Benefits Of Nike 's Global Growth

NIKE Inc. has been the worldwide leader of athletic shoe sales for many years now. The company’s successful brand image combined competition and enablement for the competitive, athletic user. Nike has to modify their brand to a focus of excitement and freedom and not just competitiveness. By collecting and studying an assortment of material we could be able to understand where NIKE is currently placed in the athletic shoe industry compared to their competition, and how they will be able to adjust their brand focus so it can be more effective in the future. These adjustments can help NIKE reach the more casual group of urban runners and ultimately increase the sales forecasts, while still controlling a percentage of the market for athletic shoes.

This whole story is a double edged sword, Nike is the world’s largest manufacturer of sporting goods, they produce tens of thousands of items each day through cheap labour and sell their goods for huge profits. Some may argue that they employ slave style workers, paying very little wage and allocating very little freedom to their workers. The countries that Nike produces in are often underdeveloped and underprivileged, Nike pays higher than average wage to it’s workers, it begs the question that if these conditions are so bad why do thousands of people continue to manufacture goods in Nike’s factories, these workers are given accommodation

To maximize its profits and expand its market share worldwide, Nike invests intensively in the emerging market, where South-East Asia is the primary region for the firm to build many factories. These business investments enable Nike to generate the substantial revenues and the business makes billion dollars in profits. Consequently, the Nike’s employees in Indonesia suffer critically in their work as well in their living residents. They must work as many as 60 hours per week with a minimal wage. In

This report is part of Introduction to Business subject (MGT1101). The topic is Nike Inc. This report was written to give the reader an insight into Nike Inc. This report was written to show the reader different aspects of the company, how it was established, what it has to offer and some general knowledge of the company that may be interesting and useful. In this report we will take you through Nike’s journey in becoming such a successful and well known brand and how it maintains its standards and keep the company alive also the struggle of competing with other heavy weight companies in the same industry.

Since the 1990s, Nike has been embroiled in controversy over its use of sweatshops. Including numerous media reports of workers earning very little an hour (14 cents per hour), and even workers abused by sub-contractor (Allarey, 2015). Incidents such as these are ingrained in Nike’s history and not quickly forgotten. However, as CEO I would like to attempt to correct wrongs.

The highly recognized name brand—Nike— fails to notice the faults that are happening in factories that are violating a few disturbing rules. The company’s reputation has decreased due to demands and claims Nike; implying that they utilize sweatshops to produce more products at a lower pay. The company has been sued numerous times for abusing and exploiting their employees in factories for years. Another problem that Nike has faced throughout the years was making employees work in poor environments that affected the health of many— which contributed to being abused by the manager for not going to work. Nike distributes and sells merchandise of high quality for a high value. The company is giving the satisfaction of quality service to their

Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.

Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.

The manufacturing workforce is made up of young women, who are exploited for their labor, and this is even confirmed by Nike itself. One of Nike’s internal reports concluded that close to two-thirds of the 168 factories in Asia making Converse products failed to meet Nike’s guidelines for manufacturing (Kazi). The hypocrisy here is incredibly important to point out, that not only do Nike’s products “bring inspiration and innovation” to a select few, and not the people who make them, but the factories in which they are made do not meet the standards put in place by the company. Further discussing Nike’s mission statement, which states, “If you have a body, you are an athlete,” the very people that endure such hardship of making Nike products cannot to even protect their bodies from toxic chemicals and respiratory problems.

Competition is very fierce due to the number of companies competing for sales. Lots of money goes to marketing and promotions using various channels to reach the young demographic group of consumers who spend the most money on Nike’s products. Growth is slowing down in the athletic footwear industry. But new markets are emerging with high growth rates. These markets include extreme sports market and the corporate merchandise market.

Nike’s recent decline in market share and stock can be attributed to changing trends in consumer spending habits and apparel tastes. Nike can re-establish a competitive advantage in the short-run by implementing an innovative design team and brand ambassador. Long-run competitive advantage can be achieved by fully committing to a sustainable innovative business model or by incorporating innovative technology trends into their retail structure.

During the late 80s and early 90s Nike was faced with a series of labor strike back at home due to unethical labor practices by its independent countries in third world countries. It is well known for Nike to outsource almost all its production from third world countries at cheap prices and sell them in U.S. market at an abnormal profit. The company began outsourcing its products from Japan where labor was competent and wages were very low. The living standards were raised which prompted Nike to outsource its products from Thailand, Pakistan and Indonesia since wages in these countries were extremely low and labor for these products were competent due to rapid development of the Japanese economy. The outsourcing of footwear products from Asian countries enables Nike to earn high profits and enjoy a competitive advantage over its rivals in the footwear industry. The company invests the high profits realized in marketing its products through celebrities. For instance, Michael Jordan was used to advertise the positive image of Nike Company (Lipschutz and James, pp. 87-96).

Economical: Global economic recession also effected in the united kingdom. As a result Nike business is affected for the recession . it is noticible that nike business has falled down in 2009 for the economic recession. But 2011-2012 Nike business again doing performance due to improving the economical condition. Besides increasing the labour cost, increasing the product material cost also affected the Nike business.

We are Reebok and our mission is to lead the national sport sector and support national sporting organizations and other sector partner to deliver sport is Australia.

The value of Nike are decrease currently, Nike sell in a loss (consumer good -0.54%)