Management Economics: Analysis of Nike's Venture and Market Equilibrium

MANAGEMENT
ECONOMICS- 1

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Describe the venture & its main goods or service..................................................................3
TASK 2............................................................................................................................................4
Identify the demand & market equilibrium which influenced the demand of their goods.....4
TASK 3 ...........................................................................................................................................6
Indicate the elasticity or more elasticity of demand for the certain aspects...........................6
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Economics is the analysis of available resources which are contributing to the economy
of the nation with the aim of having development & growth of the economic aspects.
Management economics is the subject which focuses in the problem solving & the decision
making so that they can rightly implement certain theories of economics(Pacelli and Sica, 2020).
Nike is the American multinational organisation which is engaging in designing, manufacturing,
global marketing and the sales of shoes and other footwear. The organisation is headquartered
near Beaverton, Oregon in Portland metropolitan area. It is established in January 25, 1964 by
Bill Bower-man. This report will includes the analysis of the venture and also evaluate the
substitute commodities & complementary goods for the organisation. Furthermore, it will
evaluate the supply and demand in the target market and the market equilibrium and the various
factors.
TASK 1
Describe the venture & its main goods or service.
Nike is the world's leading supplier of athletic shoes & also the major manufacturer of
sports equipment. It is ranked as the valuable brand among sports businesses. Nike market its
commodities under own brands as well as the Nike Golf. There are working with large number
of workers which is up to 75,400 and operating their business to different market segment and
generating higher revenue and profitability. Further they are operating their business with the
help of their official website nike.com where the potential buyer can choose their product out of
available options.
Chosen Product:
As the organisation is dealing their business in footwear, apparel, sportswear related to
different sports and they are the premium products of the company. It is vital that all the demand
of such products is basically reflected by the income level of the consumer due to premium
pricing strategy used by the company to establish the better brand image in the market.
Explantation of choosing that commodity or product:
Nike is the famous brand for the sportswear that shows the elasticity of the demand in the
target market and this also access in knowing the changing behaviour of the buyer while making
purchase towards the brand and the given products. By this Nike can rightly establish good brand