Nike Supply Chain Analysis

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 .

The slogan, “We make everyday life better, every day,” comes from the worldwide manufacturer, Clorox, producing products such as cleaning supplies, pet supplies, and Burt’s Bees personal cosmetics. They are a multinational corporation with about 8,000 employees, and with a global net sales worth in excess of 5.66 billion dollars as of 2015, an increase compared to previous years. However, recent company research of the company shows that over the past two years, Clorox has had unfavorable foreign currency exchange rates, increased aggression in their competition, and a substantial increase rate in raw material costs. In this report, we will discuss the strengths, weaknesses, opportunities, and threats within all of their different brands consisting of cleaning supplies, pet supplies, and Burt’s Bees products. 2.0

Rentmeester v. Nike, Inc. In 1984, Nike signed a $2.5 million dollar shoe endorsement with then NBA rookie, Michael Jordan. What shortly became a household name, Air Jordan’s exceeded Nike’s expectations by generating over $100 million dollars in its first year on the market. Since its launch, Air Jordan’s has gone through a series of brand changes, but it was the development of the infamous Air Jordan’s III logo or the “jumpman” silhouette, that inaugurated Air Jordan’s as one of the most iconic brands in the world.

Competitive Advantage and Long-term Vision As the Allstar brand continues to be one of the leading Pharmaceutical companies who manufactures quality over the counter (OTC) cold and allergy medicine, our long-term vision is to build and gain a competitive advantage over the top competitor in the business marketplace. By gaining and maintaing a great competitive advantage, this will enable Allround to increase their market share and profitability. One way the company plans on reaching these long-term goals is by investing more in marketing. Focusing on increasing both the direct and indirect sale force.

Nike has been around much longer than most would think and continues to be the leading trend setter in athletic wear. Nike was started in January of 1964. The athletic company began as just a small clothing distributing company out of the truck of Phil Knight’s, owner and CEO of Nikes, Car. The Saying you started from the bottom is very true when it comes to Nike who now leads in sales of all athletic gear compared to Adidas who at the time of 1964 was the most popular athletic company. From starting in a truck of a car no one would suspect that this company would not only be defined as the definition of ‘cool’ when purchasing clothing and shoes from stores all over the United States but yet the brand that carries our pop culture.

In April 2012, Ban the Box campaign successfully advocated with the Equal Employment Opportunity Commission or EEOC to clarify and strengthen its policies by updating the Enforcement Guidance on Consideration of Arrest or Conviction Records in Employment Decisions. During that same year, EEOC started immediately going after employers who had a ban on hiring people with criminal backgrounds. One employer that was hit with this policy was Pepsi Cola Company. Pepsi was order to pay over three million dollars because the EEOC ruled that Pepsi discriminated against race of African American applicants based off their background check. Pepsi was also ordered to provide job offers and training to their applicants (bantheboxcampaign.org).

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• 1991: Problems start in 1991 when activist Jeff Ballinger publishes a report documenting low wages and poor working conditions in Indonesia. • Nike first formally responds to complaints with a factory code of conduct. • 1992 : Ballinger publishes an exposé of Nike.

The Mini Case manifests that Nike’s core competency is to create heroes. Nike spends over $1 billion per year sponsoring athletes, and transfer its brand image via celebrity effect. Nike sponsoring athletes who with huge potential, or even from disadvantaged backgrounds (Rothaemel, 2015). Those people’s success stand for “impossible to possible”, Nike impressing its customers that everyone can become a hero by these inspiring stories. From 1976 to 1983, Nike focused on product innovation, and launched the Air shoe which significantly contributed to a reversal in declining sales.

Competitors: PUMA, K-Swiss Inc., LaCrosse Footwear, Inc., Dick 's Sporting Goods, Inc., New Balance Athletic Shoe and Adidas – (Adidas have currently branched out into customization of footwear products. To sustain its competitive advantage over competitors, Nike has to take this to consideration). However, a large number of competitors in an industry usually indicates lots of demand for the products or services provided and this will help Nike to succeed in the long run. Suppliers: Nike outsources almost all of its footwear production to independent third party suppliers. As Nike has a minor control over quality of the products.

We can see many large corporations that outsource all of their production, for example, Nike. Nike was under a large amount of scrutiny after they were exploited for their poor factory conditions. Although their image was tainted from these practices, Nike has initiated many practices and policies to improve their conditions for their employees overseas. The article, “The Myth of the Ethical Shopper” suggests that these corporations are not aware of the specific factory their products are produced. Large corporations, such as Nike, Disney, and Wal-Mart, purchase their products through mega suppliers.

Developing nations are really poor, such countries like China and India continue to live in extreme poverty. Extreme poverty is living on less than $1.90 a day, about 702 million people live in Extreme poverty. Kids have to go to work at an early age to help out their family. Thirteen is the median age for kids working in tobacco fields. In the US, the minimum wage is $7.25 an hour,