The Nike organization is synonymous for their apparel, footwear, and sports equipment (Epstein-Reeves, 2010). By the mid-1990’s, the Nike organization was synonymous with slave wages, forced overtime, and arbitrary abuse (Epstein-Reeves, 2010). The organization tried to ignore the claims, stating that Nike could not be held responsible for the practices of their supply chain (Epstein-Reeves, 2010). However, after the pictures of a child in Pakistan appeared assembling Nike soccer balls (Epstein-Reeves, 2010). Nike began to reshape the organization by taken social responsibility for their supply chains (Epstein-Reeves, 2010). Nike announced that the organization would extend United States operating rules and processes to their overseas supply chains (Epstein-Reeves, 2010). No longer could organizations just shrug off the practices of their supply chains by saying, that is out of the organizations control (Eptein-Reeves, 2010). Nike would make a change to adopted an expanded view of their social responsibilities to their consumers (Epstein-Reeves, 2010).
Research indicates that nearly three-quarters of American investors consider social responsibility when making investment decisions (DeTienne & Lewis, 2005). The problem organizations face in maintaining a positive image while being confronted with ethical, legal, and economic criticisms (DeTienne & Lewis, 2005). Nike is the largest manufacturer of athletic supplies in the world, with five hundred factories in forty-five
David Montero explains that in Sialkot, Pakistan there is a business, Saga Sports, that creates the Nike soccer balls by hand, the problem Nike has with the company is that they employ children to work in unjust conditions. “In November, Nike severed its contract with Saga Sports, its chief supplier, saying Saga's poor management exposes Nike to the threat of child labor and other labor violations,” (Montero). The chief executive of Nike is trying to reduce the amount of children that produce their goods in unfair conditions. The executive wants consumers to know that they are buying products that were manufactured the proper way of not having children make these items in appalling conditions that could threaten their health. The evidence suggest that working conditions is another reason that the United States consumers should not buy products that are made by
The world famous basketball brand has had many controversies throughout its years. The huge controversy of the creation of the first sneaker and violence over Air
Whenever I say nike, most people would think of the shoe nike. But did you know that Nike was A Goddess? Yes nike is a goddess!!!! She is the goddess of speed strength, and victory. Many Greeks prayed to nike for strength and victory.
When it comes to athletic apparel, the first company people think of is either Nike or Adidas. Why is this so? Both Nike and Adidas have done an impressive job in marketing their products, with popular spokesperson like Kobe Bryant or Derrick Rose. Nike’s success is attributed to its products contributing to the success of the athletes who purchase them. Nike and Adidas seemed as though they had control on the athletic apparel oligopoly, but recently, Under Armour has become a serious competitor to the two companies.
Comparing Nike and Adidas is like trying to compare LeBron and Jordan, or Messi and Ronaldo. Both are game changers in athletic wear. The controversy can never be solved because everyone has their own opinion to which brand they like better. For some, they idolize Nike because of the athletes that they sponsor. Others like to rock the urban style of Adidas.
A-Four support activities: 1- firm infrastructure and finance : -Strong brand, product, marketplace solution, delivery and support. (brand value from 35$ in 1973 to 10.7 billion in 2014 ). -Empowerment of top management –geographic structure. -Low debt, short term debt 2.9 billion, and long term debt 1.1 billion. Cash in hand 2.2 billion.
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.
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 Economic factors are determinants of an economy’s performance that directly impacts a company. These factors include inflation rates, interest rates, exchange rates and economic growth. These affect how businesses operate and make decisions. The economic climate in the country is of major concern to every company as it has impacts on the business and consumer spending. For example, the exchange rates can affect the costs of the supply and price of imported goods and exporting goods in an economy.
International marketing strategy is a combination of marketing principle that could be used to formulate a marketing strategy for specific products and services within one or more countries to extend or internationalise the company. The research paper is based on the international marketing strategy of Nike Inc. (a Sports Apparel retail company working internationally) to help the management of the company shortlist and identify potential market for them to expand their business. It utilised macro and micro analysis of the sports retail market to identify the potentials of the industry that would help them to increase their business performance in the international marketplace. Macro Factors PESTLE It is noted that PESTLE is one of the most important and effective that often used by organisations in order to assess different macro factors that influence their activities in a negative manner (Li, et al., 2014).
This 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
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.
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.
His Harper’s article highlights an Indonesian worker who worked for a Nike subcontractor for 14 cents an hour, less than Indonesia's minimum wage, and documented other abuses. • 1992-1993: Protests at the Barcelona Olympics in 1992, CBS' 1993 interview of Nike factory workers, and Ballinger's NGO "Press For Change" provokes a wave of mainstream media attention. • 1996: Kathy Lee Gifford's clothing line is shown to be made by children in poor labour conditions.
Nike internal assessment(ust key external factors) Opportunities Weight Rate Score 1. Should strive to penetrate the new regions that have higher rate of growth such as “Brazil, eastern Europe , India, China 0.1 4 0.4 2. New production line for protective and safety footwear. 0.1