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.
Market analysis C & J Clarks LtdCONTENTSEXECUTIVE SUMMARY1.INTRODUCTION2.COMPANY HISTORY AND PROFILE2.1C&J Clark2.2History2.3Manufacturing2.4Range of Shoes2.5 K Shoes3.MARKET ANALYSISA. MICRO ENVIRONMENT3.1 Market Data3.2Competition3.3Consumer demandB. MACRO ENVIRONMENT3.4Political3.5Social3.6Technological3.7Economic4.SWOT ANALYSIS5.IDENTIFICATIONS OF STRATEGIC ALTERNATIVES6.RECOMMENDATIONS6.1Short Term6.2Medium Term6.3Long TermEXECUTIVE SUMMARYI have been asked by C & J Clark Limited (Clarks) to prepare a report which would include a market analysis of the UK footwear industry and to propose a number of strategic recommendations which would ensure that Clarks secures its short, medium and long term future as the market leader in the shoe
This market analysis will be on Nike, Inc. using the Porter’s Five Forces designed by Porter, (2008): 1) Competitive Rivalry within the Industry, 2) Bargaining Power of Suppliers, 3) Bargaining Power of Customers, 4) Threat of New Entrants, and 5) Threat of Substitute Products. Nike was founded in 1964 by Bill Bowerman a track coach at the University of Oregon who developed lightweight, durable running shoes along with Phil Knight one of his runners and a student of business at the University. Almost from the onset of this company factories overseas were utilized to produce the products starting in Japan and later spreading to many other countries with inexpensive labor forces. Nike after years of growth went from a $1 million in sales
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.
Nike Inc is an athletic footwear company founded in the United States, they also has athletic clothing and sporting goods. Nike dominates the sporting industry along side it's famous competitors; Adidas, Fila, Converse and Reebok (Locke, 2002). Regardless of it's competitors and the controversies‘ that rose from their success, Nike is currently the largest and most important athletic wear company in the world. They dominate the market and have a global presence all over the world. Significantly because they took advantage of globalization and outsourcing opportunities, it has allowed them to take over the market share for athletic footwear. But there was negative results from becoming a multinational corporation. We will be
Currently, Nike stand as a leading figure in producing high quality sports and fitness equipment and apparels. Bearing just a simple start of selling Japanese imported shoes from a station wagon has transformed
Nike has seldom manufactured products own premises, except their air bladders. The shoes are manufactured through outsourcing and alliances with other companies. A successful company like Nike formed its organization on the customer values that have the MOST impact on the consumers mind – Design/R&D, Marketing and Distribution. Even though manufacturing is a vital function to perform, Nike realized that there were other ways to go about this function and thereby save both cost and maintain its focus on the critical customer value areas.
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.
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.
The Nike brand operations are based on internal geographic organization. Each of the Nike Brand geography operates predominantly in one industry: the design, development, marketing and selling of athletic footwear, apparel, and equipment. Effective June 1, 2009, Nike began operating under a new organizational structure for the Nike brand, which consists of the following six geographies: North America, Western Europe, Central & Eastern Europe, Greater China, Japan, and Emerging Markets. In fiscal 2011, non-U.S. sales (including non-U.S. sales of our Other Businesses) accounted for 57% of total revenues, compared to 58% in fiscal 2010 and 2009 [ (Nike , Inc., 2011) ].
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.
Nike has been a model company for innovation and growth over the years as a leading manufacturer of athletic footwear, clothing and equipment around the world. Much has been made about how Nike has achieved such success and whether or not this success is sustainable. By analyzing Nike using Porter’s five forces, one can see just how they achieved success according to this model and how they will sustain it when looking towards the future. Nike also has been able to implement unique pricing and advertising strategies to keep them at the forefront of their respective industry, leading the way for competitors and peers to attempt to follow. Porter’s five forces will demonstrate how Nike is set up in the current industry and whether there should be a cause for concern or stability in the company’s future.
A comprehensive analysis, using market data and market research, allows us to assess all areas affecting Nike’s strategic direction:
Purpose of this paper is to analyze Germany as it is profitable for Nike to open a store in Germany, this paper start with the background both of the company and country and continue with the PESTLE analysis, Porter’s five forces analysis of the company’s competitive environment, strategic recommendations to avoid problems uncovered from the PESTLE or Porter’s analysis and the conclusion of the current state of the company and its operating environment.
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.