At present, it has been discontinued. You can find it in nike official website or on salted fish.
Why doesn't Nike make Nike sneakers?
in today's highly developed international division of labor, it is neither possible nor necessary for enterprises to bring all the value activities in the industry value chain into the enterprise. The key is to grasp the strategic link. The value chain strategy of Nike, the most famous American sneaker company, is a good example.
Nike was founded in 1964 by Phil Nadai, a long-distance runner from the University of Oregon, and his coach Bill Bowman. Since Phil practiced long-distance running with Portman in 1958, Phil has often complained to coach Portman that he can't buy high-quality sports shoes. In order to help Phil make achievements, Coach Portman designed a new type of sneakers according to the characteristics of long-distance running, but after the drawings were sent to several big shoe factories in the United States, none of them were willing to accept trial production. So, in 1964, Phil and Portman set up "Blue Ribbon Sporting Goods Company", and each invested $3, entrusting a Japanese shoe factory to trial-produce 3 pairs of sneakers according to Portman's drawings. The sneaker is named after "Nike", the god of victory in Greek mythology, and the trademark pattern is designed by a student for 35 dollars. The original sneakers were stored in the basement of Phil's father's house, and they were taken to the track and field stadium by Phil and Portman every time they played.
In p>1972, the Olympic track and field preliminaries were held in Oregon, USA. Phil and Portman persuaded some marathon runners to wear Nike shoes. As a result, four of them entered the top seven in the preliminaries. Phil and Portman took the opportunity to advertise. Nike sneakers became famous and developed continuously. Nike's sales in 1994 reached 3.8 billion dollars, and its products were sold to 81 countries. But Nike itself does not make Nike sneakers. From Nike's initial prosperity to its future growth and development, it is not the manufacturing link of the sneaker industry. In fact, Nike has only one small shoe factory in the next session. More than 97% of Nike sneakers are produced in the form of contract contracting, processing and resale in third world countries, and then acquired by Nike, which sells them exclusively in developed countries.
The secret of Nike's growth lies in its control of product design and advertising marketing. The main reason is that the strategic link of the high-end sneaker industry is product design and marketing control, while the manufacturing link is relatively simple. Creating value mainly depends on new product development and marketing organization and management. Nike sneakers mainly rely on their "best design" and high-end brand names in the market, and employ famous sports stars with huge sums of money to advertise in the prime time when American TV programs have the highest ratings. They have successfully shaped and maintained the high-end brand image of Nike sneakers, keeping the price of Nike sneakers at a high value of more than 1 dollars for a long time. In 1993, Michael Jordan, the most famous basketball star in the United States, wore Nike sneakers and led the Chicago Bulls to win the NEA basketball league championship for the third time, which provided Nike with an influence that other competitors could not match, further consolidating its position as the number one enterprise in the sports shoes industry in the United States.
Because advertising sales require a large amount of fixed investment, there is a huge economic scale effect. In 1993, Nike spent as much as $3 million on advertising, so small enterprises with low product sales could not compete with big companies like Nike. In the high-grade sneaker market, where advertising image plays a major role in customers' purchase, Nike's high advertising expenses form a "market entry barrier". In contrast, low-grade sneakers, the main determinant of customer selection is price. Because the economic scale benefit of sneaker production is not significant, the production cost of small enterprises is not higher than that of large enterprises, which leads to the situation that low-grade sneakers are supplied by many small enterprises and high-grade sneakers are controlled by several giants.
In sharp contrast to Nike's value chain strategy of "grasping design, marketing and outsourcing manufacturing", Suzuki Motor Company of Japan. Suzuki's economical cars exported to the United States in the late 198s were all sold by General Motors of the United States, including Chevole Sprint, and Suzuki only produced them. The main reason is that for economical cars, mass production, high efficiency and high quality are the strategic links to win the international market, while the advertising image of products is relatively secondary to competitive advantage. This seemingly different strategy between Nike and Suzuki can be easily explained by the theory of value chain, because in the sports shoes industry, the manufacturing process is light, the economies of scale are limited, and the production process is mature, while the research and development and advertising promotion links are high in fixed cost, low in advertising marginal cost and strong in economies of scale, which is the key to control the whole industry. On the surface, Nike's and Suzuki's strategies are different, but in fact, they are "the same result", both of which are to grasp the key link and the auxiliary link of external mining.