to Nike great brand image since they are already in the market for a long time

To nike great brand image since they are already in

This preview shows page 51 - 53 out of 69 pages.

to Nike great brand image since they are already in the market for a long time and selling their product worldwide. Over time, Nike has built a strong image as an ethical and customer oriented business. It is an innovative brand that is also known for its excellent marketing and for good quality products [Sac18]. Third strength is multi-channel approach. Nike have multiple channel to distribute their products both online and physical. Since they have a retail store located all over the world and a retailer that they works with have increase the channel they have. Thus, their multi- channel approach increase their reach and amount of customers’ base.[Sac18]. The weakness of Nike is dependence on independent manufacturers. Nike currently relies totally on independent manufacturers for the production and supply of its products. Which means they have a very limited control of the production and it means that if there are any mistakes that affected the product quality by the independent manufacturers, Nike will be affected by it [Mar181]. 51
Image of page 51
7.2 Nike’s biggest challenges now and in the future The first big challenge for now and in the future is Nike’s sweatshop. Nike is famous for their bad labour practices on the factory and sweatshop can be defined as “a shop or factory in which employees work for long hours at low wages and under unhealthy conditions”[Mer18]. This problem is one of the biggest weakness that Nike suffered from. “workers at a Nike contract factory in Hansae, Vietnam, suffered wage theft and verbal abuse, and laboured for hours in temperatures well over the legal limit of 90 degrees, to the point that they would collapse at their sewing machines.”[Placeholder13]. Based on the statement above, it shows that Nike still failed to solve their sweatshops problem and it will continuously worsen Nike’s brand image. Even though on 1999 Nike created the Fair Labour Association consist of “a non- profit group that combines companies, and human rights and labour representatives to establish independent monitoring and a code of conduct, including a minimum age and a 60- hour work week, and pushes other brands to join.”[Max13]. Until now Nike still failed to solve this issue and to make this matter worse, Nike also denied the independent monitoring group Worker Rights Consortium (WRC) access to inspect its contract factories [Mar17]. This problem have circled Nike since the 90’s until nowadays. This is a big challenge for Nike since they are bad in solving this problem since the manufacturers that produce the products is not own by them so they have limited control on it. Second big challenge for now and in the future is counterfeit products. Footwear is number one on the most counterfeit product in the world followed with clothing. “World Customs Organization report that identified Nike as the most frequently counterfeited brand”[Sus16]. Nowadays, it is getting harder and harder to shut down the counterfeiting operations since they start to sell those products online. Furthermore, Nike shoes are liked by
Image of page 52
Image of page 53

You've reached the end of your free preview.

Want to read all 69 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes