Commodity chain analysis of a Nike Shoe Introduction 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. Conception/design The blueprint of a Nike Shoe originates from the Nike Research Lab located at the Nike World Headquarters in Oregon. At the Nike Research Lab, researchers carry out various tests in biomechanics, physiology, sensory in order to customise the product to suit the best interest of the clients. In addition, various factors such as geography, age, gender are also taken into account in order to cater to appeal to the preferences and needs of different segments of the market. For example, according to the Lab, runners in the United States prefer hard surfaces while those in Europe prefer trails and thus this will affect the compositions of the footwear sold in different regions. The latest innovation of the Research Lab, the NikeFree Shoe enhanced overall athletic performance by stimulating the effect of running barefoot with added features which enabled the strengthening of muscles and lowering the risk of injuries. In an increasingly competitive market with strong rivals such as Reebok, Adidas, Nike’s latest strategy is offering consumers the shoes they desire. This is done by providing customers with the option of designing their own shoes. At Nikeid.c... ... middle of paper ... ...m> Nike Sports Research Lab, “The Science of winning” in Innovate & Inspire “Nikeid” in Innovate & Inspire “Nike's right to roam” in Case Study: Nike, Centaur Communications Ltd. December 6, 2004 “Latest Nike Marketing Campaign Recommends Running Barefoot?” in Nike's Lance Armstrong, LaDainian Tomlinson, Brandi Chastain and Freddy Adu Share Thoughts on Revolutionary Nike FREE Shoes PR Newswire US May 24, 2005 Tuesday “Nike to Launch its First Women's Only Stores” Press Release June 6 2001 Nike’s Annual Report in Security and Exchange Commission Washington DC 20549 Form 10A
Sports Inc. has become a major player in the basketball shoe market. Our products are second to none; with ultra lightweight footwear designed to ensure player safety -- our athletes are just as happy as their loved ones. However, our profits have been stymied by our lack of product diversity, we’ve reached the mature stage in the basketball shoe PLC , and therefore, need to look into extending our product line into other sports. I propose we use our state-of-the-art shoe technology to breach the football cleat market. Football cleats may not be the exciting “new-to-the-world” product that makes a big splash, but I think it can be a source of great value to the company.The environment surrounding football is an interesting one and one that
"Nike." Columbia Electronic Encyclopedia, 6th Edition 1. Academic Search Premier, EBSCOhost (accessed November 6, 2009).
The Shoe Industry consists of a multitude of footwear categories, varying in utility, style and occasion. When overseeing the market for the shoe industry, we must look at the influence of all shoe trades universally to comprehensively understand how the disparities in sales relate to the needs of specific regions. Worldwide the footwear industry holds great aptitude for expansion, with a strong hold on over $256 billion in market value . When geographically segmenting the market, the United Sates represents 27.9% of the market at $71.7 billion, leading the market is Europe grasping 38.4% of the market at $98.4 billion and the Asia-Pacific region holding 19.1% of the market at $49 billion; the rest of the world makes up the remaining 14.6% of the market at $37.5 billion. Between 2008 and 2012, the average growth rate domestically has been 4.1%; in Europe and Asia-Pacific markets the growth rate was 1.7% and 4.8% respectively (see Exhibit 1).
An extensive research study will be initiated determining what the male customers want in an athletic shoe. These studies will take place online, by ground mail, and by telephone. Once the information is gathered the various types of men's shoes will then be developed focusing on the most popular needs determined by the survey results, which will include a question regarding price. L.A. Gear will then compare the needs of the customers to the industry leaders and determine how the leaders achieved the needs of the male customers and what opportunities L.A. Gear could use to "one up" the competition. L.A. Gear's shoes already focus on comfort, style, and fashion and will now include high performance.
Over the past 37 years, The Nike Brand has evolved into a successful multi-billion dollar corporation. It has also grown to be the world's largest marketer of athletic footwear and apparel. The company’s products are sold in over 180 countries worldwide and 20,000 retail stores domestically. Nike also operates retail stores overseas such as Nike Towns and factory outlets. Although Nike is involved in the design, development, and marketing of the product; the products are manufactured independently. In addition to its wide range of athletic shoes and apparel, the company also sells Nike and Bauer brand athletic equipment, Cole Haan brand dress and casual footwear, and the Sports Specialties line of headwear.
Only a week earlier, on June 28, 2001, Nike had held an analysts' meeting to disclose its fiscal-year 2001 results.1 The meeting, however, had another purpose: Nike management wanted to communicate a strategy for revitalizing the company. Since 1997, its revenues had plateaued at around $9 billion, while net income had fallen from almost $800 million to $580 million (see Exhibit 1). Nike's market share in U.S. athletic shoes had fallen from 48%, in 1997, to 42% in 2000.2 In addition, recent supply-chain issues and the adverse effect of a strong dollar had negatively affected revenue.
Nike has always been a company that's been questioned ethically. People have heard about the stories of the sweatshops in Southeast Asia exploiting adolescent employees for unreasonably small amounts of money. This had blemished Nike’s reputation several years ago, but since then, it has strived to become a truly respectable company. Located on Nike's website you can find Phil Knight's credo about ethics. It is as follows:
The managerial problem being addressed by this conjoint study is to determine if the New Balance Shoe Company (NBSC) should launch a new men’s running shoe under the New Balance name. The NBSC would like to understand what attributes active male runners would prefer under what price points for this new product.
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.
One of the brand strategies of Nike is that it stays “constant” throughout the years. “Its swoosh logo hasn’t changed, nor has its signature ‘Just Do It’ slogan, but the brand is constantly adjusting its messaging to stay relevant” (Conran 2015). Nike is a well-known brand, and one of the reasons that makes it popular is that people know what the brand is when they see the “swoosh” logo and the “Just Do It” slogan. If Nike changes its logo and slogan all the time, no one will know what the “new” logos and slogans are for, nor will they know that they represent the Nike brand. The logo and slogan of the company stay the same over the years, but Nike is constantly coming up with new ideas to grow and change. Another brand strategy of Nike is its store layout, and it uses this strategy to increase the chance of customers purchasing products from the stores. “If walking into the Nike store, the most enticing element is the highly made and symmetrical layout. Every sport is provided its part that arranged in color and product type” (Branding Strategy of Nike 2013). The Jordan brand of Nike is popular, but it does not only focus on selling the products for one sport, therefore it is important to give customers the chance to look at every product of every sport. In order to increase the chance of customers buying
As a football shoes producer, Nike’s football shoes products have a typical niche market: football fans. They spend huge amount of money to be the sponsor of famous football club, and use the top football stars as their Image Representative. In sports industry, customers are easily to ...
There are as many brands as there is ants in the world, but the two brands that pop out are adidas and nike. Those two brands have been going head to head for ages to see who is the better brand. It’s been tested, compared, and debated which brand is better. Whether it’s the quality of the materials or the cost of it, the debate is ongoing. Both brands have been fighting for the top ever since they were both created and I don’t blame them it’d be fantastic to be the best brand in the world. When Nike and adidas are contrasted, it becomes clear that the Adidas brand are better for the overall consumer and enhances sport performance than Nike.
...o accustomed to. Like Michael Jordan, I am very satisfied with my choice of being a huge fan of the Nike brand. In many ways, Nike has a big influence on my life. The idea of Nike fills my mind with many confident thoughts. Nike gear makes me feel like a mighty warrior of the Bronze Age. When I am draped in Nike gear, I feel extremely confident and victorious. I feel as if I deserve to be handed a wreath of victory such as the one the Greek goddess would offer to champion heroes and Olympians. This brand is very inspiring and motivating to me because of its history. The history of Nike says it all. After doing my research on Nike, it makes so much sense why the brand has become such a success. The hard work, dedication, and patience that Bill Bowerman and Phil Knight displayed to achieve their dreams really motivates me to one day become just as successful.
Nike is the number one innovator in the world in athletic footwear, apparel, equipment, and accessories. This worldwide company operates in an extremely different organizational structure than other companies, such as Reebok and Adidas. Nike operates tremendous marketing strategies and develops inventive designs to inspire athletes around the world. This company is one of the largest suppliers in the world in athletic footwear and apparel, main producer of sports equipment, and making Nike the most valuable brand among sports companies. The task for Nike is to join diversity and inclusion to encourage ideas and innovation. Around the world, this company is a popular brand.