Nike's Advantage Of Globalization

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 .

Nike provided a clear lesson on how supply chain ethics are made visible and can impact a brand. Nike initially had hyper-growth in the 1970’s and early 1980’s. At this time, Nike outsourced the assembly of it’s products to third parties in Asia in order to both drive efficiency and lower labour costs. When asked about their questionable business practices with some of these third-parties, Nike publicly stated that they couldn’t be expected to be responsible for the practices of its suppliers. This statement led to national media and activist groups sharpening their focus on the business practices of Nike suppliers and by extension Nike.

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

An advantage of how Nike uses this strategy is that it allows them to boost their profit by selling differentiated products and Nike have other products that will compensate for products that fails in the market. The difference between Nike and its competitors is that Nike produces their products for men, women, and children in different ways based on the basis needs, physiology, preference of design, and the trends in the market. However, the biggest threats to Nike’s market is the stiff competition with the other sports brands that sell similar products, which causes Nike to continuously come out with new products with new technologies and better

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 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.

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.

Generally, globalism has been attributed to better worldwide communication, advanced technological development, and a higher international standard of living, and rightfully so. However, with all these new worldwide advantages comes a new type of human exploitation. Many companies, specifically American ones, have been quick to take advantage of the cheap and dangerous labor available in most of the undeveloped world. Countries who are working through their period of Industrialization are being siphoned off and used to maintain America’s economy, while their developing country reaps no reward from the low paying, dehumanizing jobs that American companies offer their low class workers. This type of inhumane job outsourcing can only be compared

Mark Moulton Professor Ottemann December 10, 2014 2014 Term Paper Nike & Under Armour Company Assessment Nike and Under Armour are two of the largest sportswear and athletic shoe companies in the world. Their histories and growth are similar but they use different corporate and business strategies. Their strategies reflect their corporate structure and the personalities of their leadership.

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.

Adidas, 3. Inditex, 2. Nike, and the leading competitor being 1.Christian Dior . This is analysis looks at the sales, profits, assets and market value of each company and based on their individual success each company is ranked.

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.

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

International marketing strategy is a combination of marketing principle that could be used to formulate a marketing strategy for specific products and services within one or more countries to extend or internationalise the company. The research paper is based on the international marketing strategy of Nike Inc. (a Sports Apparel retail company working internationally) to help the management of the company shortlist and identify potential market for them to expand their business. It utilised macro and micro analysis of the sports retail market to identify the potentials of the industry that would help them to increase their business performance in the international marketplace. Macro Factors PESTLE It is noted that PESTLE is one of the most important and effective that often used by organisations in order to assess different macro factors that influence their activities in a negative manner (Li, et al., 2014).