Both Nike and Adidas are well recognized sportswear companies have become dominant name in the marked throughout many places around the world. Teams, schools and sportswear industries can expect the best quality of products and services from the two brands. Nike is an international United States company manufacturer and it was founded by Bill Bowerman. Adidas is a worldwide firm that was founded in Germany by Adolf Dassler (Difference between Nike and Adidas, 2010). Athletes all around to word that play basketball, football, golf, soccer or any kind have worries about their performance being affected by the type of shoes or equipment they are wearing.
However, when the cost of production began to similarly increase in Korea and Thailand, Nike Inc. encourage its suppliers to transfer their operation to countries of lower costs of production in other to maintain its expansion strategy. Interestingly, this strategy was efficient and effective that today, Nike’s products are produced in more than 700 locations with about half a million of employees in more than 51 countries of the world. While it is essential to realize that the outsourcing strategy was very effective, it is also important to know that Nike Inc. did not rely on footwear production and importation alone, rather the company diversifies to producing and selling apparel. This diversification, no doubt, in combination to outsourcing its
Nike kept working with fashion designers and kept working with the top shoe designing companies to keep people satisfied. (¨Nike: The Fashion of Sports¨). Their success is due to the importance that they give their customers. Nike’s endorsements and the amount of money they have made is evidence that they are doing better than competing brands due to their game changing strategies.People choose to spend millions of dollars on merchandise that are specialized for certain sports,but those people do not play the sport (¨Nike: The Fashion of Sports¨). What helped Nike reach the level that they had reached was the athletes that they chose to endorse and basically hitting the jackpot with those amazing athletes The reason behind that is because of the famous endorsements.”Nike regained the worldwide lead in 1989 after successful marketing campaigns featuring Michael Jordan and Bo Jackson boosted sales.
Evaluate Nike’s response to societal and consumer concerns about its contract manufacturing. It is a shock for the media as they did uncovered that Nike’s the industry leader, has a twisted problem within its own company, and the topic itself had spread rapidly to the worldwide in no time because Nike’s company did not take an immediate measurement to face the problem. Since the mid-1990s, critics about Nike labour rights had arisen rapidly in a massive amount, not only from the public, there are critics of from the mainstream media, and from human and labour rights violations bodies as well, such as child labor. In order to counter and response the criticism, Nike has to take a quick and suitable decision, in goal to rectify the problem, but as well as to redeem its reputation. Therefore Nike’s new priorities is making sure that their factories were not taking advantages of its workers anymore, and to ensure for a competitive wage and a safe work environment is provided for each worker.
Nike, Inc., an American company that designs, produces, and sells footwear, apparels, sports equipments and sports accessories was founded by Bill Bowerman, a nationally respected track and field coach at the University of Oregon and Phil Knight, a talented middle-distance runner from Portland. Initially, Nike was started as ‘Blue Ribbon Sport’ on 25th of January, 1964 and officially became ‘Nike, Inc.’ on 30th of May, 1971. Nike, Inc. headquarter is located in Beaverton, United States (Nike, Inc. History & Heritage, 2014). Nike, Inc. is one of the world 's biggest supplier of sports shoes as well as apparels and a main producer of sports equipments, with total annual revenue in excess of US$24.1 billion as of May 31, 2012 (Sage, 2008). The
The fourth expansion strategy of Nike Inc. was product diversification. While it is essential to emphasize that the outsourcing strategy was enormously effective, it is also important to know that Nike Inc. did not rely on footwear production and importation alone, rather the company diversified into producing and selling apparel. According to the company’s financial report, revenue from the sales of apparel was estimated at 29% while footwear was 59% respectively (Locke, 2002). This diversification, no doubt, combines with outsourcing its factories to lower-cost countries and selling its products at an affordable price was the catalyst to Nike Inc. expansion strategy. Explain what the positive and negative impacts of this strategy were.
The company is one of the largest sports apparel manufacturing companies in the world. However, it faces stiff competition from Adidas, Reebok and Li Ning. Nike has over 700 shops located in 45 countries and sells its products globally (Harrison & Scorse, 2010). However, most of Nike’s factories are located in China, India, Taiwan, Malaysia, and Thailand and has various contract facilities across the world (Powell & Zwolinski, 2012). The company’s operating regions include North America, Central and Eastern Europe, China, Japan and Western Europe (Harrison & Scorse, 2010).
Nike has gains great reputation for its manufacturing and supplying of sports apparel to people from all corners of the world. It is situated in the United States of America and the headquarters is in Beaverton. It can also be regarded as a leading manufacture and supplier of athletic shoes and sports equipment among all companies. In the year of 1964, there were two predecessors of the Nike company which are Bill Bowerman and Philip Knight, they have found a company name of Blue Ribbon Sports. In year 1978, the Blue Ribbon Sports changed into Nike Incorporation.
Company initially had the role of a distributor for Onitsuka Tiger corporation. Women’s footwear is the biggest category, with 53% on footwear sales in 2015 with current value growth of 8% in 2015. Nike introduces its shoes in 1972. Company renamed their brand in 1978. By 1980, with Michael Jordan endorsement Nike became top brand company in the industry.