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International marketing communication - Assignment Example

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This was spreading involved both the interlacing of economic and cultural activities (Scholte, 2000). With the fast growing…
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International marketing communication
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Download file to see previous pages This paper aims at using Nike case analysis to explore the promises and perils of globalization in the modern society. The paper is responding to the questions related to the subject of discussion, and a conclusion is given as a summation of the promise and perils of globalization.
Founded in 1964, Nike (initially Blue Ribbon Sports) has grown to be a global renowned manufacturer of sports’ gears and its vested interest in sports fashion has earned a global market as the world leader in design, distribution and marketing of athletic footwear (Frisch, 2009). Nike company outsourced its shoe production in lower- cost regions as a strategy of underselling its competitors and break into the competitive market. It developed strong working relationships with other shoe manufacturers in the region, and this made it have a competitive market share (Mahon, 2009; Kobayashi, 2012). For instance in Japan, it had a working relationship with Nippon Rubber and Nihon-Koyo but due to the tight labor market and a shift in the dollar/yen exchange rate, Nike broke off and outsourced other alternatives targeting lower-cost producers. This networking with other lead producers and suppliers enabled Nike to open up manufacturing plants in various parts of the world as well as have a market share of its products (Frisch, 2009).
The production cost of a hosting country determined Nike’s future. When the cost of production increased, Nike Company moved into lower-cost countries where it will break into the footwear market with high tech models of athletic shoe. As such globalization has enabled Nike to expand the market for its products throughout the world (Frankiewicz & Churchill, 2011). Through linking with other lead suppliers, Nike broaden its market share by establishing manufacturing plants across the world and placing its employees in these newly established ...Download file to see next pagesRead More
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