Nike started out from very humbling beginnings. Bill Bowerman wanted a lighter and more durable shoe to give his athletes an advantage during their races on the track. Phil Knight was simply a college athlete who graduated who was not ready to give up his life in the athletic world. From selling their first shoe models from the back of Phil Knights car to a fortune 500 company makes Nike one of the biggest success stories in the world. Although Nikes logo the Swoosh is one of the most famous logos ever, Nike reached its level of greatness by diversifying its company and buying several brands along the way to help increase the strength of the company.
Although its main target started out being collegiate and professional athletes that could really benefit from the use of Under Armour products, it has also obtained a following of youth, adults, and nonprofessional athletes. Some of this could be young people looking up to professional role models and wanting to wear the same products seen on the field. Most of its products are expensive due to its high quality so it targets people that have a higher income that can afford its products. Economic-Being in the textile/sports apparel industry, Under Armour must deal with increasing prices in the textile industry, increasing labor prices in China, increased shipping costs due to the oil and gas price increase, and also increased inflation. Many people are experiencing hardships due to the recession and the high unemployment rate in the United States.
Viacom Case Study I found it interesting that Viacom has purchased so many businesses that it became too big to maintain strategy for all subsidiaries. Some parts of the company were growing quickly while others were losing money. I also found it interesting the amount of changes experienced in the industry from deregulation to emerging technologies. Viacom’s strategic issue is to maintain its’ status as a viable competitor to the Cable TV and Broadcast Network and to competitors from emerging markets. Strengths A great resource for Viacom is their broad demographic customer base and their capability to bring them entertainment.
Weaknesses •Even though the organization has a diversified range for sportswear, the income of the business, however, is still heavily dependent upon its share of the footwear market which leaves it at a quite vulnerable spot if for any reason its market share erodes. •The retail sector is price sensitive; retailers usually tend to offer a very similar experience to the consumers with another cheaper product, which in return tends to get squeezed as retailers try to pass some of the low price competition pressure onto Nike. •Nike was for quite some time unwilling to disclose any type of information concerning its partnering companies. •It was charged with the violation of overtime and minimum wage rates in Vietnam, 1996, that was seen as having poor working conditions, and that it was also charged for exploiting cheap workforce overseas. •Nike was also reported to have applied child labor in Pakistan and Cambodia to produce soccer balls.
NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Wholly-owned NIKE, Inc. subsidiaries include Converse Inc., which designs, markets and distributes athletic lifestyle footwear, apparel and accessories and Hurley International LLC, which designs, markets and distributes surf and youth lifestyle footwear, apparel and accessories (About Nike,Inc,2013). Remote External Environment Economic The most important economic factors that affect Nike are factors that affect the consumer’s power to purchase. These economic factors include inflation, business cycles unemployment rates, interest rates and income. When there are changes in the for mentioned economic variables there is impact on the marketplace.
Under Amour case Porter’s five forces competitive Supplier Power: High Huge amount of raw material are available on the market. The company always ensure best supply source not only in quantity but also quality. Nowadays, with the use of modern technology which make the products differentiation become higher so the suppliers also increased very strong. Buyer Power: HIGH With a huge numbers of apparel companies available on the market which created variable products options for customer, whole seller and retailer. Each brand have variable of style and product design so they sometimes have to make decision on the offers from different brands with same quality, and price.
Now, Nike offers goods that are aimed at numerous athletics, including the following: basketball, football, baseball, volleyball, soccer, track, golf, tennis, and cheer. Although Nike is primarily dominant in the Americas, the Middle East, Europe, Asia, and Africa, it has manufacturing plants in thirty four different countries. As of May 31, 2008, Nike had around 32,500 employees (Datamonitor, NIKE Inc.). The globally dominant company sells its goods through factory stores, company owned stores, third-party stores, and on the internet. When you log onto the company’s website (www.nike.com), the site is offered in fourteen different languages, which pertains to nearly the entire world.
Related to the impressive performance and identified strong growth opportunities for the NIKE Brand portfolio the company objective is to achieve a revenue of $ 24 -25 billion for fiscal 2015 stated in report for 2011, which is more than the target of 23 $ billion announced in 2010. (www.nikeinc.com, 2011 ) Nike faces strong competition from the German sportswear maker Adidas and Puma globally. (Datamonitor Plc., 2011 ) Identifying market opportunities and key marketing strategies helps the company to achieve its marketing objectives – profit. Analyses on the Bulgarian market reveals a demand for sportswear and footwear among professional sports players and all the amateurs involved in range of sports and fitness activities and people who wear sports clothing and snickers for leisure , can be identified as a growth opportunity. Bulgaria offers perfect locations for extreme sports like skiing and snowboarding , which are very popular among young people in the country and their demand for special and high-quality equipment can identify NIKE 6.0 Brand category for active sports as a entry opportunity as such equipment is hard
Nike's targeting market is active people who enjoy high quality sporting goods, especially footwear. Even though there are many positive points about Nike’s marketing strategy, there are few negative sides too. The main disadvantage of Nike’s strategy is that it is very costly. Since Nike has implemented several marketing strategies, it had incurred high costs in producing and promoting its products. The costs are increase among handling inventory, designing, advertising and production.
The most reasonable explanation of the high payment is that these people present not only themselves but the whole country on the international arena in sports and art, so they should be supported and praised as they create the image of their country. On the other hand, millions of dollars for a soccer match seems to be unfair towards the professions which are supposed to be even more difficult and important. For example, a teacher, a policeman, a healthcare provider fulfil much more important duties saving lives and risking their own