SlideShare a Scribd company logo
BY:-
JYOTI
GARG
MANUFACTURING
PRACTICES OF NIKE –
JUST DO IT
BACKGROUND
 Shoe and Apparel company
 $16.3 Billion in revenue in 2007
 28,000 workers in 45 countries
 500 manufacturing locations
 Headquarters in Beaverton, Oregon
COMPANY HISTORY
 Founded in 1965 as Blue Ribbon Sports at the University of Oregon
 The Nike Waffle
 1971-the Swoosh
 1972-Nike the Greek goddess of victory
 1979-A big year
 1982-Advertising
 1988-Just Do It
NIKE COMPANY PROFILE
 American multinational manufacturing company
 Core products include footwear & apparel
 Unwavering commitment to advertising
 Key Marketing Initiative
- Use of high profile athletic endorsements
 Nike’s Brand portfolio
- Nike, Cole Haan, Converse, Hurley, Nike Golf and Umbro
- 75% of the growth is expected from the Nike brand.
NEW SUPPLIER FORMS
Suppliers should get in touch with their Nike contact and request a
New Supplier Invitation through Trade shift.
SUPPLIER DIVERSITY CAN HAVE A FAVORABLE IMPACT ON
OUR BUSINESS:
 Creating more competition in the supply chain
 Maintaining a connection to the consumer base
 Providing economic stimulus to the community
 Contributing to the enhancement of our brand
HOW NIKE MAKE GREAT ACHIEVEMENTS
From small one at the very start to the successful one nowadays, Nike
company has encountered kinds of difficulties. But anyway, Nike
company has achieved great success by using following strategies to
capture the market share:
 Discount Nike shoes
 Nike running Shoes on sale
 Nike online store
 Nike running clothing
 Nike free Sneakers
MANUFACTURING PRACTICES OF NIKE
 Enjoys currently 47% market share of the domestic footwear industry
 Sales of $ 3.77 billion
 Manufacturing throughout Asian region for over 25 years
 Over 5,00,000 people directly engaged in the production
 Utilize an outsourcing strategy by using only sub-contractors through
out the globe
 Majority of their output today is produced in factories in Vietnam,
China, Indonesia, but also have factories in Italy, Taiwan & South
Korea
 Factories are 100% owned by sub-contractors with majority of their
output consisting solely of Nike products
Cont…….
 Nike does employ teams of four expatriates per each of the big three
countries (China, Indonesia, Vietnam)
 Mainly focus on both quality of product & working conditions
 Developed their code of conduct in 1992 & have implemented it
across the globe
 Its goal is to set the standard for sub-contractors to follow to do
business with Nike
 Faced numerous violations involving factory conditions & human
rights issues, have been publicized
 Have responded these issues through Andrew Young Report, but are
still 2 years away from completely addressing the problems through
out the globe
Manufacturing practices of nike

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Manufacturing practices of nike

  • 2. BACKGROUND  Shoe and Apparel company  $16.3 Billion in revenue in 2007  28,000 workers in 45 countries  500 manufacturing locations  Headquarters in Beaverton, Oregon
  • 3. COMPANY HISTORY  Founded in 1965 as Blue Ribbon Sports at the University of Oregon  The Nike Waffle  1971-the Swoosh  1972-Nike the Greek goddess of victory  1979-A big year  1982-Advertising  1988-Just Do It
  • 4. NIKE COMPANY PROFILE  American multinational manufacturing company  Core products include footwear & apparel  Unwavering commitment to advertising  Key Marketing Initiative - Use of high profile athletic endorsements  Nike’s Brand portfolio - Nike, Cole Haan, Converse, Hurley, Nike Golf and Umbro - 75% of the growth is expected from the Nike brand.
  • 5. NEW SUPPLIER FORMS Suppliers should get in touch with their Nike contact and request a New Supplier Invitation through Trade shift. SUPPLIER DIVERSITY CAN HAVE A FAVORABLE IMPACT ON OUR BUSINESS:  Creating more competition in the supply chain  Maintaining a connection to the consumer base  Providing economic stimulus to the community  Contributing to the enhancement of our brand
  • 6. HOW NIKE MAKE GREAT ACHIEVEMENTS From small one at the very start to the successful one nowadays, Nike company has encountered kinds of difficulties. But anyway, Nike company has achieved great success by using following strategies to capture the market share:  Discount Nike shoes  Nike running Shoes on sale  Nike online store  Nike running clothing  Nike free Sneakers
  • 7. MANUFACTURING PRACTICES OF NIKE  Enjoys currently 47% market share of the domestic footwear industry  Sales of $ 3.77 billion  Manufacturing throughout Asian region for over 25 years  Over 5,00,000 people directly engaged in the production  Utilize an outsourcing strategy by using only sub-contractors through out the globe  Majority of their output today is produced in factories in Vietnam, China, Indonesia, but also have factories in Italy, Taiwan & South Korea  Factories are 100% owned by sub-contractors with majority of their output consisting solely of Nike products
  • 8. Cont…….  Nike does employ teams of four expatriates per each of the big three countries (China, Indonesia, Vietnam)  Mainly focus on both quality of product & working conditions  Developed their code of conduct in 1992 & have implemented it across the globe  Its goal is to set the standard for sub-contractors to follow to do business with Nike  Faced numerous violations involving factory conditions & human rights issues, have been publicized  Have responded these issues through Andrew Young Report, but are still 2 years away from completely addressing the problems through out the globe