The Microenvironment Essay

Custom Student Mr. Teacher ENG 1001-04 2 April 2016

The Microenvironment

The Company
Nike is the predecessor of Blue Ribbon Sports company, founded by Phil Knight in 1964, for the purpose of importing sports shoes cheap Japanese brand in the U.S. market Onizuka. Knight is teamed with Bill Bowerman, a running coach of the University of Oregon, later to become experts designing the most innovative sports shoes of Nike, the Nike contributed to a global brand production in the market of sports shoes.

Phil Knight and Bill Bowerman meet
Blue Ribbon Sports (BRS) was made and founded by Phil Knight The popular Cortez aka “Dope Mans” are made in Japan
The Swoosh logo is created by Carolyn Davidson for $35.00
The first Nike model shoe to hit the retail market is a soccer/football shoe A Promo Nike Tee becomes the first apparel item
The famous Waffle Trainer is introduced, which becomes the best selling shoe in the US Nike’s racing and training spiked shoe is made called the “Elite” Factories for manufacturing are set up in Korea and Taiwan

For the first time Nike shoes are sold in Asia
Blue Ribbon Sports changes their company name to Nike Inc.
The first Nike running shoe with a air sole system to come out is the “Tailwind” World Headquarters are opened in Beaverton, Oregon
Nike talks with the P.R. of China so they can produce shoes there Nike shoes become Canada’s top seller
Nike shoes are now produced in 11 countries
The famous “NIKE AIR” Air Force 1 and Air Ace make their introduction Over 200 shoes are now in Nike’s footwear line
The first high performance kid’s running shoe is called the “Destiny” The Air Jordan makes it’s way to Nike footwear line up
The Sock Racer comes out and is part of the Dynamic-Fit technology The first Air Max
The first Cross Trainer
The famous “Just Do It” slogan comes to life
The first model to combine the footbridge device and Air Sole is the Air Stab Spike Lee’s “Mars Blackmon” character helps promote the third style of Air Jordan Bo Jackson’s “Bo Knows” commercials include the “Just Do It” slogan Nike moves to a new World Campus in Beaverton

The new World Campus sits on 74 acres with 570,000 square feet. In Portland, Oregon the first Nike Town opens
The intro of the Air Huarache running shoe
The intro of the Air Mowabb
Nike Town opens in Chicago
Charles Barkley first signature shoe is introduced
The intro of the Run Walk shoe
Nike Town opens in Atlanta and Orange County
The intro of dual pressure cushioning in the Air Max
Nike gets distribution rights in Korea and Japan
The intro of Zoom Air technology
Nike Town New York opens
The Air Penny comes to life
2000: The National Football League declines to renew its exclusive apparel licensing arrangement with Nike.
2001: Nike opens its first Nike Goddess store, a unit targeting women, in Newport Beach, CA. 2003: Nike purchases Converse Inc. for $ 305 million.

2008 :Nike acquired sports apparel supplier Umbro,
2009: Air Jordan Shoe

2010: Nike Future Sole Design Competition

The major supplier of Nike put on 10 countries: China, Indonesia, VN, Thailand, India, Turkey, Morocco, Mexico, Honduras, and Brazil Nike signed contract with factories producing over 40 national, the majority of Nike shoes are manufactured in China (35%); Vietnam (29%), Indonesia (21%); and Thailand (13%) Nike just put a business relationship with the factory when they reach the standards of product quality, price, delivery time and the CSR standards. Deals with plants through Coc Nike will refuse orders if the manufacturer does not show cooperative attitude in the selection process LOGO Company . Collaboration with established carriers “Clean Cargo Group” Nike has set a policy not enter the skin of cattle raised in the Amazon rainforest. Nike contract factories manufacturing overseas to outsourcing shoe production to reduce production costs Nike launched this Code of Conduct, the monitoring tool developed comprehensive LOGO Company Manufacturers independent of contract manufacturing in 49 countries Most of the garment factories located in China, Indonesia, Malaysia, Thailand and Turkey.

Marketing Intermediaries
Flyknit were promised will bring many benefits to the company than just 1 huge success single products with distribution of goods are diverse Reseller: at the present in the Vietnam, Nike products are distributed to many stores in the shopping mall as Parkson, Vincom, Cresent mall… or open own shop and have more branches across the country that are convenient for customers. The consumers can consult Nike Flyknit at home by online and then just one click they can choose whatever they want or they can go any store in the nearest for trying, which helps them to save a lot of money and time . Physical distribution firms: Nike use all three forms of transportation, including air like a plane, road and waterway as the container and ships.

However the main vehicles transportation uses to distribute the Nike Flyknit stores everywhere is the container Marketing services agencies: advertising contributes in no small part to the success of a product and the Nike Flyknit too. customers want to know the new products, the Nike has stepped up advertising in different ways with the aim to know customers as quickly as possible. at the Nike store in Hong Kong, they established sports club for people who love jogging and is recommended by the Nike sports shoes then they talk to each other about the quality of the Nike products, which is also one of the way are the most successful help Nike to be easy to penetrate into market. Beside that, Nike understands the influence of athletes with customers so they cooperate with athletes in many different sports that attracted more attention of customers. Not only that, Nike interested in popularity of the internet should have used a number of social networking sites to promote their products because this is one of the most convenient and fastest. Customers:

Consumer markets: Nike customer is the directed to athletes with different genres, students or individuals who have favorite sports as jogging or hiking. With prices around $ 80 accordance with those with high income or affluent Business markets: this is also a potential market for Nike. Centers and sports training professional athletes and famous football clubs have the ability to buy Nike products for use in the process of training for their athletes. Competitors:

In recent years, as the needs of advanced consumer products cater to sports as they used many brands of sports was born. besides, there are many other products similar to Nike Flyknit, so they are facing many challenges with other brands. in fact, Nike does not compete with the well-known foreign brands such as Adidas or Puma but also face to domestic goods or counterfeit Nike products imported from China Publics:

This part plays a significant role in the development and maintenance of the brand. A few years ago, the media reported the scandal about business ethic, which was not good for Nike’s images in the public heart. According to Braddock (2011), the factories that Nike has signed a contract with have the poor working conditions for workers, exploit and pay them a pittance wages. Nike’s leaders ignored this fact and claimed that it is beyond their competence, because the factories they contract with are not formally part of the company. Nike started entering Vietnam market since 1995 and retains its position in the community until now. However, the unfortunate scandal has damaged the reputation of Nike in the world as well as in Vietnam.

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