Eco-Friendly Footwear Business: Analysis for Nike in Australian Market

This report provides a detailed analysis of an eco-friendly footwear business venture, specifically focusing on Nike's potential entry into the Australian market. It begins with an introduction highlighting the environmental benefits of using sustainable materials like bamboo, rubber, and organic cotton in footwear production, and the strategic decision to manufacture in India and China. The report conducts a thorough feasibility analysis, segmenting the Australian footwear market and addressing potential logistical and operational challenges. A comprehensive SWOT analysis is presented, evaluating the strengths, weaknesses, opportunities, and threats associated with the business. The report also outlines the marketing, business, CSR, and operational objectives, emphasizing the goal of reducing pollution in Australia and promoting environmental consciousness. Financial objectives are also discussed, focusing on cost-effective production strategies to maximize profitability and branding efforts. The conclusion summarizes the feasibility of the project and its alignment with the market and environmental conditions in Australia.

Running Head: ECO-FRIENDLY FOOTWEAR BUSIENSS
ECO-FRIENDLY FOOTWEAR BUSIENSS
Name of the Student
Name of the University
Author Note

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Introduction:
The purpose of this study is promote eco-friendly shoes. The organization chosen is Nike.
These eco-friendly shoes will be made of several natural materials like bamboo wood as well as
rubber. The usage of the natural products like rubber as well as organic cotton, bamboo along
with sustainable wood; will make this footwear environment friendly, which after use will be
easily decomposed into the soil, eliminating the chances of plastic pollution. The manufacturing
plants for the production of this eco-friendly footwear of Nike will be established in Asian
countries. More specifically, it can be stated that, this type of footwear will be produced by
Asian countries like India and China which are rich in the production of rubber as well as
bamboos. Looking at the demand for the eco-friendly products, both developing countries like
India and China are eager to produce eco-friendly products so that they are able to capture the
consistently enlarge market for the environment-friendly products in the western countries and
foster rapid development of respective footwear industries. Here the targeted market is
Australian Market. The purpose of this study is to conduct feasibility as well as swot analysis
associated with the introduction of the new environmental friendly footwear and tally the
business objective with the market conditions as well as demand in the targeted market of
Australia, where the new product will be delivered. The primary objective of the production of
such an eco-friendly footwear is to reduce pollution, especially in the country of Australia where
the eco-friendly footwear will be delivered. Hence this repot will also conduct a thorough
analysis of the aim of this environment conscious project to reveal whether it will be able to
achieve the aim of reducing production in the country of Australia.

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Feasibility analysis:
Market segmentation:
This eco-friendly footwear will be manufactured by Nike for the target market in
Australia. The footwear market for Australia can be segmented into 5 sections of customers.
Depending on the taste preference as well as type of customers and demographic factors, the first
segment will consist of customers who love sports. Another segment of customers will consist of
everyday wearers. Office goers, students who are not interested in sports, housewives, elderly
people who have retired. All these will be categorized as everyday wearers. Again, among
several sections of customers, there will be a section of customers who are budget conscious.
Elite Sport-persons will form another base of customers. Again some of the elite sports lovers
will also be fashion freaks, who will prefer using fashionable shoes. They will form another
segment of customers.

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Logistic issues, Operational issues:
Nike may face logistic as well as operational issues, in the course of manufacturing such
an eco-friendly footwear. For several reasons. The issues may involve inefficient infrastructure
causing obstacles in the transportation, damage of the raw materials at the time of transporting
raw materials from the indigenous suppliers in India as well as China, lack of coordination
between the suppliers as well as the receivers at the plant site, lack of skilled driver causing
accidents during transportation, corrupted indigenous suppliers, inefficient supervisors and
unskilled operation managers neglecting their duties or committing mistakes like providing
faulty estimation of the raw materials required and received. In this way logistic issues will cast
upon spill over effects on the business operation which may create severe operational failure.
Logistic issues, Operational issues

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SWOT analysis:
Strengths:
The strengths of the business of the eco-friendly footwear is associated with the problem
of the environmental degradation of the country of Australia. Excessive use of plastic materials,
synthetic leathers in the footwear in the country of Australia has increased the environmental
degradation of the country in leaps and bounds. The strength of the environmental friendly
footwear is that, it is a product that will help Australians to take a fruitful step to combat the
excessive rate iof the environment pollution involving the plastic pollution which is increasing
day by day in the country of Australia.
Weakness:
The lack of branding as well as publicity can be considered as one of the greatest
weakness associated with the business. In other words it can be stated that both the countries
India as well as China involved in the production of the footwear are not rich in capital, hence
there may be dearth in the channelization of the financial resources in the popularization of the
brand. More specifically, in spite of the fact that the country footwear made of Cork, organic
cotton, Bamboo, sustainable wood as well as Crepe or natural rubber extracted from hevea tree;
Opportunity:
Capturing the market of environment friendly footwear in the country of Australia,
fostering innovation in the design of the shoes, dragging more customers with a low –pricing
strategies are the opportunities in case of expansion of the business in the country of Australia.

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Threats:
The contemporary competitive brands producing eco friendly shoes will be considered as
the threats to the business. These are- Adidas, Rothy's, Veja, Amour Vert, Reformation, Nisolo,
Matisse, Able, Native. The marketing objectives in this case will be competing with the other
environment friendly brands of shoes like- Adidas, Rothy's, Veja, Amour Vert, Reformation,
Nisolo, Matisse, Able, Native. Combating in terms of advertisement, price by keeping a low
price strategy and also competing with thinm in terms of quality, are the marketing objectives.

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Business objectives:
The first business objective is to capture the consistently enlarge market for the
environment-friendly products in the western countries and foster rapid development of
respective footwear industries. More specifically, it can be stated that the business objective of
both the Asian developing countries like Asia as well as China was to utilize the increasing rate
of environment pollution in the country of Australia due to the extensive usage of the synthetic
materials, plastic to make footwear; as an opportunity to pave the way for positioning their
product which is a footwear made of Cork, organic cotton, Bamboo, sustainable wood as well as
Crepe or natural rubber extracted from hevea tree. This would not only expand the footwear
industry of the Asian developing countries like India as well as China into the highly demanded
environmental friendly product market of Australia, but also pave the way for the earning of a
huge profit from the internationalization of the domestic sustainable footwear business.
CSR objectives:
Prior to the discussion of the CSR objective associated with the production of an
environmentally sustainable footwear is to encourage the people of Australia to become more
concerned for the environmental pollution. Along with this the production of such an
environmentally sustainable footwear also adopts the CSR policy to make the people of Australia
understand how the footwear made from synthetic leather and plastic material adds to the
increasing rates of plastic pollution of the country. In this way the CSR policy of the
environmental friendly footwear business, ventured by India and China, will enhance the
environmental consciousness of the people of Australia and inspire them to use footwear

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prepared from the materials like sustainable wood, organic cotton, as well as bamboo and crepe
The first and foremost CSR objective that both the developing countries has adopted is to
promote their concerns for the environment and manufacture a footwear made of completely
nature made materials like- Cork, Bamboo, sustainable wood as well as Crepe or natural rubber
extracted from hevea tree. Hence, it can be stated that as the part of the CSR objective the
production
this study showed how the excessive use of plastic materials, synthetic leathers in the footwear in
the country of Australia has increased the environmental degradation of the country in leaps and
bounds, which in turn has shaped the environmental objective of the country to increase the
usage of the products made of eco-friendly materials.
Marketing Objectives:
The marketing objectives in this case will be competing with the other environment
friendly brands of shoes like- Adidas, Rothy's, Veja, Amour Vert, Reformation, Nisolo, Matisse,
Able, Native. Combating in terms of advertisement, price by keeping a low price strategy and
also competing in terms of quality, are the marketing objectives.
Specific (simple, sensible, significant).
Spcific goal is to produce for the
sensible, environment concious
customers and create significant
impacts on the customers by creating
simple perception 'stay stylish and care
for the environment'.
Measurable (meaningful, motivating).
The objective is meaningful as well as
motivating , firstly, Nike aims to
introduce something fashionable to
repay the contribution ogf the nature in
our lives. Secondly, this plant will
generate employment opportunities to
the developing countries like India and
China.

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Achievable (agreed, attainable).
Achivable as the raw materials can be
easily collected from nature. Goal is
attainable by the developing countries
like India and China as the cost of
production is low.
Relevant (reasonable, realistic and resourced,
results-based).
Relevant with the increasing rate of
environment conci0usness in the target
market of Australia. Realistic because,
the business plan is appropriate for
countris with low level of capital and
infrastructure.Result based, because,
this is a completely new as well as
innovative plan for Nike.
Time bound (time-based, time limited, time/cost
limited, timely, time-sensitive).
Time snsative plan as all natural
materials will be used. As the
manufacturing plants will be situated in
the developing countries like India and
China, there will be cost constraints. In
other words, cost optimization is one of
the objectives.
Operational objectives:
The business possesses a few operational objectives. Firstly, the business needs to
conduct smooth operations regarding the collection of the raw materials. Secondly, bioth the
counbtries need to be conscious about the cost of production. This is because both the country
are developing country and may lack the necessary capital to expand their business
internationally. Hence, the second most important operational objective is to adopt cost effective

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methods of production of the business with the market conditions as well as demand in the
targeted market of Australia, where the new product will be delivered. The primary objective of
the production of such an eco-friendly footwear is to reduce pollution, especially in the country
of Australia where the eco-friendly footwear will be delivered. Hence this repot will also conduct
a thorough analysis of the aim of this environment conscious project to reveal whether it will be
able to achieve the aim of reducing production in the country of Australia. The third operational
objective is to make the logistics operation flawless. In other words, as the produced final goods
will be delivered to the country of Australia, India and China should be careful about the
transportation of the manufactured environment friendly shoes, so that any chances of product
damage or loss can be evaded.
Financial objectives:
The financial objective of the business will be adopt is to adopt cost effective production
process. This is because of two facts. Firstly, it can be stated that, both the countries India as well
as China are developing countries. This is the reason they may face lack of financial resources to
conduct marketing as well as product position through very attractive advertises as well as
international campaigns dedicated to enhance environmental consciousness of the people of
Australia. Hence, in order to creating branding as well as perception among the customers of
Australia, they need to channelize their financial resources strategically, so that good quality
products can be manufactured at the minimum level of cost and they can spend more on
advertising and branding though the arrangement of international environmental campaign as
well as logistics and transportation.

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Conclusion:
Hence, in the conclusion, it can be stated that, this study has demonstrated in details how
the production of the footwear which will be friendly to the environment, is completely feasible
with the market as well as environment condition of the targeted country which is Australia.
Along with this, this study has been able to tally the business objectives behind the production of
such an environment friendly footwear. The business objective of manufacturing a footwear
made of Cork, Bamboo, sustainable wood as well as Crepe or natural rubber extracted from
hevea tree was to expand the footwear industry of the Asian developing countries like India as
well as China into the highly demanded environmental friendly product market of Australia.
With the help of feasibility analysis, Swot analysis this study has vividly demonstrated how the
business will be achieved completely. Further this study showed how the excessive use of plastic
materials, synthetic leathers in the footwear in the country of Australia has increased the
environmental degradation of the country in leaps and bounds, which in turn has shaped the
environmental objective of the country to increase the usage of the products made of eco-friendly
materials. The business objective of manufacturing a footwear made of Cork, Bamboo,
sustainable wood as well as Crepe or natural rubber extracted from hevea tree was to expand the
footwear industry of the Asian developing countries like India as well as China into the highly
demanded environmental friendly product market of Australia. Here the targeted market is
Australian Market. The purpose of this study is to conduct feasibility as well as swot analysis
associated with the introduction of the new environmental friendly footwear and tally the
business objective with the market conditions as well as demand in the targeted market of
Australia, where the new product will be delivered.

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