NIKE The Factors that Led to Success and Failure of Nike in its Venture across International Markets Abishek TR* Abstract- Key words: INTRODUCTION The largest American suppliers of athletic shoes, apparel, and sports equipments .At the same point of time ,this company is known worldwide .The Success of this company is the result of the various strategies used in the international market expansion which helped them to enter into new markets and to strengthen its position in the traditional ones .
Nike uses a lot big star athletes in their advertising . Big name player like LeBron James, James Harden , Kevin Durant ,Kobe Bryant and Derek Jeter. These athletes are world known people that the youth looks up to as role models. Nike creates a strong ethos by adding big name stars that are respected and look up to. The Audiences may look at Kobe Bryant's ad and see that arguably one of the best shooting guards in the NBA wears nike shoes.
Nike is one of the most respected brands out there. "Nike is so widespread across so many apparel and footwear categories, that right now I think their biggest competition is themselves," said by Ralph Parks who is the president of the 450-store Footaction chain. He also added that, "The brand is becoming bigger than life itself. " Nike has been around for over 50 years, and according the Nike website, they got their name from the Greek goddess of victory, and it is pronounced "ny'-kee." Nike, like many other companies, uses forms of elements like ethos, pathos and logos to manipulate viewers in there advertisements and commercials.
Nike is the leading and renowned world supplier of athletic apparel and shoes. The brand is in control of over 47% of the market for athletic shoes. The company begun way back in 1962 and it was founded by Phil Knight and Bill Bower. It was originally known as Blue Ribbon Support and only in 1978 did it change its name to the worldwide recognized brand, Nike. Nike provides its products to more than 100 countries throughout the world.
The sales of Nike and Adidas Group are around $ 13 billion and $ 9 billion in 2012. Both companies run in the long way for market share and compete aggressively for sponsorship of major sporting events such as the Olympics. Continuing sponsorship in the Olympics will help Nike achieve rapid sales growth in the future. Citation: (Soni, 2014)
Thus by smart product placements they get visibility and it costs Nike less money as compared to making commercial advertisements. Sports marketing not only beneficial to the athletes, it is also catering to the brands. Nike got itself associated to Tiger Woods in 1996, prior to which it did not even have a sports brand did not have golf apparel and equipment. By this association, Wood had Nike create a lucrative market for Nike Golf, which was approximately $ 600 million.
Many high level or elite athletes and sport teams in the worldwide sponsored by Nike with some famous or global trademark such as ‘just do it’. The Nike Company more focus on Brand Jordan and Nike Brand product offerings in few key categories such as running, basketball, football, men and women training, NIKE sportswear, and action sports. When 1980s, Nike encompass many sports and regions throughout the world by expanded its product line. In 1990, Nike moved into its
When a person hears or sees the word America, what do they think? America is a country that almost everyone in the world knows about because there are certain words and phrases that can be used to describe it. Some common terms are sports, equality, the melting pot, powerful, freedom, hard working, and some more. All of these words make up what is known as the American Identity. This American Identity has been built up over time by people’s actions and thoughts. Many advertisements, TV shows, pictures, movies that use the American Identity to draw attention. One such advertisement comes from Nike and is called the equality ad. This advertisement uses some of these identities to express their point and connect it to a larger Identity. The Nike Equality advertisement portrays the American Identity of equality by using famous figures, battling stereotypes, and connecting to the Declaration of Independence.
Adidas, 3. Inditex, 2. Nike, and the leading competitor being 1.Christian Dior . This is analysis looks at the sales, profits, assets and market value of each company and based on their individual success each company is ranked.
Today, the imagery of the goddess Nike, and her name live on. Today one of the most popular shoe brands have the name nike. Nike (shoe company) has been manufacturing sports equipment since 1978. The name was chosen because nike is the goddess of speed and victory. The Nike sports brand logo has an indirect connection with the goddess Nike.
Nike draws in peoples’ attention and gets viewers to agree with them and buy their product with the help of these three factors. Nike is a very successful company because of how they draw in their audience and display their commercials using ethos, pathos, and logos. The company Nike just celebrated their 25th “Just Do It” anniversary. The commercial is filled with
2.0 Competitor Analysis The industry that Under Armour is involved with is extremely competitive, with competing against big names such as Nike or Adidas. Although it’s hard at the beginning, but customers want to have the highest quality apparel therefore they turn to Under Armour. Under Armour stays in the competition by having high quality products, and also by signing endorsements deals with major athletes (Owusu, 2017). By having major athletes represent Under Armour, means the company will be bringing in "big money" because they will bring up the brand’s popularity. The major competitors in this industry are of course inclusive of big names such as Adidas, Nike, Dick’s Sporting Goods and Puma.
Internal Analysis When conducting an internal analysis you must know the firm’s resources and capabilities. Nike’s resources are assets from succeeding in their industry. These resources include financial resources, physical resources, human resources and organizational capabilities. Firms Resources & Capabilities: Human Resources-. The company displays a strong workforce of over 30,000+ employees.
The ‘swoosh’ used by Nike is so well established that even if it were seen with the brand ‘Nike’ written underneath it, it would automatically be associated with the brand Nike. Having a logo for an enterprise make the brand more recognized as symbols are effective with brands. The ‘swoosh’ with Nike represents three grounds to what they mainly focus on to promote which is athleticism, competition and
Price Strengths 1. Low Cost Manufacturing Nike has a company who use the low cost manufacturing for production footwear. All of the Nike’s footwear virtually is manufactured outside of the United States by independent contract manufacturers such as Vietnam, China and Indonesia. Nike was operate multiple factories around the worlds. In 2014, Vietnam, China, and Indonesia manufactured roughly about 43%, 28%, and 25% of total Nike branded footwear and it has also operations in other country such as Argentina, Brazil, India, and Mexico.