Nike - 1. How has Nike conceptualized the athletic shoe...

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1. How has Nike conceptualized the athletic shoe industry: global or multidomestic? Justify your answer. What are the implications of this conceptualization? (For the distinction between global and multidomestic, refer to Porter, above, pg. 18). Nike is global because – - Homogenized product needs across markets - Nike has global product differentiation - Multidomestic Industry – 1. Competition in each country (or small group of countries) is essentially independent of competition in other countries. 2. Competition occurs on a country-by – country basis 3. Customers are unique 4. A multidomestic company modifies a product to accommodate the wants/needs of the market. Ex. A Coke Cola Sold China has a different taste from those sold in the U.S. 5. Product customized for each market 6. Decentralized control - local decision making 7. Effective when large differences exist between countries 8. Advantages: product differentiation, local responsiveness, minimized political risk, minimized exchange rate risk, Global Industry – 1. Competitive position in one country is Significantly affected by its position in other countries or vice versa 2. Producing a product the same way for every market that it is sold in. 3. No modifications to the product. Products sold in Chine is same as in Europe 4. Product is the same in all countries. 5. Centralized control - little decision-making authority on the local level
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Nike - 1. How has Nike conceptualized the athletic shoe...

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