...Summary Page 3 1 Introduction Page 4 2 Economic Environment Page 5 3 Cultural Environment Page 7 4 Political Environment Page 9 5 Conclusion Page 11 6 References Page 12 EXECUTIVE SUMMARY The following essay interrogates Nike, Inc., in the Indian market. The context of the paper lies within the framework of an environmental analysis for the groundwork of a future marketing plan. The central argument is that; (A) the economic environment offers an overall attractive outlook, (B) the cultural environment requires Nike, Inc., to change their core product portfolio while continuously learning to customize and localise to the needs of the Indian consumer, (C) The political environment does not have a substantial risk impact in both its historical and current outlook, and the government is heavily involved in reforms that promote foreign direct investment. The extent of the analysis highlights relevant international marketing issues that Nike, Inc., faces in India in the context of country attractiveness, market segmentation, market positioning, and the marketing strategy in the context of the four P’s. 1 INTRODUCTION The aim of this essay is to select a consumer product and country market and undertake an in-depth and extensive environmental analysis as groundwork for a marketing plan. The selected consumer product will be sports apparel by Nike, Inc., while the selected target market is India. Currently, more than half of the Fortune 500 companies...
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...1. The macro-environmental factors that influence Nike’s strategy include culture, demographics, social issues, technological advances, economic situation, and political and regulatory environment. Culture is the shared meanings, beliefs, morals, values and customs of a group of people. In America, Nike has become an industry leader that influences our cultural practices. It is widely accepted as the premier retail brand by all age groups. Nike has done a great job of advertising to various generational cohorts and expanding its brand. Nike’s distinguishable products have become a household name on the global scale. Nike has to specifically consider the “country culture” of not only the countries where it sells product, but the cultures of the countries where the products are manufactured. Country culture attributes include behavior, dress, symbols, physical settings, ceremonies, language, and colors. Identifying and navigating some of the more subtle aspects is difficult but necessary for global firms. Demographics indicate the characteristics of human populations and segments, especially those used to identify consumer markets. Demographics include age, gender, race, and income. Nike uses marketing ads to target different segments of demographics. For example, Nike’s version of the toning shoe is designed to specifically appeal to women. Social issues influence consumer behavior around the world. Recently, there has been a heavy emphasis on thrift, health and wellness...
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...Globalisation NIKE – just do it Introduction Nike, Inc. is an incorporated company that designs, develops and markets worldwide athletic footwear, apparel, equipment and accessories. Nike is the biggest seller of athletic footwear and athletic apparel in the world and creates designs for men, women and children. Nike employs both traditional and non-traditional distribution channels in almost 200 countries with primary market regions in the United States, Europe, Asia Pacific, and the Americas. Nike has some 20,000 retailers worldwide including Nike factory stores, Nike stores, Nike Towns, Cole Haan stores and Web sites which sell Nike's sports and leisure products. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, and subsidiaries including Cole Haan, Hurley International and Converse. Nike accounts for 33% of the global market share in the athletic footwear industry. Nike sponsors many high profile athletes and sports teams around the world with the highly recognized trademarks of Just do it (www.nike.co.uk). GLOBALISATION: Globalisation is defined as the micro- phenomenon where there are a free flow of capital efficiency, technology and other factors of production which promote world welfare in its strides. (Nande and Dias, 2007.,p.2) KEY DRIVERS OF GLOBLISATION: there are three main factors which motivate the globalisation of markets and production which are explained as under: Falling barriers to trade...
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...Nike in India MKW 3444 (Assignment 1) TABLE OF CONTENTS Table of Contents Page 2 Executive Summary Page 3 1 Introduction Page 4 2 Economic Environment Page 5 3 Cultural Environment Page 7 4 Political Environment Page 9 5 Conclusion Page 11 6 References Page 12 EXECUTIVE SUMMARY The following essay interrogates Nike, Inc., in the Indian market. The context of the paper lies within the framework of an environmental analysis for the groundwork of a future marketing plan. The central argument is that; (A) the economic environment offers an overall attractive outlook, (B) the cultural environment requires Nike, Inc., to change their core product portfolio while continuously learning to customize and localise to the needs of the Indian consumer, (C) The political environment does not have a substantial risk impact in both its historical and current outlook, and the government is heavily involved in reforms that promote foreign direct investment. The extent of the analysis highlights relevant international marketing issues that Nike, Inc., faces in India in the context of country attractiveness, market segmentation, market positioning, and the marketing strategy in the context of the four P’s. 1 INTRODUCTION The aim of this essay is to select a consumer product and country market and undertake an in-depth and extensive environmental analysis as groundwork for a marketing plan. The selected consumer product will...
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...Nike Written By: Jamie Battelo Nike has three main products in footwear, appearence, and equipment . Nike founders were Bill Bowerman and Philip Knight, in 1964 known as the “Blue Ribbon sports”. That’s where Bill Bowerman and Philip Knight took a $500 pledged and purchased 300 pairs of shoes. Then Philip Knight began selling the shoes off his truck, and Bill Bowerman started to rip the shoes apart because he want to learn how they worked because he was a American track and field coach. Did you know that Philip knight ran for track in college for Bill Bownerman. Now today Nike’s headquarter is in Washington County of the United States near the Beaverton, Oregan area. That’s sitting on Six acres of land “Nike’s campus”, it has 17 main building on it. The original head-quarters officially open their door in 1990 and they have doubled in size by 2001. Nike has about 700 contract factories, in 52 countries that all manufacture all of Nike’s stuff. They have to order every 6 months at least or they lose a contract factory. Nike has more than 36,000 employees globally and 7,000 employees in the Beaverton, Oregon area. Nike products are designed for the specific sports and activities. The most popular product the more active sports “like running, basketball, footballs, etc”. Nike market their products that improves your abilities to run faster and jump higher than without Nikes and look good when being active. Most of Nike’s product targets the more active and fitness industry...
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...environments on business activities within a selected organisation. Nike is a global brand specialising in the design and manufacture of athletic apparel, footwear, accessories and equipment; it is headquartered in the United States, Europe, and the Asia Pacific Region. Its products are available through over 20,000 retail outlets, including those in its own footfall outlets, e.g. Nike Factory stores. This study considers the contemporary business environment of Nike using a PESTLE approach, paying particular attention to any human resources management (HRM) issues that may arise under each heading. Overall, it is argued here that Nike has attempted to address various business and social challenges by harmonising its value proposition to ‘Consumers, shareholders, business partners, employees, and the community.’ There are many external environmental factors that can affect your business. It is common for managers to assess each of these factors closely. The aim is always to take better decisions for the firm’s progress. Some common factors are political, economic, social and technological (known as PEST analysis). The political factors affecting business are often given a lot of importance. Several aspects of government policy can affect business. The political environment can impact business organizations in many ways. It could add a risk factor and lead to a major loss. You should understand that the political factors have the power to change results. It can also affect...
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...General Environmental Force/Factor | Company 1 | Company 2 | | | | Economic Conditions | The economic did not slowed down Nike business. | | Political/Legal Conditions | | | Sociocultural | | | Global | | | Technological Conditions | | | Economic condition-nike: the economic did not slow down Nike business because it is one of the most successful sports makers in the world. Nike sell merchandise world-wide and it is global well-known brand nike business continue to grow even when the economy does badly because its business is spread throughout the world. Nike merchandise has growth extremely popular in china especially with the youth and sales have been increasing due to the increasing sales in china Nike has revamped its shipping and distribution centers so china can receive deliveries faster and more efficiently Nike is expecting china sales to increase. in the endorsement business golf has been the leading sports industry to have endorsers. In the year of 2008 Tiger Woods is at the rank number 1 in golf so Nike sponsors him for 10 years. For the result 4.5 million customers switched to nike because of him. Nike economic started to increased and Nike earned 60 million for the 10 years endorsement period. Political-nike: the main countries for Nike trades are America, united kingdom and other European countries such as france and germany. In all that countries Nike sell product in there is stable political environments where the democracy meaning...
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...Case study NIKE Key concept Key issues What is international Mgt ? what are the key issues ? = 2 Mnagement issues in NIKE study case 1/The key issues are social responsibility = 2/ laso aboput corporate image ..Nike has a problem Cormportae image = magt issue = issue of the CEO responsibility Image of the whole company. If bad corporate image , impact not only on sales, but on more than that. Frontier about MKT & MGT Key question: Agenda afternoon working on case study Principles & rules to make good presentation Don’t read the scream you have to keep contact with the audience You except feedback from the audienc e you adapt your message to the audience Defin your objective = planning If you don’t’ know how to defione your objective, you’re lost Yearbook = objective = givce a good image of the MIM students to employers We want to biuild opur self estime when you see your achievement Participate in building your self estime Confusions between the goal and the ways the reach the gaol! If you don’t know where you are going, you can-t reach it. Objective = iompress the audience Breing a circus, fireworks, schow… The objective will define 5” to present the agenda = During the poresentation , Money refund = remboursement Us = if you don’t help me to make money, good bye. No focus in one area Watch for active listening Watch carefully, if boresd it they agree, Right posture Show that you are an...
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...1. PEST analysis include: Political , economic , social , technological . 2. Strengths and weaknesses. 3. Value chain analysis. 2000-3000 words Pestel Analysis On China Political factor: If Nike wants to open international market such as China, the company would get disadvantages because every country will protect and priority for its domestic products. So, the company must find out exactly these requirements that the country require in Nike to overcome these barriers. International trade regulations The trade regulations in China are formulated in accordance with the "Foreign Trade Law of the People's Republic of China" in order to maintain foreign trade order and fair competition and to protect domestic industry. In 2011, Nike has difficulties to highlight the deep problems businesses face in manufacturing in China, particularly at a time of sharply rising costs and a stiffening legal environment. In its first country-specific supply chain report, which it said focused on China because of the forthcoming Beijing Olympics, Nike detailed the efforts it has been making to get suppliers to comply with its code of conduct and with Chinese law, including a program to monitor Olympics-related suppliers this year. Government attitude The Chinese government may have a love-hate relationship with the West — eager for Western technology yet threatened by democracy. Therefore, it is an disadvantage for Nike when expanding its business in China. But for Chinese consumers...
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...Introduction 3 An analysis of the macro and micro factors impacting on the sports retail market and the market recommendations 3 PEST 3 Micro factors and internal business factors 4 An evaluation of market potential, to include an identified shortlist of markets with potential 5 External Factor Analysis 6 Porter’s 5 Forces Analysis: 6 McKinsey’s 7 S Strategy: 6 Using a clear and identified screening criterion, select two recommended markets with clear justification as to why these markets have been selected 6 Recommended and justified market entry strategy to take Nike Inc. into each of these markets 8 Recommended adaptations to Nike’s marketing mix for the proposed markets, ensuring differences in culture and consumer behaviour are recognised in their marketing mix activity 9 Conclusion 11 References 12 Appendix 15 Introduction International market expansion requires thorough understanding of market and its dynamics for ensuring expected profit and performance. In context to that, the case of Nike Inc. would be analysed. The company wants to increase their brand value and sales through international expansion. Therefore, cities from two developing markets have been selected as prospective destinations. These are Panadura (Sri Lanka) and Agrinio (Greece). These cities would be analysed to check their suitability for being locations of Nike stores. An analysis of the macro and micro factors impacting on the sports retail market and the market...
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...P6M3 How does political, legal and social factors impact business activities of selected organisations and their stakeholders Nike Political factors: Politics can Nike.in both negatively and positively through changes made to tax, labor and national security laws. For example, politicians can raise taxes directly on businesses or on individuals, which ends up costing the company in the long run as people spend less money on goods and services. Alternatively, Nike profit when citizens receive tax incentives. Nike would respond accordingly to the games of politics. From increasing interest rates to adjusting their demographic models. Legal Factors: Businesses can be affected by many aspects of government policy. In particular, all businesses must comply with the law. They must also consider the impact of any forthcoming legislation on their operations. This may require taking action before the legislation comes into effect. One issue that affects manufacturers and retailers of electronic goods is the disposal of these products at the end of their life. Recycling is high on the public agenda. There are government initiatives to promote more recycling. These initiatives are sometimes backed by legislation. For example, the Waste Electrical and Electronic Equipment (WEEE) regulations are designed to reduce the amount of electronic waste going to landfill sites. Businesses must obey these environmental laws. However, a company that goes further by taking other measures to minimize...
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...P6 How does political, legal and social factors impact business activities of selected organisations and their stakeholders Political factors: Politics can Nike.in both negatively and positively through changes made to tax, labor and national security laws. For example, politicians can raise taxes directly on businesses or on individuals, which ends up costing the company in the long run as people spend less money on goods and services. Alternatively, Nike profit when citizens receive tax incentives. Legal Factors: Businesses can be affected by many aspects of government policy. In particular, all businesses must comply with the law. They must also consider the impact of any forthcoming legislation on their operations. This may require taking action before the legislation comes into effect. One issue that affects manufacturers and retailers of electronic goods is the disposal of these products at the end of their life. Recycling is high on the public agenda. There are government initiatives to promote more recycling. These initiatives are sometimes backed by legislation. For example, the Waste Electrical and Electronic Equipment (WEEE) regulations are designed to reduce the amount of electronic waste going to landfill sites. Businesses must obey these environmental laws. However, a company that goes further by taking other measures to minimize its environmental impact will be seen more favorably by consumers. Another is how they’re manufactured; trade unions and government...
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...not improved sports would not be able to endure the competition from the entertainment industry. This purpose of research is to: (A) Evaluate the conditions of the Marketing environment of Nike INC as a sports equipment company (B) Evaluate the recourse capability of Nike INC using appropriate analytical tools, highlighting its thresholds and unique resources and core competences (C) Evaluate the strategic fit of Nike INC using the analysis gather highlighting its strength and weakness. Company’s Profile. Nike INC is a sport Equipment company, It was founded on the 25th of February 1964 by Bill Bowerman as at then it was known as Blue Ribbon Sports. Its named was official changed on the 30th May 1978 to Nike INC. It is said that Bill Bowerman developed his interest in starting up a business while in Stanford. He believed his business would grow because as at then most Sport Shoes companies spent a fortune on labour by cost by manufacturing their Athletic Sports Footwear in countries like the USA were labour cost were high. He was convinced that by out sourcing production to Japan where labour is cheaper, Blue Ribbon prices would be cheaper than its contributor and thus it break into the Athletic Foot Ware industry and this was the beginning of the company which later became Nike INC. Nice INC logo is an image associated with its distinctive "swoosh" logo was created by Carolyn Davidson while he was a student of graphic design student. Initially the word Nice INC was...
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...Environmental Factors MKT 421 Environmental Factors Nike, Inc. is a company that has become the leader in athletic apparel worldwide with retailers in almost 200 countries. Nike utilizes both traditional and non-traditional distribution channels in with primary market regions in the United States, Europe, Asia Pacific, and the Americas. Nike has some 20,000 retailers worldwide including Nike factory stores, Nike stores, NikeTowns, Cole Haan stores, and Web sites which sell Nike's sports and leisure products. (Cuizon, 2009). Political Analysis For a business to succeed in any country, the country must employ policies that foster economic growth for itself through private companies. Since Nike does operate globally, they need to be aware of policies and laws that are going to affect their business. Here in the United States, there are such fiscal policies that help companies such as Nike. They are allowed in the free market in the country through the United State’s policies that allow for lower interest rates and having an economy the is competitive internationally. This is in the best interest of Nike as they design and develop apparel for a wide variety of sports. One of those is soccer, which is one of the most popular sports on the globe. Keeping competitive in that market requires Nike to do business in hundreds of countries. Economic Analysis There are many threats that affect Nike. The biggest one would be competition. Although competition can be healthy for...
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...migrate exchange rate risks by exposing the possible risks before they affect the company’s profit margin. One method is the transaction exposure. Transaction exposure is the degree to which the value of future cash transactions that are affected by exchange rate fluctuations. According to Madura, “Transaction exposure can have a substantial impact on a firm’s earnings. It is not unusual for a currency to change by as much as 10 percent in a given year. If an exporter denominates its exports in a foreign currency, a 10 percent decline in that currency will reduce the dollar value of its receivables by 10 percent. This effect could possibly eliminate any profits from exporting” (Thomson South-Western 2006). To assess transaction exposure, Nike will need to estimate its net cash flows in each currency and measure the potential impact of the currency exposure. According to Madura, “To measure its transaction exposure, an MNC needs to project the consolidated net amount in currency inflows or outflows for all its subsidiaries, categorized by currency….Estimating the consolidated net cash flows per currency is a useful first step when assessing an MNC’s exposure because it helps to determine the MNC’s overall position in each currency” (Thomson South-Western 2006). The standard deviation statistic measures the degree of movement for each currency. It helps to identify currencies whose values are most likely to be stable or highly variable in the future. The equation for a portfolio’s...
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