This assessment will cover the following questions:
- Identify the role of management in meeting the stakeholder’s objectives by applying agency theory.
- What are the different theories of effective management of an organisation.
Nike is a US-based leading sports brand company in the world. It was founded in the year 1964 by Bill Ribbon Sports. It deals with sports apparel products. In this report, we will discuss the globalization of Nike, and its marketing strategies for expansion of its markets to U.K. Globalization means influencing a brand in different regions, culture, society through the global network of trade and communication (Anon, 2018). Globalization focuses on expanding to a broader area and factors affecting it such as politics, economy, technology, climate, and media. Drivers of Globalization are instruments that make easy for people, products, and ideas to move across different borders. It promotes international trade facility and business expansion. Market drivers include customer need, standardization of product, and demand in the new market, government policies and other trade barriers. The Driver of Globalization that will help Nike to expand its market to U.K are -
Trade liberalization observes the government policies and international economic position of trade in the country. The international trade barriers are getting more liberalized, but it has not helped to produced similar benefits for all the countries. (Hillman A., 2008). World Trade Organization plays a vital role to reduce trade barriers in the world and promote liberation (Dicken P., 2007). Changing technology, internet, and government policies have helped to improve mobility. This driver will help Nike to expand its business to U.K with its benefits of new technological development in production. The economic growth of U.K is well developed and similar to U.S. Second important drivers of globalization is Investment Barriers. It allows determining the cost of labor, land capital that is going to differ — the economic growth and stage of development of the company to influence the cost of production. Nike produces a different range of products which are everyday rage products and less vulnerable to economic factors (Bush, 2018). Nike focuses on low-cost labors from far Eastern Countries. Nike has enough resources to tackle small emerging markets to sell its products (Bush, 2018) the third global driver of globalization is Change in Technology. Technological development is one of the essential drivers of globalization. It has helped to a major improvement in global connectivity, communication, and mobility (Wellman et al., 2005). Technology advancement includes internet facilities for trade and advertisement, improvement in product and transport facilities. Innovation in transport technology has helped the trade to access quickly in different parts of the world. Nike uses social media to build its brand in the market. Its technological advancement and feature help it to target customers from different parts of the country. Competitive Driver is the fourth globalization drivers who refer to competition in the international market. Nike has tied up with other top brands, athletics around the world for its brand endorsement. It will be helpful for NIKE to expand its demands to the UK.
The nature of the global trend for Nike includes customer trends, social trends, a cultural convention that affects international marketing decision of this industry. Nike focuses on Customer Trend by showing the emotional benefits of the product to its customers. In its advertisements, Nike gives importance to the benefits of sports and exercise rather than selling its products. It produces the standard quality of products for people with the help of its advanced technology to develop its shoes with requirements of the customers. Nike promotes its vision through its advertisement that its products help to discover the athlete inside and develop the performance. (Gilliland, N. and Gilliland, N., 2018) It creates a wide range of products for different categories of sports to take care of customer needs. The Second accept is the Social Trend that Nike determines with the help of its advanced technology to produce wide varieties of product.(Gilliland, N. and Gilliland, N., 2018 ) It promotes its products with the support of Digital marketing and social media, sponsorships and internet marketing. Nike has tied up with top athletes and sports brands to create a bigger space for itself in the market. The Third accept is Cultural Convention that affects the international markets. NIKE advertises through storytelling method and emotional branding that allows the customer to find their strength and greatness. It promotes its slogan “to stay fit and healthy “and “just do it” to encourage individuals to achieve their goals. (Gilliland, N. and Gilliland, N., 2018) It allows the customer to discover the inner athlete. NIKE has co-brands with different sports and top athletes around the world to promote its product with the help of social media and advertisements.
NIKE uses the theory of 4P’s for analysis. The products of the company are of high standards and technological advanced. It is famous for its advanced technical features in the world. It produces various range of products for different categories of sports and customer needs. It aims to develop its technology and product time to time to give the customers more comfortable product.
NIKE focus to expand to developed countries like U.K where it can target more customers and market. It finds a suitable place for production with cheap labors where it can mobilize and communicate around the world. The price of the products of NIKE is ranged from low to high. Their medium ranged products to make it less vulnerable to economic factors. Promotion is the last factor in determining sales in the market. NIKE uses social media and internets as a platform to promote its brand and products. It has collaboration with different sports and athletes around the world to promote its products. (Gilliland, N. and Gilliland, N., 2018). Strategies Nike should adopt to determine the popularity of sports in U.K and increase of people in sports like football, cricket, and hockey. It should produce shoes and equipments for these sports activities on demand in U.K. It should also focus of major sports events in U.K that take place in U.K like World Table Tennis Championship, Ice Hockey, Basketball and Football champion’s league. It can collaborate with this events and take sponsorship. Nike has collaborations with many sports and top athletes around the world to promote the product. U.K is a developing country and has a craze for sports and sports apparels. There is a huge demand for sports products among the youngsters who can be a target market for Nike in U.K.
NIKE uses its slogan “Nothing beats a Londoner” to promote its brand in U.K market. It has avoided all stereotypes to establish its market in U.K. NIKE uses a sense of realism in its advertisement to attract its customer. Nike should target young and city dwelling consumers in U.K market immediately. Young generations from Universities can be one of the specific target markets for NIKE to promote and sell its products. It encourages young and passionate athletes. It focuses on the reality of sports in London and uses regional languages to advertise its brand in the U.K market (Gilliland, N. and Gilliland, N., 2018). Nike also provides sponsorship to emerging athletes. Youngsters from Universities are a good target for the company. They are more interested in buying sports apparel as a trend now. NIKE also target young women and teenagers aged from 18 to 28. It has started producing appeals for both men and women like tracksuits and other reports products that attracts young generation of universities. It allows young athletes to wear its products through sponsorship, promotions with collaboration with local clubs and federations. It developed the trend of sports and exercise among this generation through promotion of its products. Social media platforms like Facebook and other sources targets young customers through ads and promotions. (Anon, 2018) The kinds and students who play sports are now part of NIKE’s sponsorships. It is more focused on innovation which attracts more university students. NIKE has Failed to include the major part of London's population - south Asians and consumers in small towns and villages in U.K ( Gilliland, N. and Gilliland, N., 2018 ) It should also focus on connecting audience in inner-city communities.
Emotional branding creates more loyal customers towards a brand and helps to increase the value of goodwill of the company. It gives priority to customer needs more than selling its product. This strategy links human emotions with its brand to attract the customer and enables to trust in the brand. They communicate about the product and brand indirectly by showcasing the needs of customers. Nike gives importance to sell emotional benefits with its product to the consumers. Through advertisement, they brand displays how much they care about consumers and minimal on the product. Emotional branding is one of the global international strategies for marketing used by Nike to connect people much faster. Nike displays more emotional benefits of its products in the advertisement rather than selling the product. It uses its slogan “stay healthy and fit” too aware the consumers the benefits of sports and exercise for their health. (Keller, C., 2008) The advertisements of Nike focuses more on targeting the emotions of the consumers and health benefits of exercises, running, and other sports activities. It also uses a tagline “just do it “to encourage the consumer to achieve their targets. To promote its brand it U.K Nike also used its Tagline “nothing beats a Londoner” to impress the consumers with its new emotional advertising strategies. Nike utilizes emotional branding which plays an idea of heroism in customers (Keller, C., 2008). Nike also targets women by promoting women empowerment in the world. (Keller, C., 2008). Nike has increased the demand for sports products in the market and encourage many consumers to participate in sports activities through its emotional branding.
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Nike is famous for its creativity since the beginning. Nike should use its Innovation as an International market entry strategy to enter the U.K market. Nike is renowned for its innovation and new technology in its products. (Business today.in, 2018) Innovation strategy of Nike is the most important feature about its product. It also helps to attract more customers. Nike uses new technology to develop its shoes and other sports products. It ensures to make its product very comfortable and durable in comparison to other competing products in the market. Nike also provides customized products for individual needs of the customer. It uses its tagline “just do it “to say that everyone is an athlete inside them and the athletes need to improve themselves. Accordingly, Nike also improves its product every time and comes to the market with its innovative technology in its shoes. Nike produces a wide range of shoes for every kind of sports with a different technique to make the athletes more comfortable. Nike was the first one to lunch its shoes with iPod combo sports kit. (Business today.in, 2018). It has a record of launching new innovative products to market. It also launched sports shoes with running app and stopwatch to make the sports and activities more comfortable and convenient for its consumers. (Business today.in, 2018). Nike also uses its Facebook page and other social media platforms to advertise and aware the people about the innovative features of its product. The products of Nike not only focus on dressing the athletes, but it also focuses on the training of aspiring athletes (Business today.in, 2018). It has a range of specialized training shoes with electronic features. The following features are unique about Nike and set a new trend for the demand of sports news and sports product in the population of U.K This strategy will attract especially the young generations from universities and children of U.K to love and prefer Nikes product.
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