SOCIAL AND DIGITAL MEDIA OF NIKE
Table of Contents
VALUE CHAIN ANALYSIS OF NIKE.. 7
ABSTRACT
Nike is a big brand and works on systematic workflow. It has a great market value created through good services and valuable products. Here a good analysis of the products of Nike is done for a better understanding of the strategies and marketing values. Along with that, its digital and social analysis is done for understanding the workflow on which it works. Well-structured information is gathered out from official resources to examine the working of great brand Nike. Digital marketing and social analysis are done through real-world examples for a better understanding of the reader.
INTRODUCTION
Nike is the Winged Goddess of Victory in Greek mythology. The goddess’s wing,’ swoosh,’ is the inspiration for the logo, which represents the sound of pace, movement, strength, and encouragement. Nike is an American multinational corporation that has grown to become a world leader in athletic apparel, with annual revenues reaching $21 billion in 2016, with foreign markets accounting for more than half of that total. Nike has been a pioneer in product growth, marketing, and customer engagement since its founding in 1964. Nike has grown from its modest beginnings in the 1960s as Blue Ribbon Sports (BRS) to become the world pioneer in the sports apparel industry since its inception in 1972. BRS hired 20 employees in 1969, and sales from its various retail stores totaled $300,000. By 1972, the year after the launch of the branded product Nike, 45 employees had more than doubled in size, with revenues rising substantially to almost $2 million. (Stonehouse & Minocha, 2008) By 1979, revenue was up to $149 million, Its shoes were sold in countries such as Canada, Asia, and Australia, and its items were made in the United States, Taiwan, and Korea.
Nike has also found that people are wearing running shoes for comfort and casual wear, not just for sports. As a result, they create shoes to meet these requirements. Women, in particular, are increasingly wearing athletic shoes as casual attire. (Dove, 1991). Along with that, its quality and services are up to the mark as desired by people. Nike has a wide variety of choices associated with sneakers. It contains a large collection of designs and trends that easily attract people and most importantly the quality and standards are up to the mark. Explanation of Successful Marketing Campaigns Nike is recognized not only for production but also for high-quality marketing shoes outside of the sporting world.(Porter et al, 2017). Just Do It is the company’s motto, and every pair of shoes made features an iconic swoosh.
AUDIT AND ANALYSIS
The Audit & Finance Committee of the Board of Directors of NIKE, Inc. (the “Company”) exists to support the Board in meeting its legal and fiduciary responsibilities in matters relating to the Company’s accounting, auditing, financial statements, and internal controls. The Committee’s mission is to support the Board’s oversight:
-The financial records of the company are accurate.
-The Company’s adherence to legal and regulatory obligations.
-The credentials and independence of the impartial auditor.
-The Company’s internal audit feature and independent auditor’s results.
In the last two decades, the athletic footwear market has grown at a breakneck rate. Consumers in the United States alone spent $5 billion on sneakers in 1985, purchasing 250 million pairs.
They invested over $13 billion and purchased over 335 million pairs of shoes in 2001. Even though the market is heavily segmented – by sports, shapes, and price – a few major players control the branded shoe segment. (DeTienne & Lewis, 2005) About 70% of the worldwide athletic footwear industry is controlled by the top ten footwear firms. Nike has grown to become the world’s biggest and most influential sports shoe brand, displacing Adidas in the early 1980s and Reebok in the early 1990s.
Its revenue breakdown is explained through a picture given below:
Fig 1: REVENUE BREAKDOWN
To share their brands more intimately, Nike’s customer experience blends mass-produced retail stores with engaging with actual consumers and AI technology. They do this by using the following methods: Things that are already created. Apps and customization systems that are cutting-edge. Nike does not believe in overcrowding their social media accounts. Rather than posting regularly, they concentrate on making high-quality material and spreading it if they do. It targets the requirement and feels of the viewer by advertising it through digital marketing strategies and various social media platforms such as Facebook, Instagram, and many more.
Fig 2: NIKE TAKE SOCIAL MEDIA IN HOUSE
Nike uses social media to foster a sense of identity and a sense of belonging for its followers. Its tweets are simple, snappy, yet persuasive, with the hashtag #justdoit or other group hashtags like #nikewomen almost always included Customers between the ages of 15 and 45 make up the majority of Nike’s target audience (Stabile, 2000). Nike has shifted its commercial efforts to the digital realm in recent years. The company went high-tech with its entry into digital sports and e-commerce. Along that various other social ways are used to enhance company profits by using banners and screens in people gathering areas.
Fig 3: SOCIAL MEDIA USAGE
Nike’s marketing strategies are very successful. To develop a dedicated fan base, they rely on telling meaningful stories. Nike uses “emotional branding” to elicit empathy from its customers (Etter et al., 2019). Ads are carefully designed to elicit specific emotions and make Nike brands more important in the minds of consumers.
VALUE CHAIN ANALYSIS OF NIKE
Nike does not, however, see it as a static, stand-alone system in which all actions are given equal weight. Nike must recognize that not all operations or tasks need the same degree of inspection to conduct a successful Value Chain Analysis. As a result, identifying the relevance of actions based on their position in the product/service is the first step in adapting the Porter Value Chain structure.
Porter proposes the following list of key-value chain activities:
Primary Activities:
Nike’s key supply chain operations include directly manufacturing and distributing products to specific consumers. Nike’s efficiency can be improved by analyzing key supply chain operations, as discussed below.
Inbound Transportation:
It’s critical to cultivate positive vendor partnerships because you’ll need their assistance in receiving, stocking, and selling the items. If Nike does not include inbound logistics during the product development period, it will face a slew of issues. Inbound logistics research necessitates a company’s focus on every stage of the transition process, from raw materials to finished products.
Execution:
The complexity of analyzing operating activities increases as raw material arrives and Nike refines it into a finished product before releasing it on the market. Organizational practices include machining, packaging, assembly, and quality control. This term also includes equipment repair and servicing.
Outbound Logistics:
The operations that supply a service to a customer by different intermediaries are referred to as outbound logistics. Outbound distribution activities include material handling, warehousing, organizing, order picking, packaging, and shipping to the destination. Nike plans to look into and improve outbound logistics in order to find new sources of competitive advantage and expand its market.
CONCLUSION
A brief explanation of all terms and marketing values of Nike are discussed above, which help us in gaining the interest of people with products of Nike. Even its audit explained well for analyzing the marketing term of Nike. Along that analysis of its social and digital media are discussed above to know how it achieves its target sale and gains profits. At all this help us in a brief understanding of the workflow of Nike.
RECOMMENDATION
Nike+ is Nike’s latest technology. The corporation is attempting to follow in the footsteps of Apple, which has perfected this approach (Bukvic, 2015). Furthermore, I believe that revealing these new product presentations in a public forum and staging them in an immersive and fancy manner, as well as making them available for live streaming around the world on Nike’s website, will be beneficial.
During the creation of the shoe, the firm secured 65 patents. The shoe is expected to be released in 2015, the same year as the film’s release date. I see three possible implications of Nike’s change. First and foremost, this technology applies to outdoor apparel brands as well, and it has the potential to revolutionize athletic shoe fit, offering Nike an additional competitive advantage.
REFERENCES
Bukvic, M. (2015). Nike. How, 30(5), 21–21.
DeTienne, K. B., & Lewis, L. W. (2005). The pragmatic and ethical barriers to corporate social responsibility disclosure: The Nike case. Journal of Business Ethics, 60(4), 359-376.
Dove, R. (1991). Nike. Ploughshares, 17(2-3), 270–270.
Etter, M., Fieseler, C., & Whelan, G. (2019). Sharing economy, sharing responsibility? corporate social responsibility in the digital age. Journal of Business Ethics, 159(4), 935–942.
Stabile, C. A. (2000). Nike, social responsibility, and the hidden abode of production. Critical studies in media communication, 17(2), 186-204.
Stonehouse, G., & Minocha, S. (2008). Strategic processes@ Nike—making and doing knowledge management. Knowledge and Process Management, 15(1), 24-31.
Porter, M. E., & Heppelmann, J. E. (2017). Strategy why every organization needs an augmented reality strategy ar will become the new interface between humans and machines. Harvard Business Review, 95(6), 46–46.
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