Nike Essay

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This business report will examine NIKE incorporated. A brief history will be provided followed by a detailed analysis of the components of globalisation, including topics such as:

Role of transanational corporations
Global consumer
Impact of technology
Role of governement
Deregulation of financial markets

Also an analysis of NIKE’s marketing startegies will be included eg:

Market segmentation
Product and service
Place distribution
Pricing methods
Environmental effects on distribution


Nike is a major publicly traded sportswear and equipment supplier based in the United States. It is the world's leading supplier of shoes and apparel and a major manufacturer of sports equipment. As of 2008, nike employed more than 30,000 people worldwide. Nike products are sold through about 20,000 retail accounts worldwide and the company's products are sold in about 110 countries. For the financia year ending May 31, 2009, Nike reported record revenues of $19.2 billion, a 3 percent increase over last year’s earnings. Nike is a global sports shoe giant company. It is the largest seller of athletic footwear in the world, holding the lion share of 33% of the global market


Globalisation implies an integration of world economies. It includes a rapid increase in the movement of goods, services and capital across national borders. There are 5 main drivers of globalisation that will affect the global business climate, these are :

Global consumer

Impact of technology

Governmental role

role of transnational corporations

Deregulation of financial markets


A transnational corporation implies an enterprise that manages production or delivers services in more than one country. Nike is an example of a transnational corporation as it manufactures and sells its products in many countries around the world. Nike provides thousands of jobs for local workers in Asian countries as it employs over nine thousand five hundred people in the Asia Pacific region. Nike also provides career opportunities in a number of areas such as marketing, sales and manufacturing. Nike also buys ready access materials from the countries that they set up in which provides the country with much needed money and profit to the country.

Impact of technology

Time and distance have long restricted the closer interaction of world economic activities. An improvement in transport and communications has reduced time and costs and has helped create a worldwide marketplace. Due to these rapid technological advancements it has been evident that Nike has responded to this change in times. Nike were world leaders in introducing online purchases and customisations via the internet. Also with introduction of online bonus and prize winning initiatives have boosted global consumer activities.

Global consumers

Cultural differences have traditionally created a great variety of distinctive markets. Increased interaction through travel, TV, and the Internet has tended to reduce the preference for local products. With the inception of uniform products from Nike, differientiations of cultures and beleifs have allowed for boosted sales globally. This vital enclusion is an important topic for nikes success and Paul kinovin a Nike spokesman identifies this in a statement realeased to all nations which outlines Nikes outlook. “ The commitment is to be a global company - one management, one theme, one value, one ethic around the world."


The governments of many countries have seen the benefits flowing from globalisation and have reduced the barriers to such a trend in areas such as tariffs, foreign ownership rules and fixed currency movements. Many countries have also actively encouraged TNCs by offering concessions and making special exceptions to such things as environmental laws....
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