Part 2 mkt - Admission/Application Essay Example

November 5th, Company/Product Nike Fuel Band Team Number: 2 Team Members: James Farley, Chris Judge, Rachel Murphy, Nick Taber, GregPfalzgraf, Muriel GarciaAssignment Number: Part 1Assignment Title: Analysis and Assessment of the Environment and Target Markethttp://library.morningstar.com/stock/analyst-report?t=NKE®ion=usa&culture=en-UShttp://investors.nike.com/investors/resources/?toggle=topBannerNike, Inc. is a company that specializes in the “design, development, and worldwide marketing and selling of footwear, apparel, equipment, accessories, and services” (Reuters).

Nike sells mainly sportswear for its product line. In addition, Nike owns two subsidiaries; Converse Inc. and Hurley International LLC. The main competitors for Nike are Adidas and Puma (Rueters). Nike is the leader in athletic footwear, apparel, and equipment (NikeResponsibility). The product that our team is researching is the Nike FuelBand. There are multiple varieties of the Fuel Band, but we will be analyzing the basic Nike+ FuelBand SE. The FuelBand tracks your workouts, sleep, and most, if not all, movements.

The FuelBand can sync with your phone via an app and allows users to connect with their friends to help promote and encourage exercise between friends (Nike Store). The product is a tangible good that is worn around the users’ wrist. Nike’s FuelBand also provides intangible services through its effect on the user to exercise more frequently and promote general fitness (Carl & James, 58). Nike is currently in a very good financial position. Their stock price is up 18% year to date, currently outperforming its competitors and the market.

They are continuing to develop new products and explore new sectors of the market. Nike has a very good credit rating, AA-, and has no reason to have financial worries for the foreseeable future (Morningstar). The key stakeholders for the Nike FuelBand would include the development team, the marketing team, and the design team behind the process that brings the Nike FuelBand from an idea to the shelf. These people would have the greatest impact on the success of the FuelBand as a product because they involve themselves in the production and sale of the FuelBand.

Other stakeholders would include investors in the product through Nike and retailers that sell the product directly to the public (Nike.com). Majority of the final customers for Nike products are sportsmen. This is because the company has the utility that favors the sportsmen and women. Athletes likely prefer shoes marketed and designed by Nike than people who are active in exercises and sports. The company has targeted these consumers through the contractual agreement between the athletic teams and Nike for sponsorship and promotion to other team members.

This way the company is able to reach their final customers and those that are more willing to buy. Although other people are always in the position to buy, the company has focused on athletes more than the company has focused on other individuals (Carl & James, 60). Strengths:1. It’s a professionally competitive firm2. Well branded among the clients3. Offer their goods globally4. Has offices in 45 countries5. Has chains of retail branches like Nike town6. Ventured into various rebranding opportunitiesWeaknesses1.

Revenues depend on the footwear commodities while other brands are not that strong2. History of minimum wage rated in Vietnam and violation history3. Poor workplace conditioning4. Exploitation of work force5. Negative criticism from the anti-globalization groupsOpportunities1. Reduction of controversies that surround the production and trade practices2. Expansion into the worldwide market in creating recognition of large brand3. Development of product that changes with the change in trend4. Stepping into economy line lifting projects that encourages recycling5.

Coming up with sporty items using wastes from normal manufacturingThreats1. Maintaining the image of being one of the eco-friendly companies2. Management of the financial condition in the economy3. Competitors become aggressive and come up with high quality products from the Nike profit.4. Currency value fluctuations.BibliographyCarl Warren, James Reeve,. Financial & Managerial Accounting. Chicago: Adventure Works Press, 2011.