Research To Understand The International Global Markets To Enter 2017/18 (Coursework Sample)

To – Board of directors
RESEARCH TO UNDERSTAND THE INTERNATIONAL GLOBAL MARKETS TO ENTER 2017/18
An analysis of the macro and micro factors impacting on the sports retail market and the market recommendations
International marketing in includes performing the business activities to consumers or the customers in more than one country. The main differentiation between global marketing and the international marketing is in global marketing activities will take in more than one country and NIKE should consider the vast areas including the macro and micro environment ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "dropping-particle" : "", "family" : "Pervez Ghauri", "given" : "", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "Edinburgh business school Heriot- Watt University", "id" : "ITEM-1", "issue" : "1016", "issued" : { "date-parts" : [ [ "2011" ] ] }, "page" : "52", "title" : "International Marketing", "type" : "article-journal" }, "uris" : [ "/documents/?uuid=b92bb2c4-5523-48b9-a963-642ad9716793" ] } ], "mendeley" : { "formattedCitation" : "(Pervez Ghauri, 2011)", "manualFormatting" : "( Ghauri, 2011)", "plainTextFormattedCitation" : "(Pervez Ghauri, 2011)", "previouslyFormattedCitation" : "(Pervez Ghauri, 2011)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }( Ghauri, 2011).
Understanding the external environment
NIKE needs to understand the external environment in terms of global marketing. Macro environment contain the variables outside the organization which positively or negatively influence to enter in a new country. Macro environment include the
* Technological factors – As the NIKE already well aware of using the technology such as using the E-Commerce, it is crucial the people of the country where the NIKE going to enter fluent in the technology. Then only the NIKE can utilize technology for the marketing purposes. Additionally NIKE should consider whether we can utilize the WEB 2 technology for the marketing purposes as well as the better customer service. Web2.0 refers to a perceived sound generation of web development and design that facilitates communication, secure information sharing, interoperability and collaboration on the World Wide Web. These can offer opportunities to firms in a number of different ways:
• Advertising – For an example NIKE can make viral advertising via popular sites such as Face book and you tube twitter etc to promote their products
• Mashups -The term “mashup” originated in music where artists would combine parts from different songs to create a new track. The web equivalent is where developers can now mix, match, reuse and morph web content, data and services. For an example NIKE can use the Google map to instruct the customers to the showrooms this will help to increase the customer satisfaction.
* Economic factors – Economic factors will highly affect the strategies of the NIKE as it is going to enter the new global markets. The inflation rate, unemployment rates, international trade relations, fiscal policies, exchange rate compare to USA etc ( Doghugbue, 2009). Depend on the country the risk will differ mostly the economic risks are high in the developing countries as well as under development countries compare to developed countries. NIKE can minimize the exchange rate risk and inflation risk by implement the hedging procedures.
* Social and culture – NIKE should consider as multinational company producing athletic shoes, apparel and sports equipment how the social and culture will influence the success of the company in different countries ( Doghugbue, 2009). Such as people’s attitudes towards the brads, how young people attracted towards the fashion etc.
* Physical and demographic environment - Nike should consider the human population in terms of gender, age, size, density, profession etc ( Doghugbue, 2009). According to that NIKE can start to promote the brad for an example considering the young population of the particular city as well as the particular country is crucial for the demand of the athletic shoes because young people more prefer athletic shoes compare to elders.
* Political factors – NIKE should consider about the political factors when it is going start the retail markets in overseas such as government tax, new laws against the imports and exports, tariffs, political instability etc ( Doghugbue, 2009).
Micro Environment – Factors specific to the particular industry and related to the industries, including competition, customers, suppliers and barriers to entry. Specially NIKE should consider about the pros and cons about the competitors when they make strategies.
* Competition – This is refers to the strength of the rivalry and competition between existing companies in the market. This is the major determinant of the competitiveness of the industry. NIKE’s Biggest Competitors are Adidas, Reebok, Brooks and Taylor Made. Even though NIKE is enjoying a 36% share of global athletic footwear well ahead of top competitor Adidas’ 22% share (Henderson et al., 2009). Should consider about the domestic retail sellers when they enter in to a new country.
* Suppliers – NIKE has to make sure whether the reliable and relevant suppliers available in that particular country if not see whether sufficient facilities to import the raw material from the own country USA, facilities such as harbour and highway roads.
* Barriers to entry - NIKE should only enter a market and position the company if the forces are low. According barriers to entry in to a new country can be classified as bargaining power of the customers, bargaining power of suppliers, treat of new entries, treat of substitutes and the competitors rivalry according to porter’s five forces.
AN ANALYSIS OF NIKE INC. INTERNAL BUSINESS FACTORS USING PORTERS VALUE CHAIN FRAMEWORK
To understand how the organization added value to the customers organization could use the porters value chain it would somewhat different to manufacturing organization when it would come to service organization.
Source – en.wekipedia.org
The concept of value chain was developed by Michael Porter considering the value adding activities of manufacturing organizationsADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "dropping-particle" : "", "family" : "Gabriel", "given" : "Elisante ole", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "The IMS International Journal \u2013 2006", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2003" ] ] }, "page" : "30", "title" : "Value Chain for Services Biography of the Author", "type" : "article-journal" }, "uris" : [ "/documents/?uuid=13291f12-d1cb-4e5d-9e12-ff28174b1616" ] } ], "mendeley" : { "formattedCitation" : "(Gabriel, 2003)", "plainTextFormattedCitation" : "(Gabriel, 2003)", "previouslyFormattedCitation" : "(Gabriel, 2003)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Gabriel, 2003). The concept of value is recognized based on the ability to satisfy the customer. The value chain demonstrates the general activities of a manufacturing organization which could be used to add value. The value system is an extension of value chain which recognizes the contribution of related organization in adding value. The value system is important because a decision of other related organization can destroy organizational value ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "dropping-particle" : "", "family" : "Gabriel", "given" : "Elisante ole", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "The IMS International Journal \u2013 2006", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2003" ] ] }, "page" : "30", "title" : "Value Chain for Services Biography of the Author", "type" : "article-journal" }, "uris" : [ "/documents/?uuid=13291f12-d1cb-4e5d-9e12-ff28174b1616" ] } ], "mendeley" : { "formattedCitation" : "(Gabriel, 2003)", "plainTextFormattedCitation" : "(Gabriel, 2003)", "previouslyFormattedCitation" : "(Gabriel, 2003)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Gabriel, 2003). This analysis can be used for NIKE also as a manufacturing company.
Primary activities
Inbound logistics – Are activities including with receiving, storing and distributing the inputs to the product. Also include material handling and transport. As inbound logistics NIKE largely benefiting from the
* Lower production cost.
* Outsourcing the non core activities.
* By maintaining proper supply chain management reduce inventory cost.
* Focus on the product design as well marketing trend
* NIKE IHM specialized in the rubber foam and raw materials (Mishra, 2011).
Operations – Converting various inputs into outputs. Packing, assembling, testing etc. NIKE has been implementing
* Higher investment in research and development.
* Reducing the packing option.
* Professionals to manage the factory activities.
* Efficient network structure for the operations.
* No heavy metal or gum used (Mishra, 2011).
Outbound logistics – Collecting, storing and distributing to the buyers.
* Having the strong control over the distribution channel.
* Maintaining good supplier relationships.
* Ability to manage supply chain projects.
* Forward integration (Mishra, 2011).
Marketing and sales – Arranging the place where the consumers and customers made aware of the product...