Catherine Teruya
BA 301 Homework #2
Section 007
10/25/2014
1. When NIKE, Inc. was faced with criticism from consumers for their factory production practices,
they were able to stifle much of it through regulations for the factories that they contract with as
well as being transparent with their consumers about what they are doing to remedy these
problems as well as giving their full list of contracted and owned factories throughout the world.
Unfortunately, the effects of poor production administration may still be felt through their not-so-
fabulous results within the Chinese market. While Nike holds 12.1% of the market share, Adidas
is close behind with 11.2%. In 2012, Nike predicted that sales would double in 4 years, but their
sales fell for five quarters before producing a 4% growth. Nike’s current marketing strategy is
not reaching customers as working out is seen as a rich person’s activity and their usual celebrity
endorsements have limited appeal (Trefis Team).
Looking at their financial statements, the decreasing inventory turnover could be a result of
