Nike

"It is one of the most recognized symbols in the world- The Swoosh. Simple. Fluid. Fast."
Evolution of the Swoosh

Nike’s Mission Statement
“To bring inspiration and innovation to every athlete* in the world”
*IF YOU HAVE A BODY, YOU ARE AN ATHLETE

NIKE, Inc. is the world’s leading innovator in athletic footwear, apparel, equipment and accessories.
Utility Based- Basketball, Cricket, Football, Outdoor, Baseball, Tennis, Track & Field
Style Based- Cleats & Spikes, Pegasus, Boots, Court Sandals & Flip-Flops
Technology Based- Nike Free, Nike Shox, Air Max, Lunarlon
About Nike

Competitors

Nike Innovations
Nike with Apple
Design your own shoes

Building a Global Brand
Nike's brand image and source of brand equity in the United States
Nike is-
Nike is selling a feeling; an emotion.
An aggressive and perfomance oriented brand.
Has always given priority to perfomance and durability along with fashion.
Purchased by all types of consumers especially by young people who admire.
Always provides higher quality with high price.
Uses various slogans in its advertising and marketing campains.

Source of brand equity
The main source of Nike's brand equity is the professional athletes and players of international sports.

Strategy is putting emphasis on individuality and appealing to each sport in the United States, Europe, and Asia.
The changing strategy to Fashion oriented and not Performance oriented
Separate promotional campaigns were conducted in different countries in Europe.
They have determined China to be their future number two investor for products.
2. How have Nike's efforts to become a global corporation affected its source of brand image in the United States, Europe, and Asia?

One key tool Nike has used to drive its popilarity growth is the use of celebrity endorsers and well-placed sponsorship. Nike depends seriously on its endorsements and sponsorships
Sponsorship of the Olympic Games start of many opportunities to bring sports events into the mainstream for regional and global markets. It will establish Nike as one of the leading sportswear companies in the world
3. Are sponsorship and endorsements vital to Nike's buisness? For instance, what effect would Nike becoming an official sponsor for the Olimpics have on the company's relationship with consumer?

4. Why did Nike become a target for critics of globalization? Do you think Nikes responcse to allegations of unfair global labor practices was appropriate and/or effective? Is Nike truly concerned about these issues?
Critics of globalization attacked Nike based on-
Nike has been criticized for contracting with factories in countries such as China, Vietnam, Indonesia and Mexico.
Low Wages in Indonesia.
Child Labor in Pakistan.
Health and Safety Problems in Vietnam.
Workers were forced to work 65 hours a week and improperly compensated for overtime.

Nike Concerned-
Nike's recent efoorts in the area of labor and environmental/health standards shows that the company is serious about doing the right thing.
Nike created several new departments (e.g., Labor Practices (1996), Nike Environmental Action Team (NEAT).
Nike has pushed its suppliers to obey standards through increased monitoring and inspection efforts.
Nike's measures to defend the allegations were effective to some extend not entirely.
Increasing the minimum age of footwear factory workers to 18, and minimum age for all other light-manufacturing workers to 16.
Nike has been active in founding and/or supporting an array of different internetional and non-profit organizations.

Nike Concerned-
Expanding education programs, including junior and high school equivalency courses, for workers in all Nike footwear factories
60-hour work week has been enforced
Has assured an average salary well above national salary average
Created a corporate responsibility division.
From all these, it appears as if Nike is truly conscious about these issue.

5. Nike’s acquisitions and the brands now under its control. Do these acquisitions make sense for Nike? What if any, brands should Nike try to acquire next?
Nike’s acquisitions and brands controlled by Nike are as follow…
Converse
Cole Haan
Hurley Internetional
Nike Bauer Hochey

They were searching for-
Brand diversity
Ways providing additional avenues for growth
Segmenting this business by customer
Opportunity to address the low end through distribution at retailers.
Nike should try to acquire the Chinese brand 'Li-Ning' next if it is possible.
Yes, these acquisitions make sense for Nike because it had many goals behind these acquisitions.

fashionable athletic footwear and apparel.
Fashion is an integral part of their production.
Nike Goddess store.
6. How is "fashion'' to Nike? Are they a performance apparel company or a fashion company? What is more importnant for Nike when they enter a new market like China?
Fashion or performance?
Fashion is more important for Nike along with perfomance when they enter a new market like China

7. Should Nike do anything different to defend its position now that Adidas and Reebok have joint forces?

To defend Nike's position it should-
Targeting some of its promotions to female consumers.
Service differentation.
Apparel and equipment customization.
Product Differentation.
Unique shoe technology and innovation.
Low price range.
Distinctive Competency-
Marketing (Consumers Loyalty).
Think about latest trends and
style and introduce fashionable shoe.
Nike should go after Asian country markets with reasonable price because demand is elastics here.
Be more socially responsive to show concern for the society

Recommendations
Gain a more positive global image, especially regarding labor laws.
Pull back the extreme spending on endorsements.
Better managment of their fashion shoe sector.
Gain a stronger presence in China.