It should be known that consumers all over the world are creating new markets and demanding new services which require the firms to focus on getting close to market, to create new, digital solutions and to customise products for consumers more quickly than ever before. 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! In order to be able to fulfil these demands, firms must succeed in the harsh conditions where the natural and human resources are constrained. ( Log Out /  The Oregon-based company Nike operates in 120 countries and has more than 44,000 employees. As Levitt (1983) said a global producer’s patronage expands exponentially, when he offers his low cost internationally. Levitt suggested that customers with local preferences are also attracted towards the lesser prices offered by global producers. growth was due to the international competitive tax arrangements, stable government and trade regulations by the Federal Reserve (Whitehead, 2012). Not only does it help the kids and support Nike’s mission, it also builds a sense of purpose in the employees. Japan. (www.forbes.com). Nike has the ability to influence a DIBC (Dynamic International Branding Capability) to shape the market opportunities around the brand. Eisenhardt et al. It also allows the company to develop new ideas and expand new markets, he added. Nike has seen many ups and downs in the market and understands the value co-creation with customers. Do you have a 2:1 degree or higher? Here are 9 reasons why Nike (still) reigns supreme. “Just Do It” the marketing phrase of Nike is buzz in the town and its ‘swoosh’ logo gives it that different identity. This paper will talk about Nike’s global presence and how Nike has achieved success in past years. Hill (2009) suggests when a company expand itself globally it also consider its consumers benefits, consumers must be served with high quality and low priced products. Young workers are paid low wages to work long hours and are exposed continuously to toxic substances in factories which can lead to serious health impairment. 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. Obviously, this deal will increase the amount of money spent on advertising from both the companies. He suggested that for high quality of products most of the people around the world are ready to compromise their preferences in product features, functions and design. For suppliers ineligible to use Coupa eInvoicing, Nike uses standard mail and email (preferred) to receive invoices. Nike also produces some limited product for people … 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. Making Product Responsibly. Borderfree also lets us take advantage of a fast, reliable shipping network. For Nike, Inc. it is about recognising that sustainability is a route to future profitability. Nike should establish good relations with suppliers because they can affect business strategies. As the time passes, the impact of issues ranging from peaking oil prices, climate change mitigation, population growth and so on decreases availability of natural resources which leads various effects on labor forces, working conditions, communities, development, youth, sport, supply chains, products and more. Consumers can get the best combination of price, quality and ethical factors if provided by relevant information. Nike was criticized for not being an Olympic sponsor in 1996, but investing in sponsorships of athletes and a Nike Centre right outside the athletic village, which upset competitors like Adidas who spent over 50 million dollars to become an official sponsor. For the year ended 30/11/2008, revenues rose 11% to $10.02B. Nike is a global company based in United States which employed more than 30000 people across the globe. But what about Nike? 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. (2002) suggest that Nike with other big companies such as Benetton, Dell and IKEA has a well specified supplier and distribution system which made them efficient in terms of rapid growth opportunity, time compression, production and access to a wider customer base. (2002) supported the argument and said that a tightly coordinated supply and channel net are the prerequisite to establish a position in the field and keen demand of the customer reflects the strong brands – example of both are Nike and Dell. Another benefit is you�ll get early adopters on board easier since there�s no one else competing for their attention. Nike's sales in China jumped 17% year over year in the quarter when adjusted for currency fluctuations, and the company believes that's just getting started. Many a times Nike stores have been targeted by anti globalisation protestors. Invest in promotional activities will also be a good idea. 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. Click Above to Watch Nike Advertisement - What Will They Say About You Nike Co-brands with Various Sports. Net income rose 4% to $1234.8B (www.nikebiz.com). (L. Hill, 2009). Investing in R&D has helped gain a large market share and the popularity of Nike products has also grown. We don't deliver internationally to addresses outside the country or region where your order is placed. This site is a tool to learn about the independent factories and material suppliers used to manufacture NIKE products - including the name and location of … What new business concepts could enable NIKE, Inc. to thrive in a sustainable economy? But you can shop on Nike.com in a number of locations globally.. We are unable to deliver to PO boxes, Nike stores, reshippers or package-forwarding services. Manufacturing & Labor. 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. By then Nike had become an internationally success and was rapidly developing into a global brand. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. However, today their corporate responsibility approach has evolved from focusing on risk management, philanthropy and compliance, to one which focuses on innovation. Apart from fitness trends, growth in gym and sports infrastructure across the … Your business could be trading internationally, read our infographic which lists the top 10 reasons why your business should be exporting overseas. The size of their investment in R&D is much larger. ( Log Out /  Nike sells different type of product for the different countries due to different countries have a different lifestyle. But you can shop on Nike.com in a number of locations globally.. We are unable to deliver to PO boxes, Nike stores, reshippers or package-forwarding services. Nike is worldwide; it has contracts with 700 factories that employ 550,000 workers in 50 countries. Implementation of brand differentiation strategy is allowed by Nike’s brand name which is a tangible but important factor to ensure future success and maintain its current leadership and market share. According to Mintel, 20%of the U.S. athletic market is controlled by Nike. In general, companies go international because they want to grow or expand operations. It is why innovation is a core focus for Nike and its rivals like Adidas and Under Armour. 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. Table 1 above gives the insights of financial structure of Nike plc, as it is clear from the figures in table 1 that Nike is strong in financial terms due to which it can increase its business globally. Stout (1997) argued that this made a positive image of Nike in media and enhanced its public image in Asian countries. ( Log Out /  The most effective way to manage and upgrade existing capabilities and resources and to convert the key weakness into strengths is- to outsource. Nike, Inc. is aware of that, today and in the future, in order to be the leading athletic brand in the world, they have to deliver innovative new products and experiences in a more sustainable way. The differentiation strategy of Nike is quite competitive so Nike should ensure any international marketing strategy it applies should enhance its superior brand name. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. 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. Looking for a flexible role? (Carr, 2005). Growth rate of Nike is indicated in the table 3 below which shows constant steady sales over the past years. 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. Nike has customers around the globe and it remains informed and connected with its customers which gives Nike a new source of value. Therefore, to establish good public relations Nike took some more steps. Nike employs skilled engineers and designers, encouraging them to embrace disruption and create innovative products. 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. How we make our products is as important as what we make. They have about 500,000 employees and chose to operate as a multinational business because they produce groceries, clothes, food and banking and by operating in the countries they are improving employment opportunities in those countries, they should be able to sell products at low prices, which increases profits, and at the same time benefits their customers. The following characteristics are notable in Nike’s organizational structure: Nike has handled the negative publicity over the sweatshops very expeditiously. We're here to answer any questions you have about our services. 1st Jan 1970 (2000) suggests that for the long term competitive advantage Nike could also use dynamic capabilities to enhance existing resource configuration. This is why in the 1980s, Japan, with its growing economy, became Nike's biggest market outside the USA. 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. Later, Nike adopted a standard according to which a person with 17 years of age or more can work and workers have to prove their age by submitting 3 documents certifying their age (Lee, 2000). Karpin and Voola (2008) believe that consistency is the key aspect of brand management in the international context. It commissioned Ernst & Young, an independent organisation to audit its subcontractors’ overseas factories (Rourke, 2000). Improved hedge rates year after year leads to higher gross margin which are reflected in the net income which has increased by 4%. To fully realize this new model, industry must find new answers to business challenges. Jordan was so popular that he continues to have a line of clothing and shoes with Nike years after his retirement as a professional basketball player. Borderfree allows us to show all our prices in your currency and displays your final total during Checkout. Nike should strictly follow the rules such as minimum wage and child labour; it will make Nike a more socially responsible organisation. This essay will employ literature review to support the evidences in case of dynamic capabilities of Nike and its competitive abilities. Marketing Change ), You are commenting using your Google account. Company has enough capital to implement any international market strategy for example advertising in international markets, providing better services to customers, invest in the new planning etc. Nike can build trust and relationships with Nike community, can learn directly from customers and provide customers what they want which enhances the brand. This philosophy and determination determine the way they approach to corporate responsibility in today’s marketplace. The current ratio of -3 implies that company has sufficient liquid capital to enforce new marketing strategies and extending its business. VAT Registration No: 842417633. 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. (Douglas and Wind, 1987). News organisations such as CBS and several non government organisations such as Global Exchange based in San Francisco criticised the working conditions in foreign factories that supply Nike. So Nike should follow this strategy in future and try to remain dominant over its rivals through the marketing strategy. The key to increasing profit for a TNC is to make the product as cheaply as possible and keep transportation costs down, and to sell to countries with the highest increasing incomes. A brand is perceived differently in different culture or markets so it could be very catchy for an organisation to build a global brand. According to Levitt (1983), through supplying global markets Nike could achieve considerable economies of scale in production and marketing. And to position a brand competently in a different country needs a great skill to understand all the circumstances. 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