6.Sexual Harassment:Former female employees also pointed out that sexual harassment and misconduct was very common in the company. The New York Times conducted interviewswith 50 former and present Nike employees to investigate the company culture. Through the interviews, it was established that Nike did have a toxic working environment, where sexual misconduct was rampant.Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. The women were left devastated and felt unsafe while working at Nike. Some even left their jobs. The entire controversyhas significantly affected the company’s image.Prepared by: El Mahrouk RosePage 15
Strategic ManagementNikeOpportunities1.Emerging Markets – Although Nike already has a presence in many foreign countries, thereis still plenty of opportunities for Nike. This is because external markets like India, China, and Brazil are gradually flourishing. 2.Innovative Products – Although Nike has produced many products, there is still a lot to innovate. Nike has extended its reach in technology in association with fitness and health. Products like wearable technologythat monitors physical activities, is the first step in building innovative technology products. Combining technology with athletic wear can prove to be beneficial as it is an aspect of the fashion industry that still hasn’t been exploredmuch.3.Efficient Integration – The supply and production of Nike’s products depend on independent manufacturers. The brand can either acquire a few of these or make some of its own for a more efficient and streamlined supply chain.Threats1.Counterfeit Products – Counterfeit products can significantly affect the revenue and reputation of Nike. The company deals globally and the risk of counterfeit products has become higher. A number of merchandisers and retailers offer counterfeit Nike products at lower prices. The low-priced products are made from low-quality materials but still have the Nike label. This can tarnish the image of the brandas the customers might feel that Nike has started producing products that have low quality.2.Increased competitive pressure– Although, Nike is a dominating the athletic industry, competition, and new emerging brands are still potential threats to the company. With higher competition ratio, Nike has to spend more money on marketing and advertising. Nike spent almost 3.5 Billion dollars specifically on marketing in 2018. To overpower competition,Nike’s safest bet is to design innovative products that are tailored according to the needs of athletes.3.Marketing Budget Pressure– Companies like Under Armor and Adidas are spending more on marketing and advertising campaigns, increasing the pressure on Nike.