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Critical analysis of nike
The strategic goals of Nike
Nike history and success
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Nike started its empire as a company to distribute Japanese running shoes, Tiger, in the United States with the name Blue Ribbon Sports in 1964. Nike founders, Bill Bowerman and Phil Knight, had a great coach-student relationship when both were still at University of Oregon; Bowerman was Knight’s coach seeking a better running shoes and Knight loves athletics so much that he could not live without it. This relationship led Blue Ribbon Sports. After the success of Tiger shoes, Blue Ribbon Sports was renamed into Nike in 1971. Nike is actually the name of the winged Greek goddess of victory and the SWOOSH logo represents her wing. Carolyn Davidson, who was Knight’s student at Portland State University, designed and trademarked the logo in 1971. They introduced the slogan “Just Do It” slogan in 1988 and immediately boost Nike into a sports supplier powerhouse. It surges the market share from 18% to 43% in 1988. The slogan basically informs the consumers to push beyond limits and strive to achieve new goals. Nike, Inc. aims to deliver value to their shareholders by establishing profitable products. They focus on Nike Brand and Brand Jordan that consist of seven major categories: running, basketball, football (soccer), men’s training, women’s training, NIKE Sportswear, and Action Sports. Despite the seven major categories, they also produce products for kids, athletic, and recreational uses. Among all of that, NIKE Sportswear, Running, Basketball, Football (Soccer), and kid’s shoes are the top-selling products. Nike wants to target active people of all ages by giving the best quality of products and services. Their strategy it to create personal deep connections between the consumers and their brand, and to deliver compelling consumer ... ... middle of paper ... ...enrollment fees. The idea of having this expansion is to enhance people’s lives through sport and fitness. Furthermore, obesity is not a new word in the United States. This disease is strongly related to bad lifestyle. This opportunity will result in mutual benefits as the consumers can have a better life and improve the Nike’s brand images and profits. Prior launching this fitness center, several market research should be conducted, namely depth interviews and conjoint analysis. Performing a depth interview is a viable way to get information as the interviewee does not get spoiled if they were heard information regarding the same question from other people. In addition, conjoint analysis helps to decide the best marketing matrix that would optimize the gross margin. This combination would be perfect to have adequate information to forecast how the business would go.
Customers usually make decision of purchase by comparing the “value” of a product or service, which can be looked as the benefit–sacrifice ratio. Many customers find the prices of most health club and gyms too high because they see little value in some of extra amenities, in other words, they find that the benefit they receive is not valuable, comparing to the sacrifices they make; in this case, the benefit-sacrifice ratio in this case is pretty low. Therefore, Planet Fitness offers good value membership, which means high benefit-sacrifice ratio for customers, comparing to other major gyms.
The final threat is the location of the gym; it is located on the north side of Oshkosh. For some our customers it could take twenty or more minutes to get to the location. This could make some of the target market reconsider purchasing a membership. A possible way to minimize this is to consider adding another location or relocating to a more central location. This is not something that we plan to do immediately but is something that we may consider in order to remain successful.
Consumers must be aware of the changes that might occur in Nike through media and social awareness
Nike was first known as Blue Ribbon Sports, founded by University of Oregon track athlete Philip Knight and his coach Bill Bowerman in 1962. It officially became Nike, Inc. in 1978 while taking its name after the Greek goddess of victory. Mark Parker is the current CEO and Phil Knight still continues to hold a position at the top of the organization, as the company Chairman.
With "Just Do It” Nike has promised its audience that the company is committed to the competitive spirit. Nike emphasizes that it will help people feel empowered, successful and best equipped to tackle the challenges ahead. “In a recent survey, Nike was named the favorite brand among millennials, beating out names like Apple, Coca-Cola, and Nintendo. And teens are also wild about the brand, choosing it as their preferred clothing and footwear retailer in another recent survey” (Business Insider). Shoes in general have a symbolic significance, they represent authority and power.
Nike’s goal is to remain unique and different from others in terms of the items offered on the market. Arguably, Nike belongs to a monopolistically competitive market as there only a few organizations with the ability to regulate the amount charged for their product which means they cannot make their prices high as this is likely to make customers move on to other available choices (Nike, Inc., 2012). However, Nike can find a balance between the prices to charge for their products and remaining competitive with other companies in the industry. Nike has formed a distinction between the appearance and performance of their footwear and that of their competitors. Although products are differentiated from other companies, they still influence each other because they are items of the same
Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.
As a company whose brand name and concept are inspired by Greek mythology, Nike, Inc. has successfully capitalized on their goal to inspire athletic excellence, promote athleticism, and provide innovative products for their consumers. The Nike corporation aspires to athletic excellence for the consumers who purchase their products. Non-coincidentally, “Nike,” was the name of the Greek goddess of “speed, strength, and victory” (“Nike-Facts and Information on the Goddess Nike”). Even Nike Inc.’s logo, the “swoosh”, is inspired by her large wings.
Nike’s Asian operations had previously continued to soar generating US$300 million in 1994 in revenues to a whopping US$1.2 billion in 1997. However based on the Asian economic crisis, this had adversely affected revenues, while regional layoffs were inevitable. Nike also performed well in the European market generating about US$2 billion in sales and a good growth momentum was expected, however, some parts of Europe were only slowly recovering from an economic downturn. In the Americas (Canada and the U.S.A.), Nike experienced a growth rate for several quarters. The U.S. alone generated approximately US$5 billion in sales. The Latin American market at this point was exposed to economic volatility; however Nike still saw them as a market with “great potential for the future”.
Once you are able to discover the underlining message, you will then be able to connect it to the myth that is being referenced. When you hear the word Nike what do you think of? Most associate this word with the infamous sportswear company that was founded on January 25, 1964. The founder of Nike, Phil Knight, chose the name purposely for the association it has with the winged Greek goddess of victory. In fact, everything about the company can be related back to the Greek goddess Nike, from its name, to its logo right down to the message that it is trying to promote.
The next threat or weakness for this company is in the category of competition which in many years has grown for the sports apparel industry. Nike’s products are considered to be of higher price and as a result have higher quality than most of its competitors. Research suggests that the consumers do agree that Nike products appear to be of good quality but for the price they would defer to a similar product and Nike has tried to combat this issue with the introduction of apparel and not only shoes but this industry is in a shakeout stage and companies
As the media bombard the American public with unrealistic images, a new obsession with fitness has hit the markets. With more and more people aiming to lose weight, the fitness industry has been pressured to accommodate the high demands for efficient and entertaining workouts. This greater variety of work-outs hitting the market is a result of the diverse types of people who are trying to get in shape. Health clubs are no longer only for those 20-30 year olds who are in competitive training or those who need to be fit as a job requirement. Instead, these facilities are now packed with people of...
Representation matters in all facets of life whether it be in regards to youth seeking mentorship, in the realm of entertainment, or in the workplace. A diverse group of people is more likely to come together and curate a useful product for all of society to be able to use and feel embraced. Unfortunately, as Nike's stock has taken a dive in recent history and the resignation of Nike President, Trevor Edwards, due to inappropriate workplace behavior involving harassment and lewd acts, Nike is looking for ways to save face and revamp their brand in the midst of this current turbulent period. Let it be known, Nike was birthed not too long ago in 1971 and has skyrocketed to prominence with the release of elite performance sneakers and the calculated
Nike is the number one innovator in the world in athletic footwear, apparel, equipment, and accessories. This worldwide company operates in an extremely different organizational structure than other companies, such as Reebok and Adidas. Nike operates tremendous marketing strategies and develops inventive designs to inspire athletes around the world. This company is one of the largest suppliers in the world in athletic footwear and apparel, main producer of sports equipment, and making Nike the most valuable brand among sports companies. The task for Nike is to join diversity and inclusion to encourage ideas and innovation. Around the world, this company is a popular brand.
Haciendo un paralelo entre NIKE y esta teoría piramidal, podemos darnos cuenta claramente que la estrategia de comunicación de NIKE apunta a las necesidades mas altas, sobre todo de Reconocimiento y de Autorrealización. Si partimos de lo básico, el slogan, “Just do it” nos dice claramente, solo hazlo, una frase completamente apuntada a la autorrealización, tu puedes correr, párate y corre, como nos decía el caso, son frases que motivan al consumidor, tocándole el “nervio” de las necesidades de autorrealización y de reconocimiento a la persona, logrando un vinculo de entendimiento hacia el consumidor, diciéndoles que nosotros te ayudamos a que tu te superes, te realices, seas reconocido, exitoso. Ese es uno de los puntos de la estrategia de NIKE que pueden verse explicados con la teoría de Maslow, pero eso es solo el slogan.