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Nike's Advantage Of Globalization

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A Familiar organization
There are many familiar organizations that have successfully used globalization to expand markets and profitability. One of such organization is Nike Inc. Established in 1964 with the name ‘Blue Ribbon Sports’ (BRS) by Phil Knight and Bill Bowerman, the organization began as a distributor and importer of Japanese running shoes before embarking on a project to design its brand, which has become a household name in sportswear industry (O 'Reilly, 2014).
Analyzing ways Nike Inc. has successfully used globalization to expand markets and profitability.
There are various ways Nike Inc. has successfully used globalization to expand markets and profitability. Nike’s first globalization strategy was outsourcing. Nike Inc. realized that manufacturing its products (footwear) in the U.S was expensive and to further export these products to distributors outside the U.S would be a massive challenge. This is because price affordability was a major concern for customers outside the U.S who would not comprehend why sportswear should be that expensive to buy. However, Nike Inc. took advantage of globalization by using the Japanese high-quality, low-priced production strategy by outsourcing all its shoe production to Japanese producers (Locke, …show more content…

Additionally, Nike Inc. entered a globalized market because the organization had a solid financial base that could support its factories abroad. Though critics argued that Nike implemented a cheap labor policy to manufacture its products, nevertheless, without a stable financial base, it would have been difficult to globalize the organization. In a related development, Nike’s presence in the globalized market encourages a massive inequality in the society. While suppliers were much better off, the laborers were worse off and the organization looks the other way because it was part of doing a business in the globalized market. So, it is fair to say that entering a global market costs Nike Inc. its reputation so to

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