Category: Nike

How would you feel if you knew that Nike factory workers in Indonesia are payed $1.60 a day for a 40 hour workweek? People who work in some of our favorite company’s factories are being mistreated everyday. One example of people being mistreated in Nike factories are the low wages. Another example is that workers are being abused by other workers and owners. Finally, people who work in Nike factories have unbelievably dangerous working conditions.

Low wages is a major problem in Nike factories. In the article NIKE CHALLENGES DOONESBURY STRIP, it shows examples of low wages in Nike factories. The article says “The strip that ran in the last week of May showed a worker saying ”I cannot even afford to eat” on a wage of $1.60 a day.” (NIKE CHALLENGES DOONESBURY STRIP 1). The article demonstrates that workers can barley survive with that little money. In the article Did Nike Say to `Just Do It’ – Brutally?, it shows an example of low wages in Nike factories. The article says “The 22-year-old said she and her fellow workers were paid 60 cents an hour to sit on hard, backless benches in hot, dust-filled rooms and were forbidden to use the bathroom more than once during a 12-hour shift.” (Selinger 1). This shows that the workers were payed very little while sitting in very uncomfortable seats and having to follow very strict rules. In the article Ex-worker accuses Nike of poor factory conditions, it shows an example of low wages in Nike factories. The article says “Ms. Sukaesih, speaking with the aid of an interpreter, said she was paid $1.20 a day for a 40-hour workweek in Indonesia.” (Bowers 1). This shows that the wages and hours in the factories are unbelievably bad. Low wages are a major problem in Nike factories.

Worker abuse is a major problem in Nike factories. In the article STUDY FINDS ABUSE IN NIKE FACTORIES, it demonstrates worker abuse in Nike factories. The article says ‘Workers reported that harsh words or verbal abuse are common in their factory environment and considered a normal part of these relationships,’ according to the study, pegging the frequency of verbal abuse being observed at 56.8 percent.” (Ramey 1) This quote shows that verbal abuse is used constantly in Nike factories. In the article Report: Workers sexually abused in Nike factories, it demonstrates worker abuse in Nike factories. The article says “Nearly 8 percent of workers reported receiving unwanted sexual comments and nearly 2.5 percent said they have received unwanted sexual touching, the report said.” (Report: Workers sexually abused in Nike factories 1). This quote shows that sexual abuse has been shown numerous of times in Nike factories but much less than verbal abuse. In the article Report: Workers sexually abused in Nike factories, it demonstrates worker abuse in Nike factories. The article says “Global Alliance said that workers’ reports of physical abuse from a line supervisor or manager, such as throwing objects, hitting, pushing, or shoving, ranged from a low of one percent in one factory to almost 14 percent in another.” (Report: Workers sexually abused in Nike factories 1). This quote shows that physical abuse is frequently shown in Nike factories but less than verbal abuse and more than sexual abuse. Worker abuse is a major problem in Nike factories.

Dangerous working conditions is a major problem in Nike factories. In the article STUDY FINDS ABUSE IN NIKE FACTORIES, it demonstrates dangerous working conditions. The article says “’If the workers collapse, they are asked to take rest at the factory and asked to continue working when they wake up,’ the study said.” (Ramey 1). The quote shows that the conditions are so bad that workers could have very bad health risks and the owners don’t care. All the owners care about is that they make enough clothing for the day. In the article COLA Letter Advocates for Regulation of Nike Factory Conditions, it demonstrates dangerous working conditions. The article says “In 2015, Nike denied the Worker Rights Consortium — an independent labor watchdog — access to its factory in Hansae, Vietnam, which produces university logo goods, according to COLA’s letter to administrators. This denial of access was the result of a worker walkout over labor abuses and poor working conditions — including pregnant women fainting due to extreme heat.” (COLA Letter Advocates for Regulation of Nike Factory Conditions 1). The quote shows that the conditions are so bad that workers are getting very dehydrated and the owners don’t care if someone gets hurt and needs help. In the article Did Nike Say to `Just Do It’ — Brutally?, it demonstrates dangerous working conditions. The article says “Pleites claims she and fellow workers endured brutal conditions making Nike shirts in a factory near San Salvador.” (Selinger 1). The quote shows that there are very dangerous working conditions while working in Nike factories. Dangerous working conditions is a major problem in Nike factories.

People who work in some of our favorite company’s factories are being mistreated everyday. One example of people being mistreated in Nike factories are the low wages. Another example is that workers are being abused by other workers and owners. Finally, people who work in Nike factories have unbelievably dangerous working conditions. I think we can fix this situation by stop buying their products and starting a blog about what’s really happening. Some people will listen and stop buying too. If the blog gets a lot of attention maybe the president will help to do something about it.

Works Cited

1. Bowers, Paige. ‘Ex-worker accuses Nike of poor factory conditions.’ Washington Times [Washington, DC], 16 July 1996. Reported in Gale OneFile: News
2. ‘COLA Letter Advocates for Regulation of Nike Factory Conditions.’ UWIRE Text. 5 Oct. 2016. Reported in Gale OneFile: News
3. ‘NIKE CHALLENGES DOONESBURY STRIP.’ Cincinnati Post [Cincinnati, OH], 6 June 1997. Reported in Gale OneFile: News
4. ‘Report: Workers sexually abused in Nike factories.’ UPI Archive: General News. 22 Feb. 2001. Reported in Gale OneFile: News
5. Ramey, Joanna. ‘STUDY FINDS ABUSE IN NIKE FACTORIES.’ WWD. 23 Feb. 2001. Reported in Gale OneFile: Popular Magazines
6. Selinger, Marc. ‘Did Nike Say to `Just Do It’ — Brutally?’ Insight on the News. 28 Dec. 1998. Reported in Gale OneFile: Popular Magazines

Abstract

Nike is a leading manufacturer of shoes and sportswear, and has achieved tremendous success around the world. In this report, Nike’s business environment was analyzed using Pestle analysis and Porter’s five forces. The company’s internal environment was analyzed by using SWOT analysis, value chain analysis, core competencies, and competitive advantage. It was concluded that Nike is a leader in its business, operates in a competitive business environment and uses a business strategy that ensures its short- and long-term success. It can be recommended that Nike should take advantage of the opportunities available to it and reduce threats.

Company Overview

Nike, the world-renowned brand of athletes, is also the largest and best brand of footwear and sportswear in the world. While Nike designs products for sports use primarily, its popularity as a clothing for leisure continues to grow worldwide. The company continued to focus on two important things – product innovation and product quality. Founded in 1967, Nike has gained world-class reputation for its excellent product quality and marketing strategy (Anon., n.d.).

Business environment analysis

External analysis means examining the company’s industrial environment, including factors such as competitive structure, competitive position, dynamics and history. At the macro level, external analysis includes macroeconomic, global, political, social, demographic and technological analysis (Elearn, 2008).

Nike’s international brand has expanded rapidly, as evidenced by its growing revenues over the past five years. Its share of non-US revenue exceeded 50% in 2017. However, the United States remains the largest market for Nike, accounting for about 46% of its total revenue. Its major suppliers of shoes are 127 shoe factories located in 15 countries. Nike has the largest number of Nike suppliers in Asia, accounting for more than 90% of its shoe production. In 2017, Nike spent $ 3,341 million on marketing and promotion. Nike also spends a lot on advertising plus R & D. The brand is experiencing a faster growth in e-commerce through its active websites in more than 45 countries (Anon., n.d.).

PESTLE Analysis

Political factors

Taxes and industrial rules and regulations are very important in mind. There may be several political rules of export laws that may affect a multinational company to distribute its products globally.

Economic factors

Developed countries have an almost stable economy with the same purchasing power of customers. Nike can also develop favorable economic policies to target developing countries. The economic factors that could be an opportunity for Nike are the economic stability of the developed economy, and the rapid growth of developing markets can once again be seen as the Organization’s greatest opportunity.

Social factors

People actively participate in fitness clubs and sports competitions. Nike can take advantage of this dynamic social dynamic by offering its high quality sports products. The important social culture factors are increasing wealth opportunities for individuals. Product safety is another important area to consider when it comes to social and economic factors. Improve attitudes towards the positive side and enhance leisure time.

Technological factors

Nike is very interested in marketing and technology techniques. It primarily includes marketing information systems (MIS) to innovate their business operations. The technology used to produce products must be monitored, delivered to customers, and all these activities are promoted through the latest technologies to compete with competitors. The technological externalities affecting Nike are investment in R & D among companies that pose a threat as well.

Environmental factors

Eco-friendly products are gaining more acceptance by customers and government alike. Nike should focus on its production techniques to get these types of products to gain a greater market share in the sports industry. The expansion of environmental laws has been a good area when it comes to environmental factors. Climate change is another important factor to be observed.

Legal factors

Legal rules and regulations include the copyrights of shoe designs and clothing produced by Nike against its competitors. In addition, some regulatory bodies also impose rules on the business process such as child labor and employment laws. The expansion of health and safety rules in some countries is always exploring new opportunities for companies (PANDEY, 2017).

Porter’s Five Forces

Supplier bargaining power (low):

Suppliers are small compared to Nike, and are spread around the world with little financial strength. There is a very large part of Nike’s supply chain in Asia, because of the availability of excess raw materials, and cheap labor there. Furthermore, Nike partners are only those who can match their quality standards. Nike has established rules and regulations relating to work, product quality and other things including the environmental impact that suppliers must follow.

Bargaining power customers (high):

Nike is focusing not only on product innovation but quality to better meet the needs of the new generation. They also design better customer experiences to retain them. This is somewhat controlled by strong brand image, marketing capabilities, level of trust and customer loyalty.

Threat of substitute products (moderate):

There are a large number of brands that operate domestically and internationally in the global market that sells sports shoes and apparel. The overall threat of alternative products is moderate due to Nike’s brand image as well as trust and customer loyalty.

Threat of new entrants (low):

As brands enter a smaller and local level, it is very difficult to build a market-leading brand of small investment. There is a very big investment in building a large brand like Nike which requires investment in infrastructure and technology as well as human resources and marketing. There are also legal barriers that prevent new brands from practicing the market.

Competitive rival (high):

While the number of major brands playing in the international market is limited, the level of competition remains very high because each brand invests heavily in product quality, innovation, marketing as well as research and development (LISA WURDEN, 2015).

Nike’s Internal Analysis

Internal analysis is an exploration of the company’s efficiency, cost position and market competitiveness. An internal analysis often involves measures that provide useful information about the company’s strengths, weaknesses, opportunities, and threats – SWOT analysis. Data generated by internal analysis is important because it can be used to develop strategic planning objectives to sustain and develop business (Elearn, 2008).

Value Chain Analysis Nike

Primary activities

Inbound Logistics: Nike has a global procurement team to manage the procurement part of supply chain management. Including selection and communication with appropriate suppliers of appropriate goods and services. In recent years, it has seriously focused on sustainability and is working to reduce its environmental impact. The number of suppliers is now lower in number and who remain committed to the quality and sustainability standards of Nike. Its supply strategy gives priority to suppliers who want to exceed minimum standards and can strictly follow the rules on sustainability. At Nike, almost all of its products are manufactured by independent contractors. The focus in all these manufacturing facilities remains on transparency, quality and sustainability, which is why only the most responsible are becoming part of their supply chain. Products obtained from these suppliers are sent to different markets through the regional offices and distribution centers of Nike (Barrientos, 2019).

Outbound logistics: External logistics is an extremely important part of Nike’s value chain. There are more than 500 factories manufacturing Nike products in 42 countries. Products shipped from these manufacturers must be sent to Nike distribution centers to retail stores for sales. Nike has used a series of regional distribution centers to meet the needs of its retail stores so customers do not have to wait long for a new product after it is released. An efficient distribution system also helps manage deliveries and shipments. The Memphis and Tennessee distribution system keeps shoes, clothing and equipment for the Nike and Jordan brands distributed to individual and wholesale customers as well as Nike retail stores. Its European logistics campus is located in Belgium, enabling a faster and smarter supply chain management (Barrientos, 2019).

Operations: Nike is headquartered in Oregon, North America. It is also Nike’s largest office with the largest number of Nike employees. Nike also has offices in Europe, the Middle East, Africa, Greater China, Asia Pacific and Latin America. The brand is located worldwide, and each of its offices serves wide geographical areas in many countries.

Sales and marketing: Regardless of its great quality, Nike is internationally renowned for its excellent marketing strategy starting with the Swoosh logo and can be found in all Nike products. However, Nike also invests heavily in marketing and athletes such as football celebrities are used to market their products and brand and promote them. The video marketing strategy is highly appreciated by Nike fans. Nike’s main sales channels are both physical and online. Their own stores, including retail stores, factory and online sales sites and mobile phone sales channels are sold directly to customers. It also uses a mix of independent distributors, licensees and sales representatives worldwide for sales (Ahmed, 2016).

Support activities

Technique: Nike’s production strategy has innovative technology at its core, and sustainability has become an important focus in the production and supply chain. Nike uses the best technologies to reuse the waste generated by its plants.

HRM: A global organization like Nike relies on a large number of skilled staff. Globally, Nike employs more than 70,000 people. It has created a culture and an environment that promotes diversity and inclusiveness.

Management: For Nike, quality is a very important focus. Therefore, the entire procurement team is dedicated to the analysis and evaluation of qualified suppliers. Only suppliers who can guarantee more than minimum quality requirements, remain in their own supply chain.

Solid Infrastructure: Nike headquarters is located in a state-of-the-art building with a lake and excellent facilities for its staff (Ahmed, 2016).

Core competencies of the Nike

• Brand Name: Nike is a world famous brand of sports shoes, apparel and equipment.
• Modern Technology & Innovation: Nike has always focused on modern technologies, product innovation and growth by investing in a better customer experience.
• Product quality and style: The quality of the product and the stylish designs have always been a priority for Nike, which has resulted in the popularity of its products as clothing for entertainment.
• Marketing possibilities: Nike’s excellent marketing capabilities are distinguished by its brand portfolio (UKEssays, 2018).

Nike’s Competitive Advantage

Competitive advantages are the conditions that allow a company or country to produce a commodity or service of equal value at a lower price or in a more favorable manner. These conditions allow the product entity to achieve more sales or margins than its competitors in the market. Competitive advantages are attributed to a variety of factors including cost structure, brand, quality of product offerings, distribution network, intellectual property and customer service (Porter, 1980).

Behind Nike’s success, there are fantastic business and marketing strategies in addition to some excellent sources of sustainable competitive advantage:

• Global Presence – The global presence of the brand is also a major source of advantage.
• Brand image / property rights – The brand enjoys a very high level of trust between its customers and the market as a whole.
• Customer loyalty: Based on the high level of satisfaction generated by Nike, it enjoys great loyalty to customers compared to its opponents.
• Supply chain management: The excellent management of the supply chain is also a major source of competitive advantage of the brand (Godfrey, 2015).

Nike’s SWOT Analysis

SWOT analysis is a simple technique used to design business strategies. Each character in the shortcut represents an important aspect in the process. S means strengths in work or organization. W means the weaknesses that the company must address if it wishes to maintain its competitiveness and sustainability. ‘O’ is for opportunities that reach a peak in a particular industry. Analysis of segment ‘O’ helps the company identify situations, events and factors that can be exploited. Finally, T refers to threats that refer to factors inside or outside the work that may make the implementation of the strategy difficult or impossible (Böhm, 2009).

Strengths

• Strong core brand. The Nike brand itself is one of the strongest – if not the strongest – names in the entire sporting apparel industry. In most parts of the world, Nike is one of the first companies to come to the public’s mind when they think of stylish sneakers.
• Brand portfolio diversified. Although the Nike brand itself is incredibly strong, the company has a variety of brands beyond that. This suggests that Nike has its foundations well spread throughout the shoe industry, allowing it to overcome the painless changes in preference.
• Low cost product. Because many Nike products are manufactured in developing Southeast Asian countries such as Indonesia and Thailand, Nike has very low labor costs. What’s more, Nike also uses relatively inexpensive materials for many of its shoes. Together, these factors – cost of labor and cost of materials – allow Nike to manufacture its shoes at very low prices.

Weaknesses

• Relying on the US market. In 2018, more than 40% of Nike’s revenue came from the US market; this shows a significant dependence on the US market as part of Nike’s business model. If US tax or legal policies change, which in any way affect Nike’s ability to sell in the US market, it will seriously hurt the profits of the sportswear company.
• Manufacturing outsourcing. Despite the low cost associated with overseas manufacturing products, there are already downside to doing so. On the one hand, overseas manufacturing requires you to either create a custom manufacture that works in the country you have chosen or outsource to your existing manufacturers. Nike chose to do the latter, which means that its products are not always high quality.
• Focus shoes. Although Nike is relatively diverse within the shoe industry itself, Nike has not diversified much across other industries. Although the shoe industry may remain here, Nike may consider expanding its horizons.

Opportunities

• The growing market. There are more and more people in this world, and a lot of them are gradually becoming more active. Together, these two factors are compounding the creation of a constantly growing shoe market. If played correctly, Nike must be able to get a large part of the business of this growing market, allowing the company to increase its profits.
• Developing markets. Since countries around the world are richer and richer, citizens in developing countries have more disposable incomes. In regions such as Southeast Asia, growing disposable income represents an opportunity for new markets to sell products. If Nike can market itself in these emerging markets, it can increase its reach and reduce dependence on the US market.
• Responsible manufacturer. In many Western countries, there is an increasing trend to know where the products came from and how the environment and workers were treated. This is another chance for Nike. If they are able to brand themselves as a manufacturer responsible for sporting goods, they may be able to increase their penetration into the market among the most environmentally conscious consumers.

Threats

• Taxation. There is growing debate about how much money is given to large corporations when it comes to tax matters, and their freedom to pay low taxes may end someday. This would provide a much lower net profit than Nike.
• Competition. Nike competes in a highly competitive sportswear market, with other big names such as Adidas, PUMA and Reebok ready to snap on any new opportunities. As such, Nike needs to walk very carefully to ensure that it is not replaced with one of these elements, or – dramatically less – not losing a potential return.
• Counterfeiting. Like many valuable brand goods, Nike clothes are subject to large amounts of counterfeiting. Counterfeit goods from Nike are available everywhere – even online. Nike needs to develop a strategy to ensure that counterfeiting does not affect its core business model, perhaps by taking legal action against counterfeiters or with a smart marketing campaign that encourages consumers to buy the real thing.

Thanks to its very strong brand and low cost, Nike has managed to net several billion dollars on an annual basis. Unfortunately, Nike is largely dependent on the US market and its small variety outside the footwear and sportswear markets. Nike needs to be cautious about the threats associated with these vulnerabilities, and other challenges such as taxation or fraud. Fortunately, Nike has many opportunities to grow its business, including making the most of the rapidly expanding apparel market (Eric MacIntosh, 2019).

Conclusion

Nike is the world’s largest brand of footwear and sportswear which has focused on product innovation and marketing to achieve growth. Its excellent marketing capabilities have helped its superiority among a range of brands. Competitive pressures against the brand continued to grow. To maintain its growth rate, the brand must retain a focus on product innovation and marketing. They can also try back integration because they rely heavily on independent manufacturers in their own supply chain. Nike is a well-known brand that attracts consumers in the market. Continuous product innovation and effective distribution network make sure that the sporting goods of the company are accessible to consumers. However, the company must reduce excessive dependence on the US market. Acquisitions and expansion in emerging markets can help the company maintain its position at the top of the sporting goods industry. If the company fully embraces digitization, its sales may grow exponentially. The company faces some threats, but continues to progress with confidence. Overall, Nike’s outlook is bright and positive.

References

1. Ahmed, R. R., 2016. Strategic Marketing Plan of Nike. [Online] Available at: https://www.researchgate.net/publication/299889166_Strategic_Marketing_Plan_of_Nike [Accessed 27 June 2019].
2. Anon., n.d. Nike Home. [Online] Available at: https://www.nike.com/xm/en_gb/?ref=https%253A%252F%252Fwww.google.com%252F [Accessed 24 June 2019].
3. Barrientos, S., 2019. Changing Gender Patterns of Work in Global Value Chains: Capturing the Gains?. s.l.:Cambridge University Press. Böhm, A., 2009. The SWOT Analysis. s.l.:GRIN Verlag. Elearn, 2008. Business Environment. London: Routledge.
4. Eric MacIntosh, G. B. M. L., 2019. International Sport Management. s.l.:Human Kinetics. Godfrey, R., 2015. Strategic Management: A Critical Introduction. s.l.:Routledge.
5. LISA WURDEN, C. L. N. V. H., 2015. Report Company Analysis (Nike, Adidas, ASICS). [Online] Available at: http://lisamaximiliane.com/pdf-new/3.pdf [Accessed 26 June 2019].
6. PANDEY, B. C., 2017. Nike Inc- Complete Analysis: SWOT, PESTLE and Marketing strategy. s.l.:BookRix.
7. Porter, M. E., 1980. Competitive Strategy: Techniques for Analyzing Industries and Competitors. First ed. s.l.:Free Press. UKEssays, 2018. Core Competencies Are Capabilities Marketing. [Online] Available at: https://www.ukessays.com/essays/marketing/core-competencies-are-capabilities-marketing-essay.php [Accessed 28 June 2019].

Nike is an American worldwide clothing company that was found in 1964 in the city of Oregon in the united states of America by Phil knight and Bill Bowerman. Nowadays Nike is one of the most famous international brands in the world with a market capitalization of more than 65.8 billion dollars and net worth of 29.6 billion dollars in 2017 and 32.4 billion dollars In 2019, Nike has also been identified as the richest sports brand in 2020 and one of the most successful clothing brands around the world. and with more than 80 branches in the United Arab Emirates, Nike has been the most successful sports brand here in the UAE.

Company’s background

With selling around 900 million shirts and 850 shoes in a year, Nike have managed to overcome any competitor in the sports market that threatens its market such as ( Puma, Adidas, and New balance), and also one the most important things that made Nike more famous and popular worldwide is that they have sponsored many celebrities like ( Cristiano Ronaldo, Lebron James, Roger Federer etc.…) In fact, Nike has worked with the famous footballer (Cristiano Ronaldo) since 2003 with a deal worth as much as $1 billion dollars. Nike doesn’t only sponsor famous celebrities but in fact they sponsor some sports teams in different sport such as; Fc Barcelona, Chelsea, and Paris-saint Germain in football, while in basketball they sponsor big teams like; Los angles Lakers, Miami heat, and Chicago Bulls. But Nike has a big disadvantage which is the high prices on most of their items, for example a Nike Jordan shoes is at least 400 DHS here in the UAE and also a normal football or basketball jersey doesn’t get under 300 Dirhams, this reason made the customers see Nike as a place that they buy from once a month or even once a year.

Home country detail

Nike is one of the most popular brands worldwide In general, and they have a lot of customers around the world and also a huge amount of celebrities that they sponsor, but there are some countries that Nike is not sold in such as; Indonesia , Iran, and Vietnam. The reason behind not selling Nike in those countries is because they don’t have the policy from the company to open it in their country or maybe they have some political problems with USA such as; Iran, but that doesn’t mean that Nike is not popular in the Middle east, In fact the branches of Nike in the middle east is more than the branches in the whole continent of Africa, Nike has also a lot of Muslims customers around the world and especially in the middle east, so to satisfy these customers they have made some Muslim traditional outfits to sell in the branches that are available in the middle east such as; hijab, and swimming outfit for the Muslim women who loves sports and also loves to wear Nike products. Nike has also done a lot of charitable volunteers to many poor countries in Africa.

Segmentation and targeting strategy

As we said Nike is so popular in the middle east countries, here in the united Arab emirates 14 main branches that are available in famous places such as; the Dubai mall, midriff city center and also in Festival city mall, these are the most popular places for Nike in the UAE , Nike has created its branches in the most popular places in the UAE and most the visited ones, which is a smart way to attract costumers from inside and outside the UAE, another targeting strategy that Nike uses is that they use a lot of advertisements in all social media applications to attract the costumers and they also have online websites for the people that Nike is too far from their homes.

Marketing Mix

Nike has always put the 4p’s (price, product, place, promotion) under consideration, In fact Nike company is based on these things, the most important thing that Nike focuses on is the quality of their product, because Nike is not a normal company that have cheap quality items with high prices, so it should focus more about its quality. The second thing that Nike cares about is their prices which counts as a disadvantage for company because most of their items are so expensive to the level that the “Mag self-lacing trainers” which is a Nike shoes is worth 200,000$ and they also have different sneakers from the famous celebrity (Kanye west) which are called the Yeezy that are worth more than 1,000$. Nike also care about the place of its market, As we see in most of the countries and especially in the United Arab emirates, Nike shops are always in the most attracted places from the visitors such as; the Dubai Mall, Festival city and city walk . even in the United states of America, Nike shops are in the main places which are the central park and the times square. Nike have good way to promote their company. They use sales promotions for motivating the new customers by giving some additional benefits like; the savings the customers can make by purchasing when a discount or a special offer is applied.

How the company develop market insights?

Nike is a company that uses both primary and secondary data to get the customers opinions about their company, for example Nike collect some information to see which branch in the UAE that is not selling many items as the other branches, which will force them to close it and open it in a place that attract customers and visitors inside and outside the UAE, for example the Nike branch that was located at Sharjah was closed because it wasn’t selling the amount that was expected to be, so they opened it near the terminal 3 airport and made the store larger and they also included some new items to satisfy customers and the residents inside the UAE. Nike has also a customer feedback section in their online stores so that the customer can give his opinion about the product he bought from them, which is also a smart move from the company to satisfy this customer so he would buy again from Nike.

Price

When it comes to price Nike is somehow average in selling their items just like the other sport markets, for example Nike sell some items that are rare with a high quality in high prices and they sell their normal colored shirt in an average price, but there are some items that the company overrate their prices such as; the Yeezy shoes that is worth 2,000 Dirhams and also some items that are above 1,000 Dirhams such as; normal football and basketball jerseys.

Place

When It comes to place Nike is one of the markets that have many branches, especially here in the UAE, Nike have approximately 2 or more branches in every city in the UAE, but the most branches are available in Dubai since it is the most famous city in the country with the biggest amount of tourists.

Nike can be considered both (B2B and B2C), for example a company called (Sun and Sand sports) buy many products from most of the sport market in the Middle east and one of them is Nike, which counts as business to business.

Nike is one of the biggest markets in the UAE, it has over 80 branches in all cities, Nike knows how much its popular in the middle east and especially in the United Arab emirates, so to satisfy these Arab customers Nike has added some familiar and famous Arab costumes to its market such as; the hijab which is an Islamic outfit for the women, Nike is company that doesn’t discriminate between their customers, which is a reason why the company is successful.

Conclusion

After doing this amazing research, I have learned a lot about Nike and its markets around the world. And I also understood most of the details inside this huge company, and how much its popular in the middle east and worldwide, and also who were the celebrities to get sponsored by this company such as; Cristiano Ronaldo and Lebron James, and the most important thing that made me like this company even more is that it satisfies every customer they deal with and also including Muslim costumes in their stores which is a great move by them, Nike is a very successful company from the past till Nowadays.

Analysis of Environment Factors of Nike Inc

Nike Inc, for most a household name, there are not too many places you can go these days without setting your eyes on the iconic swoosh know by everyone as Nike. What makes up this company though, what affects this company. As consumers these are realities of the company, we often do not think about it. It’s not out job so we don’t have to, what if we did though what would we find. In this is analysis we will look beyond the swish and examine the factors

Examination of Environment Factors of Nike Inc

Nike Inc, for most an easily recognized name, there are not very numerous spots you can go nowadays without setting your eyes on the notorious swoosh know by everybody as Nike. What makes up this organization however, what influences this organization. As customers these are substances of the organization, we frequently don’t consider it. It’s not out employment so we don’t need to, imagine a scenario where we did however what might we find. In this is investigation we will look past the wash and analyze the elements focused and macro-environmental behind the brand we search for.

Money related

Nike has used its set up brand an incentive to abuse creating customer ask for in rising economies (Whitehead, 2012). Nike has defended the CSR examines by pugnacity that it has given work in commonly youthful economies and paid the set up adjacent rate for work (Whitehead, 2012).

Political

It is accepted by some that, Nike has and will keep on having advantage from the development arranged polices put forward by the United States government. Which has kept up low loan fees, cash trade dependability, and universally aggressive duty plans (Whitehead, 2012). Politically, expansive organizations, for example, Nike additionally face abnormal amounts of strain to create footwear of an astounding dimension, due to the consistently evolving wellbeing/wellness arrangements present in the UK.

Social

In the full-scale financial sense, Nike (and its adversaries in the sportswear region) are the beneficiaries of a creating societal obsession with prosperity and wellbeing (Davis, 1992). Nike was compensated for lost time in the advancing talk around globalization, seen by many weight get-togethers to be ‘Extending the irregular characteristics of political power and effect, similarly as including new segments of divergence’ (Hurrell and Woods, 1999). From the 1990s onwards, Nike got the standard business routine with respect to redistributing a ton of its capable, semi-skilled and clumsy gathering to rising economies, consolidating those in the Asia Pacific region (Foster and Harney, 2005).

Customers

Nike’s target market and customer base includes all desk class age clusters that are excited about diversion and rich footwear. Nike footwear attracts these customers as a result of its consistency in structure improvement and the magnificent shades and new imaginative advances being made to the mentors. Association: Three factors that were seen basically in the examination of Micro parts related to the association were, support ability, business/specialist relations and brand mission.

Contenders

Main features that were clear while looking at contender factors were: ‘Nike offered’, esteem pioneers and highlight on structure and backings. Go-between: The centers gathered from the examination turning around center individuals were, Nike online list, outlet stores and wearing locales. Action Points TOWS Analysis Jamie Brighton – Threats Jamie Roach – Strengths Ollie Bennett – Weaknesses David Harris – Opportunities Thomas James – TOWS Review

References

1. Nike Inc. PESTEL/PESTLE Analysis & Recommendations, ( FEBRUARY 7, 2017) retrieved from http://panmore.com/nike-inc-pestel-pestle-analysis-recommendations
2. A PESTLE Analysis of Nike, (Jun 8, 2016) retrieved from https://pestleanalysis.com/pestle-analysis-of-nike/
3. Macro and Micro factors, (March 1, 2013) retrieved from http://nikeresearch.blogspot.com/2013/03/macro-and-micro-factors.html

The firm I have chosen is Nike so I decided to examine some key details in determining the market demand for my company. Some of the factors I will be using to show how Nike’s popularity affects their demand are populations and demographics, price of related goods, and taste. Nike’s mission is ‘to bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete’ (Nike.com). When looking at Nike’s target audience as well as consumers they are between the ages of 15 – 40 years old (marketrealist.com). The population of consumers consist of preteens, teens,young adults, athletes, and the everyday working person. Nike also targets 3 kinds of consumers which are women, runners, and young athletes (businessinsider.com. According to businessinsider.com the sale of woman running and training apparel has started to outpace the men’s business. Women in their 20s and 30s are largely driving the ‘athleisure trend’. This trend is primarily women wearing leggings to different occasions such as gym, brunch and to run errands.

Now that we understand what nikes population and demographic looks like we can begin to examine some of the other key factors. I will explain how income, price and taste tie into the market demand of the NIKE Brand. Nike pricing consideration plays a huge factor in their success. They utilize value based pricing and segmented pricing to determine their products cost. Value based pricing is when a company set their prices according to the value the customer places on the product. Nike is focused on bringing quality to their customers which means that the price will also reflect the quality of the product. This may increase the price of some products but because of how Nike promotes their products with the use of ads. Ads which claim that their products are the top of the range, this persuades consumers to still buy even if slightly higher price. Another pricing strategy used is segmented pricing which is simply adjusted pricing for their target audience. For example, the cost of shoe difference between kids versus mens size. Pricing is important because it directly affects the demand for the product. The higher the cost the lower the demand, but when the cost is reduced the demand will increase. Nike understands how to entice their consumers at any price point.

Income plays an important factor because that is the determining factor of how these consumers spend their money. The availability of funds will impact the demand of Nike. An increase in income means an increase in demand but also vice versa a decrease in income means demand also drops. Nikes popularity and also the use of professional athletes to promote their products keeps Nike in demand. The taste for NIke is high and people are willing to spend their money on it.

When looking at Nike over the years, we can see that they continue to increase sales. Nike is a global brand and they have become extremely popular. Footwear and apparel are their largest areas of growth. The demand for nike is rapidly growing and people are willing to spend regardless of the price. Nike has advertised their products as the top of line and the consumers have responded positively and embraced their mission.

Nike has the demand but now we must discuss the supply to cover the demands of the consumers. Nike has over 1000 locations worldwide which allows them to meet the demand of the consumers. In the US Nike has 384 retails and 750 internationally according to the SEC filings. The amounts of retails stores show how much of a demand Nike has which is also reflected in the supply needed.

Price elasticity of demand is the measure of change in the quantity demanded or purchased of a product based on its price change over time (Investopedia.com). Expressed mathematically, it is: Price Elasticity of Demand = % Change in Quantity Demanded/ % Change in Price (Investopedia.com). Price elasticity shows us the change in supply and demand when the price of a product changes. There are 2 ways to categorize the change in price. Some products are elastic which means change in price affects the demand for the product and some products are inelastic which means the change in price does not affect the demand for the product.

In regards to Nike footwear such as the Jordans or AirMax would be considered an inelastic product. The reason why is simple, regardless of the high price the demand for this product never changes. The popularity of Nikes are unmatched, over the years they have gained so much attraction with consumers. The advertising of Nike’s and also the endorsements by professional sports athletes have made them a very sought out product. Consumers wait on lines awaiting the release of a new pair of jordans that are quickly sold out upon release. A generic pair of nikes would most likely be an elastic product because the demand is not as strong and change in price also affects the demand. One thing that shows how consumers react to footwear such as Jordans is the act of buying and reselling. Consumers will purchase limited editions or popular shoes only to resell at a high marked up price. This causes some products to be very sought out because the demand is very high while the supply is low.

Nikes are still regarded as the most popular footwear even compared to its competitors. A pair of men’s or women’s Nike shoes can cost anywhere from around $60 to over $200 (usually limited editions or collaborations with high-end fashion designers) are priced typically around $400 (Snipesusa.com). While the price may be high the consumers still go out there to purchase and the demand remains high. Nike still outpace its competitors even at a higher cost.

Nikes are priced at the value the consumer places on the product and Nike understands the strength of its brand. The changing of price does not have an effect on the demand of Nike products. The market for Nike footwear is a growing business and is still on top of all the competitors. Over the years it has proven that it can withstand the test of time and consumers have shown their loyalty to the company.

References

1. https://www.investopedia.com/terms/p/priceelasticity.asp
2. https://www.investopedia.com/ask/answers/012915/what-difference-between-inelasticity-and-elasticity-demand.asp
3. https://www.businessinsider.com/nike-is-going-after-3-kinds-of-customers-2015-4
4. https://www.nike.com/help/a/nikeinc-mission
5. https://marketrealist.com/2019/10/nikes-target-markets-everything-you-need-to-know/#:~:text=Nike’s%20target%20market%20is%20largely,collaboration%20with%20Apple%20(AAPL)
6. https://www.snipesusa.com/nike.html#:~:text=A%20pair%20of%20men’s%20or,is%20dependent%20on%20the%20shoe.

Introduction

In today’s globalized world business and management is developing dramatically around the world and most people always want to achieve higher goals in various ways. Even though background plays an important role to be popular and admirable businessman, individual’s leadership entrepreneurship abilities are a transcendent part of increasing business profit and work productivity. Because, success never comes it is always achieved, therefore the only thing that is required from people is hardworking and trying to attain their aim with various ways.

The preponderance of entrepreneurship skills, how the business can be improved and the management system among employees as well as work productivity are illustrated as an example of the company NIKE which is keeping its reputation high around the world through this report

Background

The company of “Blue Ribbon Sports” later known as the name of NIKE was founded with the partnership of Bill Bowerman and Phil Knight in the year of 1964 January 25 close to Beaverton, Oregon, in the Portland metropolitan area. At first, they both contributed 500 US dollar and with the manufacturing sport wears they could sell 300 pairs of trainers during three weeks. After eight years, they produced a new sport footwear which is called NIKE as it taken the name of Greek Victory God and during 1980’s by entering to public NIKE brand became predominant over the globe. Furthermore, in this period of time with the “Swoosh” trademark company, they made alliance under the slogan of “Just Do It” and they made an irreplaceable brand image also they started sponsoring for a myriad of sport teams and athletes. For the first time in 1986, the revenues of the company multiplied over 1 billion US dollar and NIKE could achieve to expand its manufacturing rate substantially with the acquisition of the American popular Cole Haan brand, together the

The world’s largest athletic shoes supporter and a huge manufacturer of sports bags and clothes deserves more than 24.1 US dollars billion in the fiscal year of 2012. During this year, it hired more than 44 thousand people around the world. In 2014 the value of brand alone was at 19 billion US dollar, it made the most valuable brand logo around businesses areas of sport. In the top 500 US largest companies NIKE got 89th level with being suitable for 29,6 billion US dollars.

Management style

Manager should have multitasking virtuosities that can do everything in its time and solve different kind of problems which require much energy and deep thinking. In addition to this their attitudes towards controlling workers in the company is also based on their behavior and interpersonal skills, because they should always motivate their workers with different ways such by giving various certificates or bonuses in order to increase workforce and productivity. Moreover, setting information sharing and friendly atmosphere make staffs energetic and more creative. For example, successful leaders should have such kind of characteristics (Ferrell, Hirt and Ferrell 2011):

• Outstanding interpersonal relationships.
• Effective communication
• Collaboration and teamwork
• Comprehending financial aspects of business
• Improving an environment where people can get more experience
• Following the rules and routines
• Assist people to grow and develop morally and personally

NIKE controls more than 73000 employees worldwide and use different categories to them to improve workforce. For instance, managers who work in this company and in its branches always encourage their workers by giving monetary bounce for the people who create new designs and high quality models. Their aim is in this way: Moreover, they pay attention supply and demand amount wisely where most consumed their products which are more popular and where the price is not affordable and others.

Altercations of NIKE Company

Nike has made contracts with overr700 stores and markets around the globe and its branches are situated in 45 countries except the United States of America. .Cornucopia of manufacturing factories got place throughout Asia, such as Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia.[89] Nike does not always want to tell about their contracts with other companies which they work together. But, owing to various criticism from some corporations like CorpWatch, Nike has informed about their contracts to the public.

Sweatshops

Nike was under the criticizes that they making contracts with companies such as Nike Sweatshops in most countries, for example, Vietnam, China, Mexico and Indonesia. Vietnam Labor Watch group has made contract documents with Nike has been punished with low wages due to strict rules in Vietnam during 1996, even though, Nike claimed that they stopped the process. [90] this corporation was in the center of many critics such as not satisfying working conditions, low salary employed in most free trade areas where their products are particularly produced and the main supporter of this criticism consisted of Naomi Klein book like No Logo as well as documentaries of Michael Moore.

In July 2011, Nike corporation announced that two-thirds of their products did not support their company’s demands for treatment of their employees and as an Associated Press reported that workers in the Indonesia branch of this company complained from their managers owing to being under offence.

Child labor actions

In 1990s, Nike was under the criticizes that being used child workforce in the factories of Pakistan and Cambodia that they contracted to produce football balls. Even though Nike started controlling and diminish the practice, they did not stop making contracts with other companies which manufacture in places where insufficient regulations and controlling make it difficult to support that labor of children is not being utilized.

In the year of 2001, documentary of BBC investigate the process of children workforce and poor working conditions in the factory of Cambodia used by Nike and this was mainly based on six girls who frequently worked 16 hours per day during all weekdays.

Big strike in Nike manufacturing factory of China

Workers in the factory of Dongguan Industrial Holdings of Yue Yuan in the heartland of China branch of Nike started giving up their work in April 2014 because of low salary which is 40.82 US Dollars per month. However, the average wage rate was 489.84 US Dollars and the number of employees was about 70,000.

Marketing strategy of Nike Company

Nike increases the value of its products by different agreements like sponsorship with famous sportsman, professional teams and other athletic teams.

The first most popular three advertisements of Nike were show on national TV program which were formed by Widen and Kennedy (W+K) advertisement agency in 1982. This agency with advertising this company’s products achieved top honor and they called s the name of Nike the Cannes Advertising Festival in the year of 1994 and 2003.

Recommendation

Nike does not support people with sport equipment and clothes but also, they motivate individuals through various ways like advertisement and by being sponsors to most football teams, sport clubs and others. The quality of their products is very high and they are durable to any kind of weather conditions, they are manufacturing eco-friendlier sneakers.

Conclusion

In conclusion Nike company can be represented as one of the best styles of managing staff and organizing work more efficiently. Thus their work productivity is high and their future intended plans are implemented well. Because their leadership skills and solving problems analytically and wide range of solution by team working and its working conditions makes it the place which has the best career opportunities with job perspectives

References

1. Sage, Alexandria (June 26, 2008). ‘Nike profit up but shares tumble on U.S. concerns’. Reuters. Retrieved July 10, 2008.
2. Ozanian, Mike (July 10, 2014). ‘The Forbes Fab 40: The World’s Most Valuable Sports Brands 2014’. Forbes. Retrieved October 10, 2014.
3. ‘Nike – pg.16’. Forbes. Retrieved September 27, 2017.
4. ‘Fortune 500 Companies 2018: Who Made the List’. Fortune. Retrieved November 10, 2018.
5. Associated Press, ‘Nike still dogged by worker abuses’, Japan Times, July 15, 2011, p. 4.
6. ‘MIT’ (PDF). Retrieved September 18, 2010.
7. More than ten thousand workers stage strike at massive Dongguan shoe factory, April 14, 2014
8. Yue Yuen shoe factory workers’ strike at Dongguan plants continues April 17, 2014.
9. Yue Yuen strikers vow to continue until benefit contribution deficit paid in full, South China Morning Post, April 18, 2013.
10. “Paradise papers’ expose tax evasion schemes of the global elite’. Deutsche Welle. 5 November 2017.

Nike is a well-known public limited liability company. This means that anyone can invest in Nike by buying shares meaning they will be sharing the risks of the company. With the investments of these shareholders, Nike can chase new projects and also pay off their debts. Nike’s main objective is to make profits so they can satisfy their shareholders. This massive shoe and apparel company was started by 2 men named Bill Bowerman and Phil Knight. Bill Bowerman was a coach and he was trying to find ways to improve the performance of his athletes and that is where the idea of shoe manufacturing came from. This was Phil’s idea, others did not believe in it but Bill did so they formed it calling it Blue Ribbon Sports. This company grew so much into the company we know as Nike today. As of October, Nike had a market capital of $115 billion and is still growing. As of today, almost 85% of the shares held by the company are held by institutions and these are the top holders:

1. The Vanguard Group holds a total of 103.5 million shares which is equivalent to 8.27% of the total shares.
2. Capital Research and Management holds a total of 79.3 million shares which is equivalent to 6.35% of the total shares.
3. SSGA Funds Management Co. holds a total of 59.3 million shares which is equivalent to 4.75% of the total shares.
4. Blackrock Advisors holds a total of 59 million shares which is equivalent to 4.7% of the total shares.
5. Wellington Mgmt. Holding a total of 28 million shares which is equivalent to 2.24% of the total shares.

Nike is a major sporting brand worldwide that produces a variety of products like clothing, shoes, accessories, sports gear and so much more. They are currently the best at what they do and they have attained brand loyalty from countless individuals because of the quality of their products. As of 2019, Nike had a total of 76700 individuals working for them worldwide and as of 2020 have a value of approximately $34.8 billion which has increased by $2 billion since 2019. Nike is also very successful because of their dominating marketing strategy, their adverts, and their research on their customers. Nike has also endorsed a lot of sports associations such as the NBA and also some colleges and major events like the Olympics. Nike also uses some of the most popular and top athletes in the world to advertise and increase their brand awareness and that is one of the major reasons they are at the top today. They use these athletes to advertise their products. Some of these popular athletes include Cristiano Ronaldo, Lebron James, Serena Williams and so much more. These individuals have millions of social media followers and posting themselves wearing the brand’s products will encourage others to buy and also increase brand awareness.

Nike maintains a program called Corporate Social Responsibility (CSR) which was formed to address the interests of Nike’s stakeholders. Nike influences its stakeholders and Nike’s stakeholders also influence them. The image of Nike and the sales performance of all their products are subject to the effects of the interest of the stakeholders.

A massive business like Nike has various stakeholders who influence the sales of its products. However, the company’s CSR only targets several top stakeholder groups. These are their stakeholders arranged in order of significance:

Customers: The customers are Nike’s top priority as a stakeholder group. The customers are important because it’s the company’s main source of revenue. These stakeholders expect top-quality products from Nike sold at reasonable prices. Because of this, Nike continues to supply top-quality products and offer them at prices reasonable to the customers which effectively satisfies the customers as their top priority stakeholder group and this leads to high profitability and an increase in sales.

Communities- Nike’s CSR identifies communities as a stakeholder group that has a significant influence on the company. Customers are more likely to buy products that have a positive impact on communities. The main interest of this stakeholder group is to develop communities. Nike has addressed this interest through the Nike foundation which is the company’s primary means of supporting the development of communities which means Nike has addressed the interests of this stakeholder group.

Employees- Nike’s CSR sees the employees as stakeholders who influence the effectiveness of the organization. The performance of the employees affects the performance of the business. The interests of these stakeholders include fair payment, career development opportunities, and a sense of purpose. These interests are addressed through Corporate Social Responsibility policies and programs that mainly focus on internal leadership growth, talent management through coaching and mentoring, and teamwork building. These efforts are expected to make Nike’s products top quality and more popular.

Government- Part of the company’s corporate social responsibility strategy is to identify the Government as a stakeholder group. This stakeholder group is important to Nike because they have a say or effect on how Nike operates in terms of permits, limits, and legal actions in specific markets for its products. The Government has a high interest in the legal and regulatory acquiescence, and also their contributions to tax revenue and community progress. Nike’s corporate social responsibility has addressed the interest in community growth through their programs. Nike has various policies and standards which ensure the compliance of the company in all areas. Therefore, Nike satisfies all the interests of the government as a stakeholder.

Interest groups- Nike’s corporate social responsibility addresses the interests of the interest groups. This stakeholder group affects Nike in terms of influencing the decisions of the government potentially and also in terms of customer perception regarding Nike’s products. Their interests include fair labor practices, business sustainability, and environmental conservation. These interests are addressed through Nike Foundation initiatives and also sponsorships of various related programs. Nike has corporate social responsibility policies that improve the management of labor and also environmental impact. Therefore, Nike satisfies the interests of interest groups as a stakeholder.

Introduction

The advent of big data and growing access to a massive amount of information created an environment where the development of artificial intelligence impact all industries and impacts the way they are collecting, storing and managing data. Nonetheless, any type of data could become a liability if the person or business receiving it would not be able to understand or decode it. This is why data visualization is a crucial business asset that may be used to realize the organization’s full potential with the help of experts in the field and all the insights gained from the processed data. One of the most popular data visualization instruments is Tableau. It has a large customer base and provides every end-user with interactive visualizations that are handling big data operations and datasets with ease (Nair et al., 2016). They also pay close attention to machine learning and artificial intelligence.

Another example of data visualization software is Datawrapper. Even though it is not as popular as Tableau, its simple interface attracts numerous customers who need to present statistics and create charts on a daily basis (Jess et al., 2015). A similar instrument called Sisense may be the simplest out of all three, with a drag-and-drop interface that is easy to use and understand. The users have the ability to gather data from a variety of repositories at the same time and perform queries across several dashboards (Cunningham & Stein, 2018). Sisense is compatible with big data operations and may provide the end-users with the answers to any type of problem.

Nike

A Brief Overview of the Organization and Data Visualization Usage

Nike is the most popular shoe and apparel company in the world. It focuses primarily on basketball and soccer players, but also sells a variety of products in the track and field sector. The brand also produces different sports items for children and pays close attention to competitive and recreational activities. According to Trabucchi et al. (2017), approximately half of Nike’s revenue comes from outside the United States, with more than 1,000 retail stores across the world.

Data Visualization with Nike Plus

The data visualization instrument that is used by Nike is called Nike Plus. The first thing that customers have to do to get the most out of Nike’s data visualization is to purchase all the required components. These include the sensor and the tracking device, where the sensor is expected to read the distance, pace, and calories burned with the tracking device, establishing the connection required to read all the data (Sosulski, 2018). The sensors are only compatible with Nike shoes that have a NikePlus connector. At the moment, there are at least 300 shoe styles that are compatible with NikePlus, ranging from $40 to $350. The tracking device is then synchronized with the sensor to send out the information to Nike servers and help customers store every byte of data related to their physical activity and health condition (Sosulski, 2018). Sports watches manufactured by Nike are also compatible with Nike Plus. All the data from the sensor is transferred to the tracking device in real-time so that the end-user would have the ability to access all the vital information while they run. As the data gets stored online, users can easily track their progress and share the results with the community.

How Nike Utilizes Data Visualization

The key to Nike using their Nike Plus initiative is the possibility to establish connections among Nike customers. Mostly owing to the advent of Nike Plus, the company has been able to develop a community of runners who track their progress and share the results with the community (Zepel, 2018). Each run recorded with the help of Nike Plus sensors contributes to the vast amount of rich data on other runners, helping everyone improve their running style and achieve better results. On the business side, Nike uses the data collected through Nike Plus to recommend specific items and products to the end-users, stimulating the market.

With the help of the Nike Plus initiative, the company attracted millions of people to the brand and allowed each individual to contribute to the running community. Nike Plus is a powerful tool because visualization stimulates the rational and sensorial segments of the brain instantaneously. Nike helps its customers exhibit the data that ignites the willingness to discover others’ successes that could have been ignored otherwise (Zepel, 2018). Overall, Nike Plus is a professional marketing platform that started as a mere data visualization app and then turned into a fully-fledged instrument intended to help the brand reach the customers and communicate with them.

Key Benefits of Nike’s Data Visualization

The most significant benefit related to Nike Plus is the company’s ability to read all the trend- and pattern-related data and identify the potential trends before they break out. This is a crucial concept that allows Nike to dominate the market and outrun its competitors by far, as the organization accurately predicts the milestones that the community is going to achieve. Without the data on patterns and trends, Nike Plus would be a useless data visualization application where the majority of decisions made by the company’s management would be based on assumptions and not facts (Burgio, 2019). Therefore, the use of data visualization allows Nike to rediscover the potential of untapped data and utilize every byte of information that is uploaded by the community.

Another benefit that is directly related to Nike Plus is the increased value and quality of collaboration. The Nike team improves the experiences of the entire running community by celebrating specific milestones and providing customers with purchase-associated benefits. Therefore, the company knowingly fosters innovation and creates positive experiences for the customers in order to make collaboration easier both within and outside the company (Gunther et al., 2017). The Nike team eloquently relies on visual representations from Nike Plus instead of going through hundreds of thousands of lines of data.

One more benefit that is highly visible due to the usage of Nike Plus is the operation-result relationship that is actively promoted by the company. For Nike, data visualization is a primary means of representing the connection between the brand and the community. The team responsible for the Nike Plus initiative uses data visualization to make quick decisions while gaining insight into critical metrics that could have been ignored otherwise (Burgio, 2019). For example, if a certain running community contributes to the development of an anomaly (such as excessive running activity or its complete absence after a prolonged series of scheduled runs), the company will be able to drill down the data to find the best approach to the problem. Therefore, data visualization allows for swift data analysis that is easy to access and understand.

The Present and the Future Impact of Data Visualization on Nike

The immediate impact of data visualization on Nike is highlighted by quick communication with the customers and stakeholders where all parties are efficiently brought together. The data is shared much quicker, and every dataset is presented in the most understandable form possible. As Nike Plus ensures clear and effective communication with the customers, the company has the chance to increase the effectiveness of its operations and contribute to the employees’ productivity as well. Satisfaction and motivation also improve across both customers and employees, strengthening the brand image, and reducing the turnover rates among both workers and consumers (Poon et al., 2015). On the other hand, Nike Plus can be used to save time and help employees tailor reports and make decisions much quicker than before, as they only have to access visual data and not go through multiple data sets in the form of text. Therefore, Nike Plus is an efficiency-inducing system that requires both customers and employees to gain innovative knowledge and apply it to real-life situations.

As for the future potential impact of data visualization on Nike, the most probable venue would be the ability to unlock the full potential of big data. The advent of this technology created a new stream of innovative decisions and significantly increased the amount of data collected by companies. The problem that Nike has yet to resolve is how to analyze all the data obtained from the sports community and deal with the inefficiencies that would be identified during the data analysis. Big data is going to become an essential business asset with time, which should motivate the company to focus on data absorption as well. The data continues to evolve, and it creates premises for additional applications of data visualization where even random data could be included in the graphs. On the other hand, the advent of big data serves as a hint at the fact that more sophisticated data analysis techniques are coming. Nike will be slightly forced to adapt to the innovative visualizations.

Potential Areas of Improvement

The Nike Plus initiative could be used by the company to amplify messaging capability. Knowing that pictures and visualizations have a powerful impact on customers, Nike could come up with visual messages for the end-users, motivating them to achieve new milestones and purchase associated products. As a trusted brand, Nike has all the chances to reiterate the same message in different vivid ways intended to impact the audience and empower them (Poon et al., 2015). The company would strengthen its positive image and create a bigger running community through data visualization. With the help of Nike Plus data visualization, the organization would also be able to reach out to internal stakeholders and compose powerful messages motivating additional investments and product launches. It will be much easier to persuade end-users and stakeholders through the visuals, giving rise to Nike’s organizational story. If the company chooses a wrong communication strategy, it will lose even loyal customers and reduce the value of data visualization (despite the data being useful).

Nike Plus could also become more beneficial for the company if the data collected via sensors and trackers were more comfortable to process and understand. If the company follows its own history and trends, it will pay much more attention to proper communication with customers and data analysis. This is an inescapable requirement for Nike if the company expects to process larger data sets simultaneously. Additional insights into business management would be beneficial for Nike Plus, as the organization could share visuals across the team members to motivate them to perform better (Burgio, 2019). This is a critical concept because visual information could significantly aid the organization’s decision-making process and compare the existing trends with the fresh ones. The customized Nike Plus initiative would be the best instrument for Nike’s management, who would become able to make informed and quick decisions.

Accordingly, another area of improvement could be enhanced decision analysis, where the company would have exclusive insights into the community’s preferences and aspirations. Given the fact that decisions are never made in a vacuum, all the information available from the data visualization software developed by Nike could serve as the key source of unbiased, timely data. Gaining access to relevant information is the first step toward making accurate decisions that are not going to damage the brand or the organization in general. The existing data visualization software could be improved by direct employee education, where Nike’s data workers would be required to share unbiased data. On a bigger scale, this would protect Nike from overlooking important information and making bad decisions that were not evidence-based. Knowing that customers never step away from honest feedback, data visualization may only be deemed deceptive in the case where team members refuse to disclose the deep-down facts.

Conclusion

Data visualization quickly became one of the most important business technologies that are currently used practically everywhere, from local businesses to large industry moguls. Nike’s example shows that a simple data visualization technology can be used to develop a close community of individuals who share interests and motivation while remaining loyal to the same brand. Therefore, the company does not misreport any customer-related data and protects itself from poor decisions by performing recurrent analyses of all the data collected through sensors and tracking tools. With no missing or incorrect information, Nike accurately predicts the next move they should make and the market’s reaction to their decision-making.

The existing data visualization experience with Nike Plus allowed the company to increase its financial performance. The company’s customers willingly purchase Nike Plus-related products and tend to achieve more due to the visual representation of their successes. Nike’s example also shows that a data visualization is a potent tool that has to be utilized prudently. Otherwise, the company risks disclosing itself to market and customer losses due to improper messaging and incorrect decision-making. Nike Plus provides the community with powerful messages and detailed insights into their achievements, having Nike stand behind every predicted trend and correct decision the company had made since the advent of Nike Plus.

References

Burgio, V. (2019). Uncertain infographics: Expressing doubt in data visualization. Semiotica, 2019(230), 143-166.

Cunningham, L. M., & Stein, S. E. (2018). Using visualization software in the audit of revenue transactions to identify anomalies. Issues in Accounting Education, 33(4), 33-46.

Gunther, W. A., Mehrizi, M. H. R., Huysman, M., & Feldberg, F. (2017). Debating big data: A literature review on realizing value from big data. The Journal of Strategic Information Systems, 26(3), 191-209.

Jess, T., Woodall, P., & McFarlane, D. (2015). Evaluating the applicability of multi-agent software for implementing distributed industrial data management approaches. In Service Orientation in Holonic and Multi-agent Manufacturing (pp. 199-207). Springer.

Nair, L., Shetty, S., & Shetty, S. (2016). Interactive visual analytics on Big Data: Tableau vs D3.js. Journal of e-Learning and Knowledge Society, 12(4), 139-150.

Poon, C. C., Lo, B. P., Yuce, M. R., Alomainy, A., & Hao, Y. (2015). Body sensor networks: In the era of big data and beyond. IEEE Reviews in Biomedical Engineering, 8, 4-16.

Sosulski, K. (2018). Data visualization made simple: Insights into becoming visual. Routledge.

Trabucchi, D., Buganza, T., & Pellizzoni, E. (2017). Give away your digital services: Leveraging Big Data to capture value: New models that capture the value embedded in the data generated by digital services may make it viable for companies to offer those services for free. Research-Technology Management, 60(2), 43-52.

Zepel, T. (2018). Contemporary data visualization: A cultural history and close readings. University of California.

The article discusses the fate of Lance Armstrong, a world champion cyclist accused of using drugs to enhance performance. Several companies that used Armstrong in commercials to promote their brand ended their partnerships.

These companies include Nike, RadioShack corporation, Trek Bicycle Corporation, FRS Company and Anheuser-Busch (Albergotti et al par1). Among these companies, Nike was the harshest stating that the evidence presented against Armstrong by USADA was overwhelming.

Despite ending the partnership, Nike maintained that it would continue to sponsor Armstrong’s Livestrong Foundation that supports cancer patients.

Owing to the doping allegations that he denies, Armstrong resigned from the foundation’s leadership. Nike has in the past stood by Armstrong when similar allegations of doping were brought against him.

These companies manufactured the things that Armstrong used in his cycling career including helmets, bicycles, sunglasses and clothes (Albergotti et al par4). The allegations have tarnished Armstrong’s image, and his ratings as a favorite among companies have declined greatly.

Oakley Inc. maintained that it was reviewing the allegations and would determine the fate of their relationship with Armstrong after a verdict by the International Cycling Union. Unlike Tiger Woods, Kobe Bryant and Michael Vick who Nike strongly supported even after their scandalous accusations, Nike has disowned Armstrong even though they maintain that they believe he did not use drugs to enhance performance (Albergotti et al par10).

The action taken by the companies of distancing themselves from Armstrong is understandable because he risks tarnishing their image too. In addition, the allegations presented by USADA give these companies a reason to end their relationship with Armstrong.

Their actions have protected their corporate image because they have presented themselves as responsible companies that do not support the use of drugs. The decision by Nike to continue sponsoring Livestrong foundation is commendable because it is a gesture of their corporate social responsibility (Park par9).

In addition, the decision by Oakley Inc. await the verdict of the International Cycling Union is fair because the allegations may be false. Armstrong’s decision not to appeal makes him appear guilty against the allegations of using and distributing performance enhancement drugs (Park par1).

However, the cancellation of his endorsements by these companies is very harsh. They do not have any other evidence to prove that Armstrong doped part from the USADA report. In addition, the decision by the witnesses to testify against Armstrong is unfair because they agreed after finding out that he had decided not to appeal.

The incongruence in the affidavits of the witnesses is also an indication of Armstrong’s unfair treatment by USADA and the companies. Armstrong’s doctor has denied administering drugs to Armstrong (Mitchell par3).

The law firm that handles USADA’s legal matters may have a grudge against Armstrong because he fights laws that encourage tobacco use, which the firm supports. The decision by Nike to end its partnership with Armstrong is unfair because of two main reasons. First, they are relying on USADA’s report that they cannot verify whether it is true or false.

Their action further tarnishes Armstrong’s image despite the charitable work he has done (Pearson par6). Secondly, they continued to support Tiger Woods and Kobe Bryant who had scandals that tarnished their images.

It is ironical and unfair for Nike to end their partnership with Armstrong because they maintain that they believe Armstrong did not use performance enhancement drugs (Mitchell par8).

Nike and the other companies should have waited for the verdict of the International Cycling union before deciding to distance themselves from Armstrong. In addition, they should have conducted research to find the truth and use it to decide who is right between Armstrong and USADA.

References

Albergotti, Reed, O’Connell, Vanessa, and Vranica, Suzanne. Lance Armstrong Gets Dumped. Web.

Mitchell, Houston. Lance Armstrong’s Former Physician Denies All Doping Allegations. Web.

Park, Alice. Which Drug is Lance Armstrong Accused of Taking? Web.

Pearson, Michael. Lance Armstrong’s Legacy May Withstand Accusations. Web.

In 2016, American football quarterback Colin Kaepernick made headlines with his peaceful protests during one of the games. The football player refused to stand up for the US national anthem, which is required from everyone attending or participating in the event. Instead, Kaepernick went on one knee, with which he attracted attention from viewers and the press. Later, the San Francisco 49ers’ quarterback explained his decision to break the rules by his commitment to social justice causes. Kaepernick said that he was not going to “show pride in a flag for a country that oppresses black people and people of color (Abad-Santos, 2018).” In 2019, Kaepernick became the face of Nike and starred in an advertisement that won an Emmy the same year. Some people were moved by the message while others criticized the athlete for commercializing his efforts. This paper provides an analysis of Nike’s commercial starring Kaepernick from the Marxist standpoint.

Even if Kaepernick himself does not identify as a Marxist, it is quite easy to trace back the roots of and the motivation behind his peaceful protest to the Marxist ideology. According to Marx, the world could be explained in terms of exploitation and oppression. Every society in every era was largely guided by the class struggle between the oppressor (the ruling class) and the oppressed (the working class or proletariat) (Gliniecki, 2018). It should be noted that the struggle does not have to be obvious or explicitly violent: Marx draws attention to the veiled civil war that is going on without being noticed (Gliniecki, 2018). If in earlier ages, oppressors had to resort to open altercations, conflicts, and brute force, today, the tools of oppression are more subtle and intricate.

Marxism teaches that the next step after imposing control over the means of production is asserting ideological dominance. The objective of ideological dominance is to serve the interests of the ruling class by presenting their ideas about favorable class dynamics as a norm and common sense. For instance, ideological dominance might mean propagating unequal, exploitative relationships as natural, acceptable, and even desired (Gliniecki, 2018). Marx writes that ideological control results in the so-called false consciousness (Gliniecki, 2018). The working class is coaxed, coddled, and deluded into accepting the current order of things. Therefore, the capitalists have more leeway to pursue their interests further and normalize their efforts to make a profit at someone else’s expense.

Sports, which is the field in which Kapernick has been building his career so far, cannot be analyzed separately from the rest of society because, for sociologists, not a single part of society exists in isolation. Therefore, the same social forces of oppression and exploitation exist in sports. One may argue that sports are a field that offers many people belonging to disadvantaged communities a vehicle of upward social mobility. At a glance, such a stance is not completely ungrounded. Lawrence (2019) reports that in the NFL (National Football League) 68% of athletes are African-American and only 28% of them are White. However, the people who benefit financially such as broadcasters from these athletes are predominantly White (Lawrence, 2019). Therefore, the overrepresentation of Black athletes in sports is not indicative of any progress in social justice. They are appreciated mainly because they bring money. At the same time, ordinary Black people continue suffering from social ills fueled by racism such as police brutality, poor access to the justice system, and others.

Marx recommends bringing change by raising consciousness about the ongoing social conflict. The oppressed and exploited class needs to be taught that they are victims to help them break free from their false consciousness. Marx was encouraging both peaceful and forceful ways to challenge the existing system. Looking at Kaepernick’s protest, it becomes clear that it is Marxist. The athlete sought to raise consciousness about racial injustice in the United States. His act of bravery inspired other NFL athletes to do the same. In the next few years, Kaepernick carried on with avid activism such as donating to organizations working in oppressed communities and founding organizations of his own to address existing problems. The question arises as to whether the 2018 Nike commercial was made in the same Marxist spirit as everything that Colin Kaepernick had been doing so far.

This critique does not address Nike’s commercial in its original form. By the time the video was posted on YouTube, it had been seen by thousands of viewers during breaks at sports events. The commercial opens with Kaepernick saying “if people say your dreams are crazy if they laugh at what you think you can do — good, stay that way, because what nonbelievers fail to understand is that calling a dream crazy is not an insult, it’s a compliment (Hoops Daily, 2018).” The rest of the two-minute video is filled with images of people belonging to disadvantaged communities such as racial and ethnic minorities. Many of the people demonstrated in the commercial are visibly disabled. The video quickly addresses sexism and women’s empowerment by showing women doing traditionally male sports. Kaepernick closes the video advising its viewers to cease asking whether their dreams are “crazy” and inquire whether they are “crazy enough (Hoops Daily, 2018).”

The text of Kaepernick’s commercial is a discrete entity as it has a beginning and an end. Nike is a huge multinational enterprise that has millions of customers. When making a new campaign, it must have been crucial for the corporation to create a video that would appeal to broader audiences without any need for further explanation. Indeed, Kaepernick’s narration and ideas presented in the commercial are in line with Nike’s “Just Do It” campaign that encourages people to push their boundaries, resist social pressure, and follow their dreams. The video’s message is clear even to the viewers that do not know who Kaepernick is and what he has done for the black rights movement in the United States. One detail that proves this point is the absence of any references to Kaepernick’s protest – he does not kneel, nor does he address racial injustice in any manner.

As someone on the frontline of the fight for equal rights, Kaepernick divides society into oppressed and oppressors. The characters in the commercial belong to the oppressed class: they have their dreams and aspirations, but they are strained by the system that takes away their opportunities. The ruling class is not explicitly shown in the video, but its existence is implied: it is composed of the people who discourage the victims of oppression from carrying on with their fight.

Based on the reaction that Nike’s commercial caused across the globe and especially in the United States, it becomes clear that many viewers did manage to tie Kaepernick’s message to the largest context of his views and activism. Abad-Santos (2018) describes the social media boycott that followed Kaepernick becoming Nike’s new face in 2017. Outraged customers were pledging to never buy Nike’s products again; some of them even destroyed the company’s apparel that they owned and posted the pictures to social media (Abad-Santos, 2018).

On the one hand, Kaepernick seems to have succeeded in communicating his views in his commercial and challenging the system, which scandalized the ruling class. On the other hand, Nike ddecisionto highlight Kaepernick was not done without a clear purpose. In actuality, the company has had the NFL athlete under contract since 2011 (Abad-Santos, 2018). The timing of the commercial was not a coincidence: Nike must have waited long enough for the discussion around Kaepernick’s act to galvanize and gain enough traction. Surely, using Kaepernick was risky, but whatever minor hit to the company’s stock and reputation his appearance has caused, it has been absorbed by the amount of attention the company has gotten. Besides, the spirit that drives one person to burn their pair of Nikes is the same spirit that will push another person to buy a new pair. Those who are outraged by racists’ pushback will be quick to support the “socially aware” and “conscious” company by making purchases or even just talking about it on social media. These facts make Kaepernick’s agenda questionable: it almost seems as if he commercialized his ideas by collaborating with Nike.

Nike’s commercial is made to reach out toth broad and narrow audiences. At first glance, it broadcasts generic ideas about motivation, self-confidence, perseverance, and personal growth. It would not be a reach to say that every viewer has big dreams that keep them inspired but at the same time, deep-seated anxieties that beat their aspirations down. Kaepernick’s commercial seeks to help viewers to get rid of self-doubt, whatever it might be, and “just do it.” Besides, the ad was shown at the beginning of the NFL season and also aired during other sporting events such as the U.S. Open, Major League Baseball games, and college football. The choice of media for showing the ad proves the intention to connect with large numbers of people.

Upon further analysis, it becomes apparent that the video focuses on people who are at a disadvantage in one way or another, be it race, gender, or ability. These narrow audiences might find the commercial especially resonant with their experiences. For instance, some of them might have faced misunderstanding regarding their out-of-the-box dreams and ideas that are still seen as unreasonable or inappropriate in today’s society. To this, Kaepernick replies that calling disadvantaged people’s dream crazy is not an insult – it is a compliment. In essence, the “non-believers” unknowingly acknowledge the ambition – if not fear it.

Nike’s commercial might be inventive and imaginative in its way, but its context is rather reactive. The discussion about inequality in American society has been going for quite some time. Approaching the issue from the Marxist perspective, inequality and discrimination have been an indispensable part of every society. According to Marx, people have always tried to climb the dominance hierarchy by exploiting others (Gliniecki, 2018). At the same time, it needs to be pointed out that while oppression remains a constant, it takes various, ever-evolving forms.

For example, Lopez (2016) writes that nowadays, people with racist or other discriminatory views use the so-called coded language. CurThe currentcial code still draws on the deep-seated stereotypes of groups not accepted or deemed threatening by society. However, the terms are not naked in the sense that they do not emphasize biological differences but point out traits and behaviors. Today’s racism is covert: it is subtle and hidden, which makes defining the problem challenging, and what is the context in which Nike’s commercial exists.

Narrowing the scope, it seems that the context in which the commercial is put within Nike itself is not proactive either. The iconic “Just Do It” is not a campaign or a slogan: it is the corporation’s entire philosophy that dates back to the late 1980s. The first “Just do It” advertisements were addressing the issue of gender equality. For instance, the 1991 piece was telling women that it was never too late to “have a life (Creative Review, n.d.).” Another one from 1995 titled “If you let me play” encouraged parents to let their little daughters play sports to give them confidence (Creative Review, n.d.). The advertisement had a social message: it suggested that fit women had better chances to stand for themselves and not tolerate abuse and domestic violence (Creative Review, n.d.). Nike’s commercial with Kaepernick is in line with the previous advertisements: it furthers the discussion but does not contribute anything radically new to it.

The reactiveness of Nike’s commercial is reflected in the fact that it responds to an existing problem, which is social inequality. However, knowing that Nike is not a non-for-profit organization but a giant corporation, it is only reasonable to ask what purpose this reaction serves. On the one hand, the company might be genuinely interested in the social causes that it promotes such as female empowerment, racial justice, and others. On the other hand, it would be naive to ignore the fact that businesses routinely harness social forces and trends to make a profit. The timing of the ad mentioned before proves that Nike has been pretty calculating in its approach. Besides, Kaepernick’s commercial does not offer any valuable solutions to solve the problem except for encouraging the disadvantaged to fight their way to the top. This approach completely dismisses the presence of oppression and makes survival, personal growth, and success entirely the responsibility of the oppressed.

As for the anatomy of the text, Nike’s commercial has a clear structure that is easy to follow. It starts with a hook: Kaepernick builds a personal connection with the viewer by describing a relatable situation where a person’s dreams are ridiculed. The video uses the “you” pronoun a lot to showcase that the viewer is at the center of the narration. The first few shots show Kaepernick looking into the camera from a distance that creates an impression of being involved in a personal conversation with him.

After a short introduction, the commercial alternates between pictures and videos of ordinary people doing sports and famous at least with Kaepernick as a narrator. The commercial appeals to the viewer’s ethos through the figure of Kaepernick: he is a renowned sportsman who has accomplished a lot in life despite racial injustice. Pathos advertisement techniques in the video are mostly realized through visuals and music. The commercial shows images of struggling people who eventually make their dreams come true – all accompanied by a touching piano tune. The commercial is appealing to logos as it makes a clear argument: if these peocaughtlght the adversity, anyone can. All the precedents of making it big despite difficulties confirm that it is possible.

All the examples used in the video follow two sentence structures: “Don’t be the fastest runner in the world, be the fastest ever” or “If you have only one hand, don’t just watch football – play it (Hoops Daily, 2018).” The use of gradation (a series of expressions the sentiment of which gradually increases) is meant to encourage the viewer to up the ante and increase their level of ambition. In the end, the commercial comes full circle as Kaepernick answers the question he asked in the very beginning. He concludes that the viewer should not doubt the plausibility of their dreams but dream of even bigger things.

While the video highlights the juxtaposition between the disadvantaged people and the system, it never pays enough attention to the latter. For instance, at one point, the commercial shows a young football player and comments that being a refugee should not stop anyone from doing this sport. However, the question as to exactly what structures and systems in place could prevent a person with a refugee background from achieving their dreams is never answered.

To conclude, Nike’s commercial starring Kaepernick is a discrete piece of text with clear boundaries. The version of the commercial used for this critique is unoriginal as it was posted on YouTube after it had been shown to thousands of viewers at sports events. The commercial is reactive: it is a logical continuation of Nike’s “Just Do It” philosophy and in line with contemporary social trends. Nike’s timing makes one wonder whether its reaction to the social problem was genuine or a part of a larger strategy to gain attention and increase profits. One thing is clear: Nike and Kaepernick prefer to sugarcoat the truth and create generic motivational commercials even if it means ignoring the crucial aspects of the very problems that they address.

References

1. Abad-Santos, A. (2018). Why the social media boycott over Colin Kaepernick is a win for Nike. Vox. Web.
2. Creative Review. (n.d.). The history of Nike’s Just Do IDoesslogan.
3. Gliniecki, B. (2018). Law and Marxism: The state and the constitution. Web.
4. Hoops Daily. (2018). Colin Kaepernick JUST DO IT Nike Commercial 2018 feat LeBron James & other athletes[Video file]. Web.
5. Lawrence, A. (2019). The NFL is 70% black, so why is its TV coverage so white?The Guardian. Web.
6. Lopez, G. (2016). The sneaky language today’s politicians use to get away with racism and sexism. Vox. Web.