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Nike Analysis. Today, NIKE sustains a leading position through emphasising quality products, constant innovation and aggressive marketing. NIKE also has a mission statement which represents the company To bring inspiration and innovation to every

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Introduction

Part 1 - Nike NIKE 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. With more than 30,000 employees and 700 stores across six continents, it has managed to develop its competitive way of selling its products. When first founded in 1962 under the name of Blue Ribbon Sports, the strategy was 'to distribute low-cost, high-quality Japanese athletic shoes to American consumers in an attempt to break Germany's domination of the domestic industry'. Today, NIKE sustains a leading position through emphasising quality products, constant innovation and aggressive marketing. NIKE also has a mission statement which represents the company 'To bring inspiration and innovation to every athlete in the world' in which Bill Bowerman showed athletes the secrets of achievement. The competitiveness in the sportswear industry is very high. Competitors of NIKE involve Adidas, Reebok, Timberland, Woodland and Puma. I also work as Sales Associate and I represent Nike to each and every consumer. The purpose of this role is to support and contribute to the product flow process as well as providing daily support for store responsibilities. NIKE recognises the need for a well-coordinated and efficient supply chain for its business industry. ...read more.

Middle

Without proper management leading and planning in the Nike Corporation, the company would have suffered from the child labour issue. Nike has made a true bounce-back from the negative media attention, and continues to be successful due to their strong business ethic philosophy. Competitors The competition in the industry is current rivalry among existing firms like: Reebok, Adidas, Timberland and Puma among others. They are differentiating using marketing, fashion and technology to get the market, including the new potential competitors. It is not so easy to enter in this footwear industry due to a few entrance barriers to attempt brand loyal customers. The power of suppliers is unique due to the cost of manufacturing the final product and to integrate forward into the industry's business and become a rival to the industry. Power of customers is very low, it only represents a small percentage compare to the retailers. Quality NIKE work with contract manufacturers to apply lean manufacturing, an approach that delivers the highest-quality product while eliminating all types of waste including lost time and material. Also, their approach to lean includes work empowerment giving factory workers the skills and abilities needed to manage production and immediately address issues as they rise, such as quality or process improvements. These changes put decisions closer to the worker and require a high level of support to ensure they have the skills and confidence to consistently quality products. ...read more.

Conclusion

Breakdown of an athletic Nike shoe from Indonesia $ $ Production of labour 2.75 Research and Development 0.25 Materials 9.00 Promotion and Advertising 4.00 Rent 3.00 Sales, Distribution and Admin 5.00 Supplier's operating profit 1.75 Nike's operating profit 6.25 Duties 3.00 Cost to retailer 35.50 Shipping 0.50 Cost to Nike 20.00 Retailer's rent 9.00 Personnel 9.50 Other 7.00 Retail's operating profit 9.00 Cost to consumer 70.00 Flexibility The finished products reach the market through retail stores, Internet stores or NIKE Towns. As a result, the supply chain that NIKE has to manage is really complex, with many-to-many relations between suppliers, retailers, carriers and distribution centres that have to be coordinated in order for the whole chain to be efficient and achieve the goal of 5 inventories per year. In order for NIKE to move along the supply chain, they use a diversified set of logistics providers. APL Logistics and Maersk Logistics are the two consolidators that are responsible for handling the cargo from the factory, receiving the freight, loading the containers, communicating to destinations in planning shipment deliveries, collecting documents from the factory and forwarding them to the destination. Supply chain management is done in-house as there is the expertise needed to perform such operations. Congestion created by large volume and narrow handling capacity, along with labour based problems and forced shippers to explore solutions that would allow for a flexible supply chain to be in place. http://dspace.mit.edu/bitstream/handle/1721.1/36273/77500442.pdf?sequence=1 ...read more.

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