Nikes Approach To Compete International Case Study

Nike’s Approach to Compete Internationally Nike’s founders, Bill Bowerman and Phil Knight started a shoe business named â€Å"Blue Ribbon Sports†, in 1962, at that time they were distributing running shoes for a company in Japan. (Nike, 2015). One could say they were ahead of their time and true visionaries; moreover, they were doing business with a foreign country and would soon branch out to Asia. They designed and tested their shoes in America; however, they soon realized the value in overseas manufacturing, so they outsourced the manufacturing to Asia. Competing Internationally Since Nike started their business with Japan, they were familiar with the policies and procedures of a foreign country. This helped develop their confidence and†¦show more content†¦This initiative is based on worldwide trends starting in certain global cities. Nike is focusing on 12 cities: New York, London, Shanghai, Beijing, Los Angeles, Tokyo, Paris, Berlin, Mexico City, Barcelona, Seoul, and Milan. Their goal is to increase growth by 80% through 2020. Another strategy they are enacting will cut the weak styles and the employees that go along with them. (Green, 2017). Strategic Resources One of the most exciting resources Nike offers, is their proprietary Flyknit material. It is durable, lightweight, and provides ultimate performance in the basketball shoes that the professional athletes wear. Therefore, the public will pay a premium price to have the same footwear as the athletes. Furthermore, the current grind technology Nike is developing will entice the environmentalist into purchasing their shoes from Nike, because of the reduced carbon foot-print; moreover, the environmentally friendly materials that are used in the soles of the shoes (Nike, 2016). International Capabilities Nike’s international capabilities have been operating since the 1960s. They are manufacturing in 42 countries; however, their marketing focus has not been on the international market, until recently, when they adopted Adidas’ strategy. Nike has laid the groundwork and has the network to move their merchandise; thus, they need to implement local marketing based on the customers’ needs andShow MoreRelatedNike s Organisational Structure, Motivation Of Their Workforce And Managing Cross Cultural Conflict2016 Words   |  9 Pagespaper is to examine the challenges and issues faced by Nike’s management, and what factors have led to such issues. Furthermore, what theories and strategies can be used to explain the issues or deal with such problems for the future. Given the word limit of this paper, it is not possible to focus on all facets of Nike’s managerial complications, or the strategies that may be implemented to solve such issues. 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