Why is Nike the biggest training shoe company in the world
Nike, Addidas, Converse, Puma and many more – a popular fashion accessory to most people today. ... Nike currently holds 43% of the US market in the sports shoe and is the largest training shoe company in the world – why? There are a number of explanations that can go towards attempting to explain why Nike is the biggest training shoe in the world. ... Each can be explored in more detail to look at how the company became one of the best known in the world. One of the major reasons as to the huge success of Nike was its manufacturing strategy. Nike’s cofounder Phil Knight put forward the argument to the business world that it made sense for training shoes to be produced in countries that had much lower labour costs. This was based on his view that the manufacturing of trainers was not a unique part of the process and would not affect sales but that the marketing and design of the trainers was what Nike were all about (as well as saving money). Nike not only transferred the manufacturing production but ‘outsourced’ it to independent companies in Japan, Korea, Indonesia, Thailand and China. This shift in manufacturing has meant that labour costs put Nike in the forefront position against it competitors and now most other training shoe companies have followed Nike’s example and moved their production to Southeast Asian countries.