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Nike's Global Expansion Strategies

Nike has expanded significantly internationally since 1972. It now has a presence in 45 countries with 756 stores as of 2012. Nike uses celebrity endorsements and co-branding to market itself globally. Over half of Nike's business now comes from international markets, particularly emerging countries like Brazil and China where it expects $4 billion in sales by 2015. Adidas has also expanded globally and focuses on competitive athletes while Nike targets youth and fitness consumers. Both companies invest heavily in innovation and developing new products and styles.
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0% found this document useful (0 votes)
3 views5 pages

Nike's Global Expansion Strategies

Nike has expanded significantly internationally since 1972. It now has a presence in 45 countries with 756 stores as of 2012. Nike uses celebrity endorsements and co-branding to market itself globally. Over half of Nike's business now comes from international markets, particularly emerging countries like Brazil and China where it expects $4 billion in sales by 2015. Adidas has also expanded globally and focuses on competitive athletes while Nike targets youth and fitness consumers. Both companies invest heavily in innovation and developing new products and styles.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as RTF, PDF, TXT or read online on Scribd

• Nike are now based in 45 countries and have 756 stores as of

2012.
• Nike still use the same modes of entry as before.
(Advertisement and endorsement) Just recently they co
branded with Christiano Ronaldo to produce a line for the
football enthusiast.
• Has some sort of presence in almost every country in the
world, over half of Nike business is in international
markets.

• Porche x Adidas collaboration

• Adidas for stella McCartney which adds innovation and niche


to the brand. (add pics

• Adidas extends FIFA World Cup partnership deal until 2030.

Markets entered by Nike


Nike Advantages
• Research and Development- Nike makes large investments in
this category.
• Nike has been making investments in markets like China,
India and Brazil

Nike disadvantages

• Competition as the market they are in encourages rivals such


as Adidas
• Nike and Adidas are both sports focused brand.
• Adidas’ continued product innovation has allowed them to
develop a strong marketing strategy and the same goes
with Nike.
• Nike focus on creating new styles for the youth and fitness
crazed consumer whereas Adidas are dedicated to
competitive athletes.

Innovative stores
Emerging countries Brazil & China
• Awarded for being the no. 1 Most innovative Company of 2013
• SE Fuel band- “slick electronic wristband that tracks your
activity”
• Launch of innovative footwear design and technology
Nike entered foreign markets by opening flagship stores within
the countries they wished to target .
Celebrity endorsement: Tennis star Ille Nastase
Nike did not use conventional advertisement as they did not
have their first advertisement till 1982, majority of their
success was based on good reviews from athletes and sport
industry people.

Just do it – Endless Possibilities

Find your greatness


photo credit Nasa / Goddard Space Flight Center / Reto Stöckli

Motives for entering new markets


How they entered
Markets entered by Nike
Emerging countries Brazil & China
• Nike are a focused brand that take an aggressive attitude
towards marketing and leadership whereas Adidas have
had several management and ownership changes.
• Nike is manufactured in Asia which is low cost and Adidas is
manufactured in Germany.
• Nike are owners of various brands such as converse and
Adidas has also taken this approach by owning Reebok
and various other companies.

Nike competitors
What Adidas are doing now
• Once Nike had established their market in America they
decided to expand to a foreign market in 1972 and their
first choice was Canada, their sister country.
• Nike then choose to expand to Australia in 1974

• Nike then moved onto the Asian markets such as Korea and
Taiwan in 1977 and moved onto various markets from then
onwards.
• In 1981 Nike international ltd was formed to service a
growing market of up to 40 markets
Contrasting Adverts
Advantages and Disadvantages
• These are the top 2 sporting brands of the world.
• Nike is currently positioned at 24th place and Adidas at 55th
position in the top 100 brands ranking list published by
[Link]. (interbrand, 2013).

Nike was founded by Bill Bowerman and Phil Knight


Once the brand was established they hired designer Carolyn
Davidson to create the iconic swoosh logo
Since the launch of Nike they have become the leading Sports
and fitness brand in the world
• Growth in the Brazilian economy- 2014 World cup-2016
Olympics
• Chinese basketball team is growing as China is the 2nd
largest basketball market
• Nike has predicted to generate 4bn by 2015 in China - it will
use local celebrity endorsement such as Chinese Olympic
and track star Lui Xiang

Nike and Adidas


Adidas
Present Internationalisation

more technology-focused,
concept stores (Mintel)

What Nike are doing now


Nike vs. Adidas

Nike Internationalisation
Nike company Background
Nike vs. Adidas
Digital & Innovative Future
• The main motive for America to internationalise was to
increase revenue and establish a consumer base in other
countries.
• Nike is already an athletic focused brand that needs to
expand into other sport industries.
• Nike had to be careful as entering new markets may have
risks, financial and asset risks. Environment, weather and
culture also has to be established when entering a new
market.

• Began internationalisation with exports to Canada similarly


to Nike.
• Adidas production overseas to Asia in order stay competitive
in the industry.
• Adidas dominates the international soccer market with
sponsorships of big events and organisations, for example
it's the official sponsor of FIFA and the UEFA
Champions league. This is direct competition for Nike as
they sponsor key players within the soccer industry.

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