Nike Report
Introduction:
Nike is famous known as an athletic shoe producer. It has the biggest market share in America and a global reputation for sports equipment. For Nike, buyers never worry about the quality because it’s professional. It was born in 1972 and bought Converse in 2003. Nike commits itself to the mission statement: “if you have a body, you are an athlete”. According to the website of Nike, their goal is to help athletes on every level to reach their potential and make benefit for shareholders as well. In US, Nike owns 36% of the US market while Adidas owns 22%, they are the two top players of the industry. (G. Facro, 2007)
General Environment:
Demographic is the most important factor when marketing. Because benefits draw from customers, plans to enter a new market must be customer-based. It is not wise to open an Armani in a agricultural-based town, the potential target customers can not have the taste for Armani, neither their consumption power. Moreover, demographic is not only about income of people in a certain area, but also concerned about many more factors such as the size of the population for the number or location of Nike’s stores, ethnicity and education level for choosing the right or best-selling goods to customers.
Economic environment is especially important for MNEs such Nike. Although Nike is not an investment bank, it has to deal with data of a country’s GDP, CPI, etc. (G. Facro, 2007) Economic environment has impact on exchange rates, interest rates and taxation. Those rates tightly related with a MNEs’ financial performance. A global player in any industry would not neglect any economical change because different region has different situation, therefore, different plans are needed for the future development of a certain market. Furthermore, how the country’s economy is will have great impact on the confidence of customers.(B. Ashley, 2008) For example, during World War II, economy was so depressed because of expenditure of weapons
Nike is famous known as an athletic shoe producer. It has the biggest market share in America and a global reputation for sports equipment. For Nike, buyers never worry about the quality because it’s professional. It was born in 1972 and bought Converse in 2003. Nike commits itself to the mission statement: “if you have a body, you are an athlete”. According to the website of Nike, their goal is to help athletes on every level to reach their potential and make benefit for shareholders as well. In US, Nike owns 36% of the US market while Adidas owns 22%, they are the two top players of the industry. (G. Facro, 2007)
General Environment:
Demographic is the most important factor when marketing. Because benefits draw from customers, plans to enter a new market must be customer-based. It is not wise to open an Armani in a agricultural-based town, the potential target customers can not have the taste for Armani, neither their consumption power. Moreover, demographic is not only about income of people in a certain area, but also concerned about many more factors such as the size of the population for the number or location of Nike’s stores, ethnicity and education level for choosing the right or best-selling goods to customers.
Economic environment is especially important for MNEs such Nike. Although Nike is not an investment bank, it has to deal with data of a country’s GDP, CPI, etc. (G. Facro, 2007) Economic environment has impact on exchange rates, interest rates and taxation. Those rates tightly related with a MNEs’ financial performance. A global player in any industry would not neglect any economical change because different region has different situation, therefore, different plans are needed for the future development of a certain market. Furthermore, how the country’s economy is will have great impact on the confidence of customers.(B. Ashley, 2008) For example, during World War II, economy was so depressed because of expenditure of weapons
References: 1. www.Nikebiz.com 2. G. Facro (2007) “Nike footwear” 3. B. Ashley (2008) “the external environment of business” 4. A. Houston (2007) “the image of Nike” 5. Kallin (1999) “the IT in business” 6. F. Matt (2008) “Crocs company analysis” 7. N. Frank (2004) “Adidas Vs Nike” 8. T. Bass (2005) “advertising strategy in multinational company”