Nike Internal Factors

Nike Corporation immediately is the largest sports apparel and foot infract brand in the world. Thousands of people wear Nike gear non save to the playing flying field but also so social gathering and other occasional events. Nike is ace of the pioneers to take sportswear from the playing field to public domain. It not further made wearing sports wear popular and turned it into room wear but also simultaneously captured the serious performance wear market.The growth of the social club over the years has been attributed to its brand building efforts and imaginative marketing. When it first bring down into the industry the market was dominated with German products and others products even those made in America were considered inferior to the products from the European giants a wish Adidas and Puma. To curb this they collaborated with lacquerese partners who can house similar quality at cheaper prices. by and by nearly eight years of selling through importing, Blue bay wreath Sports the company that evolved into Nike was formed. The name NIKE was taken from Greek goddess of victory and Swoosh was adoptive as brand logo. (Nike, 2007)Strengths of NikeNike Business ModelThe Nike business model has teensy changed over the last four decades. The company was founded with the belief that it can provide customers products at competitive prices by getting them manufactured in japan and selling them over in United States. Over the years the destinations leave changed but the philosophy remained intact.As the income level in Japan change magnitude it shifted it manufacturing units in Taiwan and Korea. After the boom in Korean and Chinese economy it shifted its base in other emerging economies the likes of Indonesia, Thailand, Vietnam and china to leverage the cost of production difference. This has resulted in reducing the costs importantly and the company is enabled to deliver maximum value to its customers.Strong Marketing Abilitiesall(a) this time Ni ke managed the product design, marketing, sales and distribution system which made it one of the first company in the world to focus on the impression competitive advantage and outsource the rest.Strong Supply Chain guidanceThis strategy not only enabled Nike to focus on its strengths of marketing and calculative but also able to leverage the specialization of the vendors supplying the goods. For vitrine Shoes were manufactured cost effectively in Taiwan and Japan while clothing is manufactured in labor inexpensive countries like Indonesia, Vietnam and Thailand. Recently with change magnitude operations and established brand the company has changed rivet on streamlining operations, efficient demand forecasting and supply chain management. honor Advertising with Cutting Edge ProductsOn the marketing front the company spend big amount on building the brand since the mid(prenominal) eighties. The success of Nike advertising can be attributed to its repeated success of choose up the next superstar in world or sports like Michael Jordan, Tiger Woods in past or Sharapova and Michelle Wie at present. streamlined Retail Management and Brand ManagementStarting from the running shoes, today the company has turned into a lifestyle brand. Today it not only sells shoes and sports gear but casual clothing, bags, fashion accessories etc (Holmes, 2004). The number of seam keeping Units (SKU) becomes large if one considers that these accessories and gears are developed according to divers(a) sports following like cycling, aquatic, skateboarding, outdoor activities, football, baseball, soccer, golf and tennis.Merchandise MixTo enter into variant price points with diluting the brand Nike has bought various brands like Exter, Starter, Team Starter, Asphalt, cole Haan shoes, Converse, Hurley skateboard gear, Bauer etc.WeaknessIssues with SweatshopsThis dead fish focus on leveraging low labor cost in South tocopherol Asian economies to deliver competitive products has o ften landed Nike in various sorts of troubles from human right groups and labor unions back home, most blaming the company for exploiting children and workers in inhumane conditions. Numbers of these groups blamed it for bringing in and supporting the sweatshop coating in these economies and the company once famous for innovative designs and creative products short became poster child of anti-globalization worldwide. Noting this Phil Night in said in annual meeting The Nike product has become synonymous with slave wages, forced overtime, and despotic abuse. Since then Nike has taken number of steps to cut this disquietude in the system and develop respectable human and working standards for its trio party vendors.Fall in the Sports shoes market due to ever-changing trendsOver the last few years there is continuous decomposition in sports shoes sale because of trend of non sports shoes with jeans. This has resulted in increasing discount and low realization. Nike has to sort out this aspect of their business along with the rest of sporting gear.ConclusionOver the years Nike has moved from manufacturing to rigorously a R&D and marketing company. Today Nike headquarters only looks after the designing, market trends and marketing of the products while outsourcing all others. This may capture resulted in cutting the cost but it has also increased the dangers like sweatshops and blemish to the brand equity of the company.Nike (2007) Nike official Website 2007. Retrieved on 20th expose from www.nikebiz.com