Nike- Case Analysis
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Case Report – Nike
Introduction
Many of us know Nike for the clever maketing campaigns, celebrity athelets, “swoosh” logo, and “Just Do It!” slogan. In 1963 the worlds largest athletic shoe company was founded by Philip Kight and Bill Bowerman for $500 apiece and a handshake, and today has over $9 billion in revenues.
After several years of record breaking performance Nikes global labor practices were brought to the attention of the public as early as the 1990s. Which included publishings in Harpers magazine that a Nike subcontractor paid woirkers just under 14 cents an hour. Other reports include a CBS 48 Hours report on the physical abuse of Vietnamese workers, which supervisors beating employess with shoe parts when production problems arose.
On April 24, 2000 Philip Knight a former University of Oregon track and field star, announced that he would no longer donate money to the University. Which was a result of the Universitys intention to join the Workers Rights Consortium, which was formed by student activist in the anti-sweatshop movement, who were concerned with the ethnical responosibilitie of purchasing goodds manufactured overseas.
SWOT
Strength
Many of Nikes strengths lie in the firms marketing, design, research and development abilities. Nike developed cutting-edge products that met the needs of serious atheletes, while setting fashion trends in the process. Researchers conducted extensive research and testing to define human movement and create perfromance enhancing and injury-reducing products.
Another great strength of the apparel giant include Marketing. From inceptiion marketing had been a critical part of Knights vision. The founder defined Nike as a marketing oriented company. Which prompted Nikes aggresive marketing campaigns with celebrity athletes idolized by fans everywhere, which included Mia Hamm, Tiger Woods and Micheal Jordan. This combitation of hot new products, and aggressive marketing pushed nike to become the largest athletic shoe company by 1991.
Weakness
Although a leader in athletic appareal and footwear, nike has never actually manufactured any actual products itself, and relies heavily on outsourcing production. In 2000, Nike had contracted with over five hundred different factories to produce their line of products, which included Tae Kwang Vina (TKV). When global practice of Nikes subcontractors came to light, Nike was held responisble for the poor and degrading working conditions their subcontractors provided workers. This negative press severly damaged their reputation and changed the entire perception of their target demographics.