...On China Political factor: If Nike wants to open international market such as China, the company would get disadvantages because every country will protect and priority for its domestic products. So, the company must find out exactly these requirements that the country require in Nike to overcome these barriers. International trade regulations The trade regulations in China are formulated in accordance with the "Foreign Trade Law of the People's Republic of China" in order to maintain foreign trade order and fair competition and to protect domestic industry. In 2011, Nike has difficulties to highlight the deep problems businesses face in manufacturing in China, particularly at a time of sharply rising costs and a stiffening legal environment. In its first country-specific supply chain report, which it said focused on China because of the forthcoming Beijing Olympics, Nike detailed the efforts it has been making to get suppliers to comply with its code of conduct and with Chinese law, including a program to monitor Olympics-related suppliers this year. Government attitude The Chinese government may have a love-hate relationship with the West — eager for Western technology yet threatened by democracy. Therefore, it is an disadvantage for Nike when expanding its business in China. But for Chinese consumers, Western goods mean one thing: status. China's biggest seller of athletic shoes, Li Ning, recently surrendered its top position to Nike, even though Nike's shoes — upwards...
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...Environmental Factors MKT 421 Environmental Factors Nike, Inc. is a company that has become the leader in athletic apparel worldwide with retailers in almost 200 countries. Nike utilizes both traditional and non-traditional distribution channels in with primary market regions in the United States, Europe, Asia Pacific, and the Americas. Nike has some 20,000 retailers worldwide including Nike factory stores, Nike stores, NikeTowns, Cole Haan stores, and Web sites which sell Nike's sports and leisure products. (Cuizon, 2009). Political Analysis For a business to succeed in any country, the country must employ policies that foster economic growth for itself through private companies. Since Nike does operate globally, they need to be aware of policies and laws that are going to affect their business. Here in the United States, there are such fiscal policies that help companies such as Nike. They are allowed in the free market in the country through the United State’s policies that allow for lower interest rates and having an economy the is competitive internationally. This is in the best interest of Nike as they design and develop apparel for a wide variety of sports. One of those is soccer, which is one of the most popular sports on the globe. Keeping competitive in that market requires Nike to do business in hundreds of countries. Economic Analysis There are many threats that affect Nike. The biggest one would be competition. Although competition can be healthy for...
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...NIKE From Sweatshops to Leadership HRM 522 June 12, 2011 Global businesses can sometimes be difficult due to the different cultures. Not all cultures carry the same value, law and ethical standard. Nike is an international brand that has many retail accounts in over 160 countries. Being an international company can cause business ethical and legal issues. Integrity is important and sometimes a challenge when a corporation must respond to criticism or hold back on certain company details. Nike dealt with criticism from right activist, media, and face labor rights violations. However, over a period of time and after making some important adjustments; Nike is working on improving its company image. Nike used traditional advertising methods to broadcast its product. Nike public relations tactics dealt with the wage policy, visiting campuses on universities, personal letters, corporate responsibility and using celebrities as spoke person for its product. Nike launch campaigns regarding child labor, low and non- existent wages. Nike believes that the U.S dollars were meaningless because the cost of living was different in other countries. Nike held press conferences for newspaper staff at colleges. These were ways for Nike to make proactive efforts to address the concerns of activists protesting against their products. Nike made a few mistakes in handling the negative publicity. Three...
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...working conditions in a plant making Nike footwear. In 1994, an accounting firm, Ernst and Young, were hired to audit code compliance by making spot checks at Nike factories. In that audit was information concerning Nike factory conditions and how the workers were being mistreated. The audit claimed that Nike workers in Southeast Asia were exposed to toxic chemicals, subjected to physical, verbal, and sexual abuse, forced to work an illegal excess overtime at minimum wage, and suffered poor hygiene. Nike, trying to save their company spent many years claiming that these accusations were false. However, when people compared claims from Nike to the audit, they found some of the details to be inaccurate and/or misleading. Marc Kasky, a California resident and activist, sued Nike for unfair and deceptive practices under California's Unfair Competition Law. Kasky alleged that Nike made "false statements and/or material omissions of fact" concerning the working conditions under which its products are manufactured. Nike filed a demurrer, contending that Kasky's suit was absolutely prohibited by the First Amendment. The California Supreme Court dismissed the case as “improvidently granted.” However, late in 2003 Kasky and Nike announced a settlement. In return for Kasky dropping the case, Nike agreed to give $1.5 million to an industry-friendly factory monitoring group. Analysis Kasky, in my opinion, was correct and had good intentions when he sued Nike. He wasn’t in it for the money...
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...ADVANCED MARKETING STRATEGY 362MKT Example on Nike Dr. Eric Chu 362Mkt‐2012 Example Company Background • NIKE, Inc. is the world’s leading innovator in athletic footwear, apparel, equipment and accessories. The mission of Nike is to bring inspiration and innovation to every athlete in the world. 362Mkt‐2012 Example Product Market • Garment Industry – The garment industry consists of different categories of wearing apparels that serve both beauty, comfortable and body protection. – Product categories could involve men wear, kids wear, sports wear, ladies, … 362Mkt‐2012 Example Market Audit (1) • External Environment – By STEEPLE • Social factor: people are more concern with health, fashion and beauty. Diverse segments are emerging in the garment industry. (Opportunity) • Technology: different material by nano technology could help to build more comfortable garment for consumer market. Different material available lead to better design for manufacturers. (Opportunity) • Legal: pirated products costs a lot of money for litigations in the industry. (Threat) 362Mkt‐2012 Example Market Audit (2) • External Environment – By 5‐forces • Supplier: supplier marketing in the garment industry are mainly small low costs manufacturers in the area and many suppliers are available. Suppliers bargaining power to the industry is low. (Opportunity) • Buyer: Information transparency increase and there are lot more competitive products for customers to choose...
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...Marketing Strategy Chaunte Rhone MKT/421 March 23, 2011 Instructor Rebecca Robbins Marketing is a process that encompasses every aspect of an organization’s ability to provide products or services to customers, suppliers, and communities. An organization’s marketing mix is crucial to producing successful results that will increase consumer patronage, sales, and profits. The four elements of the marketing mix, which includes product, place, price, and promotions affects the development of an organization’s marketing strategy and tactics. How an organization implements the elements of the marketing mix is dependent on the objectives of the marketing strategy. In a recent article the writer explains the reasoning for the revision for the American Marketing Association’s definition of marketing by writing, “Marketing is the activity, conducted by organizations and individuals, that operates through a set of institutions and processes for creating, communicating, delivering, and exchanging market offerings that have value for customers, clients, marketers, and society at large” (Gundlach G, 2009, p. 260). Elements of the Marketing Mix Product Products are important to the marketing mix and whether an organization supplies products or services they must satisfy customer needs to be successful. Products can come in different shapes, sizes, with different features, and for different usages. Whatever the product or service an organization provides for a target market implementation...
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...Assignment 5: Nike” From Sweatshops to Leadership in Employment Practices” Nia Lawson Diggs Dr. Jack Huddleston Human Resource Management 522 Ethics and Advocacy for HR Pro March 13, 2012 Discern how a more effective ethics programs and a more viable code of conduct could have mitigated the ethical issues faced by Nike Nike leads the world in the manufacturing and distributing of its athletic footwear and accessories. Nike is the brain child of Phil Knight and his former track coach, Bill Bowerman. The duo formed a company that would eventually become the leader in the athletic industry with the sales and manufacturing of athletic wear. The Nike brand is widely recognized by its catch phrase and its logo. Their marketing campaigns specially “just do it” helped it revive its brand image. The swoosh sign is recognizable across most of the world. This alone attributes for Nike's worldwide success. Overall, Nike keeps improving its product which helps to keep the population engaged with its brand. If Nike had a more effective ethics program and viable code of conduct, ethical issues could have been avoided by Nike. In the early 1990s, sports shoe giant Nike became the target of arguably the most intensive and widely publicized of these anticorporate campaigns up to that time (Conaway, 2011). According to Ferrell, ethics programs that provide guidelines outlining board responsibilities encourage compliance encourage compliance at the highest...
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...Nike Case Questions 1. In the United States, what is Nike’s: a) Brand image, and b) sources of brand equity? a) In the United States, Nike’s brand image is built on being a high-performance, innovative and aggressive brand. The company associates the brand with top athletes through sponsorships. Since inception, Nike has placed performance as a top priority for the brand. Through designing high performance shoes and apparel, as well as sponsoring high-profile athletes and teams the brand has developed a reputation as being high-quality. Nike’s high tech products have allowed the brand to be perceived as innovative in the minds of consumers. Nike is continually introducing new products to the sports market as a way to improve performance. Through high performance and innovation, Nike has been branded as arrogant as the company has a high regard for the spirit of competition and portraying a rebellious spirit. b) Source of Brand Equity Description Logo Nike’s logo is a check mark. It is commonly referred to as the “swoosh.” As of 2000, 97 percent of American citizens recognize the brand logo. Nike has been seen as aggressive in the overabundance use of the “swoosh” with the symbol being placed on shoes, jerseys, hats, billboards and soccer balls across the globe. This ubiquity has been criticized as diluted the “swoosh”. Advertising Advertising has allowed Nike to portray its rebellious spirit and “nasty boy” image. However, this approach in advertisement has...
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...Ribbon Sports”. With an agreement and handshake in 1964 they began importing Japanese brand Onituka Tiger running shoes. Sells from Nike product Footwear: Running Basketball Soccer Sport-inspired urban shoes Children’s shoes Cricket Performance Equipment: Bags Socks Sport balls Eyewear Timepieces Electronic Devices Bats Gloves Protective Equipment Apparels and Accessories Athletic Bags Offers Apparels for Licensed Sports Team Provides Licenses to produse and sells: o Swimwear o Cycling Apparels o Children’s Clothing o School sipplies o Electronic devices o Eyewear o Golf accessories o Belts Marketing Strategies: • Mbrand iage • Web site of the Nike • Customer Preferences • Update itself timely • Product diffrentiation Marketing mix or 4ps of marketing strategies:- Product price Place Promotion Three more marketing strategies are:- Servise Marketing mix E-marketing mix Environmental Marketing mix Advertising Strategies I. PRINT COMMERCIAL II. SPORTING VENUES AND EVENTS III. SPONSPRSHIPS LIKE A) ATHLETES B) CELEBRITIES C) NCAA TEAMS (NATIONAL COLLEGIATE ATHLETIC ASSOCIATION) D) PROFESSIONAL TEAMS Competitve Strategies MOST IMPORTANT: 1. Athletic shoe market share for nike from 2006 to 2011 2. Global Market shares for Nike is 31% and it is the top most among the athletic footwear. 3. Strategic Planning I. BUSINESS DEFINATION II. TARGET CONSUMER III. WHAT...
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...Hitting the Wall: Nike and International Labor Practices Synopsis of The Situation Based in Beaverton, Oregon, Nike had been a corporate success story for more than three decades. It was a sneaker company, but one armed with an inimitable attitude, phenomenal growth, and the apparent ability to dictate fashion trends to some of the world’s most influential consumer. Selling a combination of basic footwear and street-smart athleticism, Nike pushed its revenues from a 1972 level of $62,000 to a starting $49 million in just 10 years. In the 1980s and 1990s, Nike had been plagued by a series of labor incidents and public relations nightmares; underage workers in Indonesian plants, allegations of coerced overtime in China, dangerous working conditions in Vietnam. For a while, the stories had been largely confined to labor circles and activist publications, until a young female worker had died in a Nike contracting factory in 1997, the labor conditions at Nike had hit the mainstream. While the marketing of Nike’s products was based on selling a high profile fashion item to affluent Americans, the manufacture of these sneakers was based as an arms-length and often-uneasy relationship with low paid, non-American workers. Key Issues Nike's strategy of shaving costs caused ethical dilemmas that ultimately damaged its reputation. Nike outsources all of its manufacturing. This approach has provided Nike with huge profits, from a 1972 level of $60,000 to a startling $49 million in...
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...joumal of Marketing Management 1999, 15,43-51 Kevin Lane Keller Brand Mantrais: Rationale, Criteria and Examples hi this paper, we consider how marketing managers can benefit from the concept of a "brand mantra." We examine how brand montras relate to brand positioning and a related concept, "core brand associations." Our focus is on how brand mantras can be used to improve intemal brand management We consider design and implementation issues in temi of characteristics of good A/nos Tuck School of brand mantras as well as process issues in developing Business brand mantras. It is noted that brand mantras, as with Dartmouth College Nike's "authentic athletic perfonnance" and Disney's "fun family entertainment" often consist of three words that combine brand functions with descriptive and emotional modifiers. Procedurally, brand mantras are developed at the same time as brand positioning. At tlwt time, brand mantras would then be judged on their ability to effectively communicate, simplify, and inspire, as reflected by employee research. Organizational Brand Management Through Brand Mantras Introduction An increasing number of firms have embraced branding as a business priority and marketing imperative. Despite that fact many firms are unsure as to exactly what they should do to effectively manage their brands and maximize their equity. Much of the branding literature has taken an extenial perspective to focus on strategies and tactics that firms should take to build...
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...taking jobs away from our country. Controversy will arise either way it is looked at so it makes it almost unfair” Nike, Inc. is highly recognized name and logo not only in the U.S, but also around the entire world. This is because Nike is an American multinational corporation that is highly engaged in the design, development, and manufacturing. They are also responsible for being the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment because of the proper worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman and Phil Knight and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike the Greek goddess of victory. Now that we have a brief history lesson of Nike let’s get into some of the culture issues they have faced and face since they have globalized. When a contract factory wishes to do business with Nike or one its many subsidiaries, it is critical that the owners and/or managers in the supply chain understand the cultural differences across the globe. Failure to understand the cultural norms can result in communication failure, lack of respect, negotiation breakdowns, and a loss of current and future business opportunities. On the contrary, it is critical for Nike managers to understand the culture differences of their international supply chain as well. Failure to grasp the...
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...Nike INC.: Developing an Effective Public Relations Strategy Date: Thursday, February 9th/12 Summary Nike Inc. started as a venture between Phil Knight, current CEO, and Bill Bowerman. At the time Knight was a student at the University of Oregon and Bowerman was the University track and field coach. The company, originally named Blue Ribbon Sports, did not officially get started until 1964 when Knight, who pursued a MBA at Stanford, graduated. Blue Ribbon Sports started making athletic footwear after the two men took a trip to Japan to source a manufacturer for the high performance athletic shoes that Bowerman had been designing. The first shoe created by the duo helped University of Oregon runners break track and field records. After those first initial models were produced Knight started selling the shoes out of the trunk of his car, as he would travel to various track and field events. He was also employed as a certified public accountant and professor at Portland State University during the early years of Blue Ribbon Sports. The first shoe under the Nike name was released in 1972, known as the Cortez, and it became extremely popular immediately. As the company, now known as Nike, progressed Knight and Bowerman started to invest largely in research and development and a dynamic organizational culture. One of the things that made them successful was the outsourcing of offshore manufacturing in Japan. In the mid 80’s Nike’s manufacturing focus started to shift to...
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...Case Discussion Questions 1. Should Nike be held responsible for working conditions in foreign factories that it does not own, but where subcontractors make products for Nike? Some people probably think that designing and marketing its products is what Nike is responsible for. But outsourcing its manufacturing divisions into foreign countries doesn´t release Nike from the responsibility. During a developing process manufacturing is one of the most important intermediate steps and because of that it belongs to Nike´s responsibilities, no matter if they own the manufacturer or not. Everybody knows that it is hard to keep the overview about every developing stage but if you decide to put this step into a foreign country, you have to find a way of taking the control. So yes, Nike should be held responsible for working conditions in foreign factories that it does not own, but of course you have to weigh how much influence a company like Nike can have regarding working conditions. Establishing an independent monitoring association like the “Fair Labor Association” (FLA) is a good way to improve bad labor standards. 2. What labor standards regarding safety, working conditions, overtime, and the like, should Nike hold foreign factories to: those prevailing in that country or those prevailing in the United States? In the article you can read that labor standards in the US and in foreign countries are very different. Everybody knows that minimum wages and working conditions...
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...sectors have began to see the importance of strategic marketing and planning. Researchers have said that if strategic marketing activities are not improved sports would not be able to endure the competition from the entertainment industry. This purpose of research is to: (A) Evaluate the conditions of the Marketing environment of Nike INC as a sports equipment company (B) Evaluate the recourse capability of Nike INC using appropriate analytical tools, highlighting its thresholds and unique resources and core competences (C) Evaluate the strategic fit of Nike INC using the analysis gather highlighting its strength and weakness. Company’s Profile. Nike INC is a sport Equipment company, It was founded on the 25th of February 1964 by Bill Bowerman as at then it was known as Blue Ribbon Sports. Its named was official changed on the 30th May 1978 to Nike INC. It is said that Bill Bowerman developed his interest in starting up a business while in Stanford. He believed his business would grow because as at then most Sport Shoes companies spent a fortune on labour by cost by manufacturing their Athletic Sports Footwear in countries like the USA were labour cost were high. He was convinced that by out sourcing production to Japan where labour is cheaper, Blue Ribbon prices would be cheaper than its contributor and thus it break into the Athletic Foot Ware industry and this was the beginning of the company which later became Nike INC. Nice INC logo is an image associated with its...
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