It will help you strive for your goal you want to accomplish. All in all, nike is making advertisements that their products are the best and better than the competition. They want people to , when looking for sporting gears, see the brand of nike and instantly know that is quality and reliable products on the shelf. They used ethos ,pathos, and logos to boost their campaign in establish well known sporting product on worldwide platform. This is the way how nike has become so successful in its category.
It was about time for Nike to respond to this. They created a code of conduct and changed the agreement with their subcontractors by imposing some rules like wage, working conditions and although these rules were basic it showed interest from Nike to improve the problems created by its suppliers. It also created a department of control in order that environmental, ethical or labor issues are in compliance with the regulation and agreement made. Nike reviewed all agreements with its companies around the globe and made mandatory to have a healthy working space. It created a grading system for its suppliers to monitor and determine these demands.
The other advantage is the profitability: with this lower price, Nike was extremely lucrative, since they had a large profit margin to play with. Another advantage was variety: since Nike was able to produce in many different countries, they had specialized branches, and thus being able to expand its offering from footwear to apparel and garment. Having suppliers from different countries had another advantage: each of them can help Nike to penetrate in their regional market, and thus keeping a close supervision in every area in the world. Nike had factories everywhere, and this is a key to success in a
It makes a resistance to the dominant value of race. Nike is a pioneering company of adventurous spirit, which show the image of rebellious by opposing the authority. It encourages confrontation and is innovative use the black as the spokesperson to represent the athletic wear company. The development of basketball in the United States always has a dispute over discrimination. In the 1970s and the 1980s, the average salary of African-American basketball players was about 20% lower than the whites players.
Leadership Challenge Nike Sweatshop Ethical Dilemma Introduction Nike is a multinational company involved in the design, manufacture, and sales of sports apparel. Nike motivates and encourages athletes to attain their objectives by offering the right attires. The company is focused on extensive advertising and endorsement of various celebrities such as Tiger Woods to help in marketing their products. Therefore, Nike outsources its manufacturing processes to other countries that have easy access to raw materials and cheap labor. Further, customers appreciate Nike’s products because they are comfortable and creatively designed which makes Nike a favorite brand for the youth who focus on their health and fitness.
With standardization the managers gain control over the employees by making them follow SOPs and making their actions predictable. Horizontal differentiation leads to the emergence of specialized subunits, functions or divisions. Nike Inc. is a much differentiated firm as can be seen from the structure. It has specialized divisions for each of its brands also for each functions. 6.
Mission, Vision and Core values Nike’s mission statement is “To bring inspiration and innovation to every athlete* in the world.” The asterisk directs us to a statement made by Bill Bowerman, who was cofounder of Nike and was the field coach at University of Oregon. He says “If you have a body, you are an athlete.” Nike doesn’t have any official vision statement. Nike has not declared any official core values. However, we can find the link of it in what Nike wants “to deliver growth in the right way.” Nike wants its growth to be sustainable, profitable, capital-efficient, and brand-enhancing. We can say that this is as something of a core values.
(Locke, R. 2002) Nike felt the positive impacts of their business strategy, expanding their footwear product range and market share dramatically through the 1980’s. Adding various other apparel to their product line beyond footwear to sports clothing and equipment, and of course growing financially from a modest company to a $10 Billion annual revenue global powerhouse. Nike also expanded their market beyond US borders to become a true global player. This exponential growth and massive success could not have been accomplished without the same business strategy that soon would leave the developed world in shock. The negative impacts began.
How does the brand intend to position itself in the market? The customer perceives Nike’s products as “technically superior products, made of the best materials and with the latest technologies available, positioned as the most fashionable in the industry and endorsed by top athletes and sport
This indicates that Nike will attract more customers in different social class. Lower income people could afford to buy their low-priced products. This as a result, Nike can meet the customers income and reduce their customer cost. The 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.