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Products - Weakness Nike has had much success as a result of collaborating with other companies within the sports and fitness industry.
However, at times we expanded into markets for which we were not strategically suited. An example is the decrease in brands made available due to declining sales of in-line skating and roller hockey products at Bauer Nike Hockey.
As a result, we have had to exit two manufacturing operations at our Bauer Nike subsidiary. We had to terminate 51 employees. Had we anticipated the decline sooner, perhaps gradual changes could have been made so that the end result may not have been as finite in nature.
The desire to prevent situations such as these from continuing to occur, we have initiated a more aggressive program to review product collaborations that are outside of our core basis of products.
While the prices are realistic given the nature of the products we offer to our consumers, at times our consumers may not agree. This presents a weakness.
Despite the fact that in the past we may have overlooked the mid- to lower-price-point products, presenting another weakness with room for improvement, we are dedicating our time and money to better develop our competitive position at all price points to build strengths at each of these levels.
We see much potential in the lower price points and plan to meet the needs of those markets. Because of such research, we have decided to revamp our apparel division, an area in which we can still greatly improve. Nike will be organizing the internal business by gender as opposed to sport category and conducting increasing amounts of research addressing the buying habits of men, who tend to be item-driven, and women, who tend to be collection-driven, with specifically targeted product lines.
The locations are geographically dispersed which works well in our mission to be a truly global company. The production facilities are located close to raw materials and cheap labor sources. They have been strategically placed in their locations for just this purpose.
In general, the facilities are located further from most customers, resulting in higher distribution costs.
However, the cost savings due to the placement of our production facilities allows for cheaper production of our products despite the higher costs of transporting our products. As Nike continues to expand in the global economy and increase its market throughout the world, these dispersed facilities will prove to be beneficial.
Newness of Facilities - Weakness Our facilities abroad have attracted bad publicity in recent years. Though our facilities comply with local labor standards, generally, they have not met U.
We want to be a leader and set a responsible corporate example for other businesses to follow. Expanding our current independent monitoring programs to include non-governmental organizations, foundations and educational institutions. We want to make summaries of their findings public; Adopting U.
Occupational Safety and Health Administration OSHA indoor air quality standards for all footwear factories; Funding university research and open forums to explore issues related to global manufacturing and responsible business practices such as independent monitoring and air quality standards.
While establishing these policies is a step in the right direction for Nike, the difficult task at hand will be the implementation of the aforementioned goals to ensure the success of the program.
Research and Development Focus - Strength Although Nike conducts continuous, basic research that benefits numerous facets of the sports and fitness industry, our primary focus is directed towards applied research. Applied research focuses on short-term initiatives such as successfully developing new product lines.
This proves to be a strength in that this method of research is less costly than basic research, and less risky due to the short-term nature. Successful projects can realize immediate profitability while unsuccessful projects may be discontinued without enduring materially large losses. Focus — Weakness Focusing on applied research can be a weakness as well.
Many new, innovative ideas come into existence as a result of basic, unspecific research. Though more risky and expensive, Nike would benefit from increasing the amount of basic research we conduct with hopes of uncovering potential opportunities of which Nike could take advantage.
Posture - Strength Our posture is primarily innovative, while at times adjusting to a protective position, and other times a catch-up stance.
Nike prides itself on being a premiere provider of high quality sports footwear and apparel. Innovation has been the key to aiding Nike in securing its position as the leader in the market. Due to the lead Nike possesses in the industry, we can afford to look long-term and place a greater emphasis on innovation as opposed to other companies with a short-term outlook attempting to improve upon existing products and services.
At times, we need to adjust our posture in relation to a particular product line or area of products. In these instances, Nike may choose a defensive strategy to remedy the current situation.
We may also choose a catch-up strategy and mimic what is working well for other companies in the industry. Human Resources Human Capital - Weakness No successful company can exist and succeed without utilizing its human capital. While Nike has had various policies in place, weaknesses still exist in regards to labor policies in overseas locations.
We received much bad publicity as well as experienced a decrease in sales as a result of poor labor policies and lack of policies established abroad.
Increasing the minimum age of footwear factory workers to 18, and minimum age for all other light-manufacturing workers apparel, accessories, equipment to 16; Expanding education programs, including junior and high school equivalency courses, for workers in all Nike footwear factories; Increasing support of its current micro-enterprise loan program to 1, families each in Vietnam, Indonesia, Pakistan, and Thailand.Evaluate Nike’s response to societal and consumer concerns about its contract manufacturing.
The most important thing that Nike has done to improve its standing in response to societal and consumer concerns the increase of transparency with its overseas subcontractors. Evaluate NIKE's response to societal and consumer concerns about its contract manufacturing.
New challenges in the future In , Mark Parker was elected as President. Q2) Evaluate Nike response to societal and consumer concerns about its contract manufacturing? Nike responses have been considered by critics to be more of damage control tactics rather than a sincere attempt at labor reform.
Do you think that Starbucks has grown rapidly because of its ethical and socially responsible activities or because it provides products and an environment that customers want?
Nike: Evaluate Nike’s response to societal and consumer concerns about its contract manufacturing. Evaluate Nike’s response to societal and consumer concerns about its contract manufacturing.
Nike had contracted approximately factories in 46 countries to manufacture Nike products.
This is a big concern as having so many factories means that it will bring greater harm to the environment. Evaluate Nike’s response to societal and consumer concerns about its contract manufacturing. 2. What are the challenges facing Nike in the future? Phil Kni Evaluate Nike’s response to societal and consumer concerns about its contract manufacturing.
Nike’s response to this issue has been considered by critics to be more of a damage.