Nike transform into a market-oriented company after 1998. Prior to 1998 Nike gained market share based off of Nike name branding. Nike was not a company that looked towards the future, they failed recognized the wants and needs of their customer base and was totally insentive to the ethical issues of exploiting oversea workers.
Nike created a new management team to in reinvent Nike. The company now uses its capabilities and matches them to their customer's value. It appears the customers are the focus of Nike's business decisions. They have created an "All Condition Gear" ACG company to build creditability among non-tradition sports. Develop new products such as snowboarding jackets, marketing to ski lodges and outdoor resorts. Niking has expanded their customer base by creating Nikes' electronic commerce site. Reduced the time it takes to design and produce a new product. Customer wants are now met because the company has put in place an automatic replenishment system. Nike has also gained and recovered the younger customer market share by sponsorship of superstars. By sponsoring international superstars they have become a global company and increased revenues .Customer's wants and desires are now recognized. A great example of recognizing customer wants; needs and desires are the relaunching of the classis Air Jordan 9 at $120 in lieu of the original price of $200.00.
The most promising product and market growth areas for Nike are with non-traditional sports, recapturing younger customers, electronic commerce and in the international markets. Its international revenue matches its US revenue. The soccer market is an untapped market for Nike.
The company has made great financial initiatives such as linking financial responsibility through out the company to make more conscious of sales. Managers now operate their responsibility as their own profit and loss centers. All of financial improvement and initiatives has been money well spent.
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