Shoe Manufacturers Nike example essay topic

Introduction In our modern life businesses get more complex and complicated. There are many factors to consider when companies do business; such as marketing, design and production. Every year customers are faced with new products, innovations, and discoveries, which creates the growth of new markets. Trainer is a lightweight shoe with a rubber, or plastic sole intended for athletics or casual wear. The training shoe business is one broad market that has been developing since 1839 when the American inventor Charles Goodyear patented the vulcanization of rubber, which made the manufacture of the first canvas topped, rubber-soled shoes possible. The trainer has become one of the most successful products of the late 20th century.

Global sales were worth $17 billion in 1998. Amongst the three companies which dominate the sales of training shoes of worldwide: USA-based Nike and Reebok, US-owned, and Adidas, which is German-owned Nike is easily the biggest. In the USA Nike has a market share of 43% compared with Reebok 14% and Adidas' 12%. In the UK Nike still carries the lead with a share of 35%. In this piece of writing I will try to find the answers to the question "Why is Nike the biggest training shoe company in the world?" History The training shoe's earliest ancestors, known as the 'plimsoll' or 'sandshoe', were first developed by John Boyd Dunlop and became popular with upper class Victorians for playing lawn sports.

Reebok, one of the best-known training shoe brands, has a pedigree, which dates back to 1895, when Rochdale manufacturer Joseph Foster began making running shoes. Adidas' heritage dates back to 1924 when brothers Adolf and Rudi Dass ler opened a factory in a small German town of Herzogenaurach. Former university of Oregon runner Philip Knight and his coach Bill Bowerman launched Nike in 1972. It was the birth of the jogging craze at the end of the sixties that led to the development of the training shoe, as we know it and the emergence of the global market structure as it now exists. Reasons for success Nike originally launched in the 1970's as a running shoe. Nike's ubiquitous 'swoosh' logo and its memorable 'Just do it' catch line, now one of the best known advertising slogans in the world.

In the current global economy Nike training manufacturer are worth over $9 billion annually. Philip Knight is alleged to have pais an Oregon graphic design student just $35 for the design of the swoosh, now one the world's best-known brand symbols. -They owe much of their success to their attractions on the British high street. -One of their advertising strategies is to focus on creating trainers as stylish and fashionable this appeals to our modern day society. -Since Nike has gained a reputable brand name in footwear it has taken this a step further by diversifying into other related markets, such as sports clothing, bags, and even sunglasses. -Nike established itself clearly in the business of selling training shoes, not making them.

As a Nike spokesman said: 'We don't know the first thing about manufacturing. We are marketers and designers. ' This is borne out by the fact that Nike's capital spending - investment and infrastructure - is spent not on factories but on distribution infrastructure, such as warehouses, computerised management information systems, administrative buildings and retail locations. -Nike established its dominance worldwide, with a product line consisting of 1200 shoe models this is not surprising since they launch four new ranges a year -Nike spends almost lb 10 million on advertising its shoes in the UK alone in 1998 -Nike has doubled its design staff and tripled its design budget since 1995; its now employs over 300 designers at its Oregon headquarters. -As other training shoe manufacturers Nike manufactures its shoes in Asian countries to minimize labour cost. -Working with recommendations from sports research experts, athletes and consumers, they draw up a brief out lining desire the products features, target price and target consumer.

A designer than interprets the brief and conceptualizes the idea. -Trainer manufacturers communicating an 'image' for their brand and products which makes them appear highly desirable to potential purchasers. The 'message' they use to communicate with various groups of consumers. The strength of training shoes' brand identity lies in the potency of their emotional appeal such as individual success, self-fulfilment and personal achievement.

Nike's marketing formula, for example, is 'to integrate the swoosh into the cultural fabric of sports and harness its emotional power. ' -Successful sports stars seen to be wearing a particular brand are believed to provide it with a powerful endorsement and encourage 'ordinary' people to imitate their heroes by buying the same products such as US golfer Tiger Woods's ponsorship with Nike is worth up to $90 million and US basketball ball star Michael Jordan, who has given his name to some of Nike's most popular shoes, is estimated to have earned $350 million from sponsorship in his carrier. -Nike has taken its involvement in retailing one step further and launched its own chain on Nike Town stores as well as selling shoes via its own website, Nike. com, and also owns internet shoe retailer FogDog. Design, Technology and Production Nike gained advantage over its rivals through the use of original ideas, focusing mainly on the design and technology of their shoes. Technology has traditionally been at the heart of the concept of the trainer, given that, ostensibly at least, its purpose is to maximise sporting performance. Key advances are acknowledged to be the Waffle sole (developed by Bill Bowerman who decided to experiment with his wife's waffle iron while she was at church one Sunday) and the 'air' concept of increasing trainers' comfort by inserting pockets of pressurised gas in their soles.

Nike describes it Air Flightposite shoe as a 'biomechanical extension of human muscle and mental motivation'. The design is what makes the particular trainer stand out, compared with rival products, and in consequence there have been rapid shifts in the 'look' of trainers over the past 20 years, while in reality their technology has remained relatively static. Inconsideration that trainers are worn as leisure wear as well as fashion foot wear it becomes evident that they are not used as much for sports as previously in the last decade. Training shoes have gained a higher status as fashion items since they have been promoted by pop stars such as Oasis or Spice Girls or Madonna. The concept of design is taken into account well in advance of the delivery date some shoes take up to three years to develop. On average the design time of a shoe is about six months than it takes a year to commercialism the product.

The fabrics, materials, cushioning systems and other new ideas are taken into consideration. A group of 12 people works on these ideas 3-7 years ahead of delivery date. Products have to promise high standards in quality since they are designed for big league athletes such as Pete Sampras, Andre Agassi and Michael Jordan. Trainer production consists of five distinct processes: model and pattern cutting; stitching; lasting; bottoming and finishing.

Different stages of the production process do not necessarily take place in one location. Nike uses a flexible network of overseas manufacturers, suppliers and distributors in order to produce their shoes 'just in time', that is when the markets need them and in the exact quantities required which help them saving costs..