Question

Research a U.S.-based company that operates globally.

• Explain the key elements of the company’s operations, business structure, and market position.
• Illustrate specific microeconomic, macroeconomic, and international economic factors that influence the management’s strategies and drive the company’s success.

Answer 1

Nike and Adidas both are the modern brand of sporting goods and dominating the industry around the world. Nike is US based company while Adidas is German based but both of these are world’s leading brand in sporting goods however, Nike is a superior competitor for Adidas even the Nike entered in market after Adidas but has grabbed around 170 countries around the world in sporting goods industry while Adidas is serving only around 160 countries. Therefore, Nike is most popular brand around the world even in Top 100 Global Brand Report Nike is on top of the list than Adidas.

Nike is most popular and famous brand across the world in sporting goods and most valuable in the market and at present the market capitalization of Nike is also crossed $100 bn which is the pure brand value of Nike in sporting goods. Nike is also controlling more than 50% of US Athletic Footwear Market. However, the market capitalization of Adidas is only around 50 bn Euro and has only 15-20% of US Market.

Following are the factors that may influence the strategies of Nike and may lead the company toward success:

Brand Awareness & Advertisement: This is the main key factor that may affect the success or failure of any company in the market. In present environment, no one have time to think and analyse the new product or services of any company therefore it is needed to aware the people/consumers with the quality of new product and services.

Implementation of Latest Technology: This is also a main requirement to implement the latest technology for providing best product and services to the consumers as per their needs. Now a day technology is also reached at advance level where everything is computer aided. Therefore, it is also required for Nike that product and services of Nike must be computer aided for best products for consumers.

Coordination between Demand & Supply: There must be proper coordination between the demand and supply of product and services of any organisation. If any organisation is operating globally then it is needed that organisation is able to supply the product and services on timely basis across the country.