Nike Globalization Essay Example | Topics and Well Written Essays - 750 words

Nike Globalization - Essay Example Being the famous global sports brand, Nike is very much impacted by the changes that have been taking place in the global economic environment. This essay includes the discussion regarding the impact of globalization on Nike and its strategies. Task 1 Globalization is the key force that has changed the business scenario throughout the world significantly. Globalization which may be considered as the integrated internationalization of organizations as well as markets has impacted the corporations both positively and adversely. Today products are not manufactured for domestic customers only rather they are produced for the customers who are spread throughout the world. The world wide accessibility of internet, significant improvements in supply-chain logistics have led to a situation where companies can locate themselves anywhere in the world (Wheelen & Hunger, 2010). On the flip side, organizations have experienced the adverse effect of globalization as well. For instance, the mortgag e crisis that took place in US became a global financial crisis due to the integration of the financial systems of various countries and this integration is actually the result of globalization (Wheelen & Hunger, 2010).... However, original products of Nike are not available everywhere, instead of that products that are actually produced by the company’s franchisees are sold by using the Nike’s logo and its brand equity (Businessteacher, n.d.). Nike has been adopting strategies that are in accordance with the changes in the global business scenario. The company’s initial strategy was to gain competitive advantage in US by selling premium quality athletic shoes that are available at low cost. The company developed its production facilities in Japan so that manufacturing cost remains low (Saloner, Shepard & Podolny, 2008). With its products that are manufactured at reasonably low cost while not disturbing the desired level of quality, the company has been successfully dominated its main target market i.e. US. Once, enough brand equity and competitive advantage are gained in US, the company started to shift its focus on the other markets like Europe and Asia. Furthermore, when the pro duction cost in Japan started increasing Nike began production in countries like Korea, Thailand and Indonesia. In this way the company has successfully created an exclusive brand image in Asia as well (Saloner, Shepard & Podolny, 2008). Throughout its journey, Nike has properly identified and understood various aspects of globalisation and adopted strategies accordingly. Task 2 Globalization has both benefitted as well as affected the Nike’s brand image. Globalization has enabled the company to shift its production facilities from one country to another in search of ‘low cost resources’ and ‘economies of scale’. In other words, globalization has helped Nike to gain and sustain its competitive advantage in US by