...the study Objective of the study Scope of the study Methodology Project findings Recommendations 1. 2. 3. 4. 5. 6. References Executive Summary As Prahlad and Hat point out, the economies of vastly populated countries such as China, India,and the former Soviet Union present a profusion of consumers and immense growth potential for multinational corporations. The trick is for senior management to fully understand that this market possibility exists and that tapping into it may require a radical departure from the traditional, developed-economy mindset. As Nike’s financial record indicates, market saturation and intense competition in Tier One economies has squelched Nike’s growth trajectory. While the Swoosh continues to penetrate typical Western markets, tapping into the increasing numbers of “middle and lower class” consumers in emerging markets could offer a phenomenal expansion opportunity if the firm can create the right business model. In addition, beyond the potential economic benefits from this venture, Nike’s World Shoe Project also offers a credible response to the labor issues that have buffeted the company, and leverages their efforts to minimize the environmental impact of their production activities. • Introduction/Background of the study The words “Just make me the shoe!” echoed down the boardroom table to Tom Hartage a 17 – year veteran of the running shoe company, Nike Inc. Tom Clarke, president of the company in 1998, had...
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...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 positioned themselves to take advantage of the...
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...footwear, sportswear, and equipment supplier based in the United States. In this case we have learned about the struggle that Nike’s one director took to catch the market of china and the reasons behind the failure of the project. Tom Clarke, the president of Nike knew that many people could not afford nike’s product due to high price and for this reason they were losing many potential customers. So in 1998 he began the development of world shoe project that was intended to emerging markets of Asia, Africa and Latin America and command Hartge to handle the project. Nike used a triple-bottom-line consideration to be able to give answers to the shareholders and people about economic, social and environmental issues. The world shoe line project was manufacturing products in china and took a business model of ‘local for local’ where local raw materials and local Nike’s manufacturing factories were used to manufacture shoes and sell them only in china. Hartge found out exclusive design for the shoes so that the manufacturing cost could be reduced. Hartge classified the market in five tier and targeted mainly tier three who were developing with high potential customers. But after doing so many things Hartge could not compete with the local producer because of their low cost and low price. Again there was no formal marketing plan to introduce the world shoe lone among retailers and customers. The distribution channel in china was very poor which made obstacle in the way of world shoe’s...
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...(i) Identify any THREE (3) unethical issues in your organisation. Nike (figure 1) is a very well-known company which produce quality shoe and athletic wear around the world. It is founded by an athlete named Philip Knight and his couch Bill Bowerman (Figure 2) in January 1964. Its slogan called ‘Just Do It’. The quality and standard of its products have been strongly recognised by people, even though Nike’s products are considered expensive, yet its performance makes it valuable. i. Inhumane working conditions. Although Nike’s products and services are able to satisfy its consumers, there are some invisibly unethical issues which happened between its employers and employees that are intolerable. The first serious case is Nike’s workers faced direct violence in the factory. According to the daily mail reporter, workers announced that they are being mentally and physically abused at the sweatshops. The supervisors often slap them in the face, kick them, throw shoes at them and call them ‘dogs’ and ‘pigs’. With the proofs, one of the workers in Sukabumi mentioned that she was kicked by a supervisor because of making a mistake while cutting rubber for soles. Some workers also described that they were being hit or scratched in the arm until they bled. Besides that, a 30 years old lady named Mira Agustina, was fired in 2009 for taking sick leave even doctor’s note was summited. She said furiously that it was a terrible work and the bosses frequently insult the workers by...
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...Case Study: Nike ERP Implementation Nike shoe division grew and spread rapidly around the globe from its inception in 1972 through 1998. Yet in 1999, Nike realized that in order to keep up with the growing demands of their products, and specifically their Air Jordan line of basketball shoes, they would have to make changes in the way they forecasted and projected demands and distributed their products. Eventually it was decided that these changes would take place in the form of the implementation of a new supply chain and Enterprise Resource Planning (ERP) software system. This paper will examine the supply chain problems Nike was trying to fix with the new system, the problems that arose from the implementation of the new system, and how Nike resolved these problems. Nike was founded in 1957 on the vision of two men, Bill Bowerman and Phil Knight; a vision to redefine the industry of athletic footwear. Bill Bowerman was a track and field coach at the University of Oregon in search of a competitive edge for his athletes, a competitive edge which could be achieved by spearheading changes to the running shoes of the time. At the time, Adidas and Puma were the dominant brands of running shoes. Phil Knight, a Portland runner with a degree in finance from Stanford University, proposed to compete with the German (Adidas and Puma) brands of running shoes by manufacturing them in Japan, which at the time was experiencing a post WWII boon in its economy, and their stage of manufacturing...
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... Assignment [a] Swot analysis: [b] Ethical issue: Student’s Name: Low Chi Yeow Marks: Lecturer’s Name: Dr. GP Doraisamy Contents 1.0 Company history……………………………………………………………………………………. 2.0 Swot analysis.................................................................................................. 3.0 Ethical issue……………………………………………………………………………………………….. 4.0 Conclusion......................................................................................................... Preliminary Information: Iconography Explained Nike's Heritage NIKE, pronounced NI-KEY, is the winged goddess of victory according to Greek mythology. She sat at the side of Zeus, the ruler of the Olympic pantheon, in Olympus. A mystical presence, symbolizing victorious encounters, NIKE presided over history's earliest battlefields. A Greek would say, "When we go to battle and win, we say it is NIKE." Synonymous with honored conquest, NIKE is the twentieth century footwear that lifts the world's greatest athletes to new levels of mastery and achievement. The NIKE 'swoosh' embodies the spirit of the winged goddess who inspired the most courageous and chivalrous warriors at the dawn of civilization. (from Nike Consumer Affairs packet, 1996) The Swoosh The SWOOSH...
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...Introduction The athletic footwear industry is a highly competitive environment where the top four manufacturers hold over 70% of the market share. The barriers to entry into the industry are comparatively low, as anyone with new creative design ideas can produce and market their product, but the success of smaller companies is oftentimes shaky. Brand loyalty, ample capital, and broad based sourcing create an environment where the bigger companies such as Nike and Reebok have little trouble maintaining market share. Nike enjoys the largest share, with 42.3% of the nearly $8 billion market in the year 2000. Reebok was second with 11.9%, Adidas had 10.8%, and New Balance had 9.6% of the market. The remaining 25% must be divided among the numerous smaller companies fighting for a shot at survival. NIKE Corporation NIKE Corporation was incorporated in 1968. NIKE has primarily been in the business of designing, developing, and marketing athletic footwear, apparel, equipment and accessories. NIKE Corporation is a well managed company in an attractive industry, the company has a strong brand image, and they are effectively capturing the value created from their investment. NIKE is dependent upon high technology in their effort to stay ahead of their competitors and produce products. ucts and machines that actually make the shoes. Its success had been fueled by the use of low wage labor in developing countries, accompanied by highly acclaimed marketing strategies and advertising campaigns...
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...Introduction The athletic footwear industry is a highly competitive environment where the top four manufacturers hold over 70% of the market share. The barriers to entry into the industry are comparatively low, as anyone with new creative design ideas can produce and market their product, but the success of smaller companies is oftentimes shaky. Brand loyalty, ample capital, and broad based sourcing create an environment where the bigger companies such as Nike and Reebok have little trouble maintaining market share. Nike enjoys the largest share, with 42.3% of the nearly $8 billion market in the year 2000. Reebok was second with 11.9%, Adidas had 10.8%, and New Balance had 9.6% of the market. The remaining 25% must be divided among the numerous smaller companies fighting for a shot at survival. NIKE Corporation NIKE Corporation was incorporated in 1968. NIKE has primarily been in the business of designing, developing, and marketing athletic footwear, apparel, equipment and accessories. NIKE Corporation is a well managed company in an attractive industry, the company has a strong brand image, and they are effectively capturing the value created from their investment. NIKE is dependent upon high technology in their effort to stay ahead of their competitors and produce products. ucts and machines that actually make the shoes. Its success had been fueled by the use of low wage labor in developing countries, accompanied by highly acclaimed marketing strategies and advertising campaigns...
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...Professor Gregory F Stiber By: Brizaida Ribalta, Jessica Halsey and Shereen Hijazi Nova Southeastern University H. Wayne Huizenga School of Business & Entrepreneurship Assignment for Course: MKTP 5005 – Introductory Marketing Submitted to: Gregory F Stiber Submitted by: Brizaida Ribalta, Jessica Halsey, Shereen Hijazi. Date of Submission: August 30th, 2012 Title of Assignment: Term Project – Marketing Plan CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student's Signature: Brizaida Ribalta, Jessica Halsey and Shereen Hijazi ***************************************************************** Instructor's Grade on Assignment: Instructor's Comments: Table of Contents Executive Summary 4 Company Description 6 The Origin of Nike, Inc. 6 Today’s Nike 7 Mission and Goals 8 Core competencies 10 Situation Analysis 11 Macro-Level External Environmental Factors 11 Competitive Environmental factors 12 SWOT Analysis 15 Competitors 16 Reebok 16 Adidas 17 Puma 17 Target Market 19 Segmentation 19 Target Marketing 19 Marketing Mix 20 Product Strategy 20 Distribution...
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...relied on consistent innovation in the design of its products and heavy promotion to fuel its growth in both U.S. and foreign markets. The ubiquitous presence of the Nike brand and its Swoosh trademark led to a backlash against the company by the late 20th century, particularly in relation to allegations of low wages and poor working conditions at the company's Asian contract manufacturers. Key Dates: 1962: Philip H. Knight founds Blue Ribbon Sports (BRS) to import Japanese running shoes. 1963: BRS takes its first delivery of 200 shoes from Onitsuka Tiger Co. 1964: BRS becomes partnership between Knight and William Bowerman. 1966: The company's first retail outlet opens. 1968: Company is incorporated; the Bowerman-designed Cortez shoe becomes a big seller. 1971: BRS begins manufacturing its own products overseas, through subcontractors; the Swoosh trademark and the Nike brand are introduced. 1972: At the 1972 U.S. Olympic Trials, the Nike brand is promoted for the first time; company enters its first foreign market, Canada. 1978: Company...
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...Company Profile Nike, Inc., together with its subsidiaries, engages in the design, development, marketing, and sales of athletic footwear, apparel, equipment, and accessories, as well as in the provision of services to men, women, and children worldwide. The company offers products in seven categories, including running, basketball, football, men’s training, women’s training, Nike sportswear, and action sports under the Nike and Jordan brand names. It also markets products designed for young children, as well as for other athletic and recreational uses such as baseball, cricket, golf, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling. The company even offers performance equipment for sports activities under the Nike brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and golf clubs; various plastic products to other manufacturers; athletic and casual footwear, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks; and action sports and youth lifestyle apparel and accessories under the Hurley trademark. It sells its products to footwear stores, sporting goods stores, athletic specialty stores, department stores, skate stores, tennis and golf shops, and other retail accounts through Nike-owned retail stores; Internet Websites (direct to consumer operations); and a mix of independent distributors and...
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...well as the Nike supply chain. SWOTT Analysis of Nike, Inc. In business, there is a strategic aspect used known as the SWOTT analysis. This analysis allows the organization to analyze the strengths, weaknesses, opportunities, threats, and trends of the business. Generally, the strengths and weaknesses will come from internal factors, whereas opportunities, threats, and trends seem to come from more external factors. Strengths For example, with the new Nike Adjust, there are many strengths this new and innovative product could bring to Nike. Some of these strengths would be: * Nike would be the first company to offer a running shoe in conjunction with a podiatrist. Part of the strategy of the new division of Nike is to bring a product to the market that has never been seen before. * Nike would be the first to create a shoe to not only improve issues with the feet, but...
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...$580 million. To re-energize sales, Nike was going to produce more mid-priced athletic shoes, an area where Nike was weak in previous years. Nike also announced that it was going to push its apparel line which has been growing extremely well. With this new information, Kimi Ford is now considering purchasing Nike shares for the NorthPoint Large-Cap Fund. She reviewed numerous analysts’ reports but felt that there was no clear guidance on whether or not to buy the stock. To make a better decision, she decided to perform her own analysis. In this case, we will provide Kimi Ford with a recommendation on whether or not she should buy the stock. ABOUT NIKE In 1964, Phil Knight and Bill Bowerman started Nike while working on an MBA project at Stanford. They originally called the company Blue Ribbon Sports and only sold running shoes. There first “office” was located in the back of Knight’s car. It was salesman Jeff Johnson’s dream about Nike the Greek Goddess of victory that...
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...beginnings, Knight's brainchild grew to become the shoe and athletic company that would come to define many aspects of popular culture and myriad varieties of 'cool.' Nike emanated from two sources: Bill Bowerman's quest for lighter, more durable racing shoes for his Oregon runners, and Knight's search for a way to make a living without having to give up his love of athletics. Bowerman coached track at the University of Oregon where Phil Knight ran in 1959. Bowerman's desire for better quality running shoes clearly influenced Knight in his search for a marketing strategy. Between them, the seed of the most influential sporting company grew. The story goes like this: while getting his MBA at Stanford in the early '60s, Knight took a class with Frank Shallenberger. The semester-long project was to devise a small business, including a marketing plan. Synthesizing Bowerman's attention to quality running shoes and the burgeoning opinion that high-quality/low cost products could be produced in Japan and shipped to the U.S. for distribution, Knight found his market niche. Shallenberger thought the idea interesting, but certainly no business jackpot. Nothing more became of Knight's project. Cut to 1963. Phil Knight traveled to Japan on a world-tour, filled with the wanderlust of young men seeking a way to delay the inevitable call of professional life. Seemingly on a whim, Knight scheduled an interview with a Japanese running shoe manufacturer, Tiger--a subsidiary of the Onitsuka...
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...Nike Marketing Analysis Nike: Maintaining a Promotional Edge Nike’s initial product advertising strategy of using professional athletes for raising demand through word-of-mouth provided good publicity. However, its selective-demand advertising was mainly focused on high-priced shoes for traditional sports, and ignored newly developed market segments such as aerobics and extreme sports, and new trends such as brown shoes and casual footwear (Etzel, Walker, and Stanton). Nike launched a successful advertising campaign around its "Just Do It" catch phrase and "swoosh" logo. Nike increased its visibility through vertical cooperative advertising; expanding its product line to include apparel, equipment, and accessories, which led retailers to use the Nike brand to attract customers to their stores. Nike gained a high level of publicity and increased its appeal to both men and women when it signed famous athletes like Michael Jordan and Venus Williams (Etzel, Walker, and Stanton). Further exposure was gained when Nike promoted its brand near major events, giving the impression that it partly sponsored the events. It also increased its sales promotion through the sponsorship of sporting events and collegiate teams. It gained exposure in extreme sports through cooperative advertising when it partnered with a skateboard manufacturer for the purpose of developing skate shoes (Etzel, Walker, and Stanton). Public relations were negatively affected by allegations...
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