Seminar: Nike: Following a Global or Local Strategy?

Topic Number:2

Industry Studies 1

Overview

Following on from the lecture on globalisation vs glocalisation this is your opportunity to apply the learnings to Nike. You are tasked with researching the market approach Nike took in a host country of your choosing.

The first thing you need to do is explain a bit about their background and strategy. You are then required to analyse their approach in a host foreign country explaining whether they followed an ethnocentric, polycentric or geocentric strategy. Thereafter, give examples of the extent to which they standardise or adapt their approach in the foreign economy.

Finally, make recommendations on how they should move forward in that marketplace.

3

• Develop and determine your understanding of an international organisation and their strategy

• Demonstrate an understanding of ethnocentric, polycentric and geocentric approaches and apply it to a real-live case study

• Critically evaluate and articulate the extent to which the organisation standardises or adapts their approach in foreign markets

• Demonstrate critical reasoning by providing recommendations on what they organisation should do

Learning outcomes of this seminar

Agenda for this seminar

Determine whether the organisation follows a ethnocentric, polycentric and geocentric approach

Articulate whether the organisation standardises or adapts its approach to local markets

What recommendations would you have for this organisation to move forward in this market?

Describe the organisation and their strategy

Structure for the session

You will have 15 minutes to

discuss each question

We will have a de-brief at the end of each 15 minutes to hear your thoughts on each area

Feel free to ask questions but please do not have separate conversations ‘we are all in

this together’!

Globalisation is making the world smaller

Now we’ve entered globalisation 3.0 and it is shrinking the world from size small to size tiny

Thomas Friedman

Describe the organisation and

strategy

What is the company mission and vision?

Source: Nike.com

How is the company structured?

View video: http://player.vimeo.com/video/83267568?byline=0&portrait=0&title=0

What is their strategy focused on?

Profitable growth over the long-term

One million pairs of shoes is just the

beginning

One billion consumers on the way

One million ideas to choose from

Capture the passion of sport

Source: Nike.com

Determine whether the organisation

follows a ethnocentric,

polycentric and geocentric approaches

A Re-Cap

The firm simply markets its goods in international markets using the same marketing mix it uses domestically, thereby avoiding the expense of developing new marketing techniques to serve

foreign customers.

Far more costly because international marketers attempt to customise the firm’s marketing mix in each market the firm enters in order to meet the idiosyncratic needs of customers in that market.

Calls for standardisation of the marketing mix, allowing the firm to provide essentially the same product in different markets and to use the same

marketing approaches globally.

Ethnocentric Approach

Polycentric Approach

Geocentric Approach

Just Do It: An American Ideology

Source: Nike.com

Athlete Sponsorship

Source: Nike.com

Sponsor Major Sporting Events

Source: Nike.com

Articulate whether the organisation

standardises or adapts its

approach to the local market

Local Advertising

View video: https://www.youtube.com/watch?v=-eDoDQo_T1c

Certain amount of customisation in product marketing

India

UK

Source: Nike.com

Differences in Distribution

India – Store Only

UK - Online

Source: Nike.com

What recommendation

s would you have for this

organisation to move forward in

this market?

What should Nike do more off?

Think Global, Act Local Think Local,

Act Global?

Socially involved in communities?

View video: https://www.youtube.com/watch?v=wzq31hpGZOI

Move down the economic pyramid?

End of Seminar

Note: This recording is for your personal use only and not for further distribution or wider review.

© Pearson College 2013