International Business

3 Review of product portfolio along with explanation of re-engineering of its products and processes for international markets 4 Influencing factors creating impact on business decisions related to the product portfolio. 5 CONCLUSION 6 REFERENCES 7 INTRODUCTION The term International business is defined as a process of conducting business and commercial transaction at the global level. For becoming market as well as global leader, Nike has always ensures in adopting sound and better effective marketing and business strategies. The main focus of Nike is on continuous

International Business

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
Analysing strategies with reasons adopted to operate internationally.............................................3
Review of product portfolio along with explanation of re-engineering of its products and
processes for international markets.................................................................................................4
Influencing factors creating impact on business decisions related to the product portfolio...........4
Evaluation of success of strategy.....................................................................................................5
CONCLUSION ...................................................................................................................................6
REFERENCES.....................................................................................................................................7

INTRODUCTION
The term International business is defined as a process of conducting business and
commercial transaction at the global level. It includes cross border transaction related to good,
services, technology, capital and know how between two or more countries. The present report is
based on Nike, which is an American multinational company providing services in field of Apparel,
Accessories and sports equipment. The company is engaged in business of designing, developing,
manufacturing, sales of footwear, apparels etc. worldwide. The report will discuss about product
portfolio process of the company. Also, it will define strategies adopted by Nike for making a place
in the International market.
MAIN BODY
Analysing strategies with reasons adopted to operate internationally.
For becoming market as well as global leader, Nike has always ensures in adopting sound
and better effective marketing and business strategies. The most effective and important strategy
was Innovation. The main focus of Nike is on continuous research and development process for
assessing the current market trends and customer demand as well. From growth perspective of
Nike, innovation has played a major role in achieving success at the international level. By
conducting research, survey, market observation Nike has been able to growth in sustainable
manner which in turn has able the company to seek competitive advantages.
Another strategy followed by Nike is of premium pricing strategy. This strategy target
customers having feeling of intimacy with the company's products thereby creating customer
loyalty. Nike by taking advantage of this loyalty starts charging premium prices for its products and
services (Tolonen and et.al., 2015). Emphasizes has been made by Nike on the strategy of market
segmentation. Under this company starts producing its products for men, women and children as
well. With the help of this strategy, Nike is able to advertise its products in assistance with celebrity
athletes so as to increase its market worth and sales.
Closed Loop Business model is one of the worthy strategy for Nike which has help in
becoming international brand. This model emphasizes on zero waste. It has helped Nike in
achieving zero or minimum waste by making proper and effective facility of reusing, recycling of
all its materials. With this model, company is able to reuse its waste material by using good recycle
process and thereby turning such waste material into new product. Thus, this strategy has helped
Nike in becoming an environment friendly business firm. Nike with making product differentiation
as per its customer and market segmentation has been able to gain marketing advantages in short

time period.
Review of product portfolio along with explanation of
re-engineering of its products and processes
for international
markets.
Product portfolio is a process of targetting market by compiling all the products and services
being offered by the company. The product portfolio analysis is defined as a process which assist
the company in making new and better improved plans & strategies related to development of
products and services. Nike has always emphasizes on bringing more innovative and creative
concepts, ideas and processes for remaining competitive in the market. This business organization
for providing its products and services at international level has to re-engineer its production
processes and services because of following reasons:
1. Customer taste and preference – For conducting business on global basis, it is very
important to have proper knowledge of customer taste and preferences. By conducting
research and market survey, Nike has been able to meets its customer and market demand
effectively thus resulting in high profit margins and market growth as well.
2. New market trends – Keeping updated with new and current market trends, fashion it has
lead Nike to keep up with the competition and thus increasing customer base. This can help
business in maintaining its profitability as well as brings improvement in its performance
level too (Seifert, Tancrez and Biçer, 2016).
3. Price – By charging fair and reasonable prices for its quality products and services, Nike has
been able to gain competitive advantages. With the help of premium pricing strategy, it is
able to charge better price from its loyal customer.
4. Packaging and labelling – For increasing sales and profit margin, a company should always
focus on its packaging and labelling activities. New technologies of cost effective nature
should be adopted for making production and manufacturing process better. Nike has
emphasizes on improving its packaging and labelling process for attracting more customer.
Influencing factors creating impact on business decisions related to the product portfolio.
For conducting business at international level, it is very important for a company to consider
several factors prevailing in the market before making entry. There are different factors which
influences the decision making process of Nike:
1. Price – It is one of the most important factor which affects the overall profitability as well as
customer base. A company should always set its price according to the pricing strategy of its
rivalry firm and which can be afforded by customer. Also, company should cover all the

expenses in its pricing strategy and should not carry on its business by incurring loss (Dash,
Gajanand and Narendran, 2018).
2. Culture – Development of product and services should be based on the culture and social
environment of the country. What beliefs or traditions is followed by one particular country
related to use of product and service has to be analysed properly before entering in market.
3. Economic condition – This feature affects mostly as if the company is having low funds and
business resources, it will be difficult to meet international standards and norms. Also, if
country in which Nike is launching its product is under developed economy, then it will be
difficult for Nike to clear out its stock.
4. Quality – It is one of major factor to which customer prefers the most. Some customer
prefers good quality irrespective of price charged while for other price is top priority. Thus,
before providing products at global level, it is very important for Nike to understand the
actual psychology of its customer related to quality and price.
Evaluation of success of strategy.
Nike gone for implementing many new and innovative strategies in the market which lead
him to be the leader in the market. Company focussed on selling their products using “Emotional
Benefits” and also came up with many new technologies also brought up new changes in the market
related to shoes. Company focussed on product quality, how to overcome existing competition
through acquiring those company.
Nike promoted its company by sponsoring various athletes like Tiger Woods in Golf, Roger
Federer and Serena Williams in Tennis, Cristiano Ronaldo in Soccer etc. so that the people attached
with those athletes will also get too attached with company and it may increase the sale and
profitability of the company. By using the strategy of “Emotional Benefits”, Company entered into
the lifestyle of the normal people and associated its name with the wants to aspire to live healthier
and to find their own “greatness”. In this way Nike became one of the best selling shoes for the
normal and common people. Middle class people also started trusted with 100% surety that the
products of the company will be good for health(Leavy 2017.).
Initially, when no one interested in purchasing the shoes and no one was knowing about
Nike than company used Franchise Model for marketing purpose. It given the company for
franchise so as to increase the sale of the company and also people will come to know about the
what is Nike and what are products Nike sales. It given Franchise in the small towns and small
cities so as to attract huge number of people who are fro middle class group.
Nike also came with innovative technology in the development of shoes. Company
developed a shoe that will auto-lace when you put your heels in the shoe which attracted many

customers by the company. They have also done things to make shoe lighter and studier such as
Fly-Knit. Company was only known by the people that it is only in the field of producing shoes but
it increased the product portfolio of the company by producing equipments and apparel for the
sports such as cricket, hockey, auto racing, basketball, tennis and many more.
Nike offered many products in many markets to many people it covered the huge market
share for the company in the competitive environment. Nike's mainly leadership increased in the
market from year 2006 to 2016 which brought company's name on the top-notch. Nike also
associated the company with the big games such as Olympics, FIFA, NFL and NBA. And came up
with the mantra “Just do it” in order to pull the players to claim for the targets that has to be
achieved.
Nike also used social media sites in order to keep updated and available on digitally for their
customers. Company also associated with product Red which is the mission of the agency is to
prevent HIV transmission from mother to infant. Nike has implemented strategies and all were
successful (Araujo and et.al., 2018).
CONCLUSION
From the above report it had been concluded that for conducting business operations at the
international level, it is very important to have sound and effective marketing as well as business
strategies. Nike has always emphasizes on making new and innovative strategies related to its
production and manufacturing function so as to acquire large market share and high profitability as
well.

REFERENCES
Books and Journals
Araujo, D. and et.al., 2018. Nike's Utilization of Brand Strategy to Increase Global
Competitiveness. In Competition Forum (Vol. 16. No. 1,. pp. 109-115). American Society for
Competitiveness.
Dash, B., Gajanand, M. S. and Narendran, T. T., 2018. A model for planning the product portfolio
and launch timings under resource constraints. International Journal of Production Research.
56(15) pp.5081-5103.
Leavy, B. 2017. Customer-centered innovation: improving the odds for success. Strategy &
Leadership. 45(2). pp.3-11.
Seifert, R. W., Tancrez, J. S. and Biçer, I., 2016. Dynamic product portfolio management with life
cycle considerations. International Journal of Production Economics. 171. pp.71-83.
Tolonen, A. and et.al., 2015. Product portfolio management–Targets and key performance
indicators for product portfolio renewal over life cycle. International Journal of Production
Economics. 170. pp.468-477.
Online
Product portfolio. 2017. [Online]. Available through:
<https://www.tandfonline.com/doi/abs/10.1080/00207543.2017.1394588>.