Of all the major fads and trends surging through popular culture, none is more prevalent than flashy footwear. Mainly with athletic sneakers, the footwear industry has experienced a major influx in the demand for the output of iconic shoes. The current manufacturing practices of the sneaker industry, in particular companies such as Nike, Reebok, Adidas, and New Balance, takes place all over the globe. With the industry experiencing severe competition and the product requiring intensive labor, firms are facing extreme pressure to increase their profit margins through their sourcing practices. No competing sports brand is more eminent and internationally established than Nike, Incorporated. Introduced to the world in 1964, Nike has made its way to the pinnacle of notable fashion and athletic brands with the acquisition of major subsidiary brands such as Hurley, Converse, and Jordan. Nike is now the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment. Due to the brand’s association with legendary Athletes and futuristically designed sneakers, Nike has fueled fervor among consumers, in which many will result to desperate measures just to own a pair of Nike’s iconic footwear. Aware of the risks and danger associated with the releasing of these highly sought-after sneakers, Nike has become infatuated with consumers’ overwhelming desire to purchase their product and has begun to release their most highly demanded sneakers in limited quantities to generate even more chaos and increase their profit margin. Due to the fervor that Nike has instigated over their product and the danger that it has brought upon shipment transporters, retailers, and the dedicated customers, Nike’s new-release sne... ... middle of paper ... ... Jordan Brand. Works Cited Akuon, Timmhotep. “Concords, Christmas and the Marketing Genius of Nike’s Jordan Brand.” Black Enterprise. Black Enterprise Magazine, 28 December, 2011. Web. 29 March 2012. Mattioli, Dana. “Nike's Footwork Yields Long Lines.” The Wall Street Journal (2011) Web. 29 March 2012 “Nike Foamposite Galaxy Release Cancelled, Riots Ensue in Orlando.” International Business Times. The International Business Times, 24 February 2012. Web. 29 March 2012. Ruiz, Mariapaz D. “Supply Chain: Nike, Inc.” University of Phoenix (2009) Web. 29 March 2012. Van Dusen, Steven. “The Manufacturing Practices of the Footwear Industry: Nike vs. the Competition.” UNC-Chapel Hill (1998) Web. 29 March 2012. Williams, Timothy. “Rush to Buy New Sneakers Leads to Arrests.” The New York Times. New York ed. The New York Times, 24 December 2011. Web. 29 March 2012
"Nike." Columbia Electronic Encyclopedia, 6th Edition 1. Academic Search Premier, EBSCOhost (accessed November 6, 2009).
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.
"Getting and spending" has eclipsed family, ethnicity, even religion as a defining matrix. That doesn't mean that those other defining systems have disappeared, but that an increasing number of young people around the world will give more of their loyalty to Nike than to creeds of blood, race, or belief. This is not entirely a bad thing, since a lust for upscale branding isn't likely to drive many people to war, but it is, to say the least, far from inspiring.
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.
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.
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.
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
Show that aggressive public relations campaigns may still be ineffective when the actions of contractors receive widespread attention an...
Nike’s positioning in the market has more of a mass appeal compared to their main competitor Adidas who strive to make products for elite athletes. The positioning strategy for Nike is currently working at a satisfactory level as Nikes global annual sales between 2013-2014 was reported as 27.8 billion (Statista, 2014) compared to Adidas’ 19.95 billion (Statista, 2014). The global market for sports apparel is expected to grow at a compound annual growth rate of 4% between 2012-2019, Nikes compound annual growth rate during 2010-2012 was 12.3% which is an excellent result as the brand’s growth was larger than the market as well as outgrowing Nike’s closest competitors Adidas, Puma and Asics (Forbes,
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. The global retail market within the shoe industry currently represents $185 billion, driven primarily by Asian and Latin American economies and is expected to reach $211.5 billion by 2018. The growth rate globally was 6% between 2004 and 2008, contrasting to the 2% compound annual growth from 2008 to 2012. The United States holds over 24% of the overall industry size it projected over $48 billion in annual revenue in 2012. Domestically, the growth rate has been flat at 0.3%. On a unit volume basis, global footwear consumption for 2012 is approximately 11,421.3 million (in pairs), where the United States makes up roughly 2,741.1 million (in pairs). By 2018 the U.S. Census Bureau has forecasted a steady decline within demand domestically of 3% and an increase of 1% globally.
The Nike Inc. company “Just do It” logo encourages many to be motivated to push themselves to work hard and to believe in themselves. The Nike Inc. shoe industry has marketed their sneakers through popular icons such as sport players. However, the same should be encouraged in employees who manufacture these products overseas in China, Indonesia and Korea. Nike has a responsibility to ensure that Management in the manufacturing company is held to a higher practice to avoid unsafe working conditions, unfair pay and child labor.
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)
Pittman, B. (2012, September 14). Nike sweatshop history: Should action be taken?. Retrieved from https://sites.google.com/site/americanlaborcrises/labor-crises/nike-sweatshop-action
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.
Nike’s Asian operations had previously continued to soar generating US$300 million in 1994 in revenues to a whopping US$1.2 billion in 1997. However based on the Asian economic crisis, this had adversely affected revenues, while regional layoffs were inevitable. Nike also performed well in the European market generating about US$2 billion in sales and a good growth momentum was expected, however, some parts of Europe were only slowly recovering from an economic downturn. In the Americas (Canada and the U.S.A.), Nike experienced a growth rate for several quarters. The U.S. alone generated approximately US$5 billion in sales. The Latin American market at this point was exposed to economic volatility; however Nike still saw them as a market with “great potential for the future”.