Success And Failure Of Nike

NIKE
The Factors that Led to Success and Failure of Nike in its Venture across International Markets

Abishek TR*

Abstract-

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INTRODUCTION
The largest American suppliers of athletic shoes, apparel, and sports equipments .At the same point of time ,this company is known worldwide .The Success of this company is the result of the various strategies used in the international market expansion which helped them to enter into new markets and to strengthen its position in the traditional ones . In the Present situation IN the present situation the strategy of expansions is very important as world economy tends to globalize and nowadays, multinational companies like Nike which can hardly locate production in one country only but

in was founded on 1960’s on Beaverton, Oregon its initial founders are blue ribbon sports . Since its foundation the company was characterized by the rapid growth and development..The main mission of the company was to gain a larger share of the market . In the first decade of its existence they attracted leading sportsmen for advertisement campaigns . Steve Prefontaine, an American record holder, and John McEnroe were the first ambassadors of Nike . by involving popular sportsman and adding it up with new technology’s such as air technology which helped in growing their popularity in USA. During the course of time the national market was insufficient for the company and they wanted to enter the foreign market and for that the celebrities (sports persons ) played a big role .During 1970-1980 they had a steady progress. But faced a crisis in late 1980s and early 1990s. At that period of time the company has gained its name in many , but as per the production case of sports shoes ,sports equipments in its traditional regions ,became less profitable in certain countries like Europe Japan and USA and because of this they shifted their production to Korea and Taiwan , were the labor was cheap and Asia became the main manufacturing unit of Nike

Nike has managed to shift their Manufacturing unit into Asian country’s were the labor is cheap to be exact wages of USD1 an hour were so little as one-tenth of those given in the US. No wonder that a pair of shoes which were sold for $150 in 1991 is made by indoasian women who were 58 cents a day but the situation has started to change and due to that reason the company has managed to minimize cost of production and not only double triple the the revenue as comparing to the year 1996.
Finally we come up with promotion and advertising campaigns which became a grand success not only because they introduced sportspersons , they also introduced innovative ideas and wise strategies and the image of the Product, due to this process we can say that Nike targeted a huge no of audience and created a Prestigious brand which will be easily available for average people . they also came up with great tag lines such as ‘there is no finish life’ , and in the 1980 they changed it into “ JUST DO IT “ these quotes of tag lines are considerd very simple but very attracting and extremely encouraging for the customers . Due to this reason Nike is now a world wide brand used by each and every people in different parts of the