1. The macro-environmental factors that influence Nike’s strategy include culture, demographics, social issues, technological advances, economic situation, and political and regulatory environment. Culture is the shared meanings, beliefs, morals, values and customs of a group of people. In America, Nike has become an industry leader that influences our cultural practices. It is widely accepted as the premier retail brand by all age groups. Nike has done a great job of advertising to various generational cohorts and expanding its brand. Nike’s distinguishable products have become a household name on the global scale. Nike has to specifically consider the “country culture” of not only the countries where it sells product, but the cultures of the countries where the products are manufactured. Country culture attributes include behavior, dress, symbols, physical settings, ceremonies, language, and colors. Identifying and navigating some of the more subtle aspects is difficult but necessary for global firms.

Demographics indicate the characteristics of human populations and segments, especially those used to identify consumer markets. Demographics include age, gender, race, and income. Nike uses marketing ads to target different segments of demographics. For example, Nike’s version of the toning shoe is designed to specifically appeal to women.

Social issues influence consumer behavior around the world. Recently, there has been a heavy emphasis on thrift, health and wellness concerns, and green products. Social issues are always changing in the marketplace, and are very important to capture consumer approval of a product. Analyzing social issues is important in marketing. Firms must monitor these issues to keep in tune with consumer behavior. Today, many firms are “going green” to appeal to consumers. Nike has adopted this concept with its newest product, the Jordan XX3. This product uses less toxic adhesive glue and relies on the shoe to form a puzzle-like design that is stitched together using a “3-D” sewing machine.

Technological advances have improved the value of products for Nike. This factor has advanced Nike greatly in the past few decades and continues to grow. Nike has been able to use technological advancements to improve and market its product, and improve conditions in the production along the way. Nike is able to use the new “3-D” sewing machines to avoid increased amounts of toxic adhesive glues that were once used. By using the new methods, Nike is able to appeal to the “green” consumers that want to wear their shoes and not worry about the harmful production of it. Nike also offers consumers the option to customize their own shoes through the use of the Internet and NikeiD software. Users can select their color and style options and Nike will manufacture the shoe to their specifications. This technological advancement allows consumers to feel like they are part of the design process, which creates value for the consumer.

The current economic situation affects the way consumers spend money. Consumers may not spend as much money during tough economic times. Nike shoes are often viewed as a luxury. Because of this, consumers may be more willing to purchase discounted or generic brands.

Political and regulatory environmental factors are comprised of political parties, government organizations, legislation, and laws. In this case legislation requires Nike to abstain from misleading advertising, refrain from using hazardous materials, and adhere to ethical business practices.

The most pertinent macro-environmental factors include culture, demographic, social issues, and technological advances.

2. Important criteria for regular consumers include quality, cost, and the product materials. The consumer relies on a product’s quality to provide longevity and support. While quality is important, cost has become the most important factor for a product. The retail costs for Nike Jordan brand shoes ranges from $100-$200. Because of this high price, consumers expect that this shoe is superior to alternate brands. A big challenge for Nike is to produce a quality product that performs well at a good price. Upon purchasing the shoe, one believes they will play better, jump higher, and run faster. The product materials are also important because the product should be manufactured using ethical business practices. Nike has had a history of using unethical practices in the production of its shoes. The CEO, Mark Parker, has decided to position Nike as an industry leader in ethical manufacturing practices. Nike assures consumers that its production practices are ethical. Consumers will not purchase a shoe that was made in an unethical manufacturing facility. These factors have become more important in consumer behavior. Since Nike changed its strategy with ethical manufacturing processes, consumers have accepted Nike as a premier brand.

3. Lean manufacturing, also called “just-in-time” production, eliminates excess inventory and reduces waste. The money saved on excess inventory can be used to support green practices. Lean manufacturing supports green marketing by keeping inventory levels low and this in turn reduces the amount of lethal toxins let off in the air.