Sample Business Paper on Nike Inc.’s Risk Mitigation in the Shoes and Retail Apparel Industry

Nike Inc. is a leading company in the shoes and retail apparel industry specializing in athletic wear, footwear accessories and other sporting equipment. The company has created and nurtured a unique brand by supplying exceptional and wearable products that aid sports personalities achieve better performance in their respective fields. The lucrative returns in the shoes and retail apparel industry have attracted a significant number of players setting the foundation for the emergence of many risks (Pandey, 2017). For instance, the industry’s highly competitive environment creates the risk of marketing budget pressure. Nike Inc. and other companies often invest heavily in marketing budgets to have a competitive edge in the industry. Besides, the industry faces the risk of having counterfeit products as many vendors offer products with similar logos as those of reputable companies (Silva, 2019). Foreign exchange risk also threatens the financial performance of the companies in the Shoes and Retail industry. In particular, periodic fluctuation of the foreign exchange rates (Brohi et al., 2016). Nike’s commitment to formulate ideal risk mitigation strategies has helped it maintain its impressive performance in the increasingly competitive shoes and retail apparel industry.

The company reports its financial earnings in U.S dollar currencies minimizing the risk of revenue loss form the volatility of other financial currencies. The U.S dollar often exhibits stability in the global financial markets, and Nike’s option to stick to this currency offers it the ideal opportunity to mitigate the risk of foreign exchange volatility (Ahmed, 2016). To overcome the risk of counterfeit products, the company has adopted high-tech devices that generate codes for each product. The customers use specific applications to authenticity the products thus minimizing the chances of having counterfeit products in their target markets (Nalven et al., 2019). The company’s impressive brand and commitment to offer quality products make it easy for it to attract more customers thus easing the risk of marketing budget pressure in the industry. Other companies in the industry face similar to Adidas embracing similar strategies as Nike to maintain its market share. It is prudent for all companies in the Shoes and Retail Apparel industry to get insight into these risks and formulate appropriate mitigations strategies that will help them stay competitive in the industry.



Ahmed, R. R. (2016). „Strategic Marketing Plan of Nike “. ResearchGate, Indus Institute of Higher Education.

Brohi, H., Prithiani, J., Abbas, Z., Bhutto, A., & Chawla, S. (2016). Strategic Marketing Plan of Nike.

Nalven, A., Stauffer, G., Obiano, O., & Agarwal, S. (2019). Future of Sports: Impact of Wearable Technology: Case Study on Nike’s Wearable Technologies.

Pandey, B. C. (2017). Nike Inc-Complete Analysis: SWOT, PESTLE and Marketing strategy. BookRix.

Silva, D. T. D. M. (2019). Equity research-Nike, Inc (Doctoral dissertation, Instituto Superior de Economia e Gestão).