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Commodity Chain

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Brittney Solazzo

on 16 April 2013

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Transcript of Commodity Chain

Commodity Chain Nike Shoes STEP 1 STEP 7 Materials and Sustainability Research and Design STEP 2 Transportation STEP 4 Retail STEP 6 Consumption - research best environmental materials and eliminate waste
- Sustainable Business and Innovation Lab
“To bring inspiration and innovation to every athlete in the world. (And if you have a body, you are an athlete.)"
-In 2011, more than 31.5 million NIKE garments contained at least some recycled polyester fiber
-Nike contracted footwear factories’ absolute carbon emissions CO2 fell 6% from 2008 through 2011 – despite a 20 percent increase in production - Nike Research lab in Portland, Oregon
- test runs in bio mechanics and physiology in order to create best product for clients
- take into account demographics
- appeal to customers also by allowing them to design their own shoes (NikeID) Step 3 Manufacturing - brand has 1 million workers in 930 factories in 50 countries
- shoes specifically 463,000 workers in 104 factories in 12 countries
- China, India, Mexico, Brazil, Argentina, Italy, Japan, Vietnam, South Korea, Bosnia, Indonesia, and Taiwan - 97% of material used for shipping boxes
is recycled
- Over 23 Nike distribution centers
around the world STEP 5 Marketing - "Just Do It" logo popular since the 1980s, encouraged young athletes to strive for success
- many famous athletes endorse Nike, such as Michael Jordan and Christiano Ronaldo
- Sponsors several international soccer teams, NFL, and the Olympics
- use strategy of product intimacy, where they target those who prefer quality to price, and then that person becomes attached to the brand and will continue to buy anything that has the logo on it - operates more than 750 stores around the world
- stores such as NikeTown in major US cities such as Chicago
- operate NikeGoddess stores strictly for women
- Nike Outlets and warehouse stores
- able to find Nike shoes in almost any sports store, athletic apparel store, and shoe stores such as Finish Line, Dick's Sporting Goods, Journeys Shoes, and Foot Locker - 120 million shoes sold each year
- Nike works hard to make sure their materials used are best for the consumer (lightweight, dries faster, offers support, custom to each individual)
- sold anywhere from $40 - $300 (with exceptions to custom made pairs for celebrities etc) STEP 8 Recycle - individual shoe boxes are made from 100% recycled materials
- Nike ReUse It program recycles rubber from old shoes
-25 million shoes recycled since program began in 1990
- if cannot recycle old shoes, they are donated to places like Goodwill and Oxfam
- through NikeGrind, old shoes are recycled and made into play top rubber, use in new playgrounds Brittney Solazzo
Geography 2750 In the past decades, Nike came under fire for the terrible working conditions in their factories. Here is their most recent response and plan of action:

"So while compliance auditing with core standards is still a central feature of our relationship with factories, we are now moving from monitoring for minimum compliance against our Code of Conduct and Code Leadership Standards toward a model that rewards factories for their management practices, performance controls and commitment to continuous improvement." Nike Distribution Center
Memphis, Tennessee References http://www.articledashboard.com/Article/Nike-s-marketing-strategy/1456078



http://nyjobsource.com/nike.html NikeTown in
Chicago, Il Here is a link to explore
the Nike global manufacturing map
http://nikeinc.com/pages/manufacturing-map Check out my Nike Commodity Chain Map! http://goo.gl/maps/vnfyf
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