adidas-products-price-and-income-elasticity/
Smith, P. (2022, August 15). Nike's global net income 2022. Statista. Retrieved September 11, 2022, from https://www.statista.com/statistics/241685/net-profit-of-nike-since-2005/
Nike marketing strategy. StudySmarter UK. (n.d.). Retrieved September 11, 2022, from https://www.studysmarter.co.uk/explanations/business-studies/business-case-studies/nike-marketing-strategy/
Nike operating expenses 2010-2022: NKE. Macrotrends. (n.d.). Retrieved September 11, 2022, from https://www.macrotrends.net/stocks/charts/NKE/nike/operating-expenses
New Idea. (2019, December 11). Nike sweatshops: The truth about the nike factory scandal. New Idea. Retrieved September 11, 2022, from https://www.newidea.com.au/nike-sweatshops-the-truth-about-the-nike-factory-scandal
Section 3: Characteristics of an Oligopoly Industry | Inflate Your Mind. (2019). Inflateyourmind.com . https://inflateyourmind.com/microeconomics/unit-8-microeconomics/section-3-characteristics-of-an-oligopoly-industry/
Aguado, A. (2019, June 12). What is Flyknit Technology? JD Sports US. Retrieved September 11, 2022, from https://blog.jdsports.com/what-is-flyknit-technology/
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