...One Research Report Executive Summary This report examines the global company Nike and how it progressed from a small American based company to one of the largest sporting footwear and apparel brands in the world. The entry mode into global business chosen by Nike of contract manufacturing has allowed the company to benefit on two particular fronts. Nike outsourced the manufacturing element of the business initially to China and later expanded to over 750 factories mostly across South East Asia to capitalise on the abundance of low cost labour available to manufacture its products. Contracting out the manufacturing function also allowed the company to focus all of its energy and resources on developing innovative products and then marketing these products across the world. A core value of the Nike organisation is innovation which is embedded in its strategic direction. It developed a culture where no idea is a bad one and innovation is highly valued. This relates both to product development and marketing opportunities. Having this strong focus on innovation has allowed the company to continue to be a world leader in the creation and production of sporting good without the need or desire to diversify into different business streams. Nike has also displayed innovation throughout other business decisions to ensure it tackles environmental issues head on. This attitude took the potentially damaging situation of Nikes association with sweatshops and the perceived exploitation of...
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...Global Brand Management – Nike’s Global Brand Dr. Deanne Larson e-mail : larsonelink@aol.com Abstract: The purpose of this paper is to outline and analyze the ingredients of a successful global brand which has and can continue to sustain its global marketing goals. The brand analyzed in this paper is Nike, one of the top sporting goods manufacturers in the world. As part of the analysis of Nike’s global brand, a proposed brand strategy and supporting marketing program will be recommended using the components of Interbrand’s rating and ranking evaluation. The analysis will use components of Interbrand’s approach as the basis of understanding Nike’s current strategy and standing and be used as input into the recommended brand and marketing strategy. Keywords: Interbrand, brand market strategy, global marketing, brand association, global brand management Reference: Reference to this paper should be made as follows: Larson, D. (2011) “Global Brand Management – Nike’s Global Brand”, The ISM Journal of International Business, ISSN 2150-1076, Volume 1, Issue 3, December 2011. Biographical Notes: Dr. Larson is an active management practitioner and academic and a PhD candidate at the International School of Management. Dr. Larson’s other doctoral degree is a Doctorate of Management in Information Technology Leadership. Her doctoral dissertation research focused on a grounded theory qualitative study on establishing enterprise data strategy. She holds Project Management Professional...
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...1.5 Dropbox –Nike Marketing Analysis MKTG 530 Tori Kern Indiana Wesleyan University 1.5 Dropbox – Nike Marketing Analysis Nike Incorporated is one of the world’s leading innovators in athletic footwear, apparel, equipment and accessories (Nike.com, 2014). Nike will design, develop and market all of the above as well as marketing of apparel with licensed professional and college team logos ("IWU Jackson Library Databases," n.d.). Nike can and will clothe and shoe one’s entire family. Nike Incorporated began in 1968 and is now headquartered out of Beaverton, Oregon. Nike Inc. wholly owns affiliates such as Converse Incorporated, Hurley International, LLC and Nike Golf (Nike, Inc., n.d.). Converse is considered and reported as a separate segment while Hurley and Nike Golf are part of the financial reports for the Nike trademark. There is also the Jordan Brand. The Jordan Brand began in 1997and offers performance and lifestyle products. The Jordan Brand offers premium brand footwear, apparel and accessories inspired by the legend himself, Michael Jordan. The Nike Company has roughly 48,000 employees worldwide and operates in more than 170 countries (Global Data, December 2013). From when Nike began to the current status there are opportunities for Nike to improve on and to achieve goals. There will always be threats against the Nike Company that will try to distract or keep them from achieving goals. For a marketing standpoint it is important to identify those threats...
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...NIKE: GLOBAL MARKET INTEREST Brand Analysis Anthony Parson Jr April 21st 2013 [pic] Table of Contents ABSTRACT Nike was originally known as Blue Ribbon Sports (BRS), which was founded by University of Oregon track athlete Philip Knight and his coach Bill Bowerman in January 1964. Ironic enough, Blue Ribbon Sports initially operated as a distributor for Japanese shoe maker Onitsuka Tiger (now ASICS), making most sales at track meets out of Knight's automobile. In a sense, Nike began as a component of Japanese interest in foreign markets. Within a decade of ending ties with Japanese shoemaker Onitsuka Tiger and beginning marketing for what is now known as Nike, Nike had attained a 50% market share in the U.S. athletic shoe market by 1980. This report will investigate Nike’s global business interest and analyze the current global activities of Nike. This report will also look at how in establishing an international presence, Nike has had to review and revise branding messages to satisfy cultural differences, increase brand credibility, and assess geographic opportunities to decide where their target market is and where Nike products will be purchased. Currently, international sales account for 57% of Nike’s revenues. China is currently Nike’s biggest overseas interest. Global activities such as highly publicized basketball tournaments...
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...Company’s Market Segments NIKE, INC Dessey Holm MBA6012 u03a1 Due: June 08, 2014 Email: des69sey@hotmail.com Professor: Ted Framan Market segments is a division of a market into smaller submarkets based on characteristics that are in common. For example, there is a segment for noncustomers, customers, level of service, behaviors, and demographics to name a few divisions. In the marketing world, dividing into smaller segments allows businesses to develop a marketing strategy tailored to the individual segments based on their needs and wants. (Marshall & Johnston, 2010) To uncover which market segments that show most promise for the purpose of development is the goal of target marketing. “The decision to invest in developing a segment into a target market represents an important turning point in the marketing planning process because, from this point forward, the direction of a firm’s marketing strategies and related programs are set.” (Marshall & Johnston, 2010) Nike’s Internal Environment of Marketing A company’s internal environment in terms of marketing can include but not limited to marketing capabilities, manufacturing abilities, and distribution capacities. It involves most functions and capabilities inside of the company. To influence positive change within Nike Inc.’s supply chain, they use a variety of approaches. By building an empowered and equitable workforce they hope to add change that is beneficial to the company. “Today we’re in the...
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...One strategic growth strategy that Nike implemented was the company’s heavy investment into the 2008 Beijing Olympics. The strategic consideration that drove the decision was to customize offerings in each country market to match the tastes and preferences of local buyers. The primary purpose was to gain more access to new customers. Nike is a 50 year old company and this wasn’t the first time they set foot in China as a retailer, but they wanted to make further progress in their penetration of the Chinese market. Their short-term goal is to have annual revenues from China reach $4 billion in sales. Their investment in marketing and endorsements related to the 2008 Beijing Olympics was $150 million. Part of this cost included sponsoring the Chinese teams. There were 28 different sports in the Olympics, and Nike sponsored the Chinese teams in 22 of them. That is a significant percentage. The global strategy it applied was to form partners with Chinese manufacturing companies to manufacture the goods. All of Nike’s production comes from the 785 contract factories it has all over the world, including China. The modes of market entry it used would be a “Transnational Strategy” because with the games, Nike also opened up Nike Stores that offered products in athletic areas most popular with the local population. They also opened up “Super Stores” with similar product listing of that of the U.S. market. Prices were also scaled down to local currency rates to match the competitors pricing...
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...| | |NIKE Inc. | |Transition to Transnationality: A Strategic and Structural Outlook | | | | | | | | | | | | | | | | ...
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...Executive Summary Nike manufactures and markets sports apparel and equipment on a global scale. They operate in 160 different countries, and have revenues of $18.6 billion. Yet, they are a growth company. Without any significant acquisition, they have consistently grown revenues and profits over the past several years by shifting emphasis on brands they own in growth sectors. Nike’s marketing strategy revolved around two concepts – premium positioning and everyone with a body is an athlete. These concepts drive their strategies, including endorsements from the world’s most popular athletes, and the development of products for both the serious athlete and the mass market. Financially, Nike is strong. They are liquid and are on a steady growth trajectory. They are, however, underleveraged. The company derives significant strength from its global production and logistics network. Despite this, the company faces many threats, both competitive and economic. Nike is well-positioned to defend against these threats. Their move into growth sectors of the market shows savvy. It is recommended that their convoluted organizational structure to reduce operational duplication. They should also adjust their capital structure to make it more efficient. It may also be time for Nike to make a major acquisition, capitalizing on slumping equity markets to strengthen their defenses against economic downturn and competitive threats. If Nike is able to make these adjustments and strategic...
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...Term Project-Nike Algernon Jones & Maria Lopez MBA 6202/6215 – Strategic Management Dr. David Epstein Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of Oregon track athlete Philip Knight and his coach Bill Bowerman in January 1964. The company initially operated as a distributor for Japanese shoe maker Onitsuka Tiger (now ASICS), making most sales at track meets out of Knight's automobile. In 1966, BRS opened its first retail store, located at 3107 Pico Boulevard in Santa Monica, California. By 1971, the relationship between BRS and Onitsuka Tiger was nearing an end. BRS prepared to launch its own line of footwear, which would bear the Swoosh newly designed by Carolyn Davidson. The Swoosh was first used by Nike on June 18, 1971, and was registered with the U.S. Patent and Trademark Office on January 22, 1974. In 1976, the company hired John Brown and Partners, based in Seattle, as its first advertising agency. The following year, the agency created the first "brand ad" for Nike, called "There is no finish line," in which no Nike product was shown. By 1980, Nike had attained a 50% market share in the U.S. athletic shoe market, and the company went public in December of that year. Together, Nike and Wieden+Kennedy have created many print and television advertisements, and Wieden+Kennedy remains Nike's primary ad agency. It was agency co-founder Dan who coined the now-famous slogan "Just Do It" for a 1988 Nike ad campaign. Throughout the...
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...Favorite Brand Paper MKT/421 June 4, 2014 Nike Nike Inc. was first founded in 1964 as “Blue Ribbon Sports” by Bill Bowerman and Phil Knight. It wasn’t until 1971 that it was re-named “Nike” after the Greek winged goddess of victory, strength, speed, glory, and fame. The Nike “swoosh” is meant to represent the wings of the goddess Nike, as she was often depicted in mythology with. The iconic swoosh was created by Caroline Davidson, an advertising student at Portland University. She was a freelancer asked to design a graphic logo that could fit on the side of a shoe by Phil, and she sold him her design for $35. The first interaction between the founders of Nike was in 1959, when track coach Bill Bowerman met Phil Knight; who was a runner at the University of Oregon where he was coaching. The need for the company arose out of Bill’s desire to find lighter, more durable racing shoes for his university track team, and Phil’s desire to find a way to make a living without having to give up his love of sports. The two put their heads together, and the end product was a company that now dominates the market in its sportswear segment, despite having begun as a small distributing outfit from the back of Phil’s car. While Phil was obtaining his MBA degree at Stanford in the 60’s, Professor Frank Shallenberger assigned his students with a project; the goal of which was to devise a small business and a marketing plan for its success. Building on...
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...Global Organization and Cultural Perspective (Nike) Once an organization, like Nike, becomes a global organization, and the business goes to other countries to gain more profits, it will encounter challenges and ethical issues. Some of the challenges for a global organization are child labor laws, wages, and outsourcing. An example is a Nike sweatshop labor case that stirred up a big controversy over ethical business practices. Because of this issue the organization has to deal with the negative perception, and the organization needed to solve this ethical issue to remain profitable and ethical in the eyes of the consumers and stakeholders. The Nike Corporation is one of those global organizations which brought their business to other countries to provide economic opportunity to the host country, and in turn obtain more profits due to cheap labor cost. The organization outsourced its manufacturing plants to several countries in order to lessen costs and become more efficient in productivity. The outrage and protests that followed were far from what Nike expected; the company was labeled as forcing “children to slave away in hazardous conditions for below-subsistence wages” (Hill, 2009). Because of this issue, a wide protest of globalization and human rights activists accused the Nike organization for taking advantage of the workers overseas and exposing their workers in unsafe working environment. Although Nike was making billions of dollars in profit, however, it has...
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...Nike LeBron Case Describe how the article explains Nike's alignment with the general environment effects: Demographic, Sociocultural, Technological, Economic, and Global. Demographic Nike’s products are widely distributed demographically. Their footwear is sold to a wide range of men and women as well as children. An article mentions a 30 year old Donell Brown, it also mentions Lucy Rangel, 37 years old, who was shopping for sneakers with her two teenage daughters. Products’ prices are also very different to accommodate people who seek for cheaper products or very exclusive products. Sociocultural Since people are getting health conscious, this means more demand of the Nike products like shoes, etc. Nike has always been the first choice of people when it comes to buy something sport/fitness related. Nike has many loyal customers whose first choice is their product. Technological Shoppers are willing to spend more on products with newer technology and fresher styles Nike is "not arbitrarily taking up prices," said spokeswoman Mary Remuzzi. "We are constantly looking at ways to enhance the product line with new innovation and product attributes." Product innovation is an ongoing process and is vital to stay ahead of competition. Nike, as well as its competitor Adidas, in “some instances look to increase price, usually in areas where we launch new, innovative products." Economic As the economy slows, consumer purchases are down. The biggest threat for Nike is...
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...Nike Case Questions 1. In the United States, what is Nike’s: a) Brand image, and b) sources of brand equity? a) In the United States, Nike’s brand image is built on being a high-performance, innovative and aggressive brand. The company associates the brand with top athletes through sponsorships. Since inception, Nike has placed performance as a top priority for the brand. Through designing high performance shoes and apparel, as well as sponsoring high-profile athletes and teams the brand has developed a reputation as being high-quality. Nike’s high tech products have allowed the brand to be perceived as innovative in the minds of consumers. Nike is continually introducing new products to the sports market as a way to improve performance. Through high performance and innovation, Nike has been branded as arrogant as the company has a high regard for the spirit of competition and portraying a rebellious spirit. b) Source of Brand Equity Description Logo Nike’s logo is a check mark. It is commonly referred to as the “swoosh.” As of 2000, 97 percent of American citizens recognize the brand logo. Nike has been seen as aggressive in the overabundance use of the “swoosh” with the symbol being placed on shoes, jerseys, hats, billboards and soccer balls across the globe. This ubiquity has been criticized as diluted the “swoosh”. Advertising Advertising has allowed Nike to portray its rebellious spirit and “nasty boy” image. However, this approach in advertisement has...
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...Nike is a successful company that has been in business since 1972. Throughout the decades, Nike has built up its brand to one that is respected and sought after. Nike has grown its brand name through the acquisitions and partnerships of many other brands (Hurley, Umbro, Cole Haan, and Converse) to provide to its customer different products that suit every athletic need. In order for Nike to gain success in its growth, the company follows the four functions of management: planning, organizing, leading, and controlling. External and internal factors play unique roles into how the company carries out each of these functions. In contingency to the functions, factors such as globalization, technology, innovation, diversity, and ethics affect how the company manages the business. This paper identifies how Nike successfully manages their business through the four functions of management and the various factors that affect them The four functions of management at Nike can be affected by various factors such as globalization, technology, innovation, diversity, and ethics. Globalization affects planning because Nike is a global company and needs to set objectives for growth in markets inside many countries. Nike announced on January 9, 2012 that they are building a 600,000 square foot headquarters in Shanghai, China to centralize their employees in China, which would allow them to develop a greater focus and competitive advantage in the China market (Nike, 2012). With such an increasing...
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...it’s the now. Advances in technology have made the world a much smaller place. With access to new markets many companies are venturing into uncharted territory in search for profit. Though its sounds great there are many precautions to take before a company finds a new market. There are barriers to entry: most common among many are tariffs, quotas, and sociocultural variances. Tariffs are taxes put on imports from other countries. The effect of a tariff is to raise the price of the imported product; it makes imported goods more expensive so that people are more likely to purchase domestic products. Quotas are limits on the amount of goods that can be imported. Putting a quota on a good creates a shortage, which causes the price of the good to rise and make the imported goods less attractive for buyers. This encourages people to buy domestic products, rather than foreign goods. Sociocultural differences in religious beliefs or practices, basic cultural assumptions and/or patterned behavior, language, idiom, body language and assumptions about social strata are all among potential trade barriers. Companies like McDonalds, Nike, and Apple are dominating the market with their precise marketing strategies. Let’s take a look at each of these companies and asses how they all master foreign marketing through in their own unique way. Many franchises that market their products on a global scale can either fail miserably or succeed in attracting their audiences overseas....
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