Some of Nike's emotional branding tactics have included advertisements with phrasing like, 'Anticipate greatness' or 'Your only limit is you.'. It was advantageous for Nike as well as it remains in the news and gave the publicity to Nike in a way. However, there have been a few instances of marketing failures at Nike. © copyright 2003-2020 Study.com. Title: Emerging Markets – A Case Study in Foreign Market Entry to Bangladesh . Nike, Inc.’s strategy on sustainability contains: Innovate to deliver enterprise-level sustainability solutions; Integrate sustainability into the heart of the NIKE, Inc. business model; Mobilize key constituents (civil society, employees, consumers, government and industry) to partner in … Another factor affecting marketing strategy could be the technology, which is improving everyday and never predictable. Levitt suggested that customers with local preferences are also attracted towards the lesser prices offered by global producers. Consumers worldwide create new markets as well as demand new products and services. Any strategy has to be clear and well-thought out, with partners chosen wisely. It optimizes the manufacturing and production processes. Plus, continued innovation and product quality are keys to success. Differentiation is one of the bases which allow Nike to gain competitive advantage. Nike's business and marketing strategy, both at home and abroad, help keep them at the forefront of their industry of footwear and athletic apparel. 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. Nike has captured approx. Global marketing strategy, according to Oxford University Press, is 'marketing on a worldwide scale' taking note of differences, similarities, and opportunities in order to meet global objectives. 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. and Sweatshops Central issue of the case? (2) Joint Venture – It is a strategy used by companies to enter a foreign market by joining hands and sharing ownership and management with another company. Go it alone 5 4. Strong Brand Awareness – Nike is one of the most recognizable brands in the world as its name alone is memorable, easy to pronounce, and very unique. To learn more, visit our Earning Credit Page. 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. http://www.woltersworld.comGoing abroad for business? Foreign Market Entry Strategies. Nike’s Strengths – Internal Strategic Factors. Nike used to operate under the strategy of “Guerrilla marketing” to promote its products, a strategy and concept that they had to abandon and change once they overpassed To gain and maintain market share, Nike embarked on a strategy geared towards outsourcing its manufacturing. Looking for a flexible role? The simplest form of entry strategy is exporting using either a direct or indirect method such as an agent, in the case of the former, or countertrade, in the case of the latter. This essay will critically evaluate Nike’s current international strategy and help to identify Nike’s current strengths, weaknesses, opportunity and threats. For instance TV advertising, while a major medium in US, Japan and Australia, is not permitted in Scandinavian countries. The most effective way to manage and upgrade existing capabilities and resources and to convert the key weakness into strengths is- to outsource. International marketing can be tricky due to socio-cultural differences across different borders. Net income rose 4% to $1234.8B (www.nikebiz.com). succeed. Table 2 below indicates that the company is moderately efficient in doing the business. Anyone can earn References Nike's Strategy to Become the Leader in their Market. It allows the company to get an opportunity to locate in a region that has low production and labor costs, locate close to its target market and provide an opportunity for profit maximization. Services. He also explained that in the athletic shoes and clothing Nike has contracted out many functions such as manufacturing and logistics which Noto argued as a clever step to negate the impact of key weaknesses. Nike used to operate under the strategy of “Guerrilla marketing” to promote its products, a strategy and concept that they had to abandon and change once they overpassed Free resources to assist you with your university studies! There are several ways to jump into a foreign market, some easier than others. Foreign Market Entry Modes. DefinitionA modeof entryinto an international market “is the channel which organisation that want operate in internationalmarkets employ to gain entryto a new international market. Nike is accused of manufacturing its shoes under the sweatshop condition in Asian countries which make a large hue and cry among the media. Take, for example, Nike's push to encourage more people in China to take up running and jogging. Visit the Marketing 303: Global Marketing page to learn more. What Can You Do With a Bachelor's in Marketing? Disclaimer: This work has been submitted by a university student. Nike is a global brand and has adapted and been the pioneers towards change in the market. Similarly, in countries with high level of illiteracy the effectiveness of print media is severely limited. Appealing to basic human emotion and desire knows no boundary. The chapter begins by looking at the concept of market entry strategies within the control of a chosen marketing mix. (L. Hill, 2009). 3 India and IKEA which is also sourced locally, is going to open their first store in Hyderabad (ibid.). Suitability of a market entry strategy. Nike came in front and took this social responsibility to make a code of conduct to improve the working condition and to improve the conditions of workers and it has amended it time to time. Nike should strictly follow the rules such as minimum wage and child labour; it will make Nike a more socially responsible organisation. Exports include direct selling to end consumers, and also indirect exports, where goods are … Finally, if Nike wants to think about some acquisitions or merger, it should take into account the investigation by Competition Commission which could block its activities taking into consideration the government policies. What works for one market may not work for another. Sponsoring an athletic team or an event such as World Cup soccer, or using an internationally recognized superstar like Cristiano Ronaldo or Rory McIlroy, has helped Nike gain traction in other countries where different sports and athletes take center stage. A foundation financed by labour unions and low-wage countries in 1996 said that “Air Jordans” popular range of Nike sneakers were made by 11 year olds who are working for 14 cents per hour in Indonesia. Many a times Nike stores have been targeted by anti globalisation protestors. Or, simply put, it's creating a strategy that fits the market you're trying to reach, incorporating the geographic, cultural, and societal norms of that region. Direct exporting is selling directly into the market you have chosen using in the … Global marketing strategy is a way of selling a product or service to an international audience, while taking into account cultural and societal norms and preferences. Reference this. (www.forbes.com). QuickMBA / Strategy / Foreign Market Entry. This strategy will also consider the threats of entering into a new market and supply of sufficient funds and labour in terms of applying the strategy. Title: Foreign Market Entry Strategies A case study of IKEA entering Indian market Purpose: The ... Nike has up to 400 franchise locations in . The franchisees pay you a certain fee and sometimes a cut of the profits per year, then they keep the restThe good thing about franchising is that it’s one of the easier ways to break into new markets. The major threat to Nike is the imitation that goes hand in hand in various markets which are affecting its revenues and businesses. credit by exam that is accepted by over 1,500 colleges and universities. Log in or sign up to add this lesson to a Custom Course. A key to implement international strategy could be the demographics and socio-cultural influences. | {{course.flashcardSetCount}} According to Ni and Hu (2012) say that Shanghai qualit… Since Nike produces comfortable products whose goal is to aid athletes’ performance, the main target market for Nike is the active athletes market (Mahdi et al., 2015). Plus, get practice tests, quizzes, and personalized coaching to help you (2000) suggests that for the long term competitive advantage Nike could also use dynamic capabilities to enhance existing resource configuration. For the year ended 30/11/2008, revenues rose 11% to $10.02B. Invest in promotional activities will also be a good idea. Dong said through localization in the Chinese market, Nike will draw inspiration to develop a stronger and competitive edge in the global market, the report said. 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