Nike Globalization Analysis

Nike is one of many businesses that utilizes globalization to thrive in the free market. The business is not contained or restrained by any specific geographical, ethnic, religious or market areas but it covers the entire globe to sell, hire and manufacture their products. It soon becomes obvious that one of the ways in which a business such as Nike can reap benefit of its reach and size is by taking advantage in differences between various regions around the world. The story of Nike is a spectacular one and one that a lot of people have seen unfold. As a manufacturer and distributor of consumer goods, Nike is more visible, in part due to their own efforts in marketing and sales and consumers often relate to or identify with their brand and …show more content…
The founders were college athletes and as such they had inside knowledge of what the consumers desired. This technical aspect sprung the company forward but it is the idea or concept behind it that established the brand and what many consumers identify themselves with. Such slogans as “Just Do It” is a good representation of their spirit which many fledgling runners aspire for. As the company and market grew, they were no longer operating out of a warehouse but started making serious money. This is where the switch from an athlete serving athlete to money making business occurred. Naturally, after searching for cheaper and better place to manufacture their products they ended up in countries such as Vietnam, Cambodia, Pakistan, Indonesia, China and Mexico, the typical sweatshop havens of the world. In all fairness Nike is not the only business reaping benefits of the extreme gap in economic conditions of the world, but as a very public company portraying clean and aspirational images, they were subject to harsh criticism. Then of course once money is made, there is tendency for many businesses to try to hold onto it. Nike started shift their funds from one country to another in their attempt to minimize tax payments. The story of …show more content…
Arguably they may have turned into ethical and morally superior entity supported by like-minded people and may even have succeeded in selling their products at even higher prices (as if they are not expensive enough already), but none of that would have been a sure thing. In a remotely similar way it is like going vegetarian in largely meat-eating society. There are a handful of producers, distributors and retailers that cater to that market, their prices are high, their margins not necessarily attractive but they live on the ideals. That is a valid alternative for someone who is committed, but not to a business whose sole purpose for existence is to make money and as an incorporated entity from the United States that trades its share on stock exchanges, that is the most important, if not only, purpose for their existence. So unfortunately, there was no alternative after all. Most other major businesses try to somehow stay within the line and not cross so far over to the other side as Nike did, but Nike has proven that you can get away with it if you are big enough and willing to spend enough on