A Familiar organization There are many familiar organizations that have successfully used globalization to expand markets and profitability. One of such organization is Nike Inc. Established in 1964 with the name ‘Blue Ribbon Sports’ (BRS) by Phil Knight and Bill Bowerman, the organization began as a distributor and importer of Japanese running shoes before embarking on a project to design its brand, which has become a household name in sportswear industry (O 'Reilly, 2014). Analyzing ways Nike Inc. has successfully used globalization to expand markets and profitability. There are various ways Nike Inc. has successfully used globalization to expand markets and profitability. Nike’s first globalization strategy was outsourcing. Nike Inc. realized that manufacturing its products (footwear) in the U.S was expensive and to further export these products to distributors outside the U.S would be a massive challenge. This is because price affordability was a major concern for customers outside the U.S who would not comprehend why sportswear should be that expensive to buy. However, Nike Inc. took advantage of globalization by using the Japanese high-quality, low-priced production strategy by outsourcing all its shoe production to Japanese producers (Locke, …show more content…
Additionally, Nike Inc. entered a globalized market because the organization had a solid financial base that could support its factories abroad. Though critics argued that Nike implemented a cheap labor policy to manufacture its products, nevertheless, without a stable financial base, it would have been difficult to globalize the organization. In a related development, Nike’s presence in the globalized market encourages a massive inequality in the society. While suppliers were much better off, the laborers were worse off and the organization looks the other way because it was part of doing a business in the globalized market. So, it is fair to say that entering a global market costs Nike Inc. its reputation so to
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Nike is one of the most respected brands out there. "Nike is so widespread across so many apparel and footwear categories, that right now I think their biggest competition is themselves," said by Ralph Parks who is the president of the 450-store Footaction chain. He also added that, "The brand is becoming bigger than life itself. " Nike has been around for over 50 years, and according the Nike website, they got their name from the Greek goddess of victory, and it is pronounced "ny'-kee." Nike, like many other companies, uses forms of elements like ethos, pathos and logos to manipulate viewers in there advertisements and commercials.
Globalization is a process in which the world becomes more and more inter connected as a result of trade and the exchange of culture. Big companies that were once national companies have become trans-national companies (TNCs). These companies are mostly based in MEDCs (More Economically Developed country’s) such as the US or the UK. The TNCs invest in MEDCs and LEDCs (less economically developed country) to maximize their benefit. Most TNCs including Nike get their products manufactured in LEDCs such as China, Taiwan, Indonesia, Vietnam, and Bangladesh.
Company Description Nike believes diversity and inclusion drives innovation that lead to a competitive advantage. Nike has a broad base of suppliers that actively and significantly support their business requirements. Nike’s Global Procurement team manages the procurement process, including selecting and contracting with the right suppliers for the right goods and services. They have also begun to reduce Nike 's footprint and lessen their impact.
NIKE The Factors that Led to Success and Failure of Nike in its Venture across International Markets Abishek TR* Abstract- Key words: INTRODUCTION The largest American suppliers of athletic shoes, apparel, and sports equipments .At the same point of time ,this company is known worldwide .The Success of this company is the result of the various strategies used in the international market expansion which helped them to enter into new markets and to strengthen its position in the traditional ones .
Today, the imagery of the goddess Nike, and her name live on. Today one of the most popular shoe brands have the name nike. Nike (shoe company) has been manufacturing sports equipment since 1978. The name was chosen because nike is the goddess of speed and victory. The Nike sports brand logo has an indirect connection with the goddess Nike.
1) Explain Nikes success in Football since 1994 Nikes strategy in the marketing world has evolved every year, growing and becoming stronger and more world wide known. In 1994, Nike in the football world was small and wasn’t keeping up with the big competitor of Adidas. Nike took every chance they received to grow their brand internationally which started off with the world cup in 1994 in the United States.
Nike has sustained positive revenue in a worldwide market focusing on a healthy and active lifestyle. For the past 3 years Nike has gained a gross profit ratio of 8.73% in fiscal of 2013, 10.28% in fiscal of 2012, and 8.28% in 2011 . Thus showing the financial power Nike has, well the firm holds a net income of 2.5 billion in the fiscal year of 2013. Nike’s largest product category is footwear, representing over 55% of the companies revenue. Nike uses their financial resources ability to obtain large advertising plots, whether it is a commercial on television, advertisements on the Internet, or product promotion in athletic facilities.
David Montero explains that in Sialkot, Pakistan there is a business, Saga Sports, that creates the Nike soccer balls by hand, the problem Nike has with the company is that they employ children to work in unjust conditions. “In November, Nike severed its contract with Saga Sports, its chief supplier, saying Saga's poor management exposes Nike to the threat of child labor and other labor violations,” (Montero). The chief executive of Nike is trying to reduce the amount of children that produce their goods in unfair conditions. The executive wants consumers to know that they are buying products that were manufactured the proper way of not having children make these items in appalling conditions that could threaten their health. The evidence suggest that working conditions is another reason that the United States consumers should not buy products that are made by
Nike moves its factories to Indonesia, Vietnam, and China, when the cost in Japan became expensive. And the source of crisis is the working condition in these factories because of the accusation of poor condition, child labor, and widespread harassment
Introduction Sitting down and writing this essay, had me perplexed, I didn’t know where to begin and then I said ‘JUST DO IT’. A term that has many meanings such as motivation, energize, get in shape and work hard, and the first thing that comes to one’s mind is “Just Do It” which is what Nike stands for. The brand Nike is one of the most known brands for their slogan “Just Do It” which was coined in the year 1988. It is successfully known to all parts of the world with famous athletes associated with them to promote their products. Nike as a brand is such that is seen everywhere through advertisements or their reliable products they produce.
In the assignment, it will discuss the sports brand Nike which specifically focuses in Chinese market. There are three main content areas in this assignment. The first part is a macro environmental analysis; the next part is the target customer profile; the last part is the analysis of marketing strategies. Macro Environmental Analysis: Nike is a very well-known market leader. It is an international brand, their products are selling in the worldwide including China.
Nike is the leading and renowned world supplier of athletic apparel and shoes. The brand is in control of over 47% of the market for athletic shoes. The company begun way back in 1962 and it was founded by Phil Knight and Bill Bower. It was originally known as Blue Ribbon Support and only in 1978 did it change its name to the worldwide recognized brand, Nike. Nike provides its products to more than 100 countries throughout the world.
This is due to Nike gets its merchandise generally from foreign manufacturers. To operate profitably, Nike need to get good value on products and supplies and, in turn, offer good value to its customers with accessible solutions. Publics: Many colleges and universities, especially anti-globalization groups as well as several anti-sweatshop groups
Probable factors that could affect Nike’s business judgements are a range of demographic, social, economic and political. A few have already started to transpire, though others are purely likelihoods. External factors affecting this mix is one of the most common, technology. Before Nike releases its brand new product line to the market, it’s always prepared to authorize that whether or not there has been any sort of major advances from the other competitors that would tracker its launch. Thus they must time this carefully, as other competition may demand to shadow its release with their marketing
Evaluate the positive and negative of globalization on Vietnam Today, there are increasing international brands set their factories in Vietnam such as Columbia Sportswear, L.L.Bean and Nike(DangThu,2011). It is not a secret that globalization is increasing substantially and creating new opportunities for Vietnam. As Wild and Han said, ‘Globalization trend toward greater economic, culture, political, and technological interdependence among national institutions and economic. ’(Wild&Han, 2006:6) However, globalization not only took benefits to Vietnam.