elect a U.S. based company who expanded overseas and discuss the following Delin
ID: 468352 • Letter: E
Question
elect a U.S. based company who expanded overseas and discuss the following Delineate the legal systems and discuss which legal system and political ideology applies to the country you chose that the company does business in. • Delineate the economic systems and discuss which economic system applies to the country you chose that the company does business in. • Discuss the culture of the country (both verbal and nonverbal) and how it may impact the way the company does business internationally. Introduction 2. Competition(both domestic and foreign 3. Geography 4. U.S. based company 5. Economic system 6. Culture 7. Legal/Political Nike is the company that I would like to discuss and Nike is the company
Explanation / Answer
Nike was established in the U.S in 1962 which was initially called Blue Ribbon sports. (Nike.con, 2011). It had more than 47 market shares globally dealing with sports equipment and goods. It catered to the youth with its excellent sports fashion products. It relied heavily on its celebrity promotion with the likes of Ronaldo, Tiger woods etc. Also, there was the high level of awareness around Nike through mass media (Goldman, 2000). Nike was expanded in India as part of its expansion to 200 countries across the world. Its appeal to the younger audience was wide with its popular tagline “Just Do it” It expanded in India in 1996 and during this time its competitors Reebok and Adidas were popular in the market. Political factors in India There was importance given to the production of local goods in India by the government which saw the rise and dominance of local products in the national market. There was increasing resistance to the entry of foreign products and brand sin the market with the idea of stern nationalism. The partnership with any foreign company also laid down rules with maximum government intervention. However, the liberalization policy in the 1990s open the doors for Nike to enter India and establish as a separate subsidiary and independent brand. Economic factors in India The concentration of Nike footwear is heavy in Asia and India has been performing well when it comes to Nike products. There was an increasing and impressive growth in the annual growth rate as the purchasing power of the middle class increased during the late 90s. Social factors inIndia There was craze around western and which was considered as sophisticated and new. The younger generation was determined with its enthusiasm even around sports. The quality of sports products also encouraged the younger generation to buy Nike products. There was a tag of Social responsibility added to the product too. The main competition was from companies like Addidas and Reebok in India who had already deepened their relationships with the customers in India. However this increasing trend of novelty and the celebrity endorsements did help Nike to stand out.
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