Nike Term Paper

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Below is NIKE vision and mission statement. Although NIKE does not have a formal Value statement, they have incorporated into their mission statement.

VISION STATEMENT OF NIKE

“To bring inspiration and innovation to every athlete in the world”

MISSION STATEMENT

Nike is the "largest seller of athletic footwear and athletic apparel in the world. Performance and reliability of shoes, apparel, and equipment, new product development, price, product identity through marketing and promotion, and customer support and service are important aspects of competition in the athletic footwear, apparel, and equipment industry. We believe we are competitive in all of these areas." The company aims to “lead in corporate citizenship through proactive programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services to Nike."

NIKE short term goals, maintaining their position in the Market

Nike has strong competitive position as well as fast market growth rate. As the market growth is fast customer needs are very immediately, same like Nike has strong competitive position as compared to their competitors so these are the strategies which are more suitable for maintaining the Nike position: * Market penetration: Nike should increase the market share of an existing product, or promoting a new product, through strategies such as bundling, advertising, lower prices, or volume discounts. * Backward integration: Due to backward integration Nike purchase of suppliers. Companies will pursue backward integration when it will result in improved efficiency and cost savings. For example, backward integration might cut transportation costs, improve profit margins and make the firm more competition.

NIKE long term goals, Growth

Appropriate strategy for Nike Inc., is Market Development. * Nike should remain in the present business and should introduce present products in more countries by improving their image. * Keep expanding into current and future foreign markets by being aggressive and the worldwide leader of the footwear industry. * A lot of people don’t know that it has subsidiaries which are dealing in apparel clothing industry so Nike Inc. should have more strong marketing strategy to build awareness among the consumers that is how the sales will be increased. * Implement product diversification with company’s newest technologies so resulting increased earnings could be reinvested into R&D plans. * Nike Inc. can improve its position more by expanding more geographically although it has manufacturing factories in developing countries but it should offer its products by targeting these countries too so that they will have an international brand strength. * It should make more strong management strategies so that it won’t have to face the corporate governance issues or ethical issues. * Nike Inc. due to its subsidiary has gone for unrelated diversification which was a risky decision and bared some losses therefore it should follow related diversification. * Due to its high most of the middle class people doesn’t go for the brand they should reduce their prices as the Nike Inc. is already cost efficient company because of its low labor production costs. * They should have more outlets to maximize penetration.

Nike came under fire in 1998 when reports of bad working conditions emerged. These reports came from groups affiliated with the Global Alliance, as it turned out NIKE was a founder for GL. One on one interviews were conducted with over 4,000 workers that worked in nine of the Nike 30 factories. The findings were troubling.

30% of workers reported having personally experienced verbal abuse

7.8% reported sexual comments by line supervisors

2.4% reported incidents of sexual touching

Five signatures were required in one factory for approval of sick leave.

From these findings an emergent strategy arose. Although this issue was not directed to the products sold, it posed a great threat to Nike, These findings could severely affect profits. To meet their vision and mission Philip Knight moved fast to make improvements for all workers. This quick response aided in the refining and quality of their production. Below are the new policies that Philip Knight implemented.

1st Promise: All Nike shoe factories will meet the U.S. Occupational Safety and Health Administration’s (OSHA) standards in indoor air quality.

2nd Promise: The minimum age for Nike factory workers will be raised to 18 for footwear factories and 16 for apparel factories.

3rd Promise: Nike will include non-government organizations in its factory monitoring, with summaries of that monitoring released to the public.

4th Promise: Nike will expand its worker education program, making free high school equivalency courses available to all workers in Nike footwear factories.

5th Promise: Nike will expand its micro-enterprise loan program to benefit four thousand families in Vietnam, Indonesia, Pakistan, and Thailand.

6th Promise: Funding university research and open forums on responsible business practices, including programs at four universities in the 1998-99 academic year.

Core Competencies

NIKE Core Competencies “CREATING BRAND THROUGH PAST EXPERIENCE” Strong MARKETING strategy distinctive competence, more so in customer branding awareness. They have pioneered through world class athletes that support and promote the brand. The recognized swoosh logo as well as the Just do it slogan has a trademark that cannot be recreated nor imitated. Comfort and performance is Nike focus when created products and footwear. - Nike has engineered four shoe-cushioning systems that reduce shock, distribute pressure, protect from impact and offer comfort.

SWOT ANALYSIS

The major strengths of Nike is its worldwide recognized brand name, strong marketing campaign and its strength in research and product development. Nike will always be a front runner in new athletic apparel and the technology that it comes with. Also major strengths include a strong financial background and divorce portfolio, its international dominance and finally customer loyalty. Most people