International Marketing Report

This report examines Nike's potential expansion into the UK market, analyzing drivers of globalization, customer trends, social and cultural conventions, and appropriate international marketing strategies. It identifies a specific target market within the UK and evaluates the most suitable international market entry strategy for Nike to achieve success in this new market.

International marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSESSMENT TASK....................................................................................................................1
1) Evaluate how some drivers of globalisation can help NIKE expand in this new market.......1
2) Critically analyse the nature of the global environment including customer trends, social
and cultural conventions affecting the international marketing decision....................................2
3) Identify and justify one specific target market within the UK that the NIKE should target...2
4) Identify and justify the one type of global International Strategy method that NIKE should
use to grow in global markets......................................................................................................2
5) Critically evaluate which one International Market Entry strategy is more appropriate for
NIKE to enter and grow in the UK market..................................................................................2
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Global trade refers to expanding business in different countries to generate more sales
and profits. the evolution of globalisation has provided vast opportunities for big firms to trade in
different countries (Papadopoulos & Heslop, 2014). it has influenced them to develop effective
strategies to build a large customer base. This report will describe drivers of globalisation needed
to expand in new market. also, it will analyse nature of global environment that affects in
decision making. Moreover, different target market and global strategies are discussed. At last
international market strategies are explained for business to grow. For present report organisation
taken is Nike. it belongs to apparel industry.
ASSESSMENT TASK
1) Evaluate how some drivers of globalisation can help NIKE expand in this new market.
Business requires effective strategy to expand in global market. it is very important for
them to grow and develop in different market so that they can sustain for long time.
There are several drivers which influence business to enter in new market. these are as follows :-
Technological – this is foremost driver of globalisation that has shaped world economy. It has
created a platform through which business can grow and develop (Drivers of globalisation.
2005). For many organisation innovations in technology has attracted them to enter in new
market. alongside this, internet has become a major source for rapid growth. they are able to
share and communicate quickly (Hult & et.al., 2018). In similar way, UK is a developed nation.
There are high and advance IT infrastructure available. So, Nike can operate there and generate
more revenues.
Political – With globalisation countries trade with each other. this has resulted in creating strong
political relation with one another. moreover, many international agencies like WTO and GATT
have developed some trade and tariff policies. This has made it easy for business to import
export goods and services. UK is having strong political relations with other nations. This can be
useful for Nike. they can trade with UK and further in EU countries.
Market – this is another driver that allows companies to grow all around the world.
Globalisation has provided them vast number of opportunities to expand customer base and earn
more profits. through this, customers have also got option to choose from variety of products
(Sun, Paswan & Tieslau, 2016). furthermore, businesses are able to create network channels to
deliver goods and services. Nike can be benefited as well. UK market is having high growth in
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the future. Also, there are very few competitors in market. thus, Nike can enter in it and capture
large market share.
Cost – cost also plays a major role in globalisation. This is because in many nations cost differs
as per market situation. Business can expand in country in which huge profits can be earned.
This is done by trading in foreign exchange. The business gets paid high amount in return to their
products or services offered. This has allowed customer to purchase high quality goods at low
cost by comparing it with other companies.
2) Critically analyse the nature of the global environment including customer trends, social and
cultural conventions affecting the international marketing decision
In global business environment there are many changes that occurs frequently. The
changes can be due to fluctuation in economy, market trends, customer needs, etc. (Morschett,
Schramm-Klein, & Zentes, 2015). also, it is difficult to analyse nature of global business due to
its complexity. this affects in developing strategies and taking decisions. furthermore, it is
discussed below about trends :-
Customer trends – It is related to taste and preference of customers. the needs of people change
constantly. They require new products after a particular time period. Also, developing new
products always attracts customer to buy them. any change in customer trend impacts on growth
of company. they have to make modification or develop products to satisfy their needs. this
highly influences in taking decision for expansion. The products are developed as per needs of
people. but if change in needs occur at large level it can impact overall business environment.
Social and cultural conventions – Business faces cultural and social issues when they enter in
new market. they have to provide products and services as per social needs of people. in many
countries there are certain social barriers that restricts company to enter in it. these barriers can
not be overcome. For instance- McDonald’s is not allowed to provide Ham and beef burgers in
India. This is due to cultural conventions. In similar way this can change overall global business.
in addition many other business in fast food has to change their decision of entering in India.
Due to change in nature of international business it effects on decision making. This
restricts organisation to expand in particular country.
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3) Identify and justify one specific target market within the UK that the NIKE should target
In order to enter in new market, it is necessary for company to develop strategy. this
gives them a blueprint on how business will be expanded in step by step manner. Moreover,
there are many other elements described in it such as target market, price, marketing strategies,
etc. it is essential for organisation to select an appropriate target market. this is done by doing
segmenting market on basis of age, gender, etc. and then choosing best one (Skarmeas & et.al.,.
2018, July). Nike should also specify their target market in UK. It will help them to make an
initial start. Another thing that will benefit company is they will be able to create awareness
about products and services. through this, they can identify change in market trends and taste and
preference of customers.
In UK there are many clubs that play football. So, Nike should target people who are
football freaks. It may include youngsters, players, street county, etc. They should start providing
all football equipment’s to them at low cost. the equipment’s consists of shoes, jersey, socks,
inner ware, etc. in UK there is large number of people who plays football. Thus, Nike can easily
target them. furthermore, they can sponsor logo for clubs. Apart from this, company can enter in
contract with club and provide their products.
It can be stated that this target market is useful for Nike because it will benefit in
generating high revenue and sales. Through this, automatically awareness can be generated.
Moreover, there will be high sales of company produce.
4) Identify and justify the one type of global International Strategy method that NIKE should
use to grow in global markets
A business requires effective global strategy to expand in different country. A strategy is
a framework which shows how goals and objectives will be achieved (Jean & et.al.,. 2016).
There is huge difference between domestic and global strategy (Types of international strategies,
2018). A global strategy is categorised into broader area. It also contains an integrated approach
to diversify business. there are several types of international strategies which can be
implemented by Nike. these are as follows :
Multidomestic strategy – it is a strategy in which a business focuses on regional country
requirements and needs. This means that rather than providing all variety of products and
services, it only offers those products that are available in local market. this type of strategy is
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normally followed by many retail companies. it is useful in seeking locally to cope with needs of
people.
Global strategy- it is opposite of multidomestic one as in this organisation focuses on
international trade. They provide similar types of goods and services to all over the world. But
with some minor changes in its features they offer products in different countries. it focuses on
gaining economies of scale (Samiee, Chabowski, & Hult, 2015). This results in creating similar
brand image overall. For example – Microsoft, Apple and other big firms follow global strategy.
Transactional strategy - in this strategy business maintains balance between global and
multidomestic one. They adjust with local needs in some particular countries. usually, fast food
companies follow this as they have to integrate with local markets. for instance – McDonald’s
offer wine in France as it is their diet element while in other countries, they do not provide it.
Nike should follow global strategy to expand in UK. This is because it will provide them
a framework through which products can be sold. Moreover, company is having a reputed brand
image in market. so, it will give advantage to them. besides this, Nike is already providing goods
under brand name in many other countries. also, Nike is well known for its high quality sports
wear. This gives them extra advantage to attract people. other than this, in UK they are only few
competitors that exists in sportswear sector.
5) Critically evaluate which one International Market Entry strategy is more appropriate for
NIKE to enter and grow in the UK market.
After selecting the appropriate international strategy, Nike should determine how they
will enter in UK (Mathews, & et.al., 2016) . This is because there is high impact while selecting
appropriate market entry strategy because each strategy has its own benefits and drawbacks.
Therefore, it becomes essential for firm to choose one. Also, there are many options available for
Nike to find out what market entry strategy will be suitable. They are explained below :-
Direct exporting – it refers to producing goods in home country and then exporting in UK. It is
best way to enter in new market. Also, it involves less risk that provide ease to company. In this
business merge with agents for distribution of goods. But on contrary they have to pay high taxes
and tariff amounts. This restricts them to opt for direct exporting. There are many other reasons
due to which organization does not choose this strategy.
Licensing – as name depicts a company provides license to firm to sell their products in other
country. it is an agreement in which third part can not use patent or produce similar type of
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goods. Moreover, the risk is high as company have to share their proprietary rights with an
outsider. Generally, it is followed by those who do not prefer to expand globally.
Franchising – this is the best strategy to enter in new market (Amankwah-Amoah, Boso &
Debrah, 2018). This benefits as company is based on specific model. For example, Starbucks,
KFC, etc. are such companies that have applied this strategy.
Nike should use franchising strategy to enter in UK. This is because they are reputed
brand having stores in different countries. also, it is based on business model to provide sport
wear to athletes as well as people.
CONCLUSION
This assignment concludes that Nike is able to operate in different countries. they are
providing variety of products and services to people. The drivers of globalization are
technological, political, cost, etc. Nike target market in people who are football freaks and clubs
that plays state games. This will enable them to provide goods and build a customer base. There
are three types of global strategies such as, multidomestic, global and transactional strategy. Nike
can implement global strategy to enter in UK. it will be beneficial for them to offer similar type
of goods to people. there are several international market entry strategies like Direct exporting,
Licensing, Franchising , etc. Nike should select franchising one that will help to diversify in UK.
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REFERENCES
Books and journals
Amankwah-Amoah, J., Boso, N., & Debrah, Y. A. (2018). Africa rising in an emerging
world: an international marketing perspective. International Marketing Review, 35(4), 550-559.
Hult, G. T. M. & et.al., (2018). Addressing endogeneity in international marketing
applications of partial least squares structural equation modeling. Journal of International
Marketing, 26(3), 1-21.
Jean, R. J. B. & et.al.,. (2016). Assessing endogeneity issues in international marketing
research. International Marketing Review, 33(3), 483-512.
Mathews, S. & et.al., (2016). Internet marketing capabilities and international market
growth. International Business Review, 25(4), 820-830.
Morschett, D., Schramm-Klein, H., & Zentes, J. (2015). Strategic international
management (pp. 978-3658078836). Springer.
Papadopoulos, N., & Heslop, L. A. (2014). Product-country images: Impact and role in
international marketing. Routledge.
Samiee, S., Chabowski, B. R., & Hult, G. T. M. (2015). International relationship
marketing: Intellectual foundations and avenues for further research. Journal of International
Marketing, 23(4), 1-21.
Skarmeas, D. & et.al.,. (2018, July). ON RELATIONSHIP VALUE IN
INTERNATIONAL MARKETING CHANNELS. In 2018 Global Marketing Conference at
Tokyo (pp. 1330-1330).
Sun, Q., Paswan, A. K., & Tieslau, M. (2016). Country resources, country image, and
exports: Country branding and international marketing implications. Journal of Global
Marketing, 29(4), 233-246.
Online
Drivers of globalisation. 2005. [online] Available Through : <
https://www.grin.com/document/57026>
Types of international strategies. 2018. [online] Available Through : <
https://opentextbc.ca/strategicmanagement/chapter/types-of-international-strategies/>
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