Nike Problem Analysis

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Running head: PROCESS IMPROVEMENT RESEARCH PROJECT 1
Nike’s Global Market Strategy
Yutaro Funaki
MG-395-I01
November 28, 2017
University of North Alabama

NIKE’S GLOBAL MARKET STRATEGY
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Statement of Problem
Nike is the one of the most major shoes brand company. In the United
States, Nike shoes has been the trend item and a lot of college students love to wear Nike shoes on campus. Most of the Nike shoes is priced between
$60-$80 on the retail shop in the United States. On the other hand, even though it is made of same material, same style and same product, Nike shoes’ price is different in other countries. By the research of Nike’s global revenues and Price of one pair of shoes, Nike’s
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From the chart, the total revenue of Nike has been generally increasing from 2009 to 2017. From 2009 to 2013, Nike has succeeded to increase sales in the United State. In 2014 to 2017, the revenue of China and Western Europe has grown up. The problem in here is it shows the large difference of sales between Western Europe and Central and Eastern
Europe. The number of countries in Western Europe is less than Central and Eastern Europe. However, the revenue of Nike’s Sale shows the difficulties in market in Eastern Europe.

NIKE’S GLOBAL MARKET STRATEGY
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Moreover, we can see that the growth rate of the revenue in the
United State goes down a gentle, but the rate of China has been growing up rapidly. By checking the actual number of shoe’s price and countries average income, it is easier to figure out the solution problem of the marketing strategy. The global business is not simple because the company need to set the price with marketing strategy which is focused on end up users or distributer. It is also important to think about cost of trade from factories and employment fee.
2009
2010
2011
2012
2013
2014
2015
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Also, the setting price is too high for them. Nike need to reduce the setting price to make more revenue

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in that area but actually it is not smart idea to make a sell in that area compared the high-income countries.
Conclusion
Nike has making growth their worldwide revenue. By checking the actually number of product and its rate against monthly income in individual countries and area, it shows the reason of why Nike has been faced hard marketing in Eastern Europe. However, the revenue in China and Eastern Europe was not that different in 2009. The revenues in China has been growing lately and I strongly believe that Nike need to aim in
Chinese market in next few years to make more profit because their economy is growing with their income. Like this case, there are business chances in developing economy and market. Eastern Europe is not still strong enough to make a good revenue, but there will be a chance to make sales when their economy and average income is increased.

NIKE’S GLOBAL MARKET STRATEGY
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North America
Average income
Shoes price rate per month Canada
$78.01
$43,660.0
0
$3,638.0
0

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