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 that this is a great idea in terms for nike. Lets face it people like pricey items and jordans are one of them. People will pay endless amount of dollars for those shoes and Nike knows people will buy. The material which is eco friendly gives them a great image as well. The average person may not be able to buy them but they will still sell and i believe stakeholders should be happy with this move.
overall i believe the stakeholders will be happy with this new product because like mendo said there will always be those people who need the newest hottest product and i personally know alot of people who have no problem paying more than $200 for a pair of shoes especially jordans and hey if they are eco friendly why not? I think this will just be another one of Nike's products which will do well and bring in large amounts of money, in turn making all of the stakeholders happy
I honestly do believe the shoe will sell and may sell big! I don't think the shoe will attract consumers because it is believe to produce less pollution, i think the show will simply sell because of the name "Jordan!" we have to keep in mind Jordans are naturally expensive usually running for about $175 for mens. Jordans are so popular that I don't think the $50 increase will make a difference. People love Jordans and some people don't care what they spend as long as they get the shoes exclusively when they come out! As far as Nike goes, I don't quite buy the shoes ability to produce less pollution. i think they are looking for a big pay-day and they threw that piece of information in as incentive for the consumers!
I think these shoes are a great idea. People are willing to pay these raising prices for Jordans and already do pay similar prices. Having an environmentally friendly shoe is more appealing to the existing market as well as being appealing to prospective new markets. Therefore all stakeholders in Nike will benefit from this product.
This new design concept seems to be an advancement for the company. As others have said, Air Jordans are very well liked and there are people out there who will spend the money to buy them. Maybe not the average income people will buy them, but they still will sell. I am all for companies being more eco friendly. I personally would not spend this much money on a shoe but hey to each their own :)I think stakeholders will be content with this new launch.
I agree with jean said earlier. I think the reason they use the term eco or environment is just one of the concept so their image went up. At the same time, they raised the price of shoes, so they make more money. Nike knew people willing to pay for whay they want to have it. Specially, early adopters are waiting for new products. I think Jordan's value will decrease if Nike sells those shoes just $30 per pairs.
I think Nike is not aiming to boost its sales with this pricy product but only targeting Jordan funs who can afford this price. In addition, even if there are not much sales from the funs neither, I think Nike is still fine as this product will demonstrate Nike as eco-minded company. Some stakeholders who is profit driven might not be happy with this but I guess many others are fine with this shoes from corporate responsibility perspective.
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