Nike, Inc. Strategic Case Study Essay example

With the constant quest for greater profitability, American companies are reaching further and further around the globe for opportunity. Factories are being built in third world countries, and sales efforts continue to increase in the world’s fastest growing economies like China and Brazil. Consumer products corporations, especially, are seeking out the cheapest and most efficient method of production, and many are beginning to look to Indonesia for answers. According to the Indonesian Footwear Association, “sports footwear produced in Indonesia is expected to soar roughly 25 percent to $1.6 billion since 2007,” (Abelson 1). One of the American companies leading the global initiative, New Balance Athletic Shoe Inc., alone expects to

The rapid growth in the number of seniors in America and around the world is creating a global demographic revolution without precedent. During this century, advances in hygiene and water supply and control of infectious diseases have reduced the risk of premature death much. As a result, the proportion of population over 60 years in the world is growing faster than in any previous era. In 1950 there were approximately 200 million people aged over 60 worldwide. By 2000 there will be over 550 million, and by 2025, the number of people over 60 is expected to reach 1,200 million.

It is very common in a large business to move abroad but there are a lot of factors to be considered when planning to start operation in a different country as countries differ depending on their background, policies, infrastructure and stability. In this report I will compare the challenges to business activities within Nike. In two different economic environments: India and the UK.

With increasing quality of healthcare, many countries around the world are now experiencing an ageing population. This involves a change in the demographic composition of the elderly and the young in a population. This means that there is a decrease in fertility rates with an increase in the number of elderly people (over 65). Therefore, the average age of the population is increasing. According to WHO, “this population ageing can be seen as a success story for public health policies, but it also challenges society to adapt, in order to maximize the health and functional capacity of older people as well as their social participation and security.”

The world population is growing older; it is going to have an enormous impact on public and private interests. Between 2012-2050, the United States will experience considerable growth in its more elderly population. The US Census project that by the year 2030 the population of individuals aged 65 and over will be reached approximately 73 billion. It generates social and economic difficulties such as the tendency of economic growth, the workforce, health care system, immigration, and pension system (Ortman et al).

Due to increase in life expectancy, the population of people over 65 has been increase dramatically, and it is estimated that in

Worldwide demographic change has resulted in an amplified elderly population. The United Nations predict a two fold increase to 22% by 2050 in the proportion of people aged 60 years and over. [1] Similarly it is estimated by 2034 a quarter of the UK population will be 65 years and over. [2] This

Nike subcontracts the production process of its footwear to 900 contract factories located worldwide with Asian developing countries such as China, Indonesia and Vietnam accounting for the bulk of total world production. Production of the footwear is based on a vertically integrated model. In the primary stage, raw materials such as rubber, leather and plastic are extracted from places located in close proximity from the factories. In the secondary stage, the extracted resources are sent to the factories or “Sweatshops” for manufacturing. It should be noted that the whole production process of Nike footwear are being carried out by independent private contractors.

1. A decision to retain an in-house arm of agency Weiden & Kennedy by Nike exemplify the concept of organizational design by allowing Nike use the agency’s creative designers to focus solely on Nike work, giving them un-parallel access to executives, researchers and anyone else who might provide Nike advertisers with their next inspiration for marketing greatness before listening to any other organization. Having the agency in the building is having them at their disposal at anytime they need them and also the agency will have to consider them first incase of any new ad or good idea discovered by the agency or when Nike needs to salvage a problem with the help of the agency. Thus, the agency at their finger-tips serves great advantages

is not this kind of companies. If we want to use the data of dividends, we need to consider the growth rate and future potential changes of dividend. In a word, we don’t think DDM is fit for Nike’s case.

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).

Report on the Case Study Nike This report has been produced to provide an insight into the consumer decision-making process, buyer behaviour factors that consumers of Nike are influenced by. The report also details recommendations based on the findings. 2.0 Summary = =

The problem of old age is known as one of the most serious problem in today 's world. The old people can be seen everywhere. As is shown in the graph, the number of people in the world over the age of sixty will have increased to 600 million by the end of this century. And by the time, there will also be twice as many people over the age of eighty. In the ten

Nike’s management understands how important a relevant strategy is in the global environment, as Don Blair, Nike’s CFO, stated “...we are refocusing our efforts, increasing our investments in innovation, using our voice for stronger advocacy and looking at how we incubate new, scalable business models that enable us to thrive in a sustainable economy.”

In the beginning of last century, the world population was 1.65 billion while the current population reached 7 billion in 2012 (United Nations, Web). Among this 7 billion people, 810 million are older person. According to the United Nations, person of the age 60 is considered as older person, but many developed countries categorize person of the age 65 as older person. In The Study of Population published in 1959 by Philip Hauser and Otis Dudley Duncan, “aging population” was not appeared in it. At that time, the world did not pay much attention to the aging issue as the world population was still young. But it is a big issue to the world as the number of older person exceed the number of younger person now.