In: Economics
Ans.
Nike is a shoe brand, its supply chain functions around the three
essential principles. I.e, save cost and outsource, to minimize the
risk and diversify and manage the corporate social responsibility
and manage the impact on the world. The company's supply chain
saves over $0.15 per unit as compared to the traditional model of
distribution. The process itself also relies on the independent
contractors for sourcing of raw material for its products from the
countries in which they are produced. Its supply chain extends to
many nations worldwide, the products are made in over 42 countries
at 567 factories which employ almost 1 million people.
The raw materials used in production of nike shoes are, cotton,
polyester, rubber, foam, leather etc. It uses 19% of polyester and
that to recycle, 70% rubber, eva foam which is environment
friendly.
Nike produces an extended range of sports equipment. Their first
product is running shoes and sneakers. They have now started making
jerseys, cleats, shorts, and a very wide range of equipments for
every type of sport.
It focuses on young customers. It has a ladies, gents and kids
section with all the sports related things one can think of
according to every age. It mainly focuses on the active and young
customers as it produces sports related commodities.