Sustainable Development Program for Nike
Companies all over the world always strive to be sustainable for a long time not only to its shareholders but also to other stakeholders. Companies try to remain at the top for as long as they can. Companies use different strategies to achieve dominance over others and even stay competitive in the market. Nike is one company that has been using very rigorous processes to ensure sustainability. Nike has involved itself in various projects in both the community; the government, therefore, creating promotion of its product across the world.
Nike has been able to maintain its reputation through the years. Nike has been able to maintain its reputation since its formation, even though they had previously faced some challenges. Their employees receive training so that they can be culturally and language sensitive. Nike has been able to maintain a good reputation over the years by ensuring that they deliver the right quality products, which lasts longer. Nike has always involved itself in creating a positive image for itself and thus ensuring that the customers ever come back for their products. Gaining the trust of people has always guaranteed the company ‘s sustainability
Nike has ensured its sustainability by taking responsibility for their supply chain. The corporate has been training the managers of the different companies that they have contracted to provide what they produce. Nike has ensured that the various companies adhere to their rules and regulations, therefore, ensuring that their products are of top quality. Nike has been providing guidance and leadership to factory managers hence ensuring that they are up to date with the different policies that are developed by the top management. Taking over the supply chain management has ensured that Nike products maintain their quality all over the world.
Nike has been able to create a sustainable business by creating value for itself and the different stakeholders that are associated with the company. Nike has invested in the growth of the company at large by ensuring that their presence is felt everywhere in the world (Seider 2017). Nike has continuously enhanced its brand, and the employees understand the process quite well, therefore, giving the top management enough support. Nike management ensures they utilize the capital for development efficiently and thus contribute significantly to the growth of the Nike Corporation. Creating a sustainable business has given Nike a competitive edge over its peer in the industry.
Nike has invested heavily on creativity and innovation in the development of their products. Nike has been trying to eliminate the use of artificial resources in the production of their products as much as they can so that they can pave the way for the eco-friendly materials, products, and processes (Holt & Cameroon 2010). Nike has also been collaborating with the national aeronautical and space administration (NASA) to encourage innovation that generates more environmentally and socially sustainable materials, and fabrics that will be used in the production of their products and also other companies can use them. Socially durable fabrics will ensure the recognition of Nike as a company that embraces the environment.
Nike has ensured its sustainability by planning to groom its supply chain gradually. Nike plans to eliminate the use of toxic chemicals from its production processes and also its products (Aarti, 2013). Nike has come up with a list of toxic products that they do not want in their products and provided this to their different suppliers. The suppliers of different products to Nike have been guided appropriately by Nike. The toxic chemical products will no longer be on Nike`s products, and thus, Nike will reduce their production costs and therefore ensure profitability.
Nike has employed the tactics of transparency in its operations from the top management. Nike has always been promoting high standards of supply chain performance through the introduction of measures that are used all over the world in their different factories. Nike has also overseen the introduction of what they call “manufacturing index, “ which is an evaluation system that covers all products and brands that the company uses, therefore, ensuring uniformity in all their products. Nike is the first company in disclosing the different factories that they use in the manufacturing of their products worldwide. Nike`s level of transparency has ensured that the customers trust their products wholly by providing they are sustainable.
Nike has always involved itself in solving societal problems through its firm corporate social responsibility policy. Nike has tried to fight obesity among children. In America, one out of three children is obese since they do not involve themselves in any physical activities. Nike has been partnering with Michelle Obama in her initiative that is dubbed `let’s move`. Nike has been educating and inspiring kids to pursue outdoor activities after their studies. The high corporate social responsibility of Nike has ensured that they remembered by society.
Nike has guided by strong values such as honesty. The company always relays relevant information to the public and in good time. Nike has been able to progressively earn the trust of its customers over time through its honesty plan. The customer gets the right information when they need it, and all the relevant information about the product and the quality are always available. The essential quality of doing business is honesty, and Nike has perfected this skill to the maximum.
Nike has been able to sell the `emotional benefit` of their products. Nike tries to tap into the emotional part of their customers, by trying to give the benefits of the products thus ensuring that the customers will always be loyal to them; for example, Nike uses the emotional feelings of feeling good about jogging and staying
to sell their shoes. Using emotions to sell products ensures that a company gets lifetime customers who always come back for the products. In advertisements, Nike rarely mentions the product, but they mostly focus on the benefits of staying healthy.
Nike focuses on the athlete community; how to make their products to be of superior quality. Nike has always expressed how they value the consumer, and the consumer still has a front-row seat while developing the product. The Nike brand is associated with producing top quality products, and they have shown that consistency in the provision of quality products. Nike has always considered the preferences of their customers, therefore, winning the trust of the customers. By focusing on the customer, Nike is sure to have loyal customers; thus, the demand for their products will remain intact.
Nike invests extensively on the marketing of their products; spends a lot of money on sports sponsorship by sponsoring different athletes and also sports clubs. Moreover, the corporate has also been collaborating with shops and also running television advertisements for its products (Bradshaw & Scott, 2018). In the industry that Nike belongs to, they are the biggest spenders in the marketing of the product, beating their closest rival by a notable margin. Furthermore, Nike advertisements are for the creation of demand for their products; the firm has been continuously trying to target new customers, and in the process, they maintain their existing customers.
To ensure that they are sustainable in the long term, Nike has diversified their product portfolio. Nike has a variety of sporting products for every person that walks into their store; the numerous products produced ensures that the customer has a wide range of the products to choose. In addition to providing shoes and equipment, Nike also includes clothing, sports bras, and casual clothes. The diversification of their products ensures that even if one of their products has low demand in the market, the other products will have high demand. By offering different products, Nike has been able to establish a significant market base across the globe.
Nike has been known to buy out competing sport products brands. Furthermore, Nike has been able to acquire different brands that previously competed directly with them; for example, Hurley and the Converse brands already competed used to compete with Nike. However, Nike owns them now. The strategy of killing off competition before it becomes a significant threat has always worked for Nike since they are by the most reliable brand in the market today and by a considerable margin. Buying of competing brands by Nike minimizes the competition in the industry and therefore Nike can always stay on top and their survival is guaranteed.
Nike is the perfect example of a company that has successfully invested in its long term sustainability. Nike is a market leader in the sports clothing industry. The sustainability efforts that are being put in place by Nike are gaining the trust of different government and also their endorsement; this goes a long way in showing just how the efforts of Nike are important world over.
References
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Holt, D. B., & Cameron, D. (2010). Social strategy: Using innovative ideologies to build breakthrough brands. Oxford: Oxford University Press.
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Bradshaw, A., & Scott, L. M. (2018). Advertising Revolution: The story of a song, from Beatles hit to Nike slogan.
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Aarti, S (2013). Swoosh and sustainability: Nike`s emergence as a Global sustainable brand.
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Seider, W. D., Lewin, D. R., Seader, J. D., Widagdo, S., Gani, R., & Ng, K. M. (2017). Product and process design principles: Synthesis, analysis, and evaluation.
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