Nike is the pretty little story of two athletes, a track coach at the University of Oregon (Bill Bowerman), the other student in accounting and semi-distance runner (Phil Knight) who had the idea to import the Japanese athletic footwear not too expensive and technically efficient enough. They were joined in 1965 by Jeff Johnson becomes the first vendor-company representative who toured the athletic fields of the country to promote their shoes. But soon, Bowerman wants to make his own shoes. It is therefore natural that in 1972, Nike was born (Nike, 2011, 1).
Nike is the precursor to off shoring. At the time, the concept is new in the field of textile. Now followed by most of its competitors, however, this innovation will enable him to secure a monopoly rent through undisputed market dominance over the years. Nike has never had a factory and remains true to its principles of economics out: outsourcing in developing countries for maximum profit. So for some, this lovely philosophy can cause some minor ethical problems (Sage, 1999, 206-235). Not for Nike, this will be able to reinvest profits rather than in manufacturing but in research and marketing campaigns.
Currently there are policies that allow growth companies in granting political freedom in the progress of their products, and a free market. However there is a constant struggle against the imitation of Nike products offered in the market, a problem for which he had to spend large sums of money in legal claims (Wakefield, 2010, 68-8).
In economics, the greatest threat to Nike would be the economic downturn. During the last recession Nike's growth was negatively affected. The world economy is experiencing a slight increase after one of the biggest economic downturns in history, the economic crisis also affects Asia, and because its products are manufactured in Asia. The labor costs and prices are rising (John, 2008, 46).
People are more health conscious today. Diet and health are becoming increasingly important. Consequently, more and more people join fitness clubs. There is an accompanying demand for fitness products for the whole year of clothes, shoes and equipment. Nike is at the forefront of this increase in demand because people are looking for athletic footwear, apparel and equipment.
Nike, however, has had problems with the high social impact that has had the reputation of operators who have to their workers in their factories in Asia. This bad publicity has caused the decline in sales of the company and consumers demand more social responsibility companies (Carbasho, 2010, 120-132).
Nike is always at the forefront of technology in sports products, giving consumers the comfort and quality that allow the expected results of nike buy a product on the market (John, 2008, 46).
Porter Five Forces
1 - Threat of potential entrants:
For the entry of new competitors into the market does not exist any barriers of entry, but companies are already competing in this sector are well positioned by others in the market of prestige and ...