...Headquartered in Portland, Oregon, Nike was founded by duo Bill Bowerman and Phil Knight in 1964. Since then, it has become the number one leading manufacturer for athletic footwear and apparel and is an iconic symbol and brand in the industry. Throughout the industry there are many challenges even for a strong established brand like Nike. One of the largest forces that still affects a strong brand like Nike is the rivalry among existing firms in the same industry. Top names competing against Nike in the athletic industry include Asics, Under Armour, New Balance, Puma, Mizuno and more. All dedicated to the values of sport, each share the fragmented industry and compete against one another’s products. With such a fast-paced industry with growing trends, the competition for a larger market share is strong. Nike is a dominant leader in the athletic industry supplying footwear, apparel, equipment, and a lifestyle. By differentiating its brand from others in the industry, Nike has begun to consciously focus on sustainability within their company. By making this part of their mission statement and strategy, Nike has fulfilled their sustainability goal through initiatives that reduce the production of waste and increase the use of recyclable and green products. For example, Nike has created jerseys for national sporting events and teams made from recycled bottles and they also built the Nike Materials Sustainability Index that helps their employees decrease environmental impacts during...
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...Nike's grand strategy is Growth . The company feels the international marketplace (rather than the domestic) is where the majority of growth will be realized in the next five years. Product Differentiation is the product strategy that Nike has utilized and will continue to use as design creativity is one of Nike's core competencies. International Marketing Nike feels strongly that their biggest opportunities for growth lie in the countries on South Africa, India, Mexico, Peru, Chili, Bolivia, and several eastern European countries. Nike is planning to expand marketing in these areas in the next several years to build demand and distribution systems. Nike also plans to contract manufacture its shoes in several of these countries. Contract ManufacturingThe use of contract manufacturers is only way in which Nike produces anything. Nike does not directly manufacture anything. Nike provides footwear and apparel designs to it hundreds of different contract manufacturers and they make the products. Nike plans to continue using this strategy for manufacturing while building their design and marketing core competencies. Labor Practices Nike has come under a great deal of fire from the press and the public about the pay and conditions the workers receive at its contract manufacturing facilities in the far east. The bad press contributed to poor performance in 1998 for Nike. During the past year, Nike's CEO strengthened the company's labor practices by ordering implementation of several...
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...Murad Tahirov Marketing Spotlight-Nike The Nike story begins with its founder, running enthusiast Phil Knight. In 1962, Knight started Blue Ribbon Sports, the precursor to Nike. At the time, the athletic shoe industry was dominated by two German companies, Adidas and Puma. Knight recognized a neglected segment of serious athletes whose specialized needs were not being addressed. The concept was simple: Provide high-quality running shoes designed especially for athletes by athletes. Knight believed that "high-tech" shoes for runners could be manufactured at competitive prices if imported from abroad. Without much cash to do any advertising for his products, Knight crafted his "grass roots" philosophy of selling athletic shoes: Speaking to athletes in their language and on their level; sharing their true passion for running; and listening to their feedback about his products and the sport. Each weekend Knight would travel from track meet to track meet – both high school and collegiate competitions--talking with athletes and selling Tiger shoes from the trunk of his green Plymouth Valiant. The company's commitment to designing innovative footwear for serious athletes helped it build a cult following that rapidly reached the American consumer. By 1980, after just under two decades in the business, Nike had become the number one athletic shoe company in the United States. Unfortunately for the company, this wave of success was soon to crest as rival companies...
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...Table of Contents Introduction 3 Nike, Inc. 3 Under Armour 4 Porter’s five forces analysis 5 Nike, Inc. and Under Armour innovation strategies comparison 7 Conclusion 9 References 10 Introduction Nowadays, more and more people become concerned about health; they develop special diet that include vitamins and advanced nutrition supplements, and of course they do sports. Any kind of sports demand at least basic sports outfit: a T-shirt, shorts or pants, and a pair of shoes. Industry of sports apparel and footwear is an important part of today’s global business, where big companies have to compete for a customer. It is rather hard to differentiate on this market, because all the goods have to fulfill only one goal: make a person feel comfortable during a workout. Thus, companies have to work harder to develop new innovative products to gain market share advantage. The market of sports apparel is now dominated by several big companies: Nike, Inc., Adidas group (which includes Adidas and Reebok), and Puma. But there is also a new fast-growing and very promising player - Under Armour that managed to enter this saturated market. The key success factor for Under Armour was their innovative approach in creating sports apparel. Observing Under Armour’s success Nike has reconsidered their strategy and made innovation the core part of their mission, and in 2013 Nike was announced a #1 innovative company by fastcompany.com. So now there are two key innovators on the market...
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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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...CHAPTER 1 INTRODUCTION Background of the Study Marikina Shoe Exchange is a Philippine direct selling company that sells clothes, and shoes made by Filipinos, for the Filipinos. Perhaps one of the direct-selling companies that continue to make names in the direct-selling industry by delivering quality and affordable products to people, MSE is now becoming well-known throughout the country and its patrons are increasing in number as time passes by. With the vast opportunities offered by the direct-selling industries and multi-level marketing to people, companies like MSE and the like are now receiving more and more member-dealers every day with the rate of recruitment continuing to get high. MSE products are for men, women and kids. For men and women, MSE offers a wide range of good quality and fashionable products that suits different lifestyles. These products range from apparel and shoes to bags and accessories. The company launches new products and styles at least every after two months to suit the likes of their customers. These are featured in their catalogues made available and accessible in MSE stores or dealers. For kids, MSE also caters the needs of kids through their fashionable and colorful products that are sure to fit the fun and lively attitude of the young people. The company also have its “Character Shop” that features products (apparels, shoes, bags, accessories) fashioned and inspired by children-loved characters like Bratz, Marvel Comics, and Looney...
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...Strategy NIKE’s success is grounded in their ability to stay true to their mission statement. By bringing inspiration and innovation to every athlete, NIKE has grown from selling running shoes out of the back of a car into the world’s leading athletic footwear and Apparel Company. Nike has done this by continuously looking for new ways to unlock NIKE’s potential and focusing on three key areas; leading in shoe innovation, concentrating on the consumer, and building a thriving Digital Ecosystem Gross margin for NIKE: Gross margin increased 50 basis points to 45.6 percent, primarily due to higher average selling prices, partially offset by higher product input costs and unfavorable changes in foreign exchange rates. Net income increased 20 percent to $785 million, while diluted earnings per share increased 22 percent to $0.90, reflecting revenue growth, gross margin expansion, a lower tax rate and a one percent decline in the weighted average diluted common shares outstanding. * Inventories for NIKE, Inc. were $4.6 billion, up 11 percent from November 30, 2014, driven primarily by an 8 percent increase in NIKE Brand wholesale unit inventories. Increases in average product cost per unit, as well as higher inventories associated with growth in DTC, were largely offset by changes in the value of inventories due to foreign currency exchange rates. * Cash and short-term investments were $6.1 billion, $1.4 billion higher than last year mainly as a result of proceeds from...
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...Description of marketing strategies applied by Nike Air Force 4.1 Challenges Forcing Nike to Focus More on Marketing Sportswear is defined primarily as apparel and footwear made for sports participation, though is now also includes casual clothes worn by people for daily activities (E. Ko, C. R. Taylor, et al., 2012). The sportswear market is one of the most price-competitive markets throughout the globe. Within the UK, items of sportswear are purchased by almost 90% of people under 35 years of age, and by 76% of the population as a whole (Mintel forecasts, 2006). The international sportswear market is worth nearly 41.5 billion US dollars at the wholesale level, with Nike, Adidas, as well Reebok comprising some 14% of this market (Jeroen, 2004) and more details are shown in Figure 1. International Athletic sportswear market: Share by brand in Millions of US dollars (Source: Sporting good intelligence, 2003) 4.1.1 Overview of sportswear industry through Porter’s Five Forces analysis Before the study regarding the marketing strategy of Nike Air Force, it is important to have a clear view of sportswear industry as a whole. Based on Porter's Five Forces model, the general characteristics of the industry can be described in the figure as follow. Based on the analysis, it can be concluded that the sportswear industry as a whole can be characterized as competitive and easy for new entrants. Such truth has raised challenges for existed companies, such as Nike. In addition to that...
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...Nike Business Strategy By singkboy | Studymode.com Nike’s Gameplan for Growth that’s Good for All | Management Innovation eXchange Page 1 of 29 M-Prize winner This story is one of ten winning entries in the Long-Term Capitalism Challenge, the third and final leg of the Harvard Business Review / McKinsey M Prize for Management Innovation. Story: Nike’s Gameplan for Growth that’s Good for All by Lorrie Vogel - General Manager of Considered Design at Nike Inc. Co-Authored by Agata Ramallo Garcia October 17, 2012 at 1:29pm 18 36 0 Comments 2 Ratings: Overall 4 Innovative 4 Detail Summary Innovation is a cornerstone of the Nike brand. Our company was founded by two visionaries, Bill Bowerman and Phil Knight, who set out to reinvent athletic footwear. Over the past decade, our drive to design and produce better, faster, lighter products has evolved into an even more ambitious agenda – to embed long term sustainability into our business. This broader vision calls for new approaches to design, management, partnership and new tools and metrics to support integration and adoption throughout Nike. Many of Nike’s http://www.managementexchange.com/story/nike%E2%80%99s-gameplan-growth-that%E2%80%99s-good-all 21/02/2013 Nike’s Gameplan for Growth that’s Good for All | Management Innovation eXchange Page 2 of 29 management innovations for sustainable growth started internally, with the Corporate Responsibility and Considered Design...
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...Nike and Adidas Strategies Joyce Powell DR. Jean Fonkoua Bus 508 May 28, 2015 Nike and Adidas Strategies Compare and contrast the promotional strategies used by two different companies for a similar product within the category that you selected. The main purpose of this paper is to compare and contrast the various marketing, by Nike and Adidas, two of the world’s best sports companies. Nike and Adidas are involved in major athletic apparel. According toDermesropian, Drage, Grigaite and Lopez (2004,p.15) Nike focus on innovation and emphasis on their research and development department in order to be profitable in the long run and they do their best to produce footwear, apparel and athletic equipment that reduce or eliminate injury, help in athletic performance and maximize comfort. Nike operation in the USA, Asia Pacific, Europe, Middle East, Africa and the American regions trying to reach as many customers as possible. Nike business level strategy is a combination of the best cost provider and broad differentiation strategy, but more emphasis is put on the best cost provider strategy. They believe and confide heavily on strategic outsourcing and most of their products are manufactured outside the United States. One of the main reasons behind their success following the cost leadership strategy is their extensive network structure that allows them to cancel their alliance with any company that fails to maintain their standards. The team member work very closely...
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...It is expected to reach $73.5 billion by 2019. The biggest reason for such growth is projected increases in revenue derived from media rights deals, which is predicted to surpass gate revenues as the sports industry's largest segment.(Forbes , 2013 ). Nike is the most valuable sports brand in the world, worth $15.9 billion (excluding its autonomous brands like Cole Haan, Converse, Umbro, and Hurley), an increase of $1.4 billion, or 9.7%, since our first Fab 40 in 2007. That means the Nike name accounts for over one-third of the athletic gear maker's market value. Sales of Nike-branded merchandise in fiscal 2012 were $21.8 billion( Forbes , 2013...
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...Wrexham, UK 15th November, 2012 To, The Marketing Director Nike, UK Subject: A study of changes in the Sportswear market in India in the past decade with focus on footwear sector. Analysis and suggestion about the marketing techniques that need to be implemented for the launch of a new product. The study also includes formulating a Pricing strategy and various promotional measures to be opted by Nike. In today's competitive market, companies always try to introduce different types of products and creative marketing approaches so as to showcase the uniqueness in their products and to survive in the dynamic marketing environments. Nike, the American multinational company is a leading manufacturer and supplier of sportswear, apparel, accessories and services and holds the top spot in supplying athletic shoes and apparel throughout the world. The company, today is among the most valued brands. (Skoloda, 2010) The product is due to be launched in India, which holds the top spot in terms of being among the fastest growing economies in Asia and is the most preferred markets for multinational companies. Indian economy is growing at 8.8%, which is among the best in Asia. (Nobrega & Sinha, 2008) Changes in the Sportswear market over the last decade: As Isaac Asimov once said “The only constant is Change” so is it. The current markets are ever changing. Philip Kotler & John Caslione (2009) state that “Turbulence is the new normal”. Companies...
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...M ultinational Strategy «In the current economic climate it is critical that the increased regulation of business should be considered more than ever to protect workers rights» Table of Contents Introduction 3 4 The globalisation and its impact on the Labour Globalisation and the new international division of labour in East Asian countries 4 The regulation of the labour market in the world, which are the actors ? 4 6 The regulation issue for the labour market Labour law, and government policies 6 Responsive regulation, a solution to the deregulation policy problems ? 7 Conclusion 8 2 Introduction Globalisation represents a set of elements that have profoundly altered the world economy, the international trade, and the relations between each country. The globalisation has also changed the labour market and work in all countries, creating a "global work" market. The labour market is divided into two parts around the world: the labour force in developed post-industrial economies, which is a very expensive labour and less productive but provided high quality goods and a labour of works from developing countries, which offered low wage rates and few workers rights. In their search for economy and profits, multinationals have become increasingly interested in the potential offered by developing countries in terms of manpower often less expensive than in their countries of origin. Moreover, the deregulation policies pursued in United States during...
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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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...Case Title: Nike Inc. Developing an effective public relations strategy 1. SHORT CYCLE PROCESS | Who | Nike´s Corporation | What | La imagen de la compañía fue muy negativa, por lo que sus ventas bajaron considerablemente | Why | En los medios de comunicación afirmaron que las fábricas subcontratadas para Nike en China e Indonesia obligaban a los trabajadores a tener largas horas por bajos salarios y los gerentes abusaban verbalmente | When | En 1990 | Case difficulty cube How: x Analytical Conceptual Presentation 2. LONG CYCLE PROCESS | Problema | Raíz del problema | La mala publicidad perjudica a la organización terriblemente, ya que los consumidores toman la postura de prohibir la compra de sus productos. | El público fue informado de que Nike estaba maltratando a sus trabajadores en el extranjero | Nike ignoró los problemas y negó su responsabilidad hacia su fabricación por contrato | La compañía no se quería hacer responsable de las acusaciones que se le hacían, ya que culpaban a los contratistas en los países asiáticos | Nike no puede equilibrar entre el objetivo de actividades y cuestiones prácticas laborales | Nike no era coherente entre lo que tenía por escrito en su código de conducta y lo que realmente estaba pasando en las fábricas de China e Indonesia | Los grupos activistas no se convencieron con la implementación de su código de conducta y problemas de administración...
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