Nike had began its rather modest journey in Oregon in the late 1960s, as an enterprise run by two sports enthusiasts – Phil Knight and Bill Bowerman. Even though the company was known as Blue Ribbon Sports (BRS) in the beginning, it was Knight’s wish to rechristen it as…
the years, Nike has not only augmented its technological expertise as well as marketing know-how to develop into the world’s biggest footwear and apparel business, but has also outperformed potential players like Adidas and Reebok (Keller, 2008, p.125). Being a colossal corporation it towers above every competitor in its sector with such a stupendous effect that regardless of the sport, it is likely that Nike along with its ‘swoosh’ logo will be there (Frisch, 2008, p.5). Taking into consideration Nike’s astounding track record, this report will aim at shedding light on various branding issues associated with it.
Nike’s headquarters, located in Portland, provides a snippet view of the company’s strong brand image. The World Campus of the sports and apparel powerhouse that sprawls over an area of 75 acres does not have a nameplate on its entrance. The occupants of the site can be identified by the red ‘swoosh’ – Nike’s globally renowned logo – which also appears on all the physical entities within the premises (Stonehouse, Campbell, Hamill & Purdie, 2004, p.440). However, Nike’s outstanding stature may be justified by the fact that out of a strong sense of loyalty to this company, some of the employees have tattooed a ‘swoosh’ on their bodies. It goes without saying that Nike has a robust brand image which is bolstered further due to the company’s reputation for innovation as well as unmatched quality. Constant product development, which takes place at Nike because Knight considers that the industry has 7 year brand cycles, makes the company outstanding (Stonehouse et al., 2004, p.441).
The figure appended above illustrates the value chain of Nike in terms of its production and supply chain. While the research and development (R&D) functions of the organisation are centralised, most of its production facilities are located in Europe and Asia. However, during late 1990s, dubious employment practices coupled with low wages as well as ...
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(“NIKE Case Study Example | Topics and Well Written Essays - 1500 words”, n.d.)
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(NIKE Case Study Example | Topics and Well Written Essays - 1500 Words)
“NIKE Case Study Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.net/miscellaneous/411038-nike.
Along with its subsidiaries, Nike Inc. is engaged in the business of textiles, apparels, footwear and other accessories. It is recognized as a global leader in designing, developing, sales and marketing of athletic footwear and other accessories. It sponsors many well known sports person engaged in different sports all over the world which is a marketing strategy adopted to promote their brand (Nike, Inc., “About Nike, Inc.”).
Nike must continue to work on maintaining the highest operational, health, and safety standards while providing a fair living wage for all. The challenge for Nike is in serving as a benchmark for operational and manufacturing excellence while maintaining their level of international growth from previous years.
“Nike's wealth, its detractors claimed, was built upon the backs of the world's poor” (Case). Nike only supplies the products and has been using the manufacturing units in China, Vietnam, Indonesia, etc. In those units or “sweatshops” (as they were called negatively), the working conditions were hazardous and the employees were forced to work for long hours, without appropriate wages.
There are many cases that might lead to the fall of the manufacturing giant, and these cases are mainly ethical despite the fact that the company has not been in the limelight for ethical and professional malpractices (Brian, 2009).
386). As of 2009, Nike is composed of 600 contracted factories, and has presence in more than 180 countries around the world (Nike Inc., 2009, p.8). As of May 31, 2009, Nike has more than 800, 000 employees in its factories located in 46 countries. Add to this figure the company’s suppliers, shippers, retailers and distributors, the figure rises to more 1 million people.
Porter’s Industry based View Nike Company has paid a lot of attention to the porter’s proposed five forces in their need to satisfy their customers and at the same time make profit for the company. Just like the proposals made by the porter, Nike has faced several of them but has triumph in making its way through given the strategies they have adopted.
This is because what these factories are trading comprises Nike’s products besides being the main entity benefiting immensely from this mode of distribution channels. In addition, products manufactured as well as distributed by these companies subcontracted to Nike also are products of the mainstream.
Wearing or using any merchandise that carries the logo NIKE or just its simple sign of a tick mark automatically puts anyone in the high fashion sector of society.
Nike like all other big brand names was not always as famous and as well known as it is today, it too has seen a very long and hard journey to finally reach its destination that has now won it the title of fame and reliability worldwide.
If Nike were to adopt a more aggressive strategy than it is possible that the company’s reputation, embodied in this brand identity would be compromised. Additionally, Nike’s current business model has proven
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