Monday, December 7, 2009

Chap.(12)- Supply Chain Management

Nike has admitted that its Chinese supply chain is suffering from a lack of transparency, problems with wages and the use of underage workers. This month the sportswear manufacturer published its first country-specific supply chain report, revealing some problems the company is having. China is the companies largest sourcing area, with 180 manufacturers contracted to produce goods, including footwear. Nike found out the top three problems in management in China were: inefficient compliance with the company code of conduct; a lack of training and awareness of the code; and poor communication of factory standards by suppliers to workers. Nike's factories in China employee more than 210,000 civilians. Problems identified in the report included fake factory documents, 167 cases of workers with "incorrect identification" and two current cases of workers under Nike's minimum age of 18. A 15 year old girl was found working in one of Nike footwear supplier. Nike suppliers were also slow to increase wages in response to laws.

Chap.(12)- Supply Chain Management

This is a short film on how Nike runs its logistics center. It shows the warehouse techniques and technology use by the company.

Chap.(9)- Product Concepts


The Nike Hindsight glasses design uses Fresnel lenses, which were originally made for lighthouses and provide a wide aperture and short focal length. Even though the lenses reduce image quality, the idea is that since they are located only on the sides of the glasses, little clarity is lost in the process as the eye only detects motion in that area. Nike designed the glasses for cyclists, but the design could be handy in a more wide range of activities where detecting motion beyond the usual 180 degrees would prove advantageous. People such as marathon runners to track and field athletes could benefit from a few extra seconds of warning the glasses afford.

Chap.(8)- Decision Support System

Pay less Shoe Source has inked an agreement with Exeter Brands Group, a subsidiary of Nike, to jointly make a new brand of athletic shoes for women. The Tailwind brand was on shelves in spring 2007. The shoe will combine contemporary fashion styling with technical athletic performance. The shoes was retail for under $35 and are available at stores and online. As part of the partnership, Exeter and Pay less will together market the Tailwind brand.

Chap.(8)- Marketing Research

Nike marketing research offers a comprehensive analysis of the organization, its business segments, and competitors. It analyzes the business and marketing strategies adopted by the company, to gain a competitive edge in today's industry. Nike also evaluates the strengths of the company and the opportunities presented in the market. Nike gives immense help to management consultants, analysts, market research organizations and corporate advisers.

Chap.(7)- Segmentation

Nike will continue its brand segmentation and will attempt to beef uo its women's business next year with a broader product line and an extensive print campaign addressing women's issues to break in February magazines and continue through the year and beyond. Nike hopes to build relevance and market share with college females. Reebok stronghold in this area that has become like a stepchild recently, due to Nike's focus on and absolute domination of the teen market. Nike Women's concept shops are also showing up more in sporting goods, specialty and department stores across the country.

Chap.(7)- Targeting Markets

Nike's target market is still active people who enjoy high-quality sporting goods, especially footwear. The company targets top-line revenue growth to $23 billion by fiscal 2011 based on growth in its brand portfolio. It is up from $15 billion in fiscal 2006. Over the next five years, the company anticipates 75 percent of this growth will be made by the Nike brand and will be driven by a consumer defined category strategy. Nike focus on creating premium consumer experiences built on product innovation, brand leadership and elevated retail presence. Nike is targeting further geographic expansion and farther marketing penetration in all regions. Through disciplined operating management, the company still continues to target long-range mid-teen earnings per share growth.

Sunday, December 6, 2009

Chap.(5) Consumer Decision Making

Nike always seem to sponsor the best athlete in each sport. In basketball they sponsor Lebron James and Kobe Bryant. In football they sponsor Adrian Peterson, baseball Alex Rodriguez, and in golf they sponsor tiger woods. This help buyers lean towards Nike then other sport brands. Consumers are more willing to buy from Nike because the athletes that are being endorse are on the top of their game. Buyers think that if they purchase a top athletes merchandise that they will inherit their attributes. This give Nike the upper hand on their competation.

Chap.(5)- Decision Making

The actions a person takes in purchasing and using products and services including the social processes that precede and go by certain aspects of buying. The costumers mind set helps answer questions. Questions like why people choose one product or brand over another. Also how do companies use this knowledge to provide value to the consumers. Nike knows that in the sports world they're the leading and top selling company. Nike has developed over the years allot of loyal customers that would buy their merchandise no matter what the price is. Nike still manage to put their products at reasonable prices.

Chap.(4)- Nike in China


Last year NBA myvp Lebron James was in China as part of his Nike-sponsored "world tour," highlighting youth and basketball activities. James was in Beijingl visiting schools for the children of migrant workers, as reported by ChinaDaily.com. Lebron told his listeners about his experiences and donated basketballs and scholarships, with the support of his sponsor, Nike.

Lebron said "You look at those migrant kids. They feel like their dreams are washing away. We want to help them to regain the belief that they can achieve anything they want to. That's the inspiration we have behind all of these things," said James, who is nicknamed "King James".
"Hopefully these kids can understand that they cannot only have a dream but also make it reality."

Chap.(4)- Global Vision


Nike has released several special China Edition Lebron signature shoes over the years. The last couple of years Nike haven't made any special Asia Exclusive or China Exclusive Lebron signature shoes. This year Nike Basketball ressurected the Lebron James China Edition signature shoe with a new Nike Air Max Lebron VII China Edition that was released on Saturday, October 3rd in China. The shoes feature a white and gold colors and various inspiration from Chinese culture including the Moon Cake Festival as well as Chinese characters that symbolize LBJ.

Chap.(3)- Nike Code of Ethics

Nike code of ethics for employees is called Inside the Lines. This defines the standards of conduct Nike expect from all their employees. Every year, Nike employees are required to verify that they have read and understand Inside the Lines. The company operates a global toll-free alert line for employees to report any suspected violations of their code of ethics. Anything bad reported concerns around accounting, auditing or internal control are sent to the Audit Committee of the Board. Nike also expect their suppliers to share their standards and to operate in a legal and ethical manner. While Inside the Lines covers the behavior of Nike employees, Nike has a Code of Conduct that covers contractors who manufacture Nike-branded products. It helps them to respect the rights of their employees, and to provide them with a safe and healthy work environment.

Chap.(3)- Social Resonsibility


On the day before World Aids day some of the world’s best soccer players joined Bono at an announcement of partnership between NIKE, Inc. The players that reach out for this event are Didier Drogba (Chelsea), Joe Cole (Chelsea), Andrei Arshavin (Arsenal), Marco Materazzi (Inter Milan), Denilson (Arsenal), Lucas Neill (Everton), Clint Dempsey (Fulham) and Seol Ki-Hyeon (Fulham). These players came together in London to announce a partnership between NIKE Inc. and RED. This one of a kind partnership delivers a strong approach to fight HIV/AIDS in Africa by delivering funds to support programs that offer education and medication. It also will harness the power of sport to engage youth around the world in the fight against AIDS in Africa.

Chap.(2)- Nike Competitive Advantages

Nike is a real competitive organization. Phil Knight (Founder and CEO) is sometimes quoted as saying that 'Business is war without bullets.' Nike has a healthy dislike for their competitors. Nike doesn't own any factories. Nike doesn't see the reason to tie up cash in buildings and manufacturing workers. This makes Nike a very lean organization. Nike strengths are research and development. Nike then manufacture wherever they can make at a high quality product for the lowest possible price. If prices rises and products can be made more cheaply some where else, Nike would move it's production.

Chap.(2)- Strategic Planning

Nike's goal is to be a company that surpasses all other companies in the athletic industry. Nike will maintain it's position by providing quality footwear, apparel and equipment to give an individual consumers of all ages and lifestyles. Nike pledge to make their products easily available worldwide through the use of retail outlets, mail order and our company web site. Nike’s management believes that it's success lies in the hands of teammates, customers, shareholders and the communities in which it operates. Nike vow to keep in mind with the execution of every decision within their company.

Sunday, November 29, 2009

Chap.(10)- Managing Products

Nike says it does not have a “contractual relationship” with Michael Vick any more. This was stated a day after the quarterback’s agent announced a deal with the manufacturer.
In a statement released early Thursday morning, Nike says it has “agreed to supply product to Michael Vick as we do a number of athletes who are not under contract with Nike.”
On Wednesday, Michael Principe, announced the Philadelphia Eagles player had a new deal with Nike during a panel discussion at the Sports Sponsorship Symposium.
Vick’s agent, Joel Segal, did not immediately call back for comments on Thursday.
Nike, which signed Vick as a rookie in 2001, eliminated his contract in August 2007 after he filed a plea agreement admitting his involvement in a dogfighting ring.

Chap.(10)- Developing

Throughout Nike's years of business they've managed to produce millions of sneakers and clothing as well as sponsor our famous athletes and music stars. Nike's management is nationally known throughout the world,its the worlds largest leading corporation,Nike has managed to become share holders with other known companies such as Cole Haan, Converse Inc., Hurley International LLC, NIKE Golf, and Umbro Ltd. The Pacific Northwest is the birthplace to Nike, today they operate in more than 160 countries around the globe.

Sunday, November 22, 2009

Chap.(16) Personal Selling

Nike utilizes a personal selling technique in all of their retail stores. The sales associates in these stores has direct contact and interaction with the buyers of Nike merchandise. They are the individuals that communicate directly with the consumers who are interested in Nike products. They sales men and women must be able to help in the process of a successful sale. They are suppose to be knowledgeable of the brand and should be trained in asking customers the right questions in order to find out what they are looking for. To make sure this is done Nike will often send Nike representatives to retail stores that sell their sneakers to give little presentations to keep the sales associates up to date on the merchandise and the technology behind them. I agree with this because sometimes people that work at the store don't really know what they selling and need to b reminded.

Chap.(16) Sales Promotion


NIKE ID (nikeid.com) is the latest offering from one of the world's most premiere sports fitness brands. NIKE ID gives you a chance to be a NIKE designer. This site allows you to customized and personalize a wide variety of NIKE footwear and apparel. This a good idea because sneakers or cloths that Nike make don't always come in the colors u want or style. Nike ID is a good way you can add your own flavor to your attire.

Monday, November 16, 2009

Chap.(15) Public Relation


I think this ad was effective the public. It made people that never seen Lebron play watch him and people that already watch him to continue. This also boost the NBA view rating during the NBA playoffs last year. More people was watching the Cleveland Cavalier games to see what Lebron James would do next on the court. It was a hit with the customers to because almost everybody in the arena would have a shirt that says we are all witnesses.

Sunday, November 15, 2009

Chap.(15) A.D.V


The purpose of this ad is to show that nike is all around the world. Even in places people will least expect like india. It also means that u don't have to be afraid of doing what you have to do. That it doesn't matter where you are just do what you have to do.

Monday, November 9, 2009

Chap. (17) Pricing

Despite million-dollar promotional and advertising campaigns, the original Nike’s products remain unavailable to most people worldwide. The price for individual items is a little high and so the overwhelming majority of consumers buy franchise copies holding Nike’s logo. However, this is one of the reasonable business strategies applied under the conditions of globalization. Nike, Inc. has dominated the athletic shoe market, but still has some real strong competition from Reebok and Adidas. Nike currently holds over 37% of the athletic shoe market, while Reebok have about 20% and Adidas 12%.

Chap. (17) Pricing


How your products will be priced is important to ensuring your customers will continue to buy from your company. Nike products are higher priced then other sneaker companies, but Nike has done a great job of selling the perceived value of their products over the years through multi-product branding. Consumers can find everything they would want or need from running shoes to soccer gear to eyeglasses with the Nike brand. Nike has a larger amount of consumers who have associated themselves with the brand, and will pay the higher price point to own something with the Nike Swoosh on it.

Monday, November 2, 2009

Chap.(13) Retailing The Best


Retailing is all activities directly related to the sale of goods and services. Nike uses Lebron James and Kobe Bryant to endorse their sneaker because they are the two best players in the NBA. If u play basketball you are more likely to buy Nike's then Adidas because your favorite player wears them. This is how company sell their products. They take a well known person that's the best in what ever they do and have them advertise their product. This a good way of advertising because people go by name brand and who is wearing it.

Sunday, November 1, 2009

Chap.(13) Retailing to Women


Nike is planning to extend its number of stores in Australian specifically designed to target women, as part of its on going campaign to gain a greater share of the female sporting market. Currently, Nike Women stores are in Bondi Junction’s Westfield Shopping Centre and Chadstone Shopping Centre in Victoria, with two more opening next month in Victoria’s Southland and Highpoint. Overseas there are stores in London, New York and Beijing and they all been made to provide female consumers with a boutique-style shopping environment, stocking an extensive range of women’s sporting attire, footwear and equipment. Nike Pacific brand marketing manager Simon Pestridge said the firm has done a lot of work trying to identify exactly what the female consumer wanted from the category.“When you look at the places where you can buy sports products in the past none have been conducive to how women actually shop. We’ve opened women-only stores to enhance their retail experience and make it a more positive brand experience,” Pestridge said. I think this is a smart idea cause females shop more then men so; this should improve Nike sales.

Wednesday, October 21, 2009

Nike In Its Second Quarter

The second quarter of Nike Inc. ended November 30, 2008. Nike’s revenue grew 6 percent to $4.6 billion, compared to $4.3 billion for the same time last year. Currency exchange rates increased revenue growth by 1 percentage point for the quarter. Nike second quarter net income increased 9 percent to $391.0 million, compared to $359.4 million last year. The diluted earnings per share increased 13 percent to $0.80, versus $0.71 last year.

Sunday, October 18, 2009

(Ch.1) Nike Current Status


Today Nike, Inc. reported that its first quarter revenues decreased 12 percent to $4.8 billion, compared to $5.4 billion for the same period last year. Nike exchange rates, net revenue also drop 7 percent compared to the same period last year. The net income wasn't as good compared to the prior year at $513 million and diluted earnings per share increased 1 percent to $1.04. “We delivered a good start to the fiscal year,” said Mark Parker, NIKE, Inc. President and Chief Executive Officer. “These results illustrate that the emotion of sports, combined with innovative product, strong brands and premium retail experiences can make powerful connections to consumers even in challenging times.” Nike has reported worldwide future orders for Nike brand athletic footwear and apparel. The company has scheduled for delivery from September 2009 through January 2010, totaling $6.2 billion. This is 6 percent lower than orders reported for the same period last year. That does not include currency changes, reported orders would have declined 4 percent.

Tuesday, October 13, 2009

Post 1 (Ch.1) - Nike


The company nike was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight. In 1978 the company officially became Nike, Inc. The company takes its name Nike from the greek goddess of victory. In Egyption it also means strength. Nike is a major publicly traded sportswear and equipment supplier in the United States. The company headquaters is in Beaverton, Oregon. It is the leading supplier of athletic shoes, apparel, and sports equipment. In 2008 Nikes had a revenue in excess of $18.6 billion usd. Nike uses its own brand to market its products such as Nike golf, Nike pro, Air Jordon, and Converse. In addition to manufacturing sportswear and equipment, nike operates retail stores under the Niketown name.