Nike Inc.: China

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  • Topic: 2008 Summer Olympics, Beijing, Summer Olympic Games
  • Pages : 18 (5603 words )
  • Download(s) : 263
  • Published : August 17, 2008
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TABLE OF CONTENTS

Executive Summary ...………………………………………………………3 Section 1 | Introduction ...………………………………………………………………4 Section 2 | Differences in Nation Culture: the US and China ...……………………...5

Section 2.1 | Cultural Differences and Similarities ...…………………………….5 Section 3 | Competitors ...……………………………………………………………….9
Section 3.1 | Adidas ...……………………………………………........................9
Section 3.2 | Li Ning ...………………………………………………………….10
Section 3.3 | Current Positon in China ...………………….. …….......................10 Section 4 | Organisational Structure and Operations ...…………………………......12
Section 4.1 | Corporate Strategy ...……………………………………………...12
Section 4.2 | Organisational Structure ...………………………………………..12
Section 4.3 | Organisational Strategy ..…………………………………………13
Section 4.4 | Nike’s Fit and Operations in China ..……………………………..14 Section 5 | International Management Opportunities and Problems ...……………16 Section 5.1 | Opportunity ...……………………………………………………..16
Section 5.2 | China and the Beijing Olympic Games ..…………........................16
Section 5.3 | Branding ...………………………………………………………...16
Section 5.4 | Product Manufacturing and Company Structure ...……………….17
Section 5.5 | Problems …………………………………..……………………...17
Section 5.6 | Corporate Social Responsibility …………..……………………...17
Section 5.7 | Competitors ………………………………..……………………..18
Section 5.8 | Cultural Differences ………………………..…………………….18
Section 5.9 | Government Regulation …………………………………………..18 Section 6 | Recomdations ………………………………………...……........................20 Section 7 | Conclusion …………………………………………………........................22 Section 8 | References ………………………………………………………………….23

EXECUTIVE SUMMARY

The following report concentrates on the Chinese subsidiary of Nike, which is considered to be a high potential area for success for Nike and is also the largest producer of Nike’s products. Nike’s parent country is o the United States of America, and their head office is situated in Oregon. The cultural differences between the two countries are very important when determining Nike’s potential for success in China. We have discovered that many important cultural barriers do exist between Chinese and American cultures that influence how products are produced and what products are sold in China compared to the US. This has forced Nike to consider a transnational approach when it comes to the international market of China. For Nike to continue to grow in China it is important to acknowledge these cultural differences and also act upon them in the correct manner to gain a competitive advantage.

The athletic shoe and apparel market is extremely competitive globally, with MNC and domestic companies all battling for market share. It is important to note that consumers are brand loyal when purchasing these products, therefore to gain market share over competitors is vital for Nike’s success. When it comes to the competitive nature of these products, China is no exception. Adidas is starting to gain market share in China, especially being the official sports wear partner of the Beijing Olympic Games and local company Li Ning is also the other competitor that poses a threat to Nike’s success in China.

Nike adopts a company structure that allows both global co-ordination and national responsiveness simultaneously, and that caters for their complex world-wide operations. It is a collaborative, matrix structure that is organised into geographic division as well as product divisions. These product divisions and geographic divisions then report to global headquarters, which look over the management of each division. This structure supports the transnational strategy from Nike which focuses on keeping costs down and still produces products to cater for local needs of each market.

Our recommendation concentrate on overcoming cultural barriers...
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