Critically appraise the strategic approach, and propose strategic options to sustain their growth. Analyse their strategic choices with their options- why they made the choices that they did and recommendations. Has their strategic focus changed?
The Factors that Led to Success and Failure of Nike in its Venture across International Markets Nike is considered to be one of the largest American suppliers of athletic shoes, apparel, and sports equipment. At the same time, this company and its brand are well-known worldwide.
To a significant extent, this is the result of the strategy of the international markets expansion that is one of the main directions of the strategic development of the company. Obviously, this strategy provides the company to enter new markets and strengthen its position in traditional ones.
At the present moment, the strategy of expansion is particularly important since the world economy tends to globalization and nowadays, multinational corporations, such as Nike, can hardly locate production in one country only but need to organize production in the regions which are either closer to the target market or where the production is substantially cheaper to the extent that the production in remote regions remain profitable even if the products are sold in a different part of the world.
However, despite the obvious progress and recent achievements of Nike, its leading position in many national markets throughout the world, its development and expansion was accompanied not only by remarkable successes but also by some serious failures which deteriorated the position of the company in very perspective markets.
Company Profile Nowadays, Nike is one of the most popular trademarks which is basically focused on the production of athletic shoes, sports equipment and apparel. The company is based on Beaverton, Oregon where it was initially founded on the basis of its predecessor Blue Ribbon Sports in late s.
Since its foundation the company was characterized by the rapid growth and development. In this respect, it is necessary to underline that one of the basic missions of the company was to gain a possibly larger share of the market. In such a way, the company attempted to create the image of its products as if these were products destined to the best sportsmen but accessible to average people, even though they are far from sport or sport achievements.
It should be pointed out that during the first decade of its existence the company has managed to attract leading sportsmen in its advertising campaign. For instance, Steve Prefontaine, an American record holder, and John McEnroe were among the first famous sportsmen who signed contracts with Nike and contributed to the growth of its popularity.
Consequently, it was quite provocative and unusual that the company signed the contract with this sportsman, though such seemingly illogical and probably inexplicable or arguable decisions became a norm for Nike and, even nowadays, it is possible to find similar examples. However, in the course of time it became obvious that the national market is insufficient for the company and it needed entering foreign market.
At this point the contracts with famous sportsmen known throughout the world turned to be very helpful. On the other hand, it is also necessary to underline very successful marketing and promotional policy of Nike. It should be said that to achieve positive results Nike signed a contract with Michael Jordan a basketball star.
However, the effect was probably unexpected as this ban has drawn an enormous amount of publicity 7. However, the company, being steady progressing during ss, faced a perspective of a serious crisis in the late s-early s.
Basically, the company has already gained international acclaim and was popular in many countries of the world but the production of athletic shoes and sports equipment in its traditional regions, including the USA, Europe, and Japan became less and less profitable.
This is why Nike turned to be able to shift the production from its traditional regions to new ones making the production cheaper but preserving sales rates due to the popularity of Nike brand. To put it more precisely, worldwide revenues for the third quarter of increased eight percent to USD 3 billion, while revenues from the US, its traditional market, declined two percent two percent to USD 1,25 billion Consequently, it is quite natural that Nike heavily accounting on overseas sales for revenues growth.
Moreover, in Nike reported annual revenue for fiscal year of USD 15 billion.
At the same time, the company keeps signing contracts with leading sportsmen to promote its products throughout the world. Obviously, the progress made by the company in s-early s is really impressive, especially, in the situation of a serious competition. In this respect, it is necessary to remind that one of its major competitors was Reebok which currently has a merchandising contract with the National Football League and the National Hockey League in the US.
However, this company was purchased by Adidas in and, at the present moment, it is Adidas that is the main competitor of Nike in international markets as well as in the US.Marketing Plan Stage 2 Nike: Marketing Plan Nike Essay INTERNATIONAL and how this plan will meet our business plan objectives.
The products’ position in the marketplace will also be included within this plan along with methods we will use for the promotional plan of the products.
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Recent years have seen a huge explosion in the popularity and commercial viability of women's sports - . Nike Business Essay Critically examine the main drivers of Nike’s growth.
Critically appraise the strategic approach, and propose strategic options to sustain their growth. Business Model and Strategic Plan Part 1: Conceptualizing a new product or service division of an existing business Robert Marshall BUS/ 06/08/ Ryan Simpson Business Model and Strategic Plan Part 1 Titleist Training Program is a new service offered by Titleist golf that offers the chance to get top of the line training from some of the best trainers in the.
March (This essay is derived from a talk at the Harvard Computer Society.) You need three things to create a successful startup: to start with good people, to make something customers actually want, and to spend as little money as possible. A plan of action (POA) will be develop from the meetings by February and submitted to the Mayor and Governor for review/approval.
Once approve by the Governor, the Chief of Police will address the local community and schools about the plan for spring break.