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Impact of branding on consumer choice
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The appeal of the international brand of Wacom can be seen on the campus of the University of Illinois. 22HDs are in the computer labs in both the Art and Design building and in many of the engineering buildings. Many of my friends and classmates have at least one. I, myself, have two. The high demand for an obviously overpriced brand reflects the strong demand for image more than the actual product. There are an increasing number of similar products that are much more affordable. Global products like Wacom sell internationally the same exact products. “If Europe says its consumers want a product in green, let them have it. If Japan says red, let them have red. No one wants the average.” (from “Global Products” p218) That said, people are fine with average when it comes to branded products. “The lure of a universal product is a false allure” except for some kinds of products where globalization “makes excellent sense.” (from “Global Products” p218) Japanese electronics dominate globally because many general design choices …show more content…
“Nike, which began as an import/export scheme of made-in-Japan running shoes and does not own any of its own factories, has become a prototype for the product-free brand. Inspired by the swoosh’s staggering success, many more traditionally run companies…are busy imitating Nike’s model, not only copying the company’s marketing approach…but also its on-the-cheap outsourced production structure.” (from “No Logo” p203) Wacom Wacom thankfully still has one factory in Japan and owns their own factories, but outsourcing work is still a problem. It becomes more difficult to guarantee the quality of products and address problems and solutions. Moreover, if Wacom is relying on cheap labor, the marketed value of their products should actually be affordable and not so outlandish. When similar products are at a much affordable range, it consolidates the claim that Wacom is merely selling their
In Nike’s SEC Annual Report, Nike discloses that independent contracted factories in China, Indonesia, and Vietnam produced approximately 94% of the total Nike Brand footwear and 58% of the Nike apparel. (Nike, Inc. 10K Report, 2016) The independent factories overhead in China, Indonesia, and Vietnam are considerably lower than those of the United States. Nike veteran, Steve Bence stated that it costs Nike “about $28.50 to manufacture a pair of shoes in Asia and have it shipped to the United States. That includes $25 for labor and factory costs and $1 in shipping.”(“The cost breakdown of a $100 pair of sneakers”, 2016) The import price of 30 pair can be recouped after one pair of sneakers. Here Nike profits are substantial compares to the money to the cost of the imported
Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.
Nike, as many other companies do, facilitates production in other countries to help grow sales in those particular regions. The main difference between Nike and some of the other companies is that other companies do not support the exploitation of labourers or human rights. Not to suggest that Nike promotes labour exploitation, but they are less strict about these rules than other companies in foreign markets. Impacts on health and safety are a major factor for employees in sweatshops. However, physical and sexual abuse is another serious concern of many of the sweatshop workers. Most of the sweatshops run by Nike contractors are factories located in relatively small spaces to save on real estate costs. They are often soiled with dirt and kept unheated to save on expenses. Broken glass and dangerous equipment is left on the floors causing potential dangers to any people scattered within the factory. Employees are subject to harassment and violent punishments if work is not being completed as thoroughly and efficiently as the contractors would like. Workers slave under unfavourable conditions for up to 14-hour days often with no breaks. These employees are paid less than $100 US and work on average over 250 hours per month. "Substandard wages keep factory workers in poverty and force them to work excessi...
Corporations in the United States have proved time and time again that they are all about profit and not about what is good for America. One example of this is the fact that many corporations have factories in other countries, or buy from other corporations that do. Nike (an athletic shoe and clothing company) produces most of their shoes and apparel in factories in other countries, including Japan, South Korea, Indonesia, China, Vietnam and Malaysia. According to Nike’s factory disclosure list released May 2011, only 49 of it’s over 700 factories are located in the U.S. (Nike, Inc.) This means that thousands of jobs that could be filled by needy Americans are instead being filled by workers in other countries. This reason that Nike and other corporations outsource is very simple, it is very cheap to do so. In an excerpt from Jeffrey St. Clair's book “Born Under a Bad Sky” the author describes the vast differences between Nike’s production costs and retail prices. “In Vietnam, it costs Nike only $1.50 to manufactu...
Nike Incorporated is the number one leading sportswear and equipment provider in the world. They manufacture anything from casual clothes to sports equipment, shoes to socks, and basketballs to golf balls. As a result of its massive success, Nike employs nearly 30,000 people worldwide while manufacturing in 700 shops around the globe and has 45 offices outside the United States. Its extensive reach into the global market has Nike producing more exclusive products than any other manufacturer in the world. Nike’s headquarters is located in the metropolitan area of Portland, Oregon.
Nike’s goal is to remain unique and different from others in terms of the items offered on the market. Arguably, Nike belongs to a monopolistically competitive market as there only a few organizations with the ability to regulate the amount charged for their product which means they cannot make their prices high as this is likely to make customers move on to other available choices (Nike, Inc., 2012). However, Nike can find a balance between the prices to charge for their products and remaining competitive with other companies in the industry. Nike has formed a distinction between the appearance and performance of their footwear and that of their competitors. Although products are differentiated from other companies, they still influence each other because they are items of the same
Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.
With the increasing awareness and publicity of poor working conditions in subcontracted factories in East Asia, Nike has stimulated an uprising of activist and watchdog groups working toward seeing these conditions changed. With Nike in the negative spotlight, various organizations have revolved around generating a negative outlook on Nike’s practices of social irresponsibility. Certain campaigns such as the “National Days of Consciousness” and “International Day of Protest” were organized to educate people on the deplorable working conditions in Nike’s Asian manufacturing plants, and were designed to get more people involved in global employment issues.
It’s not news that Sony is a global company or that (25%) of all Play Station profits’ for the past seven years came from Sony to Japan. After all that’s what international marketing and the global economy are all about, companies like Sega, Nintendo, Microsoft, X-Box doing business around the world. The global economy now reaches every corner of the United States. Current interest in international marketing can be explained by changing competitive structures coupled with shifts in demand characteristics in markets throughout the world. With the increasing globalization of markets, companies find they are unavoidably enmeshed with foreign customers, competitors and suppliers. A significant portion of all products made in the United States is foreign made.
The proponents of standardization approach in international marketing views the globalization trends as a facilitation of technological uniformity, greater level of similarity, and higher convergence of consumer preference, taste, and needs. The growth of international communication channels also facilitate the standardization including th...
For those marketing efforts, Nike does successful to promote itself with its not-quite-nice images and also generate some criticism that I think they are irresponsible as we can see from their ad that they does not create any positive effects to the society. For its use of overseas factories, it is great opportunity to expand the production base to the lower cost of labor, but it is totally irresponsible and unethical when labor practice does not meet the standard.
This project concentrates on the Nike Sports shoe; Nike is one of most significant shoe manufacturing company worldwide. Sportswear manufactured by Nike is known for quality and is most liked brand of athletes. (Daniel, 2011)
Not be the printer of choice for everyone, Due to the cost of ink, running
manufacturing products overseas, specifically in Bangladesh. The focal point of the article was how Nike was attempting to achieve the lowest possible manufacturing costs while still maintaining worker safety and producing high-quality products. Both consequences and benefits of manufacturing in foreign companies was discussed in the article. In addition to how manufacturing costs affect the financial outlook of the company, the article addressed how having factories in less-developed countries has an impact on public opinion of Nike.
America is a birthplace of NIKE Company. Nike’s workplace consists of a leader, visionaries and experienced employees who are very passionate to maintain the status ...