INDIVIDUAL ASSIGNMENT SCM201

SCM201
LECTURER: NGUYỄN BA LÊ

STUDENT NAME: TĂNG VŨ HƯNG

SS150525
1. Nike’s Global Strategy.

Emotional Advertising

From its onsets with the now world- honored watchword,‘ Just do it,’Nike has succeeded
in marketing across borders through the use of emotional advertising and branding.
Rather than dealing a product directly, Nike has managed to make a strategy that
appeals to a client’s bournes or feelings to make an attachment to a brand, as opposed
to dealing the product solely for the product’ssake.Nike routinely relies on the feelings of
exertion, heroism, success, achievement, and triumph to appeal to guests, a strategy
that has been successful anyhow of the request. Some of Nike’s emotional branding
tactics have included announcements with phrasing like,‘ Anticipate greatness’or‘Your
only limit is you.‘Appealing to introductory mortal emotion and desire knows no
boundary. It is seen as a strategy that works well in Europe, Asia and also in the United
States.

NikeID

One of Nike’s most successful strategies that has transcended the boundaries of
country and culture is the preface of NikeID, which allows shoppers to customize
products that align with their own styles and artistic preferences. For illustration, a
consumer can choose different colors, color combinations, patterns, and shoelaces as
well as being suitable to customize a shoe for favorite indigenous sports. Though Nike
offers a full complement of athletic shoes ready to buy off of store shelves, they honored
that consumers have individual tastes and preferences, particularly consumers in other
countries with varying artistic and societal differences.

Athletes and Auspices

Nike has erected much of its marketing and advertising with the help of megastar
athletes and sports auspices. By opting transnational auspices and pressing
transnational athletes, the company has been suitable to make a broader, global
interest in their brand and put their name and totem at the van of global
sportingevents.For illustration, Nike has partnered with the English football club
Manchester United to not only access the European request but also reach consumers
from all requests who are interested in soccer, known outside of the United States
as‘football.’ Financing an athletic platoon or an event similar as World Cup soccer, or
using an internationally honored megastar "Like Cristiano Ronaldo or Rory McIlroy,
they've helped Nike gain huge traction in other countries around the world, where
different sports and athletes take center stage. "

Technology
Nike uses personalized and tailored social media channels to support colorful sports
that are popular in a particular country. For illustration, Nike hosts a devoted social
media regard for suckers and athletes of the sport of justice and also uses applicable
languages and cants in not only their products, similar as a shirt that says‘Espana’on it,
but on their websites and other online platforms. For illustration, Nike has a website that
displays entirely inSpanish.It’s hard to find important fault with Nike’s global marketing
strategies because they do utmost everything well.

2. What are the main capabilities of its global supply

network?
For suppliers

• Nike contracts product with manufactories abroad for outsourcing to reduce product
costs.

• Nike offers a comprehensive law of conduct and developed monitoring tools.

• Independent contract manufacturers in 49 producing countries. Utmost of these

garment manufactories are located in CHINA, INDONESIA, MALAYSIA, THAILAND and
RURGERY.

For distributors

• Nike creatednike.net, taking the same innovative approach, towards furnishing better
service to retailers.

• Retailers do not need to call client service and waste time.

• Nike augments its living client services.

For guests

• Nike implements systems to attract guests

• Using NikeID online design tool, design according to client.

• Organize an periodic Women's Marathon to boost brand image

3. Explain how the global supply chain sustains Nike

competitive advantage.
NIKE is one of the settlers of the assiduity- defining manufacturing outsourcing strategy.
It’s now exploring innovative ways of manufacturing so it can customize products on an
unknown scale.

Nike is supplied by roughly 150 footwear manufactories located in 14 countries. The

largest single footwear plant reckoned for roughly 5 of total NIKE Brand footwear
product. Virtually all of our footwear is outsourced outside of the United States because
of independent contract manufacturers, who frequently operate multiple factories.
Contract manufactories in Vietnam, China, and Indonesia manufactured roughly 43, 28,
and 25 of total NIKE Brand footwear, independently. We also have manufacturing
agreements with independent manufactories in Argentina, Brazil, India, and Mexico to
manufacture footwear for trade primarily within those countries.

Nike is supplied by roughly 430 vesture manufactories located in 41 countries. The

largest single vesture plant reckoned for roughly 7 of total NIKE Brand vesture product.
Nearly all of our vesture is manufactured outside of the United States by independent
contract manufacturers who frequently operate multiple manufactories. In financial
2014, utmost of this vesture product passed in China, Vietnam, Thailand, Indonesia, Sri
Lanka, Pakistan, andMalaysia.One vesture contract manufacturer reckoned for lesser
than 10 of vesture product, and the top five contract manufacturers in total reckoned for
roughly 34 of NIKE Brand vesture product. The top accoutrements used in our footwear
products are natural and synthetic rubber, plastic composites, froth bumper
accoutrements, nylon, leather, oil, and polyurethane flicks used to make NIKE Air-Sole

Softening factors.

Nike’s spare force chain saves the company$0.15 per unit compared to a traditional
distribution model. For a company that moves over 900 million units per time, these
savings quantum to a serious competitive edge.

Global presence

Nike is a global brand. It has 1152 stores functional around the globe. While theU.S. is
its core request, its force chain and distribution network is spread encyclopedically. It
has 384 stores in the US and 768 in the transnational request (2019).

Piecemeal from that, the brand has outsourced utmost of its product to external
suppliers. Around the world, 112 footwear manufactories and 334 vesture
manufactories supplied Nike in 2019. The main business of Nike is design,
development, and global marketing and deals of athletic footwear, vesture, outfit,
accessories and services.

NIKE is encyclopedically the largest brand of athletic footwear and vesture. It sells its
products through NIKE- possessed retail stores and through digital platforms ( called “
NIKE Direct” operations), to retail accounts and a blend of independent distributors,
agents and deals representatives in nearly all countries of the world. Independent
contractors manufacture nearly all of its products. Independent contractors from outside
the US produce nearly all footwear and vesture products for Nike. Its outfit products are
produced in the United States as well as abroad

Force chain & Manufacturing

Nike has managed a strong force chain and manufacturing network which helps it to
feed to popular demand with dexterity. Nike has outsourced nearly all of its product.

Still, proper operation of the force chain and manufacturing has enabled the brand to
produce superior quality products while also keeping costs under control.

112 shoe manufactories and 334 vesture manufactories supplied Nike in 2018. In the
United States, NIKE has seven major distribution centers, five of which are in Memphis,
Tennessee, and two more in several locations: one in Indianapolis, Indiana, and one in
Dayton , Tennessee.

A well- accompanied manufacturing, distribution and retail network helps Nike to feed to
demand better. Its well- integrated network allows it to concentrate on invention and
bring high- quality products to the request.

4. What are the main risks of Nike global supply

chain?
All NIKE outsourcing operations are performed by third party contractors who are
located in countries including China, Indonesia and Vietnam. Government legislation
that regulates factories or an increase in input costs, particularly labor costs, can pose
problems that challenge NIKE's financial priorities.

Selling, general, and superintendent ( SG&A) charges.

Despite the improvement in NIKE,Inc.’s gross profit peripheries, SG&A costs have been
on the rise over the formerly time. Operating charges made up31.5 of earnings in 1Q15.
Investments in retail, both online and offline, have impacted costs. They also have the
potential to grow in the future. Digital structure, increased charges, and event- driven
promotional expenditures are also likely to increase SG&A.
Regulatory conditions

NIKE’s manufacturing operations are concentrated in lower- cost countries analogous

as China, Vietnam, and Indonesia. Although its manufacturing outsourcing has been
contracted, the increase in costs, especially in terms of labor costs, will have a negative
impact on profit goals.

Regulatory conditions to increase safety morals in factories may also affect in cost
increases for NIKE’s manufacturers. The attire sedulity has faced adding reaction from
Mortal rights groups in the wake of the Bangladesh factory collapse last time, which
reacted in the deaths of 700 garment workers. It’s study to be the worst attire factory
accident in history.

Companies analogous as The GapInc. (GPS), Wal-Mart Stores,Inc. (WMT), and H&M
have come together to set up a fund for the victims and their survivors. Advanced safety
morals at factories are likely to see costs rise for NIKE and its contenders, Under
ArmourInc. (UA), VFC Corporation (VF), and Lululemon AthleticaInc. (LULU), and
Adidas AG (ADDYY).