1. Adnan Abdullah (12856)
M Imran Najeeb (12875)
Salahuddin Jumani (12672)
Usman Khalil (12874)
International Business

2. Contents
 NIKE’s Introduction
 Environmental Analysis
 Marketing Strategy of Nike
 Cultural Implication/ Strategy around the Globe
 Growing Internationally, Facing Global Competition
 Global Business Challenges and Issues
 Opportunities and Barriers
 Recommendation

3. Introduction
 Distribution channels in almost 200 countries with primary
market regions in the United States, Europe, Asia Pacific, and
the Americas
 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
 Produces footwear, clothing, equipment and accessory products
for the sports and athletic market
 Have around 700 contract factories, within which around 20% of
the workers are creating Nike products

4. Environmental Analysis
A) Political Analysis
 Nike, has been helped by the US policies
 Legal issues have been handled by Nike as per the
surrounding
 Main trades are in America (where Nike originated) and
the United Kingdom and other European countries
 Nike has to be aware of pressure groups trying to get bans
on methods that Nike use
 Nike should take help from governments

5. Cont…
B) Economic Analysis
 Economic Recession in America
 Asian economic crisis
 The labor costs and material prices are going up
 Nike's growth is also affected by international
economy

6. Cont…
C) Society/ Social Analysis
 More and more people are joining fitness clubs
 Nike, however, failed to foresee problems brought
about by sweatshop
 These affects the decisions that they make when
designing a new product
 Have to take into accounts religious and political
features of the countries they are trading in

7. Cont…
D) Technology Analysis
 Nike uses IT in its marketing information systems
very effectively
 Using technology in every aspect of the product
from development to distribution
 Making products
 Bringing new advances
 Using intense technology in Advertising

8. Marketing Strategy
Product: Offers a diverse range of high quality sporting
goods
Price: A premium product commands a premium price, at
the same time as the Company also compete heavily with
their main rival Adidas
Promotion: The business has a rich history and bright future
using sponsorship to generate brand authenticity in their
markets
Place: Nike is a truly global corporation seeking to further
segment its current markets and increase its impact in
China, Russia, Brazil and India in particular

9. Cultural Implication
Corporate Culture:
 Nike has created a corporate culture rich with employee
loyalty and team spirit.
 Nike calls “Campus” instead of Office, , Employees as
"players," supervisors as "coaches" and meetings as
"huddles."
 Just Do It’: Nike has been striving towards an inner culture
that reflects this mantra
Flexibility in working hour
Sports highlights
Weekly email updates

10. Rewards and Benefits: Health coverage, fitness
center memberships, time off and retirement
savings to employees
Ethnicity
Gender: Global workforce is half male, half
female. Nike employed slightly more women
than men in Central and Eastern Europe

11. Growing Internationally
Understanding Customer’s Needs
 In different countries, consumers have different needs as
they view the product differently.
 For example, Nike's Air Jordan basketball shoes in America
and in Europe.
Keeping Ahead of Competition
 Nike differentiated itself by creating and marketing well
designed athletics and non-athletic footwear and clothing.
 sport icons to endorse the brand

12. Communicating Effectively With Customers
 Brand endorsers
 Nike tries to extend its personal relationships by
sponsoring events
 Nike uses its customer's information to send
them personalized direct mail

13. Global Business Challenges
& Issues
 Unfortunately, companies like Nike must
overcome some difficult obstacles before
establishing a successful business in a foreign
country. Some of the issues of concern are
child labor laws, wages, and outsourcing’s
effect on sales. Because of this, NIKE tries to
defend positions on conducting business in
the foreign country.

14.  Sweatshop labor
 Improvising of Unsafe Work Place
 In Low Wages Row
 Accusation of Slave “Child Labor Law
 Strategic and operational challenges

15. Opportunities
 Product development offers Nike many opportunities.
The brand is brutally defended by its owners whom truly
believe that Nike is not a fashion brand. However, like it
or not, consumers that wear Nike product do not always
buy it to participate in sport. Some would argue that in
youth culture especially, Nike is a fashion brand. This
creates its own opportunities, since product could
become unfashionable before it wears out i.e.
consumers need to replace shoes.

16.  There is also the opportunity to develop
products such as sport wear, sunglasses and
jewelry. Such high value items do tend to have
associated with them, high profits.

17.  The business could also be developed
internationally, building upon its strong global
brand recognition. There are many markets that
have the disposable income to spend on high
value sports goods. For example, emerging
markets such as China and India have a new
richer generation of consumers. There are also
global marketing events that can be utilized to
support the brand such as the World Cup (soccer)
and The Olympics.

18. Barriers
 Nike is exposed to the international nature of
trade. It buys and sells in different currencies
and so costs and margins are not stable over
long periods of time. Such an exposure could
mean that Nike may be manufacturing and/or
selling at a loss. This is an issue that faces all
global brands.

19.  The market for sports shoes and garments is
very competitive. High value branded product
manufactured at a low cost is now commonly
used and to an extent is no longer a basis for
sustainable competitive advantage.
Competitors are developing alternative brands
to take away Nike's market share.

20.  The retail sector is becoming price
competitive. This ultimately means that
consumers are shopping around for a better
deal. So if one store charges a price for a pair
of sports shoes, the consumer could go to the
store along the street to compare prices for
the exactly the same item, and buy the
cheaper of the two. Such consumer price
sensitivity is a potential external threat to Nike

21. Recommendation
 Societal standards within other countries
are sometimes different from those found
within the Home Country. It means that
NIKE should not consider the same
rules, regulations and societal standards
in host country but however, should strive
to abide by that country.

22.  The factories and sweatshops established
overseas by Nike should launch a debate
regarding whether they were in compliance
or violation of ethical guidelines and
regulations

23.  Nike should focus on the protests regarding
violation of child labor laws and unsafe
working environments.

24.  Although Nike was not violating the local rules
and regulations; however, it could prevented
some of the stakeholder reaction by being more
proactive in certain ways. For example, it could
voluntarily install certain equipment into foreign
factories at its expense, which would have made
for a better working environment. Knowing that
certain chemicals are not good for the
health, Nike could provide certain measures to
purify the air and could have used less harmful
chemicals in the production of their products.

25.  Nike should work with the proper regulatory
consent of Governmental Organization, in
which they are currently operating or have
an intention to work in future, so that they
can ensure safe and ethical business
practices and to monitor the sweatshops
established overseas.

26.  Nike should change its operational and
strategic plans drastically in order to remain
successful and settle labor and civil rights
unions

27. Thank You