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Idea Generation Process- Entrepreneurship

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Idea Generation Process For NANO: “The People’s Car” AND NIKE : “Just Do it” Stages of Idea Generation Process Idea Generation Idea Screening Concept Development and Testing Marketing Strategy Business Analysis Product Development Test Marketing Commercialization Concept Screening* Test Marketing* Opportunity Identification Idea Generation Concept Development Product Development Positioning Development Commercial-ization *”Stage Gates” Marketing Plan Development A systematic approach that increases the odds of success 1. Idea generations: 1.

Companies seek new ideas to enhances the performance of the exiting products and to innovate new ideas.

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The stages is called idea generations stages. The Major sources of new product ideas include internal sources, customers, competitors, distributors and suppliers. Almost 55% of all new product ideas come from internal sources according to one study. Companies like 3M and Toyota have put in special incentive programs or their employees to come up with workable ideas. Almost 28% of new product ideas come from watching and listening to customers.

Customers: About 30% of new product ideas come from analysis of competitors’ products.

The company can watch competitors’ ads, press releases and write-ups in the press about their activities. Companies also buy competitors information and pay for industrial espionage. Resellers and others who are close to the market, can often pass on information about new developments. Other sources are trade magazines, shows and seminars, market research firms, government reports, advertising agencies and new product consultants. Employees thought the companies can be sources of ideas.

Toyota claims that employee submit two million ideas annually over 85% of which implemented. Companies also find good ideas by researching competitor’s products and services. They can find out what the customers like and dislike about their competitor’s products. ideas can also come from investors. External research, surveys, industrial publications research,and development etc. But main source of idea generation is the customers by their grievances ,complains and feedback. However, although ideas can flow from many sources, it is not feasible to implement all the ideas generated due to lack of time and capital. . Idea screening:- The main purpose of idea generations is to collect a large number of ideas. however, all ideas can be commercially viable. therefore companies filter the less viable ideas with the help of systematic process. Companies use various parameters to screen the ideas such market size, technical, capabilities and potential completions etc. The following issues will also help the companies to analysis the attrectiveness of the ideas. * Whether the product idea match the exiting product of the company. * The to which the new product cannibalize the sale of the exiting product. Company’s ability to produce and market the product. * Buying behavior and probable changes in environment. Errors Drop error where firm reject a very good idea. Cro error where firm select a poor idea. 3. Concept testing and development:- All ideas that survive in the process if screening will be studies in detailed. they will be developed into mature product. At this stage, the idea is submitted for external evaluation to get feedback from the market. it helps the firm to collect the important information like customers initial reaction towards the product development.

During new product idea is described in the form of one or more benefits. An attractive idea has to be developed into a Product concept. As opposed to a product idea that is an idea for a product that the company can see itself marketing to customers, a product concept is a detailed version of the idea stated in meaningful consumer terms. This is different again from a product image, which is the consumers’ perception of an actual or potential product. Once the concepts are developed, these need to be tested with consumers either symbolically or physically. 4.

Marketing strategy:-This is the next step in new product development. The strategy statement consists of three parts: the first part describes the target market, the planned product positioning and the sales, market share and profit goals for the first few years. The second part outlines the product’s planned price, distribution, and marketing budget for the first year. The third part of the marketing strategy statement describes the planned long-run sales, profit goals, and the marketing mix strategy. The following a sueccsseful concept test, the new product manager will develop a reliminary strategy plan * the first part describes the target market size, structure, behavior for the the first few year. * the second part outlines the planned price distribution strategy and marketing budgets for the first year. * the third part of marketing strategy plan describes the long run sales and profit goals and the marketing strategy over a time. 5.. Business analysis;- After management develops the product concept and marketing strategy, it can evaluate the business attractiveness. Business analysis are the first in –depth financial evaluation of the new product to be developed.

Here management needs to prepare sales cost and profit projection to determine whether to stisfy company objectives. If they do the concept moves to development stage. Swot analysis will be prepared by the organization at this stage. It includes total sales estimation . estimations of cost and profit. 6.. Product development:- At this stage, detailed technical analysis is conducted to know whether the product produced at costs is low enough to make final price attractive to the customers. Here the working model and prototype is developed to disclose all tangible and intangible attributes of the product.

A product protocol is prepared which contains all the attributes of expected product. Ones the protocol has been developed it is handed over to research and development to develop the prototype of the the product. 7. Test marketing:- Test marketing is a stage where product is introduced in the few selected cities. During this stage the company has to fate the following expenses. * High advertisement * High manufacturing cost * High distribution cost etc. For test the product market needs to make a decision on the following issues. * The no. of the cities in which the product is to be tested. Geographic location of the cities. By this way the company can know the customer response , feedback, and suggestions. Complaints and other changes are required for product modifications. After successfully laughing the product in the selected cities company launches the product in all other cities. There are certain methods of product testing. Alpha testing: in this method a group of target audience is selected from the employee of the company Beta testing: it is carried out at the customers side. Generally it is applicable for industrial product where customization takes place.

Gamma testing: it is carried out on long term basis where customers use the product extensively and give response after long period of time. Say six month. 8. Commercialization:- The result of test marketing help marketers to decide changes that are needed in the marketing mix before entering in to the market. It also help the the marketers to decide the amount of production distribution stategy, selling effort and other issues like providing guarantees and after sales service etc. the enter the market during the commercialization stage. The company launching a new product must make four decisions: A.

WHEN: The first decision is introduction timing – whether the time is right to introduce the new product. If it will eat into the sales of the company’s or if the economy is down, the company may wait until the following year to launch it. B. WHERE : The company must decide where to launch the new product. Should it be in a single location, or region, several regions, the national market or the international market? Few companies have the confidence, capital and capacity to launch new products into full national or international distribution.

They will develop a planned market rollout over time. In particular, small companies may enter attractive cities or regions one at a time. Larger companies may quickly introduce new products into several regions or into the national market. Companies with international distribution systems may introduce new products through global rollouts. Colgate-Palmolive used a ‘lead-country’ strategy for its Palmolive Options shampoo and conditioner: it was first introduced in Australia, the Philippines, Hong Kong and Mexico, then rapidly rolled out into Europe, Asia, Latin America and Africa.

However, international firms are increasingly introducing their new products in swift global assaults, Procter & Gamble did this with the Pampers Phases line of disposable nappies. C. TO WHOME: Within the roll-out markets, the company must target its distribution and promotion to customer groups who represent the best prospects. These prime prospects should have been profiled by the firm in earlier research and test marketing. For instance, Psion’s Series 5 palmtop organizer, with a price tag of ? 500, is targeted at high income executives.

When The European newspaper launched a multimedia version of the paper, it was initially targeted at professionals, who were sent an electronic version of the paper via telephone to personal computers at work. Generally, firms must fine-tune their targeting efforts, starting with the innovators, then looking especially for early adopters, heavy users and opinion leaders. D. HOW :The company also must develop an action plan for introducing the new product into the selected markets. It must spend the marketing budget on the marketing mix and various other activities.

QUALITIES OF SUCCESSFUL ENTREPRENEURS (a) Initiative: An entrepreneur must have an innovative aptitude, pick the right opportunity, and initiate action. If he/she does not initiate action at the right time theopportunity may be lost. Hence, the ability of an entrepreneur to take initiative is the key to the success of the venture to a great extent. (b) Wide Knowledge: An entrepreneur should have wide knowledge of the economic and non-economic environment of business like the market, consumer attitudes, technology, etc.

In the absence of such adequate knowledge, the decisions taken byhim may be poor and will not contribute to the profitability of his business in the long run. (c) Willingness to assume risk: Entering any venture is full of risks and uncertainties. In order to deal with various kinds of risks and uncertainties efficiently, the entrepreneurshould have willingness and necessary foresightedness to assume risks. The quantityand quality of risk taking would determine the quality of business decisions. (d) Open mind and optimistic outlook: An entrepreneur should have an open mind.

He/she must possess a dynamic and optimistic outlook so as to predict changes inthe business environment and respond effectively without delay. (e) Adaptability: The entrepreneur must understand the ground realities of the business environment. He/she should be prepared to adapt to the changes taking place in the Business . Any resistance to change and delay in responding thereto, shall lead to losing the opportunity of taking advantage thereof. (f) Self-confidence: For achieving success in life, one should have confidence in himself/herself.

A person who lacks confidence can neither do any work himself/herself norinspire others to work. Self-confidence is reflected in courage, enthusiasm and the ability to lead. (g) Leadership Qualities: An entrepreneur should possess the qualities of a good leader. He/she should have the traits of self-discipline, presence of mind, sense of justice, honour and dignity and above all, a high moral character. (h) Orientation towards hard work: There is no substitute for hard work in life. Whilerunning a business, one problem or the other may occur.

The businessmen has to bevigilant about these and find solutions thereof as early as possible. This requires hardwork on the part of the entrepreneur. He has to put in extra efforts to ensure success of the enterprise started by him. FUNCTIONS OF AN ENTREPRENEUR (a) Conception of an idea: An entrepreneur is the person with a creative mind who can identify business opportunities and take steps for the conversion of ideas into successful business ventures, and give them a concrete shape. (b) Promotion: It is felt that generally an entrepreneur undertakes the risk of setting up a small enterprise as a sole proprietor.

But, now-a-days many entrepreneurs have assumed the role of promoters of large companies. In fact, promotion may be undertaken for setting up a new business, small or large expansion of an existing business or for combining two or more business firms. As a promoter, the entrepreneur has to conduct feasibility studies, decide to the form of organisation, assemble the required funds and people, and give a concrete shape to the business proposition. (c) Innovation: An entrepreneur is also seen as an innovator who tries to develop new technology, products and markets.

The entrepreneur uses his creative abilities to do new things and exploit opportunities in the market. (d) Bearer of risks and uncertainty: You know that starting of a new business venture involves good amount of risk and uncertainty. To start with, it is the entrepreneur who assumes risks and is prepared for the losses that may arise because of unforeseen situations in future. In fact, it is his willingness to take risks that helps him to take initiatives in doing new things or trying new methods of production. (e) Arranging necessary capital: Arranging funds is one of the biggest hurdles in setting up a new entrepreneur.

It is he who has to provide the initial capital (otherwise known as ‘risk capital’ or ‘seed capital’) for starting the ventures and then make the necessary arrangements for raising additional funds required to carry on and expand the business. (f) Staffing: An entrepreneur has to design the organisational structure and recruit suitable persons for various positions. He also makes an estimate for skilled and unskilled workers required and make arrangements for their recruitment. Tata nano……. The ONE lakh car that drives ONE billion dreams… IDEA GENERATION Idea Generation And Nano

A dream is born – Says, “I observed families riding on two- wheelers — the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. Add to that the slippery roads & Night time too. It is downright dangerous. It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family. ” So when Tata Motors needed someone to take charge of the company’s most ambitious plan yet to build the world’s cheapest car ever Ravi Kant, who by then had become the company’s managing director, again turned to Wagh.

Wagh remembers what he learned marketing the little truck. “People want to move from two-wheelers to four-wheelers,” he says. “Today they can’t afford it. “More and more can, but Indian car buyers today represent a tiny slice of a potentially giant market India has just seven cars per 1,000 people. India’s auto industry has grown an average of 12% for the past decade, but just 1. 3 million passenger vehicles were sold in India in the fiscal year ending March 2006. That means a billion Indians buy about the same number of cars in a year as 300 million Americans buy in a month.

If four wheels cost as little as two wheels, that could change fast. About 7 million scooters and motorcycles were sold in India last year, typically for prices between 30,000 rupees and 70,000 rupees,. Tata is targeting a price of 100,000 rupees one lakh, in Indian terms of measurement or about $2,500 at current exchange rates, for its small car. That sounds impossibly cheap in the West but remains three times higher than India’s annual per capita income. Idea screening The next step was the screening of idea. How is this dream possible? What should they make? A scooter with two extra wheels at the back for better stability? * An Auto-rickshaw with four wheels? * A three wheeled car like a closed auto- rickshaw?? * A four wheeled car made of Engineering Plastics? * A Four wheeled rural car? * Rolled up Plastic curtains in place of windows? * Openings like Auto rickshaws from the side * A four wheeled open car with safety side bars? But the market wanted a car and if they build a people’s car it should be a car and not something that people would say,“ Ah! That’s just a scooter with four wheels or an auto-rickshaw with four wheels & not really a Car. Trying to build a car cheap enough for motorcycle buyers seems to make sense now but seemed crazy several years ago when Rattan Tata, longtime chairman of Tata Motors and scion of the nation’s giant Tata Group conglomerate, first mentioned his dream of building a one-lakh car in 2003. “They are still saying it can’t be done,” he says, insisting that it can and will. “Everybody is talking of small cars as $5,000 or $7,000. After we get done with it, there will hopefully be a new definition of low-cost. ” Concept Testing And Developing

Before starting the project, Wagh did something no one at Tata Motors ever had: He talked to customers. The three-wheeler men inevitably insisted on a cheap, dependable truck that could go from village to market carrying, say, a ton of onions or potatoes, one night, as sunset approached, Wagh stuck with one rickshaw driver. He says, “I kept asking the question. Why? Why? Why do you want a four-wheeler? ” Wagh remembered. Finally, he got the real answer. It turned out it wasn’t really a problem of transportation of vegetables “If I had a four-wheeler, I would have better marriage prospects in my village,” the young man said.

Drivers of three-wheelers are looked down upon in India. Wagh realized that four wheels had emotional, not just practical, appeal. Thus the new product was now to be developed. But what type of product? The car to cost Rs. 1 lakh on road. * The car should be built on a different platform than conventional ones. * It must be meeting all the safety and regulatory requirements. * It has to be built on a scale which shall be more than double the earlier launches of similar products and the ramp up must be smooth. The car has to be designed so that it can be exported to other countries as the domestic demand may not materialize as per projections. * The car must be a beacon for the Indian Automobile industry and prove to the world that we are capable to take any challenge and come out worthy winners. That quest to build the world’s cheapest car hasn’t ended. The Nano should be available this fall, but the mission began back in 2003, when Rattan Tata, chairman of Tata Motors and the $50 billion Tata conglomerate, set a challenge to build a “people’s car”.

Tata gave an engineering team, led by 32-year-old star engineer Garish Wagh, three requirements for the new vehicle: It should be low-cost, adhere to regulatory requirements, and achieve performance targets such as fuel efficiency and acceleration capacity. The design team initially came up with a vehicle which had bars instead of doors and plastic flaps to keep out the monsoon rains. It was closer to a quadricycle than a car, and the first prototype, even a bigger engine, which boosted the power by nearly 20 per cent, was still dismal. It was an embarrassment,” says Wagh. But failure didn’t stop them they quickly realized it was necessary to bring everyone on board, “else it leads to last-minute heartache and delays”. Every morning, he would spend an hour or two on the floor of the Pune factory, insisting that everyone involved—designers, manufacturing teams, and vendor development people—be there to accelerate decision-making and problem-solving. Over time, Wagh’s team grew to comprise some 500 engineers, an impractically large group to gather on a daily basis.

So instead, a core team of five engineers gathered every day at three pm to discuss the latest developments. Each engineer represented a different part of the car: engine and transmission, body, vehicle integration, safety and regulation, and industrial design. The body had to be changed because Rattan Tata, over six feet tall himself, wanted it to be easy for tall people to get in and out of the car. “Imagine the plight of the body designer—he went through hundreds of iterations, then at the last minute the car length was increased by 100 millimeters! ” Wagh says.

The attention to detail paid off: When the car rolled onto the dais at the Auto Show in New Delhi in January, and Rattan Tata stepped out of the driver’s seat with ease, it made an immediate impact. What shook the automobile world most was the fact that the designers seem to have done the impossible: The sleek, sophisticated Nano doesn’t look flimsy or inexpensive. If it had been an upgraded scooter on four wheels, Tata still would have been applauded for making a family of four safer on Indian roads. The Nano, however, affords both safety and status. “The innovation wasn’t in technology; it was in a mindset change”.

Business Analysis Cost Since the car had to be built within a cost of Rs. 1 Lac, no conventional design would work as the costs shall be higher and so the entire car has to be redesigned. Disruptive Technology: Is a Technology that brings radical change by introducing new ways of doing things usually at a Technology that is: * Significantly cheaper than existing Technology. * Is much higher performing? * Has greater functionality and * Is more convenient to Use. * Brings to market a totally different Value proposition than the one available and can change the Paradigm about a product. The Guiding factor was that the cost has to be minimized for each component yet maintaining its basic functionality. The Alternatives are: * Reduce Consumption of Material being used. * Alternate Suppliers to get same material at fewer prices. * Use alternate materials. * Eliminate use of Material. * Eliminate a process Or a Combination of the above. * The design was outsourced to Italy’s Institute of Development in Automotive Engineering, but Tata himself ordered changes along the way. Most recently he vetoed the design of the windshield wipers.

His solution: a single wiper instead of two, giving the car a cleaner look. THE COST REDUCTION PARADIGM Value Engineering Alternatives: The target was very clearly defined that within the given cost structure of 1 Lac all the components have to be allocated a maximum price and the same had to be achieved using the available alternatives. The Guiding factor was that the tax structure, on materials and manufacturing, must support the final cost of Rs. 1 Lac. The Decisions were: * Establish factory in a tax free zone. * Get the tax advantages on infrastructure development. Get the suppliers to establish base near the factory. * Get special concessions from State Govt. * In short select a manufacturing location where all the advantages could be achieved. In short select a manufacturing location where all the advantages could be achieved. Total sales estimation Now the question was, “how much to produce” * It was estimated that the demand for the people’s car shall be at least twice the demand for Maruti 800, the lowest end car. Initial projections were at about 500 K cars per year. * The basic reason was the conviction that the target price shall redefine the 4 – wheeler segment. The price decision of Rs 1 lakh is definitely going to make a lot many people transit to 4-wheeler fold and that shall explode the demand. * F only 10% customers of 9 Million two wheeler market transit to 4-wheelers it shall amount to 50% of the passenger car market share. * It was decided to set up plants with 5 lacs cars per annum capacity and ramp the same up in stages, in line with increase in market demand. The initial response to the Nano has been overwhelming and the tiny, Noddy-land car is expected to help the company cross several milestones.

With revenues at Rs 1,29,994 crore for the financial year 2006-7, and group companies enjoying a market capitalization of Rs 2,51,487 crore as on January 10, 2008, the Tata Group is on a strong footing, contributing more than 3 per cent to India’s GDP. Nano, being the world’s cheapest car, has made international players sit up in amazement and the company has received proposals from some African, Latin American and Southeast Asian countries to manufacture the car there. Product Development And finally the product was developed with the following features. * Engine CapacityBosch 624 c. . twin cylinder * Low capacity, Lighter, sufficient with better Power Rear Engine to reduce the transmission length using a balancer shaft. * 4 Speed Manual Gear Box * All Aluminum Engine * Higher thermal conductivity than cast iron, Lighter and so better mileage * Engine Management System by Bosch * Superb control over emission and smooth acceleration. * Dimensions L: 3. 1m, W: 1. 5m, H: 1. 6m * Less length but more inner cabin space due to height. Comfortable leg room. * Independent Front & Rear Suspension McPherson Strut in Front & Coil spring & trailing arm in rear. Better ride than Maruti 800. * Single piece ribbed steel body with safety features such as crumple zones, intrusion resistant doors, seat belts, strong seats & anchorages. * Safety requirements are adequately met. * Single Wiper in place of two. * Cost effective yet functionality is met * Tube less Tires * Weight reduced by 2 Kg. Cost reductions 200 Rs. And in line with modern vehicles * Instrument console in the centre * Elegant to look at and can be used both in Left Hand & Right hand version. * The list goes on and on. * The Final verdict

THE CAR COSTS Rs 1 lac PHILIP KNIGHT: THE CREATION AND SUCCESS OF NIKE Step-by-step Outline of How Philip Knight Formed and Made Nike Successful The Beginning: Meeting Bill Bowerman When Knight met the famous coach Bill Bowerman at the University of Oregon where he went for further studies after completing his high school at Cleveland, he may never have known he was walking right on the track of entrepreneurship, whose success was going to shake the world in a couple of decades time. Knight was a member of the Oregon track and field team, which was under coach Bowerman.

Perhaps, due to Knight’s huge enthusiasm for running, a friendship soon developed between him and Bowerman, which saw the two men frequently talk deeply about the sport and the challenges that retards its success. Identifying a Need: Idea Generation * One of the most disturbing challenges they identified was the running shoes. The American shoes available then were discomforting to wear. Though they were cheap at $5, they were terrible in value. Athletes could not run with them for long without sustaining injuries on their feet. * On the other hand the superior German running shoes also available then were far oo expensive. They were sold for $30. * Knight keenly noted these things and thought it would be better if athletes could have good running shoes at a reduced and affordable price. And as he moved into another phase of his life, these thoughts and experience were to transform him into an entrepreneur. Business Education and the Journey into Entrepreneurship His enrollment into Stanford Graduate School of Business after leaving the University of Oregon with a degree in accounting in 1959, then a year of military service, was to become the awakening of his entrepreneurial spirit.

Now, he had actually found what he would love to do for the rest of his life – being an entrepreneur. One of the courses he took was on small business, which was taught by Frank Shallenberger. And when Shallenberger gave them an assignment to create a new business, and to explain its purpose, as well as to write its marketing plan, Knight’s earlier experience with running shoes in Oregon immediately came to his mind. The paper he presented was titled: “Can Japanese Sports Shoes Do to German Sports Shoes What Japanese Cameras Did to German Cameras? He was convinced that a business that could get good quality sports shoes produced cheaply in Japan and sell at a low price in the US would be successful and could be able to knock off German sports shoes manufactures from their leadership position. Taking Action on His Business Idea Knight traveled to Japan in 1962 after his graduation from Stanford and a stint with an accounting firm based in Portland. His aim was to bring alife the business he had earlier created in Stanford. He believed so much that producing cheap but superior running shoes in Japan and shipping to the US to sell would be a success.

He signed a contract with Onitsuka after inspecting their shoe factory in Kobe where he saw and was happy with the quality of their running shoes called Tigers, to distribute Tigers in the US. The best part of it for him was that Tigers was produced at low cost in Japan, so it would be sold cheaper than other brands in the US. Forming a Business with Bill Bowerman Knight knew that his business success would be easier to achieve if he brought in someone with experience and passion for the industry. And who else would that be than his former coach and friend, Bill Bowerman.

Therefore, following his return from Japan, he immediately reached out for Bowerman, and after they had discussed the business, the two men agreed to form partnership, with each of them investing $500. They formed a company and named it Blue Ribbon Sports Inc. , used the invested capital to order Tigers from Japan and began its distribution. Starting Out His Business on a Small Scale Knight began his business in a small scale. He was going to track and field events across the Pacific Northwest, and from the back of his green Plymouth Valiant car he would sell his shoes.

Business was just picking up so he still needed to keep his job as an accountant while gradually building his sales and learning the ropes of the business – he was just 26. His sales for the first year was $364, however by the sixth year of selling Tigers in the US Blue Ribbon’s sales had climbed over a million dollars. Banking on the huge success of his business, Knight resigned his accounting job to concentrate on his business. What’s in a Name? Knight Changed His Company Name and Logo Convinced that the name and logo a company carries is crucial to its success, Knight set out in 1972 to find a new name and logo for his company.

He encouraged all his staff numbering 45 to suggest a name they could use. At the end of the exercise, Jeff John, one of Knight’s sales men suggested Nike, which he said appeared to him in a dream. Nike is the name of the Greek winged goddess of victory. This was generally accepted by both Knight and his staff. Knight also launched ‘Swoosh’ as its new logo during the 1972 Olympic trials in Eugene, Oregon. No doubt, it will certainly not be out of place to attribute the huge success the company has made since then to the new name and logo. Take for instance: The Company’s sales was $3. million in 1972, the year the new name and logo were launched, and in each successive year that followed for a decade, the company doubled its profits. This tremendous business success was enough to shoot Nike pass Adidas as the industry leader in the United State, thereby realizing Knight’s ultimate dream of upstaging the leadership of German sports shoes in the US. Leaping into Great Success with Michael Jordan as Brand Ambassador In 1984, recognizing the importance of having a celebrity endorsement to achieving remarkable success, Knight signed on Michael Jordan, a 21-year old basketballer to promote Nike Shoes.

But Michael Jordan wasn’t a celebrity by this time. Knight signed him on anyway, seeing that the boy was good at the game and had the potential to be great. It was a gamble which paid off beyond anyone’s imagination. Almost instantaneously, Michael Jordan rose to international stardom, so of course did Nike become one of the most recognized brands worldwide. Through Problems and Controversy Sales dropped 18% between 1986 and 1987 as Reebok’s trendy, stylish aerobics shoes came to be in high demand. Knight had to acknowledge that the technical achievements of the Nike shoe would not satisfy those who placed appearance above performance.

The Nike Air was Knight’s response to Reebok. It revived sales and put Nike back in the number one spot in 1990. Corporate Monster that it had become, Nike was the object of public outrage in 1990 when stories of teenagers killed for their Nikes began floating around. It was believed that Nike was promoting their shoes too forcefully. That same year Jesse Jackson attacked Nike for not having any African-Americans on its board or among its vice-presidents, despite the fact that its customer base was in large part black.

Jackson’s Nike boycott lasted until a black board member was appointed. There has also been a controversy around whether Knight’s use of Asian factory workers as cheap labour exploitative. Through all of the bad press that has been foisted on Nike through these events, Nike shoes have continued to sell well. And in 1993, The Sporting News voted Knight “the most powerful man in sports” though he was neither a player nor a manager. Knight’s marketing mastery is to be lauded and regarded as a major factor in his impressive successes.

Cite this Idea Generation Process- Entrepreneurship

Idea Generation Process- Entrepreneurship. (2016, Oct 02). Retrieved from https://graduateway.com/idea-generation-process-entrepreneurship/

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