We all know about Nikes unethical labor practices overseas and also outsourcing

We all know about nikes unethical labor practices

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manufacturers. We all know about Nike’s unethical labor practices overseas and also outsourcing jobs to other countries. Nike can typically command a premium on the products it sells however, the cost of its footwear is higher than most of its competitors, which make its products out of reach for many customers around the globe, particularly in emerging markets. Nike’s opportunities are a growing footwear market, the growing online retail channels and innovative products. The growing footwear market will continue to grow as long as people and children grow and as fads change the types of shoes and apparel will change as well which leaves opportunities to grow to new markets. Not only this but also gives them space to make new products. Also helping Nike’s sales are online retailing that include not only Nike’s website but also the stores that sell Nike shoes and apparel. Nike’s threats are an intense competition and an increase in counterfeit products. As we pointed out before the competition is vast and Nike, even though they are at the top, can either lose value or a newcomer to the market can surpass them. As for the counterfeit products as we touched on before it is a threat to their reputation and to the products validity. (Dalavages, 2015) Nike has many things working for them in this market but they also have some threats and weaknesses that can hurt them in the long run as well. Nike must be able to see and approach their external environment with force but also hesitancy to see what they are up against but also where they can go. 7
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IV. Market Segmentation With Nike being such a powerhouse company in terms of a wide variety of athletic products, there is such a broad market of customers being targeted. However, the general market segment is divided primarily into three categories: women, young athletes, and runners (reported by Business Insider). Since Nike addresses the athleticism clothing demand within societies, this target market makes much sense. Within these consumer markets, there are branches of different demographics, geographics, psychographics, and socioeconomic factors. Looking at demographics, Nike’s customers are primarily between the ages of 18 to 40, with all types of socioeconomic situations: including low, middle, and high discretional and disposable incomes. If a product is needed for a certain sport or activity, Nike feels responsible to provide that product to any person from any background. It is almost an undifferentiated market segment. With the athletic lifestyle commonly brought up, this leads to the general psychographics of Nike’s customers. Psychographics studies the personality, values, opinions, and interests of customers within society. Thus, it is obvious that Nike’s target customers all share an active lifestyle and participate in some sort of either sport or activity that requires proper gear, apparel, footwear, and accessories. The benefits sought within these different products are a variety of footwear and apparel that aids to the needs of the certain customer.
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  • Spring '14
  • AudreyGuskey
  • Marketing, Athletic shoe, Nike, Inc.

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