NIKE-2004
(Marketing Management 2A)
Francis Cuyag
John Zulueta
Melgazar Emnas
Dancris Gantang
Juvylyn Dionaldo
Chessa Reyes
Remedios Narciso
University of Caloocan City
I. Time Context:
The year 2003 was a year of “firsts” for Nike. The company had the
highest revenue in its history and also earned more revenue outside the United
States for the first time. However, the company continues to deal with
controversies on a number of fronts such as manufacturing, ethics, lawsuits and
criticism of the high endorsement fees paid to the athletes.
CEO Phil Knight decided to see things positively, and continually improve their
strengths, going the extra mile and being certain of their ability to compete
and win.
The CEO Phil Knight faces adversities from Global competitions and
lawsuits set by Marc Kasky.
Short-term objectives
Long-term objectives
1. It plans to double its current sales level of women’s product ($1.5 Billion)
by 2005.
V. Areas of Consideration
The Company must consider that the public is always keeping an eye on
them. Whatever move they make regarding with these social problems will
reflect on their brand. If their action will result in a negative impression, this
would lead them to their downfall.
Short-term objectives
Long-term objectives
VII. Conclusion:
Since Nike Company had already gained a high level of brand equity, it is
easy for them to lead the athletic shoe industry. With their superiority in
Research & Development and expertise in Marketing and Distribution, their
competitors would really have a hard time on turning the tables. However, the
company should not be content on the situation they are in.
There are several things that they must consider; one of these is dealing
with economic conditions. Since Nike Company is not actually producing shoes,
they have contracted manufacturing factories internationally. Nike must keep
an eye on its disadvantages. Others are social responsibilities, legal issues and
problems in distribution.
One of the biggest adversities that their CEO-Mr. Phil Knight had
encountered is when they got involved in a false advertising lawsuit in 2002. It
was Marc Kasky who sued Nike for false advertising after accusing Phil Knight of
lying when Knight responded to question about Nike sweatshops in a letter to
the editor printed in the New York Time. Fortunately, the case was dismissed
in June 2003 and the case was sent back to California Supreme Court to be
reviewed.
Since Nike has been doing a great job in dealing and resolving their
difficulties, the only thing that will make them stay on top is to protect their
image. We recommend that the company should always properly monitor
everything from the top management down to the lowest department.