Key Factors That Influence Success of Nike Essay Example
Key factors that influence success of NIKE
If a company is able to establish brand awareness, they will have a significant advantage in grabbing consumer's attention and, therefore, market share. In today's society where consumers have significantly less time to shop and compare, brand awareness is critical. If an established brand name effectively conveys the messages of quality and dependability, consumers will automatically go to that brand relying on the image that has been created when they don't have time to shop around.
Manufacturing efficiency is something that companies are constantly striving for as well. Athletic shoe manufacturers must balance the costs of labor, raw materials, shipping, import tariffs, and technological advancements. In an effort to keeps costs down, the industry has been looking to overseas sourcing. This reduces the risk of losing revenue if one region which a manufacturer incurs problems. Favorable legislation regarding foreign manufacturing has led to a huge increase in foreign sourcing. Overseas production and sourcing can lower material, and labor costs.
The footwear companies must choose their distribution channels carefully because they want to make the product available, yet remain true to their image and goals. Retailers account for the largest percentage of sales, so manufacturers must be especially careful with their relationships with them.
Technological advancement is becoming more and more of a player in the footwear industry. With computer-aided design (CAD), companies have been able to successfully shorten their design to distribution cycle to only a few months. Also, new technology has facilitated new quick-response programs that link retailers with manufacturers to allow the retailer to have the correct inventory when it is needed called electronic data interchange (EDI). Immediately after a sale is made, electronic point of sale scanners read the information related to the sale such as price, product, size,
If a company is able to establish brand awareness, they will have a significant advantage in grabbing consumer's attention and, therefore, market share. In today's society where consumers have significantly less time to shop and compare, brand awareness is critical. If an established brand name effectively conveys the messages of quality and dependability, consumers will automatically go to that brand relying on the image that has been created when they don't have time to shop around.
Manufacturing efficiency is something that companies are constantly striving for as well. Athletic shoe manufacturers must balance the costs of labor, raw materials, shipping, import tariffs, and technological advancements. In an effort to keeps costs down, the industry has been looking to overseas sourcing. This reduces the risk of losing revenue if one region which a manufacturer incurs problems. Favorable legislation regarding foreign manufacturing has led to a huge increase in foreign sourcing. Overseas production and sourcing can lower material, and labor costs.
The footwear companies must choose their distribution channels carefully because they want to make the product available, yet remain true to their image and goals. Retailers account for the largest percentage of sales, so manufacturers must be especially careful with their relationships with them.
Technological advancement is becoming more and more of a player in the footwear industry. With computer-aided design (CAD), companies have been able to successfully shorten their design to distribution cycle to only a few months. Also, new technology has facilitated new quick-response programs that link retailers with manufacturers to allow the retailer to have the correct inventory when it is needed called electronic data interchange (EDI). Immediately after a sale is made, electronic point of sale scanners read the information related to the sale such as price, product, size,