Nike is the largest seller of athletic footwear and athletic apparel in the world. Nike sells their products to retail accounts, through NIKE-owned retail stores, and through a mix of independent distributors and licensees, in over 160 countries around the world.

Case Study:

NIKE (www.nike.com) is the largest seller of athletic footwear and athletic apparel in the world. Nike sells their products to retail accounts, through NIKE-owned retail stores, and through a mix of independent distributors and licensees, in over 160 countries around the world. Nearly all the production of Nike's products (especially footwear) is outsourced to foreign independent contractors. In footwear most of the production is outsourced to China, Vietnam, Indonesia and Thailand. Most of this apparel production occurred in Bangladesh, China, Honduras, India, Indonesia, Malaysia, Mexico, Pakistan, Sri Lanka, Taiwan, Thailand, Turkey and Vietnam.

In fiscal year 2012, Nike recorded revenues of $24.1 billion. The net profit was $2.2 billion. At the end of fiscal year 2012, the number of employees was about 30,000. Forty years of effort and hard work has created a symbol that is recognized across the globe - the Swoosh. To be the biggest global sports brand, Nike focused on creating an innovative corporate culture, producing the best athletic shoes and conveying its deep beliefs and values to

consumers.

The company has created a culture that is based on its mission statement. The

mission statement focuses on innovation and everyone is charged with being innovative. This

focus has become razor sharp as Nike realizes everything a company does communicate

something about the brand. A brand is the conglomeration of all activities a company and its

employees take. Nike has built up substantial brand equity that has taken time and resources, but must be maintained and strengthened in order to stay on top in this highly competitive

marketplace. Producing a superior product means the difference between winning or losing by one second for athletes. That is Nike's main focus for product development. Partnerships with athletes are not just because of their status, but also because they are integral in the product development process. Every little difference in performance makes a difference for Nike because the company puts as much emphasis on the customer as on the product. Athletic endorsements also do help the brand because of the association and another dimension to the company.

To increase market share in Europe, Nike needed to produce a strong soccer product, which it did with the help of star global soccer athletes. The last element adding to Nike's growth is greater reach into diverse market segments. The three main segments are (1) performance athletes, (2) participant athletes and (3) those that influence the world and the culture of sport. A different promotional strategy is executed for each segment with many advertisements focusing on lifestyle first and the product second.

Additionally, market research helped the company to develop the pyramid of influence, which showed that top athletes influence the majority of the market. Consequently, the company spent millions on celebrity sports endorsements. All of Nike's advertising, sponsorships, endorsements and other communication channels are integrated to tell a story about the Nike brand.

QUESTION

Many factors and forces have led toNIKE'S international competitiveness(VERSUS ADIDAS)in soccer footwear. In light of NIKE'S growth and performance globally, the government in your country is seeking to encourage and promote the manufacturer of locally madeSANDALSin selling their products internationally. As anInternationalMarketing Consultant in your country, you are asked to assess and analyzewhether this move is a good one.

Your Analysis should entail the following:

1. The criteria for international selection of a location. Using relevant references as supporting evidence.

2. Give details of the "Key Success Factors" of the business, which will make it globally competitive andHOWit can impact global sales.

3. At leastTWOGlobal marketing entry strategies that you would suggest to penetrate the market. Explain with reason(s) using credible references for selecting those strategies.

4. What Strategic Advice would you give in targeting various global segments?

5. Discuss thePolitical, Economic, CulturalandTechnologicalchallenges you envisage in entering the international marketANDwhich of those challenges would have the biggest effect on sales. Use references/ citations in explaining those challenges.