thirty-four year history, Nike has primarily been

in the business of designing, developing, and

marketing athletic footwear, apparel, equipment

While approximately half of Nike’s revenues are

generated outside The United States, virtually all

of the footwear manufacturing process takes place

in foreign countries by independent contractors.

Nike is not in the business of making shoes, but

Product distribution is accomplished through

numerous channels including independent

retailers, distributors, licensees, and contractors.

In The United States, Nike sells its products

through 18,000 distinct retailers alone.

To prevent large fluctuations in demand, and to

facilitate better planning for the independent

contractors that produce Nike’s products, a unique

futures program is used. In fiscal year 2002, 92%

of U.S. footwear orders were taken through the

futures program. The futures program influences

retailers to place product orders in advance. The

basic advantage of the futures program for Nike is

the ability to better forecast product demand. This

is essential since production is contracted

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