The reason why NIKE, Inc. is able to maintain profitable even though operating in a market with high price sensitivity is due to customer loyalty and continuously being able to outcompete competitors through other promotional strategies. An example of NIKE, Inc.’s continued growth, quality of their products and consumer loyalty is that in 2014 NIKE, Inc. increased its footwear prices by 5% and its apparel by 4%, however, their market share in key footwear and apparel categories continued to expand. (Market Realist) Moreover, the higher prices charged by NIKE, Inc. are a symbol or a representation of a better, improving and fair labor market, which NIKE, Inc. was heavily criticized for
Identify the key routines and capabilities of your firms. How were they developed? Key capabilities of Adidas are in depth costumer knowledge and understanding. Niche marketing and longstanding sponsoring relations with the German national team and a lot of prestigious sporting events, as well as high quality products, earned Adidas a strong, difficult to replicate, brand recognition. Adidas is able to sell their shoes at a premium, but is still selling them cheaper than its prime competitor Nike.
Chinese culture is an independent culture system with its own national characteristics. As far as I know, Chinese culture has been injected lots of fresh energy, such as the new styles of wedding, kinds of western festivals are being more popular and so on. Globalization makes the whole world become much closer, which creates a good condition for Chinese culture to bring in and use the essence of all kinds of culture for reference. At the same time, China has also been eager to participate in the international community in various manners to strengthen its international standing and portray itself as a peaceful rising power. ( Lee, F. F., Zhou, H., Chin-chuan, L., Wan-Ying, L., & Yao, M. 2009) Second, globalization makes it possible for Chinese culture to be melted in the global culture.
Also, Beijing Olympics has given an attention to firecrackers industry. (Jiang and Beamish, 2011) Threats: There are threats by the media as it is handled by the government in China. Also there are few independent NGOs pulling the companies in abusive matters as fireworks industry has many environment related issues. (Khanna, palepu, and Sinha, 2005) According to above industrial and strategic analysis, Jerry Yu should definitely go for the investment in the Chinese Fireworks Industry. It is also important to focus on the AAA model of Ghemawat as he needs to adapt the components in the Chinese market.
It offers plenty of opportunities and chances to South Korean culture to spread in the world, including China. Taking advantage of the beneficial background and its intrinsic attraction, Korean Wave takes hitting China for granted. If the background condition is not in this case, however, can Korean Wave still be so popular in China like it does now? I guess not. Though Cultural globalization may bring a lot of risks to the culture of a country, we can’t deny the opportunities it provides for the development of culture.
Besides that, 17% of the customers are attracted by its trendy design. 19% of the customers choose Nike because Nike has good quality. In conclusion, there are several reasons that the consumer go for Nike. The reasons are its price, durable, comfortable, good reputation, trendy and good quality. Nike Company should do the marketing research to get the consumer’s opinion to improve their product.
Nike is an athletic industry and it is the largest and most important athletic company in the world. The success of this industry pushes their owner to apply an expansion strategy which results in developing a strong working relationship with two Japanese shoe manufacturers, Nippon Rubber and Nihon-Koyo at the beginning and develop global relationships later. (Locke, 2002. P. 4) Its expansion strategy has both positive and negative impacts. The positive impacts make Nike global and the most profitable sports industry in the world as a result of moving into other sectors such as apparel and sports equipment.
Another strength Nike has is the style and comfort of their products. A lot of people purchase the product because of how fashionable and comfortable the brand is. Nike products can be paired for any type of event. Because Nike has already established the loyalty and respect from customers, a Work Wear Line would sell out fast. Nike does face some weaknesses by creating a Work Wear Line.
Beijing Xiaomi Technology company is one of the few tech-oriented multinational companies (MNCs) that use online sales channels to gain a competitive edge. The rapidly changing and highly rival corporate world is fast revolutionizing how both small-scale and MNCs view their business environment: competitors, customers, and opportunities. Primarily, companies tend to emphasize identifying new or redefining their existing marketing strategies to remain profitable and relevant in their respective industries. While Xiaomi’s online approach improved its overall performance, it also caused a series of crises, which can be resolved by diversifying its operations. Advantages of Channels Xiaomi’s online sales networks are more beneficial than the traditional concepts.
However, the third wave of mass consumption starts in 1992. It began with the unprecedented phenomenon of xiahai because money-making became their highest ideal. A craze that led a quick growth of stock markets by investment also stimulated citizens’ desires to the pursuit of some better consumer goods such as high quality or luxurious products. Economically speaking, since the purchasing power and bargaining power of customer increased, sellers were necessarily required to resort to various techniques to promote sales. What is more, since China introduced “double leisure days” policy to the public in 1995, workers were able to spend a lot more time to visit shops to compare the prices and quality of the products they want to purchase.