Nike Outsourcing - 2367 Words

Matthew Christensen History C Thorton 15 February 2013 Cuts Costs * Decreasing overhead through outsourcing is a valuable resource for Nike. Cutting costs by employing workers at a reduced rate or paying less for plant operation allows Nike to invest the additional profits into other areas of the business such as advertising, thereby increasing the potential for company growth. In addition, decreased operational costs are more likely to attract and retain company investors because more money can go into increasing business profitability.†¨Ã¢â‚¬ ¨ Increases Competitiveness * Because Nike is able to more efficiently produce its product and reduce costs due to outsourcing, it can more competitively price its products. This enables Nike†¦show more content†¦Nike grew at a compounded 20 percent growth rate and earned a 31 percent ROE for its shareholders through most of the past decade. †¢ Knowing it could not be the best at making chips, boxes, monitors, cables, keyboards, and the like for its explosively successful Apple II, Apple Computer outsourced 70 percent of its manufacturing costs and components. Instead of building internal bureaucracies where it had no unique skills, Apple outsourced critical items like design (to Frogdesign), printers (to Tokyo Electric), and even key elements of marketing (to Regis McKenna, which achieved a â€Å"$100 million image† for Apple when it had only a few employees and about $1 million to spend). Many of us know Nike for the clever maketing campaigns, celebrity athelet s, swoosh logo, and Just Do It! slogan. In 1963 the worlds largest athletic shoe company was founded by Philip Kight and Bill Bowerman for $500 apiece and a handshake, and today has over $9 billion in revenues. After several years of record breaking performance Nikes global labor practices were brought to the attention of the public as early as the 1990s. Which included publishings in Harpers magazine that a Nike subcontractor paid woirkers just under 14 cents an hour. Other reports includeShow MoreRelatedOutsourcing with Nike2220 Words   |  9 PagesOutsourcing Table of Contents: No. Desc. Page No. 1. Outsourcing 3 1. Method 3 2. Summary 3 4. Overview/history of company 3 5. Reasons for outsource 3 6. Offshore or domestic 4 7. Pros and Cons of outsourcing to third world countries 5 8. Alternative recommendations 7 9. Conclusions:Is outsourcing a good thing 8 10. References 9 Method: Investigation on outsourcing within business. The outsourcing of trainer companies within developing countries with particular emphasis on Nike outsourcingRead MoreOutsourcing Practices of Adidas, Converse, Nike, and Reebok1079 Words   |  4 PagesOutsourcing Practices of Adidas, Converse, Nike and Reebok Introduction Apparel and shoe manufacturers continued to offload the more costly yet easily replicated part so their business models to concentrate on brand building, marketing, sales and attaining greater distribution channels globally. These are the pressures all apparel and shoe manufacturers face, and it is particularly challenging in the athletic show industry (Kynge, 2009). Adidas, Converse, Nike and Reebok have been outsourcingRead MoreNike s Aggressive Marketing And Pricing Approach1154 Words   |  5 Pagesimpact on product sales every quarter. These investments have resulted in stronger brand loyalty through active customer-relationship building and continuous improvements in their products. With over 500,000 different products being produced each year, Nike has secured a position with each demographic across the globe. In addition, their abundance of suppliers has allowed them to achieve grand economies of scale over their competitors. This is further maximized through the high invest ments in informationRead MoreSwot Analysis Of Nike s Marketing Strategy1543 Words   |  7 Pagesapplying diversification strategy and being successful in diversification is Nike, Inc. This paper discusses Nike’s diversification strategies and how the company succeeds in using it. Along with corporate level strategy, this paper also touches upon the international strategy that Nike uses. Key Tie-Ins †¢ Diversification strategy †¢ International strategy Nike Diversification Strategy Upon first glance it is not very obvious that Nike employs diversification in their overall corporate strategy. The companyRead MoreNike s Business Model : Nike Inc.1430 Words   |  6 PagesNike Inc. is a multinational athletic sportswear corporation that produces a wide range of both men’s and women’s footwear, clothing, equipment and accessories. It is also globally the largest seller of such garments, selling to approximately 19,000 retailers in the USA, as well as in 140 other countries around the world. Of course with such territory Nike has become a huge target to a broad range of campaigning non-governmental organizations and journalists as significant representation of businessRead MoreThe Athletic Shoe Industry Is Made Up Of Companies That Produce Footwear For Athletic Use1638 Words   |  7 Pagesbeen around for over 100 years. The athletic shoe industry is one of the fastest growing footwear industries and have top growing sales compared to other footwear industries (NDP Group, 2016). The key players that currently dominate the market are Nike, Adidas, and Puma (Kates Bolduc, 2013). This paper will use the porter five forces, industry life cycle, and the key players to understand the industry. Over these years the athletic shoe industry has grown into a competitive market. Porter’s FiveRead MoreComparison Between Nike And Adidas1679 Words   |  7 Pages The companies I chose are Adidas and Nike. The reason I chose these two is because they re both popular brand names around the world. Nike is base in the US and Adidas is base out of Germany. Nike and Adidas carries manufactures basically the same products. These companies offer similar products in comparisons to each other. Both of these brand s are well- know in households. The slogan for Nike is Just Do It is well-known around the world. Nike s slogan is used in printable ads andRead MoreMarketing Analysis : Nike, Adidas, Aon, And Nike1161 Words   |  5 Pagesthe best favorable terms to woe more customers. The sports industry is not any exception. The industry confronts lots of competition amongst its key players. The major players as discussed in the industry analysis paper are Puma, Adidas, AON, and Nike. This essay entails a discussion of the competitive strategies each firm has over the others, giving reasons why the brands have been exceptional in the market. Strengths and weaknesses of Puma A SWOT analysis may be utilized to investigate into theRead MoreMarketing Strategy Michael E. Porter s The Five Forces Model1543 Words   |  7 PagesAdidas The global retail sporting goods market is enormous, â€Å"The market is forecast to reach an estimated $266 billion in 2017†. (Thomasson, 2014)Adidas AG international largest sportswear manufacturer in Europe and second biggest in the world after Nike. â€Å"Adidas business was founded in a village by the name of Herzogenaurach, Bavaria in Germany in 1925 by brothers Adolf and Rudolf Dassler. Besides sports footwear, the company also produce other products such as bags, shirts, watches, eyewear andRead MoreNike Pestle Analysis1088 Words   |  5 Pages Nike is a US-based company that sells sports apparel for men, women, and children and is a major competitor in the industry, In this paper, we’ll be discussing Nike’s standings by using a PESTLE analysis, which looks at the political, economic, social, technological, legal, and environmental factors that affect an organization (A Pestle analysis, 2017). The first trend is political find this company in a similar arena as most corporations since the topic effect the management of the company and