...Case Nike Nike is indisputably a giant in the athletics industry. But the Portland, Oregon, company has grown large precisely because it knows how to stay small. By focusing on its core competencies—and outsourcing all others—Nike has managed to become a sharply focused industry leader. But can it stay in front? What Do You Call a Company of Thinkers? It's not a joke or a Buddhist riddle. Rather, it's a conundrum about one of the most successful companies in the United States—a company known worldwide for its products, none of which it actually makes. This begs two questions: If you don't make anything, what do you actually do? If you outsource everything, what's left? A whole lot of brand recognition, for starters. Nike, famous for its trademark Swoosh™, is still among the most recognized brands in the world and is an industry leader in the $74.2 billion U.S. sports footwear and apparel market. And its 33% market share dominates the global athletic shoe market. Since captivating the shoe-buying public in the early 1980s with legendary spokesperson Michael Jordan, Nike continues to outpace the athletic shoe competition while spreading its brand through an ever-widening universe of sports equipment, apparel, and paraphernalia. The ever-present Swoosh graces everything from bumper stickers to sunglasses to high school sports uniforms. Not long after Nike's introduction of Air Jordans, the first strains of the “Just Do It” ad campaign sealed the company's reputation as a megabrand...
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...Nike has a long-term key marketing strategy which focuses on basketball, football, running, women’s fitness, men’s training, and sport culture. In order to achieve this goal, Nike did a number of divided marketing strategy as below: In 1962, Nike was known as Blue Ribbon Sports originally and focused on providing high-quality running shoes designed for athletes. It believed the preferences of a small percentage of top athletes influenced the product and brand choices of others. So it chose the runner Steve Prefontaine and signed up Michael Jordan in 1985 as its spokespersons. In 1988, Nike spent $20 million on its first ads – “Just Do It” which challenged athletes to chase their goals and expressed its attitude of self-empowerment through sports. As Nike expanding to Europe, it just focused on soccer and sponsored youth leagues, local clubs and national teams which brought Nike’s image to Europe. In 2007, Nike acquired a British company who made soccer-related foot wear, apparel, and equipment. This action promoted Nike to the uniform supplier of 100 soccer teams in the world. During 2008, Nike focused on Summer Olympics held in China. It sponsored high-profile players, several teams and athletes that grew its revenue by 15%. Furthermore, Nike invited Tiger Woods, the superstar from golf areas to endorse the company and used him to help build the consumer relationships by using the website Tiger Web Talkback session. Also, Nike has aligned with Maria Sharapova,...
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...Nike Case Analysis 1 Nike Case Analysis Contents I. Introduction............................................................................................................................................................3 II. Conclusions of Nike Core Marketing Strategy .......................................................................................................3 2.1. Pros: ............................................................................................................................................................3 2.2. Cons: ...........................................................................................................................................................3 2.3. Risks: ...........................................................................................................................................................3 III. Nike Core Marketing Strategy ...........................................................................................................................4 3.1. IV. Core marketing strategies .........................................................................................................................4 SWOT analysis .................................................................................................................................................6 4.1. 4.2. Weakness ..................................................................
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...Unit 1 Case Study - NIKE Samantha Eubanks Columbia Southern University Abstract The following case study will focus on the global brand of Nike. First, we will take a look at how Nike was created, and the foundation they have based their brand. The study will then delve into how Nike’s marketing strategy has proven successful, had a negative impact, and may have proven risky for the company. Lastly, the study will delve into how Adidas may improve their competitive value against Nike. Unit 1 Case Study - NIKE Over the years, there have been many companies that have ventured into the business of dealing in sporting equipment to include athletic shoes, athletic clothing, and athletic equipment. Nike has emerged as one of the leading brands of athletic products since the creation of the brand in 1962. At the time of its inception, Nike was first known as Blue Ribbon Sports and the main focus was “on providing high-quality running shoes designed for athletes by athletes” (Keller & Kotler, 2012, p. 29). A product that began with the creation of “lighter and better” running shoes has transformed into an international brand that is known by the simple image of a “swoosh” (Sanusi et al, 2014). The following sections will answer a series of questions in regards to the brand, and how a rival company may be able to better compete with the marketing campaign of this globally renowned name. What are the pros, cons, and risks associated with Nike’s core marketing strategy...
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...Nike Presentation of Facts Surrounding Case Background on Football and the FIFA World Cup: Football (Commonly known as Soccer in the U.S.) was and still is the most popular sport in regards to viewership worldwide. In 2006 it was estimated that the sport of football was played by more than 265 million people, and continuing to grow (These estimates were up from 2000, estimated 42 million). Profession leagues exist throughout the world and the most popular teams were in Western Europe. The history of modern day soccer dates back to 1863, although there was early evidence of soccer being played as a sport in China between the 2nd and 3rd centuries BC. In China, it was mentioned that people dribbled leather balls by kicking it into a small net. Recorded facts also support the fact that Romans and Greeks used to play ball for fun and leisure. (Jetzen, 2013). Background of Nike: Co-founded by Phil Knight (former University of Oregon Track Athlete) and Bill Bowers, initially under the name Blue-Ribbon sports in 1962. After a business relationship ended with their overseas manufacturer, they changed the name in 1972 to what is now known as Nike. In 1975 Nike signed its “first” of many big name athletes in Steve Prefontaine. A local University of Oregon track athlete who at the time who held every known track record from the 2k to 10k meters. (Please note that ultimately, Steve Prefontaine was #1 in his sport as this has meaning throughout the case to Nike’s overall strategy). By...
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...macro-environmental factors that influence Nike’s strategy include culture, demographics, social issues, technological advances, economic situation, and political and regulatory environment. Culture is the shared meanings, beliefs, morals, values and customs of a group of people. In America, Nike has become an industry leader that influences our cultural practices. It is widely accepted as the premier retail brand by all age groups. Nike has done a great job of advertising to various generational cohorts and expanding its brand. Nike’s distinguishable products have become a household name on the global scale. Nike has to specifically consider the “country culture” of not only the countries where it sells product, but the cultures of the countries where the products are manufactured. Country culture attributes include behavior, dress, symbols, physical settings, ceremonies, language, and colors. Identifying and navigating some of the more subtle aspects is difficult but necessary for global firms. Demographics indicate the characteristics of human populations and segments, especially those used to identify consumer markets. Demographics include age, gender, race, and income. Nike uses marketing ads to target different segments of demographics. For example, Nike’s version of the toning shoe is designed to specifically appeal to women. Social issues influence consumer behavior around the world. Recently, there has been a heavy emphasis on thrift, health and wellness...
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...SEPTEMBER 6, 2002 DEBORA L. SPAR Hitting the Wall: Nike and International Labor Practices Moore: Twelve year olds working in [Indonesian] factories? That’s O.K. with you? Knight: They’re not 12-year-olds working in factories... the minimum age is 14. Moore: How about 14 then? Does that bother you? Knight: No. — Phil Knight, Nike CEO, talking to Director Michael Moore in a scene from documentary film The Big One, 1997. Nike is raising the minimum age of footwear factory workers to 18… Nike has zero tolerance for underage workers. 1 — Phil Knight, 1998 In 1997, Nguyen Thi Thu Phuong died while making sneakers. As she was trimming synthetic soles in a Nike contracting factory, a co-worker’s machine broke, spraying metal parts across the factory floor and into Phuong’s heart. The 23 year-old Vietnamese woman died instantly.2 Although it may have been the most dramatic, Phuong’s death was hardly the first misfortune to hit Nike’s far-flung manufacturing empire. Indeed, in the 1980s and 1990s, the corporation 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. By the time of Phuong’s death, however, labor conditions at Nike had hit the mainstream. Stories of reported abuse at Nike plants had been carried in publications such as Time...
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...Nike Corporate Team Case Executive Summary Nike has dominated the athletic apparel industry since its inception in 1964. Nike has been the industry leader for many decades and they still are finding new ways to grow. Through innovation and exceptional marketing Nike has become one of the best companies in the world. The history of Nike will help us understand how it became the successful company we know today. All companies are not without problems and competitive edges above the competition. The Analysis of Nike’s SWOT(strengths, weaknesses, opportunities, and threats) will help identify the the possibilities and weaknesses of Nike. The efficiency and effectiveness that is required of companies in this hyper competitive environment dictates whether a company succeeds or fails. Value chain analysis will exhibit the way Nike is always performing above the competition in its industry. Lastly, the discussion will talk about Nike's brand advertising and how the use of sports icons has increased their sales every year for over 30 years. History Nike has become one of the most well-known brands as of today. The way they have done business over the last fifty one years is why they have been so successful in their line of sports related products. Nike’s mission statement states “Bring inspiration and innovation to every athlete in the world”. Nike has been at the head of the pack all the way since the beginning. Nike was founded on January 25th, 1964. It was originally called Blue...
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...Nana Offei MGT/448 Global Business Strategies Case Study Nike: The Sweatshop Debate July 5, 2012 Professor, Marc Mosko Nike, the sweatshop debate Nike Inc. was started by Bill Bowerman and Phil Knight, who met each other in 1957 Before going into business, Knight became a certified public Accountant (CPA) the original Nike Inc. was founded in 1964 by Phil Knight and his friend Bill Bowerman with a collective investment of 1000 to fund the business tries (Nike repository, 2010) The company began with Bill and Phil being local distributors for the Onitsuka Tiger footwear brand now own by Asics footwear, Bill and Phil did business out of their cars at local track meet and sporting event to athletes in the vicinity of the University of Oregon, the first sport retail store open in California in 1966 as where the company profit began to grow they realized that their financial limits imposed by Onitsuka Tiger would limited their long team profits (Nike repository, 2010) This paper will describe the legal culture ,and ethical challenge that confront the global business as personated on the case study, in addition the paper will determine the various roles that the host government played in global business operation .at the end it will summarize the strategic and operational challenges facing global managers illustration in Nike organization Global business doesn’t come without challenges Nike organization plan to become a global body and...
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...Running Head: Nike, Inc. Nike, Inc. Case Study Adelaide A. Odoteye FIN 586 – Dr. Cullers Fall 2006 The brand name “Nike” is one of the most readily recognized around the globe. The name is synonymous with high-quality athletic shoes, apparel, and accessories in the minds of many people worldwide. Perhaps it is the ubiquitous Nike “swoosh” and compelling marketing that commands attention. Or maybe it is the association between the brand name and its famous endorsers, such as Tiger Woods and Michael Jordan. Alternatively, it may be Nike’s cutting-edge sporting vision and technology that entrances multitudes of consumers. Quite conceivably, it is a combination of these factors that has propelled Nike to the top of its industry. However, not all of Nike’s story is ideal. In recent years, the company has faced criticism in connection with its use of contract labor in developing nations. The purpose of this case is to provide an understanding of the company’s background, its general business strategy, and its use of contract labor. The Athletic Apparel and Footwear Industry The athletic apparel and footwear industry experienced steady growth for more than two decades, beginning in the early 1980’s. For example, in the U.S.A. alone, consumer spending on athletic footwear increased by 10 percent during the first six months of 2005 (Quinn, 2006). Consumers were not just professional athletes, but ordinary men, women, and...
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...comparing the strategies of two companies from the same industry. The strategies of Nike and Adidas have been compared from the textile industry. Nike and Adidas both specialize in footwear, apparel and accessories and their competition is intense as Nike is the market leader and Adidas is the market challenger. The topics in this assignment cover critical incidents of both Nike and Adidas that occurred in the past and the comparison between both their strategies as well their future plans. This assignment shows us the influence the strategy has on the success or failure of companies and how companies craft sustainable strategies that help them to retain their position in the market. Table of Contents Page 1.0 Introduction 1 2.0 Literature review 1 3.0 Backgrounds of Nike and Adidas 2 3.1 Company overview of Nike 2 3.2 Company overview of Adidas 2 4.0 Critical Incidents that occurred in the past 3 4.1 Critical incidents that affected Nike 3 4.2 Critical incidents that affected Adidas 5 5.0 Comparison of the strategies of the companies 8 5.1 Strategies of Nike 8 5.2 Strategies of Adidas 9 5.3 Comparison of the strategies of Nike and Adidas 11 6.0 Future plans of Nike and Adidas 13 7.0 Conclusion 14 8...
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...chain for consumers is important when promoting products to different market segments of consumers who use the same products in different ways. The consumer who is using the product for athletic activity will be focused on attributes of the product that enhance or improve performance. On the other hand, the consumer who is using the product for casual wear will be focused on the color, style, and overall look of the product. With that being said, the needs of these consumers are different. A marketer has to promote the various needs and benefits of the same product in such a way that different consumers will find the same product attractive. Recently, Nike has been trying to lower its environmental impact by reducing waste and use toxic materials. In your opinion, what are Nike’s ethical responsibilities in this situation? Nike has an ethical...
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...statement of Nike is “For serious athletes, Nike gives confidence that provides the perfect shoe for every sport”. In today’s competitive environment, Nike, one of the global leaders in sporting goods industry, has established a strong position for enhancing athletic life style. It’s the number one sports manufacturer in the world design by Nolan Breitbarth in the 1970s with Phil knight founder of Nike Inc. It is the leading sporting goods Company in the United States and hundred and ten countries. However, it has become the passion for everyone to use its brand products that create the Nike Just Do It feeling for the competition. The consumer’s perception of brand influences their buying decision in sports industry, so Nike always has been able to position to customer’s expectation and athletic fantasy that is endorsed by real athletes. Its Products offer a wide range of choices for the individuals; from sports equipment, athletic shoes, to clothes. But this paper focuses on Nike athletic shoes- how it has created a distinct impression in consumers’ mind and differentiated its products from its competitors. Promotionally, it has continuously tried to target the world’s youth population through basketball most popular game around the world. Nike partnered with Michael Jordan to have his name Jordan shoes for basketball and designed Jordan I, Jordan II and followed by many more. Nike's marketing strategy is accepted to be an important component of the company's success. Nike is positioned...
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...investigation is to find out how Nike has achieved it's competitive advantage, and to research into the company, to gain my own conclusion, and opinion of what I expect their future to hold. Competitive advantage is a distinctive feature about a business that makes it successful. It can be gained through: - Innovation (The introduction of new ideas, which change or create a product) Reputation Relationship with suppliers Relationship with customers Prices Advertising/Branding To maintain competitive advantage it must be difficult for other firms to copy. The business must carefully identify the people who will buy the product, and make it more appealing to them. Nike are a sports-clothing and footwear company, employing 22,000 people worldwide, from Nike World Headquarters in Oregon and Nike European Headquarters in Hilversum, The Netherlands, to nearly every region around the globe, including Asia Pacific, the Americas, and Europe, Middle East and Africa. Nike sells footwear, apparel, and equipment for men, women and kids, for a variety of sports. They are famous for their quality, and science. The company first started in 1962 by a man called Bill Bowerman. ...read more. Middle Their reputation then grew, and all athletes wanted to know about this new clothing idea. (See appendix 1) Therefore Nike has gained competitive advantage through innovation, of which Nike Sphere is an example. Nike has done some restructuring to help gain competitive advantage. Nike Inc. is very good at adapting...
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...Nike was established in 1972 by former University of Oregon track star Phil Knight. Nike has $10 billion in annual revenues and sells its products in 140 countries. Nike has been dogged for more than a decade by repeated accusations that its products are made in sweatshops where workers, many of them children, slave away in hazardous conditions for less than subsistence wages. Many reporters, TV shows, companies and organizations have repeatedly exposed negative comments towards Nike. For example, a “48 Hours” news report aired on October 17, 1996 regarding a Nike factory in Vietnam, which was visited by reporter Roberta Baskin. The reporter discovered that Nike hired millions of workers who are literate, disciplined, and desperate for jobs at wages lower than minimum wage. Another example of the criticism against Nike came from a newsletter published by Global Exchange. The newsletter uncovered that the majority of Nike shoes were made in Indonesia and China, countries with governments that prohibit independent unions and set the minimum wage at rock bottom. Nike formulated a number of strategies and tactics to deal with the problems of working conditions and pay in subcontractors. In early 1997, Nike also began to commission independent organizations such as Ernst & Young to audit the factories of its subcontractors. Finally, on May 12, 1998 Nike founder Phil Knight spelled out a series of initiatives designed...
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