Nike Corporation Also has Soft Spots by Helen Kingin Shopping / Fashion Style (#( submitted 2012-04-09 )#)Phil Knight is a legendary figure. In 1972 he founded christian louboutin shoes which was quickly molded to be a leading brand among global sporting goods industry. What is more important is that Knight carried out the mode of “asset-light strategy” in 1980s, which has became a mainstream business model in global sporting goods business these days.
Even those traditional sports brands with a hundred years history have to choose the “Nike style” surviving way in order to catch up with the expansion rhythm of Nike Company. As for this Phil Knight said “the only way to beat Nike is to imitate us fully and accurately, and then try to find out differences to break up”.China’s outstanding gymnast, Lining set up a sporting products corporation with his own name, and China’s sporting products industry turned into “branding” stage of development. However in the first ten years, most Chinese sporting goods manufacturers are just important OEM partners of Nike’s “asset-light strategy” pattern, therefore, a batch of OEM type factories with good manufacturing skills were created. There are nearly 3000 footwear products manufacturing businesses in Jin Jiang, which is a costal city of Fujian province, and there are over 300000 employees, with a yearly output of 650 million pair of shoes With an area of just 38.8 square kilometers, Chen Dai town is the prime Chinese and even worldwide sneakers’ production base. At present, Jin Jiang’s brands including Anta, 361掳, Deer Way, Jordon, JINAK and so on have developed quickly to be the significant contestants in local Chinese sporting products market through the imitation of Nike}.
Just as what Phil Knight said, the competition of global sporting goods industry is more and more assimilated to “Nike model”. With Lining, Anta as representatives of China local sporting goods enterprises are also pursuing the mode of “asset-light strategy”, which means it will be harder and harder to surpass Nike.From the competition of Nike with Reebok and Nike with Adidas, we could draw a conclusion: to imitate Nike Company is really an effective strategy to catch up with it, but intending to surpass Nike Company should not be applying mechanically what Knight identified.For example, Rebook surpassed Nike by springing up female sporting goods market, and Adidas is competing with Nike all over the world via merging strategy, and Nike beat back Rebook after finishing global operation, which all prove that those innovative companies that adopted effective strategies according to target market, could win the initiative status in competition.One of Nike Company’s soft ribs was revealed in 1998 Asian financial crisis. Because “asset-light strategy” pattern doesn’t involve in the process of specific products manufacturing, and this process was produced by Asian OEM factories, which could cause two big managing problems, and one is the supply chain management, another is production quality control. Under the economic circumstance’s outside fluctuation, Nike Corporation’s general business achievements are influenced by Asian OEM factories’ factors, such as cost, distribution, logistics etc.
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