with market differences. As one of the leading players in the athletic footwear, apparel and equipment industry, Nike Inc. serves as an example of how regional variations must be included in business strategies.Nike has a geographic divisional organizational structure. This structure is based on the company’s needs in its global organization and regional markets. The following characteristics are notable in Nike’s organizational structure:
Nike Incorporation101.Global corporate leadership2.Semi-autonomous geographic divisions3.Global divisions for Converse and brand licensingEntrance and Exit Strategies- Entrance StrategieThere are seven entrance strategies in global business and they are: 1)Export/Import Business is a relatively low-risk operation given the fact that capital is not tied up and it is relatively easy to enter or exit out of this business.2)Licensing the practice in which a company or individual provides the foreign partner with the technology (patented technology, copyright, process, trademark, etc.) to manufacture and sell products3)Franchising the practice in which the parent firm is obligated to provide specialized equipment and/or service4)Strategic Alliances is an agreement between two or more firms that do not involve the creation of a separate entity with joint ownership and in which the firms stand to gain revenues and maximize profits through cooperation for a given period of time5)Joint Ventures a business that is jointly owned and operated by two or more firms6)Foreign Acquisitions 7)Wholly-Owned Foreign Subsidiaries new facilities built and operated overseas that require large investment of capital because these new establishments are tailored to the exact needs of the home country firm(Gasper 2014)For the Nike Corporation, they assume these entrance strategies by manufacturing and selling a product that has higher quality at a lower cost. Nike shoes stay in demand and generate billions of dollars each year by targeting both the athletic audience and the everyday citizen that appreciates a comfortable shoe.
Nike Incorporation11In the middle 1990s Nike began to include business with India and arranged an exclusive license to maintain a percentage of the revenue where by this time the revenue reach 2 billion. (Nike Inc. 2018)Nike has acquired various other footwear brands such as Converse, Chuck Taylor, Cole Haan, Hurley and Jordan brands. (Nike Inc. 2018)Exit StrategiesAn exit strategy should be in place that enables the home company to leave the host country and dispose of the foreign venture at a reasonable price without incurring significant loss(Gasper, 2014). Plenty of companies would merge with Nike because it is a famous brand image, therefore If Nike goes bankrupt then there is the alternative for the brand to relocate to other countries such as Brazil, Russia, India and China (Lazzara, 2014).