Nike Case Study

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Register to read the introduction… India is second most populated country in the world. Recently India has been quoted as the most rapidly grown country in the last couple of years, this means business opportunities have increased. In contrast the UK has a significantly smaller population than India. India’s GDP growth rate has averaged out at 9.4% per year and it take 7 years to double that. In recent years, Indian businesses have become much more efficient and India has become the 4th largest Asian economy: meaning that if Nike wanted to expand into India it would face a lot of competition from other businesses with similar products. Nike’s most popular products are football gear, such as boots, trainers, shin pads. In India they don’t have a huge supply of sports products so this could be a challenge as locals could refuse to buy products from Nike. India’s media industry is great because there cable TV market has more than 60 million subscribers about the size of the UK population: this is an advantage to Nike because they could advertise its company and products on Indian TV. The number of people registered with online internet services in India is greater than 38 million. This gives Nike a huge opportunity to also advertise and sell its products online.
If expanding a business into operating in India, one is provided with a lot of opportunities but there are also a number of issues and challenges a business might have to face, some which
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By contrast, inflation in India has reached 6.5%. India is likely to raise interest rates in order to limit consumer spending: which would be a challenge for Nike as people will be spending less and saving more, they would buy only daily need; therefore Nike wouldn’t make enough sales to cover their costs such as; production and import costs making Nike increase their prices.
Import taxes- high important taxes are a barrier to some businesses, especially those such as: Nike as they have to import most of their products, costing them a lot of money and not being reasonable for Nike to expand in India. Although import rates in India are high, Nike could negotiate with India on exchanging goods between two countries for a lower import tax rate.
Lack of appropriate skill- it is much cheaper for foreign organisations to use local labour although it might not be as effective if workers lack appropriate skills. Nike has to consider this aspect before starting tom operate in India because if there is a lack of skills in the country it would affect Nike’s sales and profit as good employee performance and the right skills for a specific test are essential in a business such as

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