The type of media available as well as their reach and effectiveness differ from country to country. Nike is a global company based in United States which employed more than 30000 people across the globe. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. Eisenhardt et al. However, both the brands Adidas and Reebok are very different in their culture; Reebok is more lifestyle brand than Adidas. Barriers Nike is exposed to the international nature of trade. Therefore, to establish good public relations Nike took some more steps. Your business could be trading internationally, read our infographic which lists the top 10 reasons why your business should be exporting overseas. Nike Inc. stakeholders interests are satisfied through the companys corporate social responsibility (CSR) programs. Put investing in sustainability as a key innovation/R+D priority on consumer brands’ agendas, Fast track innovation through investment and collaboration. Its sales are increasing day by day due to the market strategy it applies, and the popularity it gained by sponsoring celebrity such as Michael Jordan and Tiger Woods. Borderfree also lets us take advantage of a fast, reliable shipping network. For the year ended 30/11/2008, revenues rose 11% to $10.02B. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Learn More. Nike already gets more than half of its sales from outside the country, but it could still grow further internationally. 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. Nike is accused of manufacturing its shoes under the sweatshop condition in Asian countries which make a large hue and cry among the media. (Carr, 2005). You can view samples of our professional work here. 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. 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). DIBC is the ability to manage the international branding process as a dynamic capability. Nike’s manufacturing operations are concentrated in lower-cost countries such as China, Vietnam, and Indonesia. Change ), You are commenting using your Facebook account. (L. Hill, 2009). Our academic experts are ready and waiting to assist with any writing project you may have. Japan. Nike sells different type of product for the different countries due to different countries have a different lifestyle. A foundation financed by labour unions and low-wage countries in 1996 said that “Air Jordans” popular range of Nike sneakers were made by 11 year olds who are working for 14 cents per hour in Indonesia. A new but forthcoming field of research in international market strategy can be represented by low-income markets. *You can also browse our support articles here >. This strategy will also consider the threats of entering into a new market and supply of sufficient funds and labour in terms of applying the strategy. Nike has been involved in never stopping controversies due to sweat shops but due to its preventable actions it gained publicity and today Nike is a stable brand name all over the world. Similarly, in countries with high level of illiteracy the effectiveness of print media is severely limited. To fully realize this new model, industry must find new answers to business challenges. 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 is why in the 1980s, Japan, with its growing economy, became Nike's biggest market outside the USA. It also allows the company to develop new ideas and expand new markets, he added. Being a sportswear industry Nike is highly labour intensive and majority of manufacturing is held in low wage countries. Free resources to assist you with your university studies! Such an exposure could mean that Nike may be manufacturing and/or selling at a … Levitt (1983) suggested that low price regardless of feature preferences and heavy promotion regardless of price, always attracts and influence customers. Improved hedge rates year after year leads to higher gross margin which are reflected in the net income which has increased by 4%. ( Log Out /  Many a times Nike stores have been targeted by anti globalisation protestors. An organisation should be aware about the external environments in which it functions and should be very sensitive about its internal culture. Not only does Apple attract consumers with its global branding consistency and sleek products, but it also caters to buyers’ emotions. In general, companies go international because they want to grow or expand operations. Reference this. 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 Twitter account. Finally, Nike makes use of all available markets to increase their revenue margin. We don't deliver internationally to addresses outside the country or region where your order is placed. Europe, Asia, North and Latin America are the main markets in which Nike sells its products, which makes it a truly global organisation. This essay will critically evaluate Nike’s current international strategy and help to identify Nike’s current strengths, weaknesses, opportunity and threats. So Nike should follow this strategy in future and try to remain dominant over its rivals through the marketing strategy. Company Registration No: 4964706. 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 has partnered with Coupa, a web-based business network for eProcurement and eInvoicing. We're here to answer any questions you have about our services. Nike undertakes marketing, product design and overall system integration itself but outsourced the other units to be economical. (www.forbes.com). In 2004 William D. Perez replaced Phil Knight asCEO, with Knight continuing in his role as Nike Chairman. Karpin and Voola (2008) believe that consistency is the key aspect of brand management in the international context. Disclaimer: This work has been submitted by a university student. This philosophy and determination determine the way they approach to corporate responsibility in today’s marketplace. For marketing and selling Nike is already using Internet web mode, any future marketing strategy should consider telecommunications and information technology advancements as they can go on twitter, face book as these websites are mostly accessed by youngsters which could be the fan of Nike. Nike has its products made in 41 countries, using 525 factories and a little over one million workers: Argentina — 13 factories (6 apparel, 3 equipment, 4 footwear) Nike is established in 1972 by former university of Oregon star Phil Knight which is now one of the richest people in America. Nike is worldwide; it has contracts with 700 factories that employ 550,000 workers in 50 countries. Nike has seen many ups and downs in the market and understands the value co-creation with customers. Differentiation is one of the bases which allow Nike to gain competitive advantage. Manufacturing & Labor. 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. Instead of manufacturing Nike designs and markets its products, while contracting for their manufacture from 600 factories scattered all around the globe, that employ around 650,000 people. Nike and Olympics. Nike Inc. defines its international strategy based on three core strategic questions(This international strategy is also valid for Turkey): This work underlined two key challenges: that solutions will demand industry-level systemic change, and that the scale and complexity of changes needed demand new approaches to innovation and collaboration. Burghausen and Fan (2002) also supported him by arguing that consistency should not lead to complacency, and management should only make changes when a relevant opportunity is identified. Nike can build trust and relationships with Nike community, can learn directly from customers and provide customers what they want which enhances the brand. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Douglas and Wind (1987) suggested that a careful analysis of the forces driving towards globalisation and the obstacles to this approach will help the company to assess where the most attractive opportunities and the company’s differential advantage in exploiting these, appear to lie based on the strengths and weaknesses. This essay will employ literature review to support the evidences in case of dynamic capabilities of Nike and its competitive abilities. Plant and equipment are the assets whose performance can be measured but Noto (2007) argued that brand name, reputation, particular technology and corporate culture with accumulated consumer information are some of the intangible assets which cannot be measured but are invaluable for a firm’s competitive advantage. 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 … In general, Nike has used all the marketing campaigns possible in the past but it should consider the availability of resources in the different country. Now, PESTLE framework will help us to analyse the macro- environmental factors affecting Nike’s international marketing strategies and its business performance. 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. Nike, Inc.’s strategy on sustainability contains: Nike, Inc. thinks that the future will demand closed-loop business models that move closer to achieving zero waste by completely reusing, recycling or composting all materials. because shortage of supply can play a big role in setting the pricing policies and applying the market strategies. The answer to this question is easy because Nike has a website that tells us exactly where it manufactures its products. So, it can be said that the strategy of standardisation does not only responds to the worldwide homogenised markets but also expands markets with aggressive lower pricing. One central factor supporting fast growth of sports shoe industry worldwide is the rising health consciousness. International shopping for Nordstrom products is offered through Borderfree, a global e-commerce provider. The deal creates a much bigger Adidas a company of $12 billion against $14 billion of Nike. The differentiation strategy of Nike is quite competitive so Nike should ensure any international marketing strategy it applies should enhance its superior brand name. Political Factors Of Nike. Where TV advertising is permitted it may reach only a limited number of households, due to limited ownership of TV’s as for example in South Africa, Nigeria or Indonesia. Leaders must examine the impact on supply chains and labor forces. Another section will talk about the never ending controversies which Nike has been facing due to its manufacturing factories in low labour countries. Nike has handled the negative publicity over the sweatshops very expeditiously. Nike has the most dynamic logo on the planet. How we make our products is as important as what we make. No plagiarism, guaranteed! All work is written to order. Now-a-days, growing health awareness will result in the demand of sports and fitness commodities (Moore, 2003). 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