International Business and Global Strategy: Nike Case
1. The differences of business plan in develepod country vs emerging country | Developed country| Emerging Market|
Price focus strategy| High price| Low-price|
Manufacturing model| Using in line concept where products were designed for global export and not tied to the manufacturing region| Using local-for-local manufacturing concept or collaborate with local factories. In this concept, the company will use local material that purchased with domestic currency| Design| The shoes were designed in a shopisticated| Collaborating with engineer from emerging country to design the product so tome and manufacturing cost problem can be reduced| | Designing three type seasons shoes (fall, winter, and spring)| Designing only one type shoes that had a lonng shelf life| Market classification| The country with more than 15 million population and GDP per capita higher than $20 thousand| The country with more than 1,000 million population and GDP per capita $2 thousand| Sales| High margin| Small margin but high sales|
The challenges from industrial competitors may be the most crucial problem to the company. Besides some low-end shoe brands, the enterprise still has a number of shoe retailing competitors that offer similar products with it. Although there doesn’t have a large number of strong competitors of the shoe industry in China market, but the price of local brand is cheaper than the world shoe, and few major competitors all show their considerable capacity in selling products as well as achieving profit in the period before.
2. Economic uncertainties (unstable economic environment)
The company will meet challenges due to the unstable economic environment of the emerging markets. According to the economy of the emerging markets are still in the developing as well as...