Overall Nike main demographic will always be those in the athletic world. But with growth and success come the opportunity to divide and conquer different sub-demographics; which is exactly what Nike seems to be doing. And so far it has worked well, keeping it the largest producer of sports and sportswear equipment in the world to date; According to the Forbes Fab 40. (The Forbes Fab 40: The World's Most Valuable Sports Brands, 2018). Organization Structure Nike Inc.’s organizational structure reflects the abilities and limits of the business in its operations. A company’s organizational structure is the composition and system design applied on the interconnections among employees, groups, and divisions of the business. In Nike’s case, the corporate structure highlights the need to address differences among regional markets. As such, the company has developed its organizational structure to enable adjustments in dealing with market differences. As one of the leading players in the athletic footwear, apparel and
NIKE INCORPORATION 10 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: 1. Global corporate leadership 2. Semi-autonomous geographic divisions 3. Global divisions for Converse and brand licensing Entrance and Exit Strategies Entrance Strategies There 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 products 3) Franchising the practice in which the parent firm is obligated to provide specialized equipment and/or service 4) 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 time 5) Joint Ventures a business that is jointly owned and operated by two or more firms 6) 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)
NIKE INCORPORATION 11 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.
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