I thought since our book uses Nike as a sample company that it would be appropriate to have at least one discussion around what Nike is doing in terms of Corporate Social Responsibility.
Nike just released the "green" version of Air Jordan's. This version of Air Jordan's has been designed to be more environmentally friendly by using materials that are less toxic and by cutting down on the amount of waste.
Here is a link to the article that was in the January 10, 2008 Fortune:http://money.cnn.com/2008/01/09/magazines/fortune/gunther_nike.fortune/index.htm
One thing that jumped out at my was the price of the shoes- $230! I couldn't help but think that there was an interesting dichotomy here. On the one hand, Nike seems to be taking charge and trying to do something for the environment. On the other hand, how likely is it that the "average" person can afford these shoes? We've talked at great lengths about stakeholders in a company. Who would you say benefits from this move? Is there a group of stakeholders that doesn't benefit? Let's hear your thoughts!
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7 comments:
I think the shoe is over priced and the average person wouldnt buy the shoe and if they did they prolly wouldnt be able to afford it. Nike would be benefitting from this new shoe. Im sure it will do a little bit for the environment but its mostly just a sales tool to make the company look good. You have to question how good the shoe will hold together. in basketball there a lot of wear and tear on the shoe and can it stay together without any glue? thats a lot of moeny to spend on a shoe if it falls apart.
It is very hard to believe that the average person would $230 for a shoe that is not made with any glue, it could fall apart very easily. The people that do buy Jordans however are not average people, they are people that are fans of shoes and are willing to pay $230 for a pair of shoes. I know a guy that has paid $300 for a pair of gym shoes and has not even worn them yet because he's scared to get them dirty but he loves them. People might be willing to pay that much money just so that they can say they own the "green" Jordan, especially if it is the last shoe they make. I would definetly pay that much for a Jordan. I do think however that Nike is making this shoe to keep up with the trends right now. It doesn't matter if they have been doing this for years now, they are just now starting to adverstise it.
Without a competitive advantage, target customers don’t perceive any reason to patronize an organization instead of its competitors – “Lamb Hair McDaniel - Mktg”. Nike is basically taking step to be different form its rivals, in this way they have made a unique product, “Nike Considered” for a specific group of customers – niche market. As is stated in the article, this name brand product is known for its performance is for the elites per se, such as NBA stars like Mike Bibby and others. Therefore the cost of $230 is affordable by these players. Nikes intention is to have these stars promote this brand of “green sneakers” so that others can identify by others (for example, Boys II Men), every one wants to be like Mike Jordon.
Sustainability is the idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time. Nikes approach is to target these basketball players by selling a limited edition for $230 and then offer to the public at large at a cost of $185, trying to make a profit by selling at least 500,000 pairs of this type of sneakers. On the other hand, they are also thinking about the environment and the people it affects by making this product so that when it is disposed of it doesn’t affect the environment negatively. They are taking their employees interest (health) at heart, those that are directly exposed to chemicals during the manufacturing of its products. Also in the long run it reduces their manufacturing cost hence increasing their profit margin. In essence, the society, shareholders (dividends), the workers and Nike Company really benefit from this gesture of going “green”. While the “normal or average” person may not be able to purchase this sneakers at its launch but will have a chance once the price is reduced.
I don't really think Nike is worried or concerned about the environment by making these shoes.It seems like they're just doing it because it'll make them look good and would look bad if they didn't try as one the most successful companies in America. And also I've never heard anyone speak on how comfortable the Jordan shoe is, so Nike is taking advantage of their name to charge so much money for a pair of shoes because people are going to buy it no matter what material its made out of because its Jordan's.
This move, like the lip-service I mention Wal-Mart is paying*, and the empty gesture that was Earth Hour*, is just a "me too!" aimed to make the company appealing to the environmentally conscientious. Only the rather rich and incredibly smug are going to buy this shoe, of course.
To inappropriately paraphrase Shakespeare, most of this talk of environmental awareness is "a tale told by an idiot, full of sound and fury, signifying nothing." (Yet even I, who clearly fulfill the smugness quotient for the shoes, still won't buy them!)
Pessimism aside, this move doesn't hurt the stakeholders in the company. It shows Nike is trying to keep up with the times, and knows which way the wind is blowing. It's a positive indicator to both investors and employees that the company won't be left behind with the dinosaurs as the marketplace evolves.
* I wrote many of these responses at the same time, and in reverse chronological order, hence referencing posts and responses that come "after" this one.
Im my opinion, shos Nike's Air Jordan XX3 are over priced and the averega person wouldn not buy that shoe.This shoes are too much expensive for average person but not for Micheal Jordan’s fan. I think that we should pay more attention on that sentence “Nike's Air Jordan XX3 - the 23rd and perhaps final edition of the series of shoes endorsed by retired basketball star Michael Jordan, who wore No. 23 as a player” .If this shoe will be last one of legendary series it make a sense to be very expensive .Many basketballs fans want to get the last series of those shoes. One of the way to do good advertising is telling and give information about how that shoe was built. Right now where everywhere we hear about save energy, do something for the environment ,strategy which use the NIKE company by selling shoe without any chemicals addition can be good way to get a huge profit.Also if its true that that 23 rd series will be last one, it is nice ending of all collection by ecoshoe .I if I would be a fans of Jordan’s shoe style fan I will buy that shoe and price will not be a too much expensive in that situation.And to NIKE strategy as going green i think it rare exaple just for that 23 rd series. And Nike will not follow that anymore in near future. But who knows maybe im wrong and in near future we, everybody will wear a ecoshoe from NIKE and other companies.
I don't see the average person shelling out $185 on a pair of shoes. Making shoes that cut down on waste is a good idea as long as this is a starting point and Nike will be looking for ways to make the same quality shoes available for all. But if it is just a stunt to increase interest in the company then it only benefits the company itself and the stakeholders but only if the increased interest leads to increased sales. If the sales don't increase then the stakeholders don't exactly benefit and the company just gains a good reputation.
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