Strategy Development Case Study: Nike And South Asia
A strategy development team of a consumer’s product company that is currently serving in the United States is considering doing business in other countries. Many companies dream of increasing their profits by taking their business overseas. I chose Nike for this case, because it is an American corporation that designs products such as apparel, equipment, and accessories. Nike doesn’t manufacture in certain countries in South Asia. Although Nike is a well-known brand, there are some issues that could arise if the company were to manufacture and sell their products in South Asia.
Nike, Inc. & South Asia
Author and professor, Leon C. Megginson once said, “It is not the strongest or the most intelligent who will survive, but those who can best
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In India, most of the country is made up of plateaus and mountain ways. If Nike were to manufacture and sell its products in India, it would only be in the cities that are modernized, such as Mumbai, Bengaluru, Chennai, and Hyderabad. “About three-fourths of India’s people live in some 500,000 villages, where India’s most basic business—agriculture takes place. Most villages have fewer than 1,000 inhabitants, but some have as many as 5,000 people. Indian villages are often quite complex and are not isolated socially or economically” (Jacobson 1). Nike wouldn’t be able to get many customers if they opened up stores in the …show more content…
If Nike were to manufacture, their products in South Asia they would need an organizational structure. To run a company there should be a CEO (Chief executive officer). A chief executive officer is the highest-ranking person in the company. Next, would be a business analyst manager, this person oversees projects and the technology side of things. Next, would be a development manager, this person envisions new and creative ideas for the company’s products and design. The final steps to the organizational structure are manufacturing, marketing and finance.
Conclusion If Nike ever manufactured and sold their products in South Asia there could be some issues that arise when it comes to social and cultural forces, political forces and risks, trade restrictions, and entry modes. It would be difficult for any company, even one as big as Nike, to take their company overseas, simply, because every country and culture is different. It would be difficult to adapt to a country’s laws and regulations. It’s highly recommended that a company researches a location before making a move out of their
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