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Submitted by jiggz on May 12, 2008
Category: Business
Words: 963 | Pages: 4
Views: 106
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PROBLEM STATEMENT
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What should Nike do to counter the various advocacy groups protesting Nike and yet still be profitable?
SWOT ANALYSIS
Strengths
* Nike has strong brand name and its logo (“swoosh) is a distinctive and instantly recognizable logo.
Through the years, Nike was able to establish its brand which is often associated to products of superior quality and high standard. Likewise, its logo is easily identified by consumers of athletic and sportswear. Its logo is best known as a global symbol of athleticism and cool.
* Endorsers are well-known personalities and athletes.
Michael Jordan and Tiger Woods are among the known personalities and athletes that endorse Nike products. Nike rules because of all the good things people associate with the company endorsers and advertisements.
* Outsourcing all its manufacturing to low cost parts of the world.
Nike is characterized of making its equipment in countries which are in the developing phase, having very cheap labor. In doing this, it has made greater margins on the cost of mere cents to its workers.
Weaknesses
* Initially ignored the protests and criticisms by various groups regarding the unfair labor practices of its contractors until it has negatively affected the income of the company.
Although there have been reports of unfair labor practices conducted by their contractors, Nike didn’t admit these malpractices neither they enforced their contractors to improve the working conditions of their workers. Nike managers argued that the Indonesian factories were owned and operated by independent contractors, not by Nike and further claimed that Nike is just marketers and designers.
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