individual assignment nikes microenvironment

According to The World Bank, Vietnam is the developing country with the growth rate of GDP is 6-8%/year which proves that the living standard tends to improve a lot.. With the hot and hu

INDIVIDUAL ASSIGNMENT

Lecturer: BUI THUY DUONG

Full name: DUONG MINH DUCStudent ID: HE171274

Class: MC1713Course: MKT101

Nike, Inc., formerly (1964–78)Blue Ribbon Sports, is anAmerican sportswear companyheadquartered in Beaverton,Oregon It was founded in 1964 as

Blue Ribbon Sports by Bill Bowerman, a track-and-field coach at theUniversity of Oregon, and his former student Phil Knight They opened theirfirst retail outlet in 1966 and launched the Nike brand shoe in 1972 Thecompany was renamed Nike, Inc., in 1978 and went public two years later Bythe early 21st century, Nike had retail outlets and distributors in more than 170countries, and its logo—a curved check mark called the “swoosh”—wasrecognized throughout the world.

From the late 1980s, Nike steadily expanded its business and diversified itsproduct line through numerous acquisitions, including the shoe companies ColeHaan (1988; sold in 2012) and Converse, Inc (2003), the sports-equipmentproducer Canstar Sports, Inc (1994; later called Bauer and sold in 2008), andthe athletic apparel and equipment company Umbro (2008; sold in 2012) In1996 the company created Nike ACG (“all-conditions gear”), which marketsproducts for extreme sports such as snowboarding and mountain biking In theearly 21st century Nike began selling sports-technology accessories, includingportable heart-rate monitors and high-altitude wrist compasses.

Nike Vision Statement

We see a world where everybody is an athlete — united in the joy of movement.Driven by our passion for sport and our instinct for innovation, we aim to bringinspiration to every athlete in the world and to make sport a daily habit.Nike Mission Statement

The mission is to bring inspiration and innovation to every athlete* in theworld [*If you have a body, you are an athlete.] This mission drives us to doeverything possible to expand human potential We do that by creatinggroundbreaking sports innovations, making our products more sustainable,building a creative and diverse global team, and making a positive impact in thecommunities where we live and work.

Nike Values• Do the right thing• Be on the offense always• Serve athletes

• Create the future of the sport• Win as a team

2.Nike’s microenvironment

Micro Environment:

This indicates those elements over which the marketing firm has control or which it can use in order to gain information that will better help it in its marketing operations

Furthermore, these are the factors close to a business that

have a direct impact on its business operations and success Itis important to carry out a full analysis of micro-environmentalfactors prior to decide corporate strategy.

The company:

A Nike shoe, which is a brand product of Nike Incorporated Company (Nike, Inc.) located in Oregon, United States, was officially established in the market on January 1964 Although Nike, Inc has competed with many great rivals such as Puma, Adidas, and other big names, they still hold a substantial position in customers' choices Nike’s appearance was positively received by consumers in a volatile shoe market.

Marketing Intermediaries:

Marketing Intermediaries are one of the most crucial elementsthat lead to Nike, Inc.'s success According to Nike, there are over 1,182 retail in-line stores worldwide sold Nike’s footwear including the shopping malls in Asia, European, Latin America and etc, via 30,000 retail partners such as Nordstrom and Foot Locker The retail outlet stores are mainly located in big cities where has a great and increasing volume of

consumption Moreover, buyers can also access to purchase Nike products through their online website instead of buying inthe physical stores In this way, the transaction is even more convenient and accessible for customers as compared to the traditional method

The supply network of Nike, Inc is widely distributed in many great consumption markets such as China, Mexico, and others.According to Nike, there are nearly 127 footwear factories based in 15 countries and almost 363 apparel factories placed

in 37 countries Therefore, Nike hardly faces the scarcity of raw materials requirements for manufacturing since most of its are available in the nations where production occurs.

Competitors:

PUMA, K-Swiss Inc., LaCrosse Footwear, Inc., Dick's Sporting Goods, Inc., New Balance Athletic Shoe, and Adidas However, a large number of competitors in an industry usually indicates lots of demand for the products or services provided and this will help Nike to succeed in the long run.

Media Publics are extremely valuable for the organization which wants to promote brand awareness or the new productslaunched in the marketplace Nike is very successful in this field because to raise the company’s reputation as well as create good opportunities to promote their product widely, they spread the trademark very rapidly in the newspapers, social media ( Facebook, Twitter, Instagram, and YouTube), magazines (print and digital), as well as television outlets For example, in social media, it is not only the way Nike

advertises, it is a conversation On social media, Nike’s posts are fun, short, and often motivational, which make for easy reading, sharing, and ingraining into people's psychology.

3.Nike’s microenvironment

2 Economic:

According to The World Bank, Vietnam is the

developing country with the growth rate of

GDP is 6-8%/year which proves that the living standard tends to

improve a lot That is the reason why people could be affordable for great products as long as it supports to their life Based on this

circumstance, Nike set the price of each product

in Vietnam quite suitable for

touching the individual budget

3 Natural:

Climate in Vietnam is characterized by

equatorial climate With the hot and humid all year round, Vietnam has favorable conditionsfor planting and

developing rubber trees.According to Vietnam Rubber Association

(2018), Vietnam

currently ranks third in producing and exporting natural rubber in the

world The association revealed that in 2017, the country earned $2.3 billion from

exporting 1.4 million tons of natural rubber, and the

According to the World population, in 2018, Vietnam has 96,575,050 citizens Moreover, this number continues to increase rapidly in the future so Vietnam is a great market to develop sports products The age area from 20 to 40 has a high population density even among males and females Because of this, people have a tendency to do more exercise to protect their health Recognizing the situation, Nike strives to develop new equipment to support people with high quality

Economic:

According to The World Bank, Vietnam is a developing countrywith a growth rate of GDP is 6-8%/year which proves that the living standard tends to improve a lot That is the reason why people could be affordable for great products as long as it supports their life Based on this circumstance, Nike set the price of each product in Vietnam quite suitable for touching the individual budget

The climate in Vietnam is characterized by an equatorial climate With the hot and humid all year round, Vietnam has favorable conditions for planting and developing rubber trees According to Vietnam Rubber Association, Vietnam currently ranks third in producing and exporting natural rubber in the world The association revealed that in 2017, the country earned $2.3 billion from exporting 1.4 million tons of natural rubber, and the output of rubber in Vietnam is 1.4 million tons of natural rubber on a yearly basis, and the yield will grow more in the future Therefore, it will be highly likely that Nike has an opportunity to thrive in Vietnam.

Technological:

According to the Trophies team, Nike has an ambitious target for 2020 of $ 50 billion That means Nike needs to step up technological development and product innovation to achieve its goals At the same time, Nike is also encouraging patents to find new ways to produce Nike products, including the use of Fly knit technology to remove waste from the environment In addition, the company is also launching the Breaking2 project to create a new pair of running shoes with various features used to improve runners' speed.

Political:

Nguyen and Kwok (2014) made the point to show Vietnam's powerful reign to integrate into the world economy By becoming a member of the World Trade Organization in 2007, the World Bank and the ASIAN Forum, Vietnam has been moredynamic and attractive in the trade market Therefore, it would be more serendipitous for enterprises operating in Vietnam, including Nike’s company, to receive the welcoming and favorable policies from the government as well as learn from experience to grow and expand their business (Bain, 2018).

According to Vietnam Rubber Association (2018), Vietnam is the second largest exporter of footwear among the top ten exporters of footwear in the world That means that Vietnam iscovering all the important factors including labor resources, brand name, high-quality products, and affordable prices, notto mention abundant raw materials, for Nike can grow rapidlyin the coming years Above all, Nike’s name is so popular with Vietnamese people because of its quality, styles and product variety.