Register to read the introduction…
Innovation contributes to Nike’s success. Their designers are creativity in keeping up with the trends and listening to what the customer wants. A new company would not be able to keep up. It would take years of research for the new companies to hire and train their employees to compete with Nike. Nike uses top athletes to wear and sponsor their products. The company also has contracts with universities to promote their athletic gear. This is part of Nike’s marketing strategy. A startup company would not have the funds to afford this expense. Bargaining power of the buyers are retailers and consumers.
…show more content…
Some of Nike’s retailers are Nike Town, Finish line and Footlocker. Because of the current financial crisis these retailers are seeing a decline in sales. This leads to Nike having inventory issues. If Nike over extends the customer demands then they have too much inventory. Nike’s future ordering program allows them to minimize the amount of products they hold in inventory, purchasing costs, the time necessary to fill customer orders, and the risk of non-delivery. Nike report changes in futures orders in their periodic financial reports (Nike Annual Report).
Create a SWOT analysis for the company identifying the major strengths, weakness, opportunities, and threats. 1. Strengths a. Nike has no factories b. Nike is a global brand c. Employs over 300,000 people across the world d. Nike is very competitive 2. Weakness e. Diversified range of sports products f. Retail sector is very sensitive g. Accusations of poor conditions in the work place h. Accusations of exploiting workforces that will work for cheap in overseas countries 3. Opportunities i. Internal Marketing j. New Product Development k. Expansion into sunglasses and jewelry line l. Expansion in the global markets to crate brand recognition 4. Threats m. Counterfeit products n. International Trade o. Retail Sector price competitive p. Currency value fluctuates (quality-assurance-solutions.com) Based on the SWOT analysis, recommend how the company may capitalize on its strengths and opportunities, and minimize its weaknesses and threats. In order for Nike to capitalize on its strengths and opportunities they should continue to manufacture their products in areas that will provide the lowest cost. Nike is not different the any other corporation. The bottom line is they are looking to make a profit. In the meantime they are creating jobs for underdeveloped countries. Phil Knight was quoted in Michael Moore’s documentary “The Big One” saying “If people in Flint, Michigan want to make shoes I will consider manufacturing shoes in Michigan”. The cost to manufacture products in the United States is extremely high compared to overseas. If Nike was to manufacture products in the United States the cost of their products to the consumer would be much higher than they are now. Nike can also capitalize by continuing to expand their brand into the global market to create brand recognition. Nike can minimize weakness and threats by figuring a strategy to work with government overseas to make better working conditions for employees. They can continue to keep the trademarks to avoid any counterfeit products from being sold. Nike can also continue to work in different countries based on how the currency fluctuates. Nike is a company that sees if it is too expensive to manufacture their product in one country they have no problem going to another. Discuss the various levels and types of strategies the firm may use to maximize its competitiveness and profitability. Nike’s business level strategy is being an innovative company producing top quality athletic footwear and apparel. Nike continues to be a leader in producing quality products. Nike’s marketing strategy focuses on production differentiation. As mention previously, any company can make an athletic shoe. But Nike’s marketing team has convinced consumers their athletic shoes are better. Nike is keeping up with the trends. The company listens to what the customer wants. Because NIKE is a consumer products company, the relative popularity of various sports and fitness activities and changing design trends affect the demand for our products. We must therefore respond to trends and shifts in consumer preferences by adjusting the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences through aggressive marketing. Failure to respond in a timely and adequate manner could
Some of Nike’s retailers are Nike Town, Finish line and Footlocker. Because of the current financial crisis these retailers are seeing a decline in sales. This leads to Nike having inventory issues. If Nike over extends the customer demands then they have too much inventory. Nike’s future ordering program allows them to minimize the amount of products they hold in inventory, purchasing costs, the time necessary to fill customer orders, and the risk of non-delivery. Nike report changes in futures orders in their periodic financial reports (Nike Annual Report).
Create a SWOT analysis for the company identifying the major strengths, weakness, opportunities, and threats. 1. Strengths a. Nike has no factories b. Nike is a global brand c. Employs over 300,000 people across the world d. Nike is very competitive 2. Weakness e. Diversified range of sports products f. Retail sector is very sensitive g. Accusations of poor conditions in the work place h. Accusations of exploiting workforces that will work for cheap in overseas countries 3. Opportunities i. Internal Marketing j. New Product Development k. Expansion into sunglasses and jewelry line l. Expansion in the global markets to crate brand recognition 4. Threats m. Counterfeit products n. International Trade o. Retail Sector price competitive p. Currency value fluctuates (quality-assurance-solutions.com) Based on the SWOT analysis, recommend how the company may capitalize on its strengths and opportunities, and minimize its weaknesses and threats. In order for Nike to capitalize on its strengths and opportunities they should continue to manufacture their products in areas that will provide the lowest cost. Nike is not different the any other corporation. The bottom line is they are looking to make a profit. In the meantime they are creating jobs for underdeveloped countries. Phil Knight was quoted in Michael Moore’s documentary “The Big One” saying “If people in Flint, Michigan want to make shoes I will consider manufacturing shoes in Michigan”. The cost to manufacture products in the United States is extremely high compared to overseas. If Nike was to manufacture products in the United States the cost of their products to the consumer would be much higher than they are now. Nike can also capitalize by continuing to expand their brand into the global market to create brand recognition. Nike can minimize weakness and threats by figuring a strategy to work with government overseas to make better working conditions for employees. They can continue to keep the trademarks to avoid any counterfeit products from being sold. Nike can also continue to work in different countries based on how the currency fluctuates. Nike is a company that sees if it is too expensive to manufacture their product in one country they have no problem going to another. Discuss the various levels and types of strategies the firm may use to maximize its competitiveness and profitability. Nike’s business level strategy is being an innovative company producing top quality athletic footwear and apparel. Nike continues to be a leader in producing quality products. Nike’s marketing strategy focuses on production differentiation. As mention previously, any company can make an athletic shoe. But Nike’s marketing team has convinced consumers their athletic shoes are better. Nike is keeping up with the trends. The company listens to what the customer wants. Because NIKE is a consumer products company, the relative popularity of various sports and fitness activities and changing design trends affect the demand for our products. We must therefore respond to trends and shifts in consumer preferences by adjusting the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences through aggressive marketing. Failure to respond in a timely and adequate manner could