Case Study: Sustainability Of Nike
Sustainability of Nike
592018 (PC4G3)
Preparation Center for Language and Mathematics
Mahidol University International College
August 2, 2016
Sustainability of Nike Fifteen years ago, Nike was boycotted by customers because the problem of its global supply chain management policies and priorities. The problem caused the firm to be less profitable, which dropped by 69%, said Dr. Aarti Sharma (2013), an international corporate sustainability and sustainable development strategist. “Sustainable business” is becoming one of the goals of many companies around the world. Lots of stakeholders try to improve their company by developing their supply chain due to the triple bottom line (TBL). The triple bottom line is the framework
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In 1990s, many people started to talk about labour practice at Nike’s contract factories. Workers have to work in an inconvenient life, for example, they have to work overtime and get back with a little money, verbal and physical abuse, and also over toxic chemical (Henderson, Locke, Lyddy, & Reavis, 2009). Nike is the most famous footwear brand in the world. It succeed in their products, but after this issue was expose, people are more concerns and that causes the company lose their trust, and profits from customers. Furthermore, children have to work for twelve-hour and pay very low to these children as sixteen cents for hour. In Indonesia, the factories punish their child labour by the sun drenching way for people who works to slowly (Lavelle, 2014). Thus, the company get lots of profit by selling their products, but in term of the process of making these products, it is not sustain. By using TBL as a criteria, the company seems to be very weak at developing people part, and it cause an unbalance to the …show more content…
Many of Nike products is high-priced, so consumers have to spend a lot of money to buy. The company should set a new price to be more cheap, because most of the company’s products are actually very cheap in manufacture process. When the products come to a marketing process, the price has to change in order to show the brand value, and that comes out that the products have to be expensive. However, it is possible to set a lower price to its products (Mba tutorials, n.d.). If the company set the price to be cheaper, it will persuade consumers to buy more because they can afford the price and that will benefit to the company’s profits. Furthermore, it can compete with other lower price brands and increase athletes demanding
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Essay On Nike Child Labor
856 Words | 4 PagesChild labor is something people in the United States might think of as awful, but for families in countries like China it is a way of life. Name brand companies, for example Nike, have their products made overseas often using children to do the work. The use of child labor in other countries for Nike brings up the debate on whether or not the United States should buy products that have been produced by children. The United States should not buy products manufactured with the use of child labor because of the unfair wages they get paid and bad working conditions. Some may argue that by putting children to work it is lowering the unemployment rates in countries, the morals of buying products produced by young teenagers is just flat out wrong.
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Essay On Ethical Issues In The Fashion Industry
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Success And Failure Of Nike
1424 Words | 6 PagesNike has managed to shift their Manufacturing unit into Asian country’s were the labor is cheap to be exact wages of USD1 an hour were so little as one-tenth of those given in the US. No wonder that a pair of shoes which were sold for $150 in 1991 is made by indoasian women who were 58 cents a day but the situation has started to change and due to that reason the company has managed to minimize cost of production and not only double triple the the revenue as comparing to the year 1996. Finally we come up with promotion and advertising campaigns which became a grand success not only because they introduced sportspersons , they also introduced innovative ideas and wise strategies and the image of the Product, due to this process we can say that Nike targeted a huge no of audience and created a Prestigious brand which will be easily available for average people . they also came up with great tag lines such as ‘there is no finish life’ , and in the 1980 they changed it into “ JUST DO IT “ these quotes of tag lines are considerd very simple but very attracting and extremely encouraging for the customers .
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Macro Environmental Analysis Of Nike
2130 Words | 9 PagesThe strength of high price product strategy is that Nike can earn more on each single item. Also, it can ensure the quality of the products. The low-priced products policy could widen the customer group and attract more buyers to boost the sales. The weakness of selling premium is that only high-end buyers could afford to buy it.
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787 Words | 4 PagesThere is often a tendency to focus Technological developments on digital and internet-related areas, but it should also include materials development and new methods of manufacture, distribution and logistics. With technology improving Nike has to keep up to date as the world develops more and more with its technology. Nike has been able to maintain its name in the market place with the use of social media to increase their brand awareness. By using social media it has been easier for Nike to promote the products that they have and making the public more aware of these products. There has been a growth in the market for online shopping and promoting their products online using media and apps.
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Micro Environmental Factors Of Nike
1368 Words | 6 PagesThis is due to Nike gets its merchandise generally from foreign manufacturers. To operate profitably, Nike need to get good value on products and supplies and, in turn, offer good value to its customers with accessible solutions. Publics: Many colleges and universities, especially anti-globalization groups as well as several anti-sweatshop groups
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789 Words | 4 PagesSimply put, Nike’s target market is mainly customers who have more concern for the quality and utility of the product than they have for the price at which the product is being sold. This helps to ensure that pricing never has to be adjusted downwards in attempts to woo in a larger number of customers. For any company to achieve success from the marketing strategies that it has put in place, it has to ensure that its strategy is flexible enough to keep up with the changing times and to also accommodate a large variety of customers. So as to do this, it is imperative that the products being produced by the company be innovative enough to exceed what is being provided by competitors in every possible way. Nike chose to take this into deep consideration and this resulted in it making a few changes on its marketing strategy.
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1301 Words | 6 PagesConsequently, Nike’s pricing is intended to be economical and competitive to the other sport gear retailers. The pricing is built upon many factors that have been taken into consideration before setting a selling price on the root of the high-class segment as target customers. Nike as a brand orders high premiums. Nike’s pricing strategy makes use of perpendicular amalgamation in pricing in which they target participants with different channel levels or take part in more than one type of channel level operations. This can govern costs and effect product
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