NIKE Collegiate Baseball Cleats
Economic impact on commercialization/consumption
by Cole Chandler
Point Loma Nazarene’s Athletic department has chosen to use NIKE as its official supplier and sponsor for all the sports teams on campus. It is uncertain whether the PLNU athletic department purchases the Nike Air MVP Pro Metal baseball cleats from an undisclosed dealer or receives a sum of money from Nike for putting their swoosh on all PLNU athletic apparel. Referring to Nike’s general baseball website, baseball cleats are sold in the price range of $29-145. The Nike Air MVP Pro Metal baseball cleats are sold for $80 each, so a team of thirty baseball players would cost the athletic department $2,400 alone just for the cost of the entire baseball team’s cleats.
Nike is the leading global athletic supplier. It’s products are consumed all over the world by amateur and professional athletes, as well as the common consumer. Nike does an incredible job focusing on the economic impact it has on its factories and factory workers across the world. They continue to an exceptional job in offering reasonable prices for superior products.
Nike’s footwear industry is extremely profitable. According to following article, “The footwear apparel giant posted per-share earnings of $1.14 for the fiscal first quarter, well ahead of Wall Street’s $1.01 estimate. Revenue rose 8% to $5.2 billion, in line with Wall Street’s forecast. And the future looks promising, with worldwide orders of $7.1 billion in place for September through January. The figure is up 10% from the year-ago period.” The article talks about how Nike has also had a successful fiscal quarter. “Nike Inc. (NKE: 79.57 +1.90 +2.45%) posted strong fiscal 2011 first-quarter earnings of $1.14 per share, which reflects a growth of 10% from the year-ago earnings of $1.04. Earnings for the quarter also surpassed the Zacks Consensus Estimate of $1.01 per share.” (1) A higher gross margin and effective inventory management were highlights of the quarter. The company will continue to improve on its economic growth as long as it continues to have a positive impact on creating superior products and making the world a better place.