Nike Ine: What does the Future hold?

SUMMARY

            The article entitled “Nike Inc: What does the Future hold?” is written by Bob Cramer on September 19, 2014 for Bidnessetc.com. Since Nike was established in 1964, the company has grown very well in the athletic community across nations. Nike’s fiscal performance reports have been strong. This indicates the company’s strength in matters such as consumer relations and innovations. Nike is also working on improving its digital interaction with its markets which will allow consumers to interact with Nike’s representatives and to customize their purchases. The author writes “Nike’s core competency is its unbeatable innovation across its product portfolio and its ability to transform insights from top athletes into quality products.”[1] Lastly, shareholders have been voicing their concerns over Nike’s suspension of several athletes and how such endorsements could affect Nike’s brand image going forward. The company has assured shareholders that it will not tolerate being associated with individuals who violate ethical standards.

OPINIONS

            I think the future holds a lot for Nike. With new technology being introduced each day, Nike stands to continue to be one of the largest competitors in the market. They are very innovative and there is so much more they can do. They already employ devices such as the Nike+ device that works seamlessly with an application on your phone. They also have their own Nike Training Center (NTC) app directed towards the more health conscious individual who prefers to work out at home for example. They offer many different varieties of athletic wear targeted at many different sports such as Running, Training, Soccer, Football, and Basketball, just to name a few. My only concern is that Nike assures its shareholder that it will not tolerate being associated with unethical practices, when a lot of their merchandise is produced by unethical means. The contradiction is troubling and can have a negative impact in the long term. Overall, I find they will succeed long into the future and only continue to grow and expand.

QUESTIONS/FEEDBACK

1)    What do you think will be next for Nike?

2)    How do you feel Nike as a brand will be in the future?

REFERENCES

Cramer, Bob. "Nike Inc: What does the Future hold?" Businessetc, 19 Sep. 2014. Web. <http://www.bidnessetc.com/25968-nike-inc-what-does-the-future-hold>.

---

[1] Cramer, Bob. "Nike Inc: What does the Future hold?" Businessetc, 19 Sep. 2014. Web. <http://www.bidnessetc.com/25968-nike-inc-what-does-the-future-hold>.

Nike helps Design Airplane Interior focused on Athlete-Specific Needs

SUMMARY

            The article read is entitled “Nike helps Design Airplane Interior focused on Athlete-Specific Needs” is written by Kyle Newport, a featured columnist for the Bleach Report on September 9, 2014. Nike has helped to design a plane that makes travelling across the coast for athletes a bit easier as travelling can be tough on the body. The plane cabin is specifically designed for a sports team which will have fewer seats, sleep bunkers, and overall bringing the training room on the go. Nike hopes to help to eliminate the negative aspects of being 40,000 feet in the air. Below are a few pictures of what the interior place may look like once Nike and plane manufacture Teague have finished their designs. However, the aircraft is just a concept at the moment.

                             

                             

                                              Photos taken from Article by Kyle Newport

OPINION

            I find that since Nike’s brand is focused on sports, it only makes sense for them to help with this initiative since they have already accumulated large amounts of research on athletes in order to better understand their needs. I think the idea of this plane is cool and will be beneficial to athletes. Based on the pictures viewed, it seems quite comfortable. If the concept does become a reality, it will help teams be more relaxed and hopefully less jet-lagged when flying across the coast. If this is the case, teams will do much better, not only increasing revenue for themselves but for Nike as well. Thus, Nike’s participation in this matter will be very fruitful for them.

QUESTIONS/FEEDBACK

1)    What are your thoughts on this aircraft? Is it a good idea or a bad one?

2)    If you could add any one thing into this plane that is athlete based, what would it be? (Your answer can be anything from a water jug to blankets)

REFERENCES

Newport, Kyle. "Nike Helps Design Airplane Interior focused on Athlete-Specific Needs" Bleach Report, 9 Sep. 2014. Web. <http://bleacherreport.com/articles/2192671-nike-helps-design-airplane-interior-focused-on-athlete-specific-needs>.

Inside Nike's Struggle to Balance Cost and Worker Safety in Bangladesh

Photo taken from Article by Shelly Banjo

SUMMARY

The article entitled “Inside Nike’s Struggle to Balance Cost and Worker Safety in Bangladesh” was written by Shelly Banjo of the Wall Street Journal on April 21, 2014. According to the article, Nike’s head of sustainable business --Hannah Jones-- had urged the company for years about the dangers of using Bangladesh manufacturers. While Bangladesh features some of the cheapest factories in the world[1], the practices they use are a safety concern. Hannah and her colleagues visited their manufacture base in Bangladesh and were dismayed to what they seen. “Rolls of fabric were strewn across the production floor and some windows were bolted shut.”[2] After their encounter, the executives cut their ties with the company. Their decision came not to long after another manufacturer in Bangladesh collapsed and killed many workers. The author states that “Nike’s experience offers a lesson in the difficulty of managing the twin priorities of controlling costs and maintaining acceptable working conditions.”[3] While Nike could begin to put safety controls in place, they wouldn’t be able to guarantee working conditions would continue to be safe. Over the past few years, Nike has increased wages in some factories and improved some features.

OPINION

It has become increasingly evident that Nike, and other companies like it, have expediently taken advantage of impoverished countries lax labour laws in order to increase their gross margin. A pair of Nike Air Jordan’s can retail for $350; meanwhile, a worker may make 6 cents on the hour to produce it. I agree with a statement made in the article. “Ignorance is not bliss. You have to understand the systemic issues and work with factory partners to solve them.”[4] While Nike may think they have no control in guaranteeing the procedures for safety they put into place will continue when they are not there, they could easily hire a representative in Bangladesh to oversee such actions. They could also make periodic surprise trips to ensure their manufacturer is adhering to the policies put in place. There are a few options for this multi-million dollar company.

I think that even if Nike lost a few dollars at first to ensure their practices were ethical, they would stand to gain much more once people understand what their brand is trying to do. Although Nike does not have a legal obligation to ensure the general health and well-being of their manufacturer’s workers, it would help with public perception if they implemented safety conditions and required a minimum wage for workers. Otherwise, Nike’s continued negligence could potentially lead to brand erosion, since people will not want to buy their products.

QUESTIONS/FEEDBACK

1) After reading this summary, do you think the same about your Nike garnets (if you own any)?

2) Do you believe that the use of overseas manufacturers had given Nike a bad reputation?

3) After the collapse of a manufacturer last year, many companies pulled their production out of Bangladesh. Do you think Nike should completely pull all their production out of Bangladesh or just the one company they already did?

REFERENCES

Banjo, Shelly. "Inside Nike’s Struggle to Balance cost and Worker Safety in Bangladesh" Wall Street Journal, 21 Apr. 2014. Web. <http://online.wsj.com/news/articles/SB10001424052702303873604579493502231397942>.

---

[1] Banjo, Shelly. "Inside Nike’s Struggle to Balance cost and Worker Safety in Bangladesh" Wall Street Journal, 21 Apr. 2014. Web. <http://online.wsj.com/news/articles/SB10001424052702303873604579493502231397942>.

[2] Ibid.

[3] Ibid.

[4] Ibid.