Just Do It Discussion-606 Juri Ots 99102196260 Chris Olsen 99076020320 Benjamin Witzigmann 99074500930 Krista Werner 99074336770 Carice Adams 990692566

Nike Running Shoes Nike's Mission Statement: "To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.“ Objective- To have low cost and high quality shoes To provide service; the world leader in designer, marketing and distributor of authentic athletic footwear, apparel, equipment, and accessories for a wide variety of sports and fitness activities. Objective- To have low cost and high quality shoes Mission Statement-"To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.“

Industry Main competitors Advantages Guaranteed shelf space Strong history and Presence The athletic footwear industry is in consolidation mode and Nike’s two top rivals, Adidas and Reebok merged in 2006. The global sports footwear market is almost an oligopoly between Nike and Adidas-Reebok. (http://www.gurufocus.com/news.php?id=33408) Nike has distribution deals with large retailers which guarantees shelf space; it also has a size advantage when negotiating sourcing and sponsorship contracts.

Micro/Macro Categories Legal (Political Environment) Customers (Economic Environment) Ecological (Natural Environment) Political Environment Technology Environment

Legal Macro External Market Environments Along with popularity comes problems "Nike is widely considered to be the most counterfeited brand. One Nike employee estimated that there was one fake Nike item for every two authentic ones." Nike has a problem with their products being counterfeit by a number of organizations. These organizations would either steal the blueprints or an actual shoe to counterfeit. The organizations acquired the blueprints by going on Nike’s website where they previewed upcoming shoes. Which contributes to the problem of counterfeit Nike shoes. In September 2007 just under 300,000 counterfeit Nike shoes were seized from a warehouse in Brooklyn. If Nike would had sold these products they would have totaled 31 million in revenue for the company. Source: http://www.nytimes.com/2010/08/22/magazine/22fake-t.html?_r=1&scp=1&sq=Nike%20Running%20Shoes&st=cse

Customers Micro External Market Environments "The Nike Zoom Structure Triax is another well-reviewed stability running shoe. Runner's World magazine editors give it a Best Update award for 2010, saying it feels light but still provides ample support." Objective- To distribute low-cost, high quality Japanese athletic shoes to American consumers in an attempt to break Adidas and Reeboks control of the market. Nike has made shoes for the customer to help them from shin splints and other running injuries. They have made many different variety of running shoes to help customers with low or high arches. Nike is a brand that has the ability to fulfill different customers wants and needs, there is a Nike shoe for everyone. Source: http://www.consumersearch.com/running-shoes/best-running-shoes

Ecological Macro External Market Environment Worn Out. Play On "These three companies are by no means the only socially and environmentally responsible shoe companies, but Brooks, Nike, and New Balance have shown that a company can make a quality product without compromising the environment." Nike has made their running shoes more environmentally friendly by using recycled shoes. Nike uses the old shoes to make playgrounds, cushion for basketball courts, the surface of tennis courts and track material for running tracks by grinding the shoes up. Over 25 Million pairs of shoes have been collected globally since 1990. According to Lorrie Vogel, the general manager of Nike’s Considered Group, “Its not about 2 or 3 green shoes its about changing the way our companies does things in general.” Sources: http://www.suite101.com/content/green-running-shoe-brands-a211086 http://poptech.org/lorrievogel

Political Macro External Market Environments Nike Sweatshops Workers protest Nike makes improvements Since the 1990’s the company has been criticized for the working conditions and low wages at their factories in Asia. Tens of thousands of employees went on strike in the late 1990’s despite workers strike being illegal in these industrializing countries Nike has worked to improve conditions at its factories, raising wages, lowering harmful pollutants and passing health inspections Source: http://www.ehow.com/about_5485125_nike-sweatshops.html

Technology Micro External Market Environments Improved Technology “As fitness evolves, Nike’s products are planned to give consumers a competitive edge and help athletes perform better.” Improved technology in shoe design keeps production and demand high. “Through continuous effort by Nike to remain at the apex of technology and innovation, they are the market leader by a significant margin” Sources: http://www.freeonlineresearchpapers.com/nike-inc http://www.free-essays-free-essays.com/dbase/2b/bmu293.shtml www.newyorktimes.com

Product analysis Two friends wanting to create a shoe for all sports and all people at an affordable rate Higher domination of stores because of name Quality and innovation Popularity means trouble Tim Bowerman and Phill Knight created the Nike brand shoe to give consumers a great product that had style and comfortability for just the right price. With Nike being such a high quality brand name shoe, retailers will do anything to have them in there store because that only brings in revenue. Nike continues to come out with the best of the best, with there product being so durable, people know they are getting what they pay for at the right price. Although they are one of the top name brands that also means people want to copy there shoes and make fakes to make a profit for themselves.

Product analysis Pertains to people of all ages and sport interests Nike likes to go the extra step to help the world and community Keeping costs low, requires low wages Nike likes to be in every sport and every daily activity, that’s why they go after all ages and every activity from walking and running to auto racing and underwater activities. Nike sells a lot of shoes but shoes also wear down and get thrown away, but Nike has created a recycling operation and collets old Nike shoes and any shoes for that matter and breaks them down which goes towards creating children's playgrounds and other surfaces. With creating such a great shoe and keeping it at a low cost has gotten Nike into a bit of trouble, they have been accused of breaking child labor laws and not paying there workers the right amount of pay. Nike is a strong company and has done a lot to help the community, they have made mistakes but they are on the right track to keep being the leading industry in athletic footwear.

Sources http://www.ehow.com/about_5485125_nike-sweatshops.html http://www.gurufocus.com/news.php?id=33408 http://www.nytimes.com/2010/08/22/magazine/22fake-t.html?_r=1&scp=1&sq=Nike%20Running%20Shoes&st=cse http://www.consumersearch.com/running-shoes/best-running-shoes http://www.freeonlineresearchpapers.com/nike-inc http://www.free-essays-freeessays.com/dbase/2b/bmu293.shtml www.newyorktimes.com http://www.ehow.com/about_5485125_nike-sweatshops.html http://www.suite101.com/content/green-running-shoe-brands-a211086 http://poptech.org/lorrievogel