Nike Case Study

The global trends are to be fashion and personality. So Nike change its marketing strategies and products design to become more fashion and focus on the youth consumers. It brings risks to Nike because in the traditional mind of customers, they consider Nike only sell the athletic products. The fashion or the changing style products is unimaginative for customers to purchase. Not all the customers can follow the changing of Nike. Therefore, Nike should analyse the market and customers' preference as well as customers'

Nike is a athletic apparel company that has been in and out of the spotlight because of some of its oversea practices that people have a social and ethical issue with. These oversea practices would be its manufacturing. Though Nike does not own their manufacturing plants, because they sublease the work out to independently owned manufactures, they are willingly working with companies that are ethically and morally wrong. Many people have stated that these independently owned factories are creating sweatshops. These sweatshops have practices that include underage workers, underpaid workers, and overall unethical treatment of workers. Nike is willingly participating with these companies to make a profit, but not to be socially responsible. The issues that conflict in this case is that Nike is a U.S. based company but all of its manufacturing and unethical acts take place overseas in Indonesia, Vietnam, China, and Thailand. Nike is supporting these unethical acts that are classified as illegal or morally wrong in the U.S. but not in these other countries. In these other countries there is a very low labor cost which means Nike can give employees next to nothing while they stuff their pockets making millions. The major issue that the case address is are these practices ethical and/or legal. Other sub-issues would be are other groups or individuals for or against sweatshop ethically or morally right? For example Andrew Young, was

-Promotion of Nike not only as an athletic brand but as a leisure clothing as well

The Weight Average Cost of Capital (WACC) is the firm’s cost of capital. We can think of WACC as an average representing the expected return on all of the companies’ securities. It is an extremely important number for both corporations and usually financials advisors. Corporations use this number as a minimum for evaluating their capital projects or investments. So if for example the WACC of a firm is 10% and the return on investing in a project is 4.5%, then the company would not invest in that particular project. The company in this particular scenario would at least have to get a return of 10% or more to invest in a project. I agree with Johanna Cohen’s estimates as she did the calculations right because I went over

In the business culture, it is crucial for a business to behave ethically. Ethics can be defined as, “the study of how people ought to act” (Lecture 1, 2017). Businesses do not behave ethically because they think their profits will increase, even though unethical behaviors can be costly to a company. When a business acts ethically correct, society benefits from the encourage economic competition, people feel better about working for that company, and it 's the right thing to do which can cause personal happiness and satisfaction (Lecture 1, 2017). Even though every company should act ethically correct, not everyone does and Nike is a great example of that. Nike is a company who grew fast and looked for a cheap way to

Nike is a well renowned apparel company that ranks superior on a global scale. With that said Nike along with countless other companies in the apparel industry face numerous challenges regarding that of corporate social responsibility when it comes to their supply chains around the world. A major challenge regarding corporate social responsibility would be the manufacturers that are hired and contracted by these companies in the apparel industry. Essentially these manufacturers are being hired in foreign countries who are in turn adding to the poor working conditions due to the lack of regulation in these countries. For example “[25%-50%] of factories denies workers at least one day off in seven”, “employees work more than 60 hours per week” and “workers refusing overtime were punished” (p. 1). Ultimately, these quotes show how the manufacturing companies themselves were pushing the workers into these intense labor conditions. This is where the company itself faces the challenge and backlash essentially have to initiate change with the help of “engaging labor ministries, civil society, and competitors around the world to try to raise the bar…” (p. 2). Another major challenge faced would be the lack of reward towards these companies. The Vice President of Nike’s social responsibility Hannah Jones addresses this issue to the delegates at the Ethical Trading Initiative “consumers are not rewarding us for investments in improved social performance” (p. 2). Essentially these companies are investing large sums of money for better work environments in these countries which in turn adds another expense to the production cost with nothing in return.

Using professional athletes in its advertising campaigns was both efficient and effective. Throughout the Campaign Nike enlisted numerous athletes in order to attract customers and promote the image of Nike as being reliable to not only everyday customers but professional athletes. (Wikipedia The Free Encyclopedia) This brought influence, encouragement, attention, sense of high quality and standard in the perception of people to buy the product. Moreover it convinced customers by innovation of a slogan “Just Do It” which means that they are capable, able of doing anything. In present context there is change in customer prefences people believe in brand and, they are more demanding , they have their own perception afford quality so, they feel proud when consume high priced quality goods which can be taken as the key success

Introduction When growing an enterprise that you wish to compete on a global market, what needs to be taken into consideration is scaling. Most importantly for investors, what will it cost to expand this company and offer their products on a global scale? This is what Nike faced in the 1980’s when they expanded by outsourcing their production Asia, 86% of their production housed primarily in Korea and Taiwan by 1986, (Locke, 2002) with only 17% remaining in the US by the end of the 1990’s. By manufacturing off-shores in low-wage countries, Nike garnered the nickname “Sweat Shop” as most people in the 1990’s believed their practices to be unethical. For the ones calling the shots at Nike in the 1980’s and 1990’s, was this just another case of “desperate times call for desperate measures”? Or was there an alternative route they could have taken? How did Nike come to this situation through its expansion strategy?

* Nike has its individual stores and also available at major malls all over the globe.

Nike was founded by Bill Bowerman and Philip H. Knight in 1964 and has it’s headquarter situated at Beaverton, Oregon USA. High quality footwear, apparel, equipment, and accessories are designed, developed; markets and sell by Nike Inc. Nike’s athletic footwear products are basically designed for a particular purpose (i.e. athletic use), although a large percentage of the products are used for either leisure or casual purposes. It produces NIKE Brand and Brand Jordan product offerings in seven major categories: men's training, women's training, running, basketball, football, NIKE sportswear, and action sports (I.e. hiking). Furthermore Nike also made and markets products for kids, as well as for other athletic and leisure purposes such as football,

Routine Problem Solving Nike's prominent and continuous advertising campaigns ensure that consumers in the youth market are aware of the brand, as greater awareness inevitably leads to greater sales. Once these sales are secures by consumers in the youth market their interest is maintained by further advertising, which leads to repeat purchase. 4.5 Variety

Good morning ladies and gentlemen and thank for taking the time to meet with us. Nike was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight. The company officially became Nike, Inc. on May 30, 1978. Nike has various products which include footwear as well as other apparel that compliment the former. This accounts for 92 percent of the company’s revenue. The other 8 percent comes from equipment and non Nike brand products, such as Cole Haan. When we were considering on whether it was more appropriate to use multiple cost of capitals for each segment we believe that they all mostly share similar risk factors. We therefore decided to calculate two different costs of capitals,

The outdoor campaigns, sales promotions and trade promotions, are also regularly offered by Adidas to their channel partners to promote the sales of the brand. All these techniques make sure that the legendary Adidas brand remains in everyone’s mind, the brand awareness is increased and the targeted customers can be retained and attracted easily. Hence, this summarizes the Adidas marketing mix.

Firstly Nike sold its franchise licenses in different countries expanding the market share in sports wear industry, and then the company moved towards purchasing shares in equity to reduce the risk uncertainty. Finally the company managed to bring the dealers’s corporation under one direction enabling them a better control and monitoring capabilities. Nike is making new policies, analyzing the performance of marketing and advertising with the standards they have set to make sure that the company is in line with its required its standards in addition; company is moving towards improving its advertisement in order to make it more effective in different regions. Nike has also faced different issues while internationalizing the business, such as capabilities, access, finance and business environment; unavailability of trained workers, limited information about the market, inability of contacting foreign customers and new business environments describes these issues on a vast ground.

The Adidas and Nike companies both share the similar goal but there Marketing tool are very different. To analysis Adidas critical challenge’s I first had to analysis Adidas PESTEL, to get an understanding on how should I create a plan of action to beat there competitor Nike. The Adidas Political goal is to take control and monitor hazardous substance to protect human health and environment and eliminate PVC. The Economical help countries decrease unemployment rate by increasing employment. The Social has tried its best to keep up with the newest fashion trend and the technology has create the world first smart shoe by adding microchip inside their shoes. “Good marketing is no Accident but a result of careful planning and execution using state of the art tools and techniques. Its becomes both an art and science as marketers strive to find creative new solutions to often complex challenges amid profound changes in the 21th century marketing environment.”(Keller & Kotler 2012 Pg. 3). The key to good marketing is more like a value enhancer of a company’s product and service which is a major attribute for build a stronger connection with consumers in their neighborhood around the world. Adidas uses the fact that most Americans are listen to hip hop music and hired rapper like Run DMC to mention their company in song, movies and group events. I