The differentiation strategy of Nike is quite competitive so Nike should ensure any international marketing strategy it applies should enhance its superior brand name. International market expansion is the primary mode of entry for Nike in Brazil. The common objectives are – Foreign market entry; Risk/reward sharing a restaurant) 2. For the year ended 30/11/2008, revenues rose 11% to $10.02B. Wherever we go, not even a single soul did not know what a Toyota is. The casestudy attempts to answer these questions and also identifies future outlook thatwould aid sportswear industry growth and NIKE in particular.Entry Strategy/Market DiscoveryAccording to company legend, NIKE‘s business model was developed by Knight whileattending Stanford Business School in the early 1960s. The title of this lesson alone probably brings to mind images of advertisements and products by the owner of that slogan: Nike, one of the world's most popular and recognizable brands. Already registered? Another section will talk about the never ending controversies which Nike has been facing due to its manufacturing factories in low labour countries. Appealing to basic human emotion and desire knows no boundary. It's typically not a leisure activity, either, as many of China's population bases are located in heavily polluted areas. Title: Foreign Market Entry Strategies A case study of IKEA entering Indian market Purpose: The ... Nike has up to 400 franchise locations in . What is the Difference Between Blended Learning & Distance Learning? As, it is clear from the figures provided, the revenues have increased tremendously in the year 2008, implies a higher sale of footwear in all the international markets which is obviously a good point to note, because in the period of recession where all the economies are going down, an increase of 11% cannot be neglected. Or thinking of selling your products in foreign lands? Image 6: Market Entry Strategy (Source: Gross2013) Some essential feature those are required for the market entry strategies for the Nike are as follows: Country Identification: Apart from the developed country to start their business, Nike has selected two countries – Nigeria and Bangladesh, where there is not much development until now. Advertising Vs. Marketing Majors: What's the Difference? This strategy facilitates the company’s growth by targeting new markets or market segments. The type of media available as well as their reach and effectiveness differ from country to country. The objective was to decrease waste in regards to cost of hiring labor and shipping, among others (Luo Sun, and Wang, 2011). The major threat to Nike is the imitation that goes hand in hand in various markets which are affecting its revenues and businesses. Finally, Nike is a traditional product centric organisation but product was the end point of the consumer experience in past but, today it is the starting point. Therefore, to establish good public relations Nike took some more steps. As a member, you'll also get unlimited access to over 83,000 According to Mintel, 20%of the U.S. athletic market is controlled by Nike. The authors made three contributions, to enrich an institution-based view of business strategy (Oliver, 2011; The decision of how to enter a foreign market can have a significant impact on the results. Some consumers however, prefer those products which caused less harm to others or which are produced in their own country and this is called ethical factor. Most companies are unaware of the potential of these markets and therefore these markets remain unexplored. Nike’s Strengths – Internal Strategic Factors. Kindergarten Math Centers: Ideas, Activities & Games, How to View Grades and Export CSVs in Your Study.com Virtual Classroom, School Closures in Texas for Coronavirus: How TX Schools Can Teach Online, Tech and Engineering - Questions & Answers, Health and Medicine - Questions & Answers. The current acquisition of Reebok by Adidas makes this competition more intense. April 2010; Journal of East-West Business 16(2):146-170; DOI: 10.1080/10669868.2010.486104. By identifying market opportunities and employing “market entry as a dynamic strategic tool” for both sales and manufacturing, Nike’s international strategy consists of … This essay will employ literature review to support the evidences in case of dynamic capabilities of Nike and its competitive abilities. Another foreign market entry strategy is to partner with a local company in your target market. An introduction about the Nike shoes company. Once in the market, this research needs to be continuously renewed. first two years of college and save thousands off your degree. Examples of Nike's Marketing - To learn how you can use Nike's Marketing strategy to grow your business, listen to this podcast episode 8. Nike has succeeded over the years in presenting its products in a way that resonates with an audience no matter where they're located. and career path that can help you find the school that's right for you. You can test out of the Nike has focused its marketing efforts on the digital space in recent years. 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. imaginable degree, area of Any strategy has to be clear and well-thought out, with partners chosen wisely. Select a subject to preview related courses: There's no doubt we live in an increasingly technological world, and Nike has excelled at reaching various audiences with a culturally appropriate message. 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! QuickMBA / Strategy / Foreign Market Entry. Plus, get practice tests, quizzes, and personalized coaching to help you The choice for a particular entrymodeis a critical determinant in the successful running of a foreign operation”. Nike is one of the pioneers of the manufacturing outsourcing strategy. Invest in promotional activities will also be a good idea. Work with a big pharma partner 4 2. So Nike should follow this strategy in future and try to remain dominant over its rivals through the marketing strategy. Plant and equipment are the assets whose performance can be measured but Noto (2007) argued that brand name, reputation, particular technology and corporate culture with accumulated consumer information are some of the intangible assets which cannot be measured but are invaluable for a firm’s competitive advantage. A newsletter published by Global exchange argued that most of the shoes of Nike are manufactured in countries like China and Indonesia which has governments that forbid independent unions and set the minimum wages so low that does not provide basic necessity of one person. For marketing and selling Nike is already using Internet web mode, any future marketing strategy should consider telecommunications and information technology advancements as they can go on twitter, face book as these websites are mostly accessed by youngsters which could be the fan of Nike. (L. Hill, 2009). - Structure, Uses & Benefits. Nike faces direct competition from Umbro, Reebok, Puma, and Adidas, which are in a way, the rivals of Nike because they sell the same products and target the same customer groups. 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. This may be because the company has substantial market share, are a direct competitor to you or due to government regulations this is the only option for your firm to enter the market. © copyright 2003-2020 Study.com. 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. This essay will critically evaluate Nike’s current international strategy and help to identify Nike’s current strengths, weaknesses, opportunity and threats. You can view samples of our professional work here. All rights reserved. STP strategy assists Nike to advertise its products by focusing on specific exclusive segment of the market (Ghauri and Cateora, 2014). It is used when two or more companies want to achieve some common objectives and expand international operations. The use of campaigns, celebrity endorsements, advertisements, and sustainable manufacturing are international marketing strategies most people can agree on. Nike can build trust and relationships with Nike community, can learn directly from customers and provide customers what they want which enhances the brand. What Can You Do With a Bachelor's in Marketing? Free resources to assist you with your university studies! Taking any strategy into consideration will also involve an impact analysis and risk, therefore, any potential consequences and levels of risk involved and how to overcome those risks will be covered in the next section. It is very difficult for Nike to control all the quality products around the world. Try refreshing the page, or contact customer support. Its swoosh symbol is easily recognized by everyone. Nike has handled the negative publicity over the sweatshops very expeditiously. Many products had been recall due to low quality and some products have been caused injury to consumers in China. Burghausen and Fan (2002) also supported him by arguing that consistency should not lead to complacency, and management should only make changes when a relevant opportunity is identified. What the Difference Between Cross-Selling & Upselling? In particular, Nike uses individualized and customized social media channels to support various sports that are popular in a particular country. Export. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. China Market Entry Strategy – Map of China’s 33 Provinces and Administrative Regions. 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. The chapter begins by looking at the concept of market entry strategies within the control of a chosen marketing mix. The three strategies are very closely linked. The most effective way to manage and upgrade existing capabilities and resources and to convert the key weakness into strengths is- to outsource. Levitt suggested that customers with local preferences are also attracted towards the lesser prices offered by global producers. Company Registration No: 4964706. Keeping that in mind, Nike has answered all these questions time to time with new strategies and cleared all the issues and moved efficiently to correct them. Nike is the world market leader in athletic shoes and apparel and operates in more than 200 countries. But how? These have not traditionally been popular activities in that culture, and health clubs and gyms are viewed as activities for only the wealthy. And to position a brand competently in a different country needs a great skill to understand all the circumstances. Market analysis in the Marketing strategy of Nike – Business segments in which Nike operates has a large number of local & national players. This is what we called as Toyotaism. Improved hedge rates year after year leads to higher gross margin which are reflected in the net income which has increased by 4%. Eisenhardt et al. While Nike's marketing failures have been minimal, aligning with the wrong athlete or not understanding local customs can create a divide in messaging. It was advantageous for Nike as well as it remains in the news and gave the publicity to Nike in a way. A brand is perceived differently in different culture or markets so it could be very catchy for an organisation to build a global brand. 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