Table of contents
Sports wear market 04
BCG Matrix 06
Ansoff’s Matrix 08
To: Richard small (tutor)
From: Abu Zahed Anchari
Re : Sportswear and Nike marketing …show more content…
As the political situation is stable, so its better for business to invest money in securely. In that case, there is no political bad affect in Nike business in the united kingdom.
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.
Social: social factors have affected in Nike business in the last decades. As people life style is changing everyday, Nike is continuously developing their product according to customer choice. Besides online shopping , emphasis of safety safety, increasing litigation also affected the Nike business.
Legal: In the united kingdom , there are lots of rule and regulation about in business policy and strong taxation policy. Taxation policy also affected the Nike business in the United Kingdom. Besides, they have to maintain proper employment law, age law, environmental law etc.
Environmental: Now a days people are more conscious about environmental issue. So environmental issue can affect the Nike business. During the business Nike have to ensure that their business is eco-friendly
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Like other large corporations, Nike looked to expand their operations outside North America. Many companies do this because of the law and wage demands of the United States making overseas operations very appealing. Employment laws are scarce and labor is cheap in most third world countries and can be easily become targeted by giant corporations such as Nike.
Nike has a very sophisticated sustainability strategy. The strategy is based on company’s prospects for future, to ensure that the company remains profitable and reputable, taking into consideration the social responsibility of the company (NIKE 2013). For instance, the strategy is supposed to ensure that the company gains a stable supply for the raw materials for the product manufacturing that will ensure stable supply of the products in the market at favorable prices. The strategy also targets make the company responsive to environmental concerns, aiming at reducing environmental pollution through emissions to the atmosphere (Charter, 2001). The strategy outlines the company
Producing product overseas puts Nike at risk of overseas sourcing, manufacturing, and financing. Nike buys and sells to different countries using different currencies. The currency rate fluctuates very often and Nike, at times could take a loss. This is a risk most companies cannot take. Nike has the ability to produce materials, import product and sell product in international market during a time of disease outbreaks, terrorist attacks, and military conflict. With these risks there are few companies who can afford to take these risks (aflorzak.com). This also proves no new threat for Nike.
A Greek would say, "When we go to battle and win, we say it is Nike." According to Greek Mythology, The Nike was the winged goddess of victory. Daughter of the titan Pallas and the river Styx, Nike sat at the side of the omnipotent Zeus for the duration of his plight with the titans. The goddess Nike came to be an everlasting symbol of victory and dominance on the battlefields of ancient Greece. In light of her conquests, a popular footwear company of the 20th century designed products in her name to push new levels of achievement in athletes worldwide. The Swoosh logo at the side of each shoe is intended to represent the wing of the Greek Goddess Nike. The vibrant spirit of this ancient goddess has bridged the gap between
The factors that drive Nike’s decision to stick with its current organizational structure include its well-established brand name in the industry. The company positioned itself as a brand
Nike is the leading and yet renowned supplier of athletic apparel and shoes. The company controls close to 33% of the global athletic shoe market (Dogiamis & Vijayashanker,2009).Nike was founded by Bill Power and Phil Knight in 1962 as a Blue Ribbon Support and then was later on renamed to Nike in the year 1968 (Patrow,2003).The company supplies very high quality product in close to 100 countries with major markets being located in the U.S,U,K, Asia Pacific as well as in the Americas. The company has managed to attain its lead and legendary position via the application of innovative and yet attractive product design which is backed by quality production as well as well crafted marketing strategies.
The economic environment counts for the expenditure that may either be at consumer or at producer side. It tends to happed that the price offered to different customers by the producers vary due to different economic conditions. If the economic conditions of the producers or of the consumer fluctuate it will affect the product of the brand. Further, technology is of vital impact as the Nike success story start with the innovation of technology and the brand heavily depends on the generation of new ideas and producing better product. Therefore technology impact a lot on the product in sense of macro
6). This strategy is a major component of Nike’s business strategic level plan. In applying this strategy, Nike has attained a great deal of consumer insight, which it uses to offer uniquely designed premium products to the athletes. Still on product differentiation, Nike focuses more on research and development at a greater level. These unique features to Nike, have transformed the competition levels in this competitive industry, leading to a trend of a paradigm shift in the market. Most consumers opt for Nike branded sports products and apparels, at the expense of the other brand names.
The main stakeholder for Nike is the general public as they purchase the goods Nike produce and the public is the main source of revenue for that organization, the genral public also somehow sponser Nike by wearing their clothing brand , which is a need to get product. Another stakeholder for the organization are companies such as sports direct, as they purchase Nikes goods as they’re competitors to other companies such as JD. Nike sells it’s good internationally which means different countries will purchase their goods. Sport teams are also influenced in Nike as they sponsors Nikes brand, as Nike pay them to advertise their logo in varies ways. The local community would also be seen as a stakeholder depending on the response to Nike, positive or negative. The government is also affected due to business tax. The more stores Nike open the more tax money the government get, which is 20%. Nikes staff provide a service for Nike as they sell
The purpose and intent of this paper is to describe the legal, cultural, and ethical challenges that face the Nike Corporation in their global business ventures. This paper will also touch on the roles of the host government and countries where Nike manufactures their products and the author will summarize the strategic and operational challenges that Nike managers face in globalization of the Nike product.
After sluggish focus and growth in the 1980ies, Nike experienced strong growth in the 1990ies and cemented the position as global recognizable brand. The increased international focus created strains on the supply chain, which was consider inadequate to cater efficiently to the organization and the rapid changes consumer demands . As a consequence of the afore mentioned supply chain problem Nike faced inefficient inventory management, problems in flow of goods and poor demand
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
It is important for any organization to consider the environmental influences that have been particularly important in the past, and the extent to which there are changes occurring. Having this knowledge will any Nike to stay on top of their game. The macro-environment consists of all the outside institutions and uncontrollable forces that have an actual or potential interest or impact on the organization’s ability to achieve its objectives.
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 = =
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.