Commodity Chain

Commodity Chain - AMS 206 Analysis Paper Nike Analysis In today's consumer culture advertising is a way for companies to keep their visual logos

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AMS 206 Analysis Paper March 22 , 2011 Nike Analysis In today’s consumer culture , advertising is a way for companies to keep their visual logos highly visible and highly valued . One company that is able to create an investment for brand identity in nearly every ad they produce is Nike . In 1996 , Nike took the idea of brand identity to another level when the company introduced a “Brand Jordan” line of shoes and apparel . Nike combined images of Michael Jordan with the image and meaning of Nike shoes; thereby , transforming Michael Jordan into an international idol in the media . Within this commodity chain analysis , it will be evident as to why the Nike brand , in particular Air Jordan’s , has been able to dominate “sign economy” in a consumer culture through the company’s dedication to taking chances , avoiding conformity, promoting individualism, and remaining honest and genuine . According to Nike’s vice-chairman , Richard Donahue, Nike’s aim is “to sell a global brand through marketing that appeals to local tastes . The commitment is to be a global company – on management , one theme, one value, one ethic around the world.” Through this commitment , Nike is able to successfully advertise by building upon the globalization of sports culture while still being able to contribute to the globalization of product culture . Due to Nike’s advertising efforts , in 1997, the company grossed over $9 billion of sales in its athletic footwear business and associated attire and sports equipment business . Nike CEO , Phil Knight, attributed the success of the company to brand equity . He was quoted as saying , “The 99% increase in sales of
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US athletic apparel is testament to the powerful brand equity we’ve created .” In 1997 , Nike had a 40% annual growth . According to the official Nike website , the company was able to achieve record profitability and continue to expand their competitive separation by focusing on the company’s core strengths – innovation and inspiration . Nike’s commitment to innovation and inspiration allowed for a phenomenal year in sales – for the fiscal year ending May 31 , 2010, Nike reported revenues of $19 .0 billion, according to “ Nike Facts” found on the official website
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This note was uploaded on 02/22/2012 for the course AMS 206 taught by Professor Staff during the Spring '11 term at Miami University.

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Commodity Chain - AMS 206 Analysis Paper Nike Analysis In today's consumer culture advertising is a way for companies to keep their visual logos

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