Globalization is the process of extending social relations across world-space. Globalization has had an increasingly significant impact on international marketing and operating costs. One of the key drivers of increased international marketing has been reduced costs. Organizations are able to access cheap resources and labor in developing countries. This allows them to price their products at a lower cost but also opens up a broader market of people with disposable incomes to buy more products and services.
Globalization has also increased market competition therefore increasing the importance of effective international marketing. Organizations cannot rely on the fact that they have increasing sales in their domestic markets. New competitors from overseas are continuing to surface, therefore it is too risky for a business to not try to expand their company.
Nike is an American multinational corporation that is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. It is one of the world’s largest suppliers of athletic shoes and apparel with revenue in excess of $24.1 billion in its fiscal year 2012. Nike operates in more than 160 countries and has locations in 6 continents. Because Nike is an international company, it learned that it had to create a campaign that would be accepted in all different regions and cultures.
Since the 1960’s when Nike was first introduced, its elements of brand equity emerged and was customized according to American culture. Nike found that associating its brand with American athletes was a successful way to show its superior performances, accomplishments and achievements. Nike also advertized by sponsoring the American basketball league, which is the most famous sport in the USA and was a very professional way to once again convey their image as the highest level of performance.