...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 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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...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 that...
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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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...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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...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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...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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...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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...Adidas nike case study - Document Transcript 1. VS1 2. A COMPARITIVE ANALYSIS OF MARKETINGSTRATERGIES FOLLOWED BY NIKE AND ADIDAS TEAM MEMBERSANUPAMA VENU 09014CLAES JOTORP 09126DEEPAK TUSHIR 09032GUSTAV TENERZ 09128SAIRAM KRISHNAN 09088SANJAY SHARMA 09090SUNANDA SURESH 09112 2 3. INDEX1. INTRODUCTION 1.1. BRIEF ANALYSIS OF INDUSTRY 1.2. BRIEF DEFINITON OF INDUSTRY 1.2.1.TRENDS IN THE INDUSTRY 1.2.2.MARKET ANALYSIS 1.2.3.MAJOR PLAYERS AND MARKET SHARES 1.3. MAJOR FORCES SHAPING THE INDUSTRY 1.3.1.PORTER S FIVE FORCES 1.4. PREDICTION FOR 2009-2010 1.5. THE COMPANY AND MAJOR PRODUCT LINES 1.5.1.BRIEF HISTORY OF COMPANY 1.6. FLAGSHIP PRODUCTS, MAJOR PRODUCT LINES, RECENT FORAYS 1.7. HISTORY OF THE BRANDS2. MARKETING STRATERGY 2.1. CUSTOMERS 2.2. COMPETITORS 2.3. COLLABORATORS 2.4. COMPANY 2.5. CONTEXT 2.5.1.TECHNOLOGY 2.5.2.SOCIO CULTURAL 2.5.3.ECONOMIC3. SEGMENTATION, TARGETING, POSITIONING 3.1. MARKET SEGMENTATION 3.2. SEGMENTS TARGETED 3.3. POD S AND POP S 3.4. VALUE PROPOSITION 3.5. POSITIOING 3.6. EVOLUTION AS A BRAND4. MARKETING MIX 4.1. PRODUCT 4.2. PLACE 4.3. PRICING 4.4. PROMOTION5. ANALYSIS REPORT 5.1. CUSTOMER SURVEY 5.2. MARKETING STRATERGIES 5.3. PORTER S GENERIC STRATERGIES 5.4. CREATING VALUE 5.5. CAPTURING VALUE 5.6. SUSTAINING VALUE6. REFERENCES 3 4. INTRODUCTIONBrief Analysis of IndustrySport is an integral part of modern contemporary society. Sport has always been associatedwith discipline, dedication and perfection and hence sportsmen have always...
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...Nike Case Study Nike was founded in January 1964 by Bill Bowerman, a track and field coach at the University of Oregon and Phil Knight, a University of Oregon student and middle-distance runner under Bowerman. To satisfy coursework requirements, Knight decided that he would make low cost running shoes in Japan and sell them in the US. He engaged the help of Bowerman who was interested in developing a lightweight running shoe. The business started as Blue Ribbon Sports (BRS). First year sales totalled $8,000. In 1972, BRS introduced a new brand of athletic footwear called Nike, named for the Greek winged goddess of victory and the company was renamed to Nike in 1978. Nike is now the world’s most competitive sports and fitness company. Its headquarters are in Beaverton, Oregon, but the company has expanded its horizons to every corner in the world. The Nike Mission Statement is: “To bring inspiration and innovation to every athlete in the world”. “If you have a body then you are an athlete” Company Information (http://www.nike.com/nikebiz/nikebiz.jhtml?page=3&item=facts) Employees: Nike employs approximately 29,000 people worldwide. In addition, approximately 650,000 workers are employed in Nike contracted factories around the globe. Revenue FY06: Nike reported net revenues of $15.0 billion, a 9 percent increase from FY05. Stock Symbol: NKE. Went public in December 1980 and is traded on the New York Stock Exchange. Facilities: Nike owns facilities in Oregon...
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...Case Study "Nike: The Sweatshop Debate" Sarah Martin MGT 448 July 27, 2011 Kenneth Peter Case Study "Nike: The Sweatshop Debate" “We’ve run the course – from establishing codes of conduct and pulling together an internal team to enforce it, to working external bodies to monitor factories and engaging with stakeholders” (Nikebiz, para. 2). The creation of this code of conduct came after serious allegations of using sweatshops with women and children working in hazardous conditions for less than minimum wage in overseas factories scattered across the globe to make their product. This paper uses the case study entitled, “Nike: The Sweatshop Debate,” to describe the legal, cultural, and ethical challenges that confront Nike’s global business. This paper will also determine the various roles that host governments have played as well as summarize the strategic and operational challenges that face global management for the Nike Corporation. Bill Bowerman, a track and field coach at the University of Oregon, and Phil Knight, a talented middle-distance runner from Portland, “shook hands to form Blue Ribbon Sports, pledged $500 each, and placed their first order of 300 pairs of shoes in January 1964” (Nikebiz, para. 1). In 1965, they hired their first employee, Jeff Johnson, to manage the growing requirements. In 1971, he conjured up the name Nike. According to the case study, the profits and success that the Nike Corporation has gained has affected hundreds of thousands of workers...
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...University of Phoenix Material Nike: The Sweatshop Debate Nike is in many ways the quintessential global corporation. Established in 1972 by former University of Oregon track star Phil Knight, Nike is now one of the leading marketers of athletic shoes and apparel on the planet. Today the company has $20 billion in annual revenues and sells its products in some 140 countries. Nike does not do any manufacturing. Rather, it designs and markets its products, while contracting for their manufacture from a global network of 600 factories scattered around the globe that employ some 650,000 people.1 This huge corporation has made Knight into one of the richest people in America. Nike’s marketing phrase, “Just Do It!” has become as recognizable in popular culture as its “swoosh” logo or the faces of its celebrity sponsors, such as Michael Jordan and Tiger Woods. For all of its successes, the company was dogged for more than a decade by repeated and persistent accusations that its products were made in “sweatshops” where workers, many of them children, slaved away in hazardous conditions for below-subsistence wages. Nike’s wealth, its detractors claimed, was built upon the backs of the world’s poor. For many, Nike had become a symbol of the evils of globalization—a rich Western corporation exploiting the world’s poor to provide expensive shoes and apparel to the pampered consumers of the developed world. Niketown stores became standard targets for antiglobalization protesters. Several...
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...Nike Case Study Tracy Weispfenning Nike Case Study #1 MGMT 310 Jason Cussler January 31, 2014 Nike Falters in Ethical Practices Nike has faced many ethical dilemmas such as human rights abuses, labor violations, and negative impact on the environment where manufacturing plants are located. Their responses have varied from improving labor standards in each facility to implementing a recycling program for worn out shoes for the consumer, and creating a no waste recycling program at all levels of the Nike operations. In my opinion, Nike is on the right track but could do more in their response to these ethical challenges. Nike has responded to these ethical dilemmas in various ways. They’ve done a good job in anticipating the potential consequences, yet they have not involved enough people in the decision making process. For example, Nike did not take the allegations of human rights abuses and labor violations seriously in their overseas manufacturing plants until nongovernment organizations like Life magazine and The New York Times published articles on these violations. These articles created public awareness and exposed the lack of oversight and policies to ensure the human rights and labor guidelines were fair and enforced. After these articles were published, Nike obtained and implemented a new course of action for protecting workers rights, safety, and competitive wages. Nike should have been aware of these practices, monitoring and reviewing their...
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...Case study: Nike’s CSR Challenge After the widespread report on the workers of Nike in the plantation in 2005, Nike worked on the reports of social and environmental practices. Nike needs to consider the welfare of the workers and the profits they are earning. Nike’s future depends on the reconstructing the information that are being sent to customers, suppliers, investors, so that company is sustainable as well as profitable. Changing the rules and regulation is not only enough but they should also engage in transcending leadership and should be able to resolve systematic problems to achieve the goals of the organization. If they don’t make any changes in the financial markets, all their changes are worthless. 1) What are the challenges regarding corporate social responsibility that companies in the apparel industry face in its supply chains around the world? * There were many cases found such as mistreating employees in more than one third of Nike’s south Asian plants. There were also reports claiming most of the factories in the same region didn’t allow access to toilet or to drink water. And in some factories the workers were forced to work all seven days of the week. They were also paid below the minimum and were also punished if they refused to work overtime. They wanted to reconstruct the signals being given out so that they could be sustainable as well as profitable. 2) Discuss the meaning and implications of the statement by a Nike representative that “Consumers...
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...1. Discuss the challenges regarding corporate social responsibility that companies in the apparel industry face in their supply chains around the world. Companies operating abroad face several challenges, such as confusion about the cross‐cultural dilemmas. Another challenge is how to behave in a host country, since the host country usually has their own expectations and agendas. Other challenges the Company may face is: abusive treatment of their employees, long work hours and no compensation for their employees, and low wages. 2. Discuss the meaning and implications of the statement by a NIKE representative that ‘consumers are not rewarding us for investments in improved social performance in supply chains.’ The statement means that NIKE has spent lot of money to improve the welfare of its workers and to improve the working conditions in their factories. However, doing so has cost them a lot of money. In order to regain the money, they’ve had to increase the price on their products to try to get the consumer to pay for the cost. However, consumers are still not buying their products the way they used to. 3. What does it mean to have an industry open‐systems approach to social responsibility? What parties are involved? Who are the stakeholders? The open‐systems approach to social responsibility is that MNCs must consider sustainability in the CSR & must encompass financial, social and environmental factors during business operations. The MN...
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