Another benefit is you�ll get early adopters on board easier since there�s no one else competing for their attention. As a brand which is aware all of these, Nike, Inc.’s designs and the products currently rely on the availability of natural resources (from raw materials to water and energy). Finally, the essay will analyse the competition in the selected market, strategy adapted by the competitors and how Nike uses its brand power strategies to anticipate such threats. Nike and Olympics. Karpin and Voola (2008) believe that consistency is the key aspect of brand management in the international context. When four Indonesian subcontractors are refused to abide by the company’s standard for wage levels and working condition, Nike terminated its relationship with them. Levitt suggested that customers with local preferences are also attracted towards the lesser prices offered by global producers. Nike should not forget suppliers of raw materials like rubber, leather and cotton etc. Most companies are unaware of the potential of these markets and therefore these markets remain unexplored. growth was due to the international competitive tax arrangements, stable government and trade regulations by the Federal Reserve (Whitehead, 2012). How do we continue to evolve and improve our current model during the transition? What countries does Nike like? These financial figures are reflection of great success of Nike in global market as these are taken after assuming the price rise in U.S. and all the changes in the currency exchange rates have taken into consideration. To better understand customer needs and market characteristics it is very important to develop established ties and alliances with traditional and non-traditional partners in that economy. Learn More. ( Log Out / If you need assistance with writing your essay, our professional essay writing service is here to help! Nike is currently facing competition with Reebok and Adidas therefore it should take remain with its strategy of consistency so that the customers will not be puzzled and should take advantage of its brand name. According to Levitt (1983), through supplying global markets Nike could achieve considerable economies of scale in production and marketing. Change ), You are commenting using your Google account. Obviously, this deal will increase the amount of money spent on advertising from both the companies. Some consumers however, prefer those products which caused less harm to others or which are produced in their own country and this is called ethical factor. (Douglas and Wind, 1987). Leaders must examine the impact on supply chains and labor forces. Build an advocacy agenda to push for large-scale policies and investments in sustainable innovation as a key enabler of global economic competitiveness. Innovate to deliver enterprise-level sustainability solutions, Integrate sustainability into the heart of the NIKE, Inc. business model, Mobilize key constituents (civil society, employees, consumers, government and industry) to partner in scaling solutions. This philosophy and determination determine the way they approach to corporate responsibility in today’s marketplace. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. As Nike operates its business globally, any strategy can have different implication on different culture so it should consider the adaptability, feasibility and suitability by the local people of that country. No plagiarism, guaranteed! Finally, Nike makes use of all available markets to increase their revenue margin. Converse Shoes, a former rival to Nike, was acquired by the company for $305 million in 2003. (Carr, 2005). Japan. The answer to this question is easy because Nike has a website that tells us exactly where it manufactures its products. Our academic experts are ready and waiting to assist with any writing project you may have. As Douglas and Wind (1987) suggested that one standardised strategy may be hampered due do the differences in the marketing infrastructure from one country to another. Nike should strictly follow the rules such as minimum wage and child labour; it will make Nike a more socially responsible organisation. Executive Summary: Constant innovation has been the byword for Nike's success.This case study analyses the ever-evolving marketing strategies adopted by Nike to … Nike Sportswear revitalizes Nike International, Nike's first global track club, for a new collection honoring the style and aesthetic of today’s track stars. By then Nike had become an internationally success and was rapidly developing into a global brand. Nike’s manufacturing operations are concentrated in lower-cost countries such as China, Vietnam, and Indonesia. We work with suppliers who share our commitment to respecting the environment and people. (L. Hill, 2009). Growth rate of Nike is indicated in the table 3 below which shows constant steady sales over the past years. Finally, if Nike wants to think about some acquisitions or merger, it should take into account the investigation by Competition Commission which could block its activities taking into consideration the government policies. ( Log Out / Invest in promotional activities will also be a good idea. Nike employs skilled engineers and designers, encouraging them to embrace disruption and create innovative products. What new business concepts could enable NIKE, Inc. to thrive in a sustainable economy? You can view samples of our professional work here. Free resources to assist you with your university studies! Their vision of a closed-loop business model includes up-front design of products that can be manufactured using materials reclaimed throughout the manufacturing process and at the end of a product’s life. “Just Do It” the marketing phrase of Nike is buzz in the town and its ‘swoosh’ logo gives it that different identity. Making Product Responsibly. According to Mintel, 20%of the U.S. athletic market is controlled by Nike. Nike also produces some limited product for people … We don't deliver internationally to addresses outside the country or region where your order is placed. Nike's growth in China supports job creation in the United States, O'Hollaren said. Europe, Asia, North and Latin America are the main markets in which Nike sells its products, which makes it a truly global organisation. The most effective way to manage and upgrade existing capabilities and resources and to convert the key weakness into strengths is- to outsource. Nike has seen many ups and downs in the market and understands the value co-creation with customers. As Nike is operating in 4 different continents, the government legislations will be different for different countries. Nike came in front and took this social responsibility to make a code of conduct to improve the working condition and to improve the conditions of workers and it has amended it time to time. Differentiation is one of the bases which allow Nike to gain competitive advantage. Nike is established in 1972 by former university of Oregon star Phil Knight which is now one of the richest people in America. Now-a-days, growing health awareness will result in the demand of sports and fitness commodities (Moore, 2003). According to Gelder (2006), in the race of globalisation, Nike, Coca-Cola and McDonalds are some of the brands which have become the representative of the massive power of large corporations for the anti globalisation movement. This essay will critically evaluate Nike’s current international strategy and help to identify Nike’s current strengths, weaknesses, opportunity and threats. This is why in the 1980s, Japan, with its growing economy, became Nike's biggest market outside the USA. DIBC is the ability to manage the international branding process as a dynamic capability. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. All work is written to order. Some of the advantages to Nike as a company because of international business are that they can: promote environmental sustainability by "decoupling" growth … Nike has a geographic divisional organizational structure. Nike can build trust and relationships with Nike community, can learn directly from customers and provide customers what they want which enhances the brand. In order to be able to fulfil these demands, firms must succeed in the harsh conditions where the natural and human resources are constrained. The current acquisition of Reebok by Adidas makes this competition more intense. *You can also browse our support articles here >. The benefits of entering international markets include generating more revenue, competing for new sales, investment opportunities, diversifying, reducing costs and recruiting new talent. But what about Nike? The corresponding CSR policy and strategy are based on Nikes consideration for communities and customers, whose interests significantly influence the companys design and production of its athletic footwear, equipment and apparel. This essay will also consider the political, legal and cultural issues which Nike can face while implementing any strategies in international markets. Put investing in sustainability as a key innovation/R+D priority on consumer brands’ agendas, Fast track innovation through investment and collaboration. The Oregon-based company Nike operates in 120 countries and has more than 44,000 employees. Nike faces direct competition from Umbro, Reebok, Puma, and Adidas, which are in a way, the rivals of Nike because they sell the same products and target the same customer groups. One central factor supporting fast growth of sports shoe industry worldwide is the rising health consciousness. Nike undertakes marketing, product design and overall system integration itself but outsourced the other units to be economical. And fitness commodities ( Moore, 2003 ) its sales from outside the country, it! New products considerable adaptation of strategy of local market conditions the 1980s, Japan with! Nike also produces some limited product for people … Political factors of Nike in media and enhanced its image... 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