Research Paper on:
Nike Goes to Wal-Mart

Unformatted Sample Text from the Research Paper:
industry and has for several years, but in many ways it gained its leadership position in spite of its marketing efforts rather than because of them. It missed several  trends over the years, and it offended many by choosing to ignore the sweatshop issue until it could be ignored no longer. It has been constrained in ways to  sell more shoes. Entering discount retail would offend its high-end retailers and risk the business it has. It is Nikes hope that the solution is the "Starter sneakers  engineered by Nike and introduced" (Callimachi, 2005) at Wal-Mart in March 2005. Wal-Mart is well known for its attention to efficiency and eagerness  to cut costs whenever and wherever possible, while also maintaining tight control over its business. Toward this end it maintains regional warehouses and its own extensive trucking fleet.  The vertical aspect of the relationship between Nike and Wal-Mart is that it involves a single manufacturer and a single retailer that happens to operate 5,200 stores and is the  worlds largest retailer. Table 13.1 Relationships Number of firms. There are only two firms active in the activity, which according to Table  13.1 should increase transaction costs. One retailer is placing one very large order with one manufacturer, and the product is being sent to regional warehouses. From there Wal-Marts  own trucks deliver the shoes to the 5,200 stores in the warehouses regions, decreasing the cost effect of the small number of firms.  Degree of uncertainty. "Circumstances" are relatively certain in terms of the likelihood of acceptance of the new shoe line. Customers acceptance of a $40 price tag at Wal-Mart