GLOBAL BUSINESS MANAGEMENT

COUNTRY RISK ASSESSMENT

NEW DELHI INSTITUE OF MANAGEMENT

PGDM (2020-2022)

SUBMITTED BY: SUBMITTED TO:

MUSKAN BAWEJA PROF. JOYDEEP

AKSHITA ASWANI GHOSH

SAURAV SHARMA

ADITI SINGH

ISHAAN SHARMA

VINDHYA TIWARI

SECTION – THETA
 TABLE OF CONTENTS

S No. Topic

1 Executive Summary

2 Market Analysis

3 Target Country Profile

4 Sectoral Analysis

5 Analysis of Challenges and Benefits

6 Conclusion

7 Referencing

Executive Summary
Nike was established in the United States of America on 25 January 1964 by
Phil Knight and Bill Bowerman in Oregon. It is now an American multinational
corporation that is engaged in the design, development, manufacturing, and
worldwide marketing and sales of footwear, apparel, equipment, accessories,
and services. Phil Knight was a certified public accountant with Price
Waterhouse and Coopers & Lybrand and an Assistant Professor of Business
Administration at Portland State University. In 2018, Nike won for Best CEO
2018, Best Company Compensation and Best CEOs for Diversity where Mark
Parker served as Nike Chairman, President & CEO for 14 years. Chairman for
four years and continued to serve as Executive Chairman after he joined in
1979 as one of the first footwear designers. Nike craves to be the best
footwear company and it has a very unique way of designing and inventing
various varieties of footwear from self-lacing shoes to water filed shoes. One of
Nike's top-selling models in both women's and men's categories is the Air
VaporMax, which hit shelves in 2017. The sneaker's signature feature is the
sole which consists of a series of air-filled pods, the unique engineering paid
off. Nike's business strategy is to invest in building the brand through
emotional marketing and celebrity endorsements while developing products
that have high-quality with market-leading technology. Nike turned into a
luxury brand when no one was looking where Nike shoes in 2016 overtook
Louis Vuitton as the most valuable apparel brand in the world with Nike 'Waffle
Shoe' selling for $475,500 becoming the most expensive sneakers ever to be
auctioned.

Introduction of Company
Nike was established on 25 January 1964 in Eugene city of Oregon in the
United States of America with Phil Knight and Bill Bowerman as founders of
Nike.inc with Phil Knight as Chairman Emeritus of Nike. Mark Parker served as
Nike Chairman, President & CEO for 14 years after which John Donahoe is the
present President & CEO of Nike with Andy Campion leading in global
technology and digital transformation for consumer demand and supply
management along with manufacturing, distribution and logistics,
sustainability, workplace design and connectivity, and procurement and as the
President of Innovation for Nike, Tom Clarke leads advanced innovation for the
company, focusing on products in Nike’s core businesses of athletic footwear,
apparel and accessories.
Nike operates more than thousand retail stores throughout the entire world.
Nike operates 338 retail stores in the United States. Nike is a sportswear and
equipment supplier based in the United States that was founded in January
1964.
The US-based Nike is the world leader in athletic footwear and apparel, which
is traded as NKE on the New York Stock Exchange (NYSE), has acquired several
footwear and apparel companies over its history such as Cole Haan, Bauer
Hockey, Converse, Hurley International, Starter and Umbro, Nike employed
over 75,000 people worldwide in 2020.
The size of Nike in 2016 was $32.376B with annual gross profit of $14.971B
following the size of Nike in 2017 was $34.350B with annual gross profit of
$15.312B with size of Nike in 2018 was $36.397B with annual gross profit of
$15.956B after which size of Nike in 2019 was $39.117B with annual gross
profit of $17.474B and with this the size of Nike in 2020 was $37.403B a 4.38%
decline from 2019 with annual gross profit of $16.241B.
In North America, Nike’s largest market, the company saw strong demand with
sales up 9%, led by demand for both its shoes and its apparel.
Competitors of Nike are Adidas, Reebok, Fila, Puma, Under-Armour, Sketchers,
etc.
RECOMMENDATIONS, FINDINGS AND DISCUSSION

Recommendations for the company:

  The company can adopt alternative strategies which would include
addition of new products in various departments and increasing the level
of quality. The disadvantages of this strategy will be that it would be very
challenging and incur high costs.
 The second alternative strategy could be of increasing research and
development cost for the company and increasing the market share. The
disadvantages of this strategy could be the challenging economy and
maintaining rules and regulation.
 Develop brand fashion image.
 Expansion into emerging markets would lead to increase demand in
product innovation.
 It should broaden its product range as providing aerobics or parkour
products
 It should increase its marketing communication ways i.e. using of social
media
 It can have collaboration with Apple for incorporating technology in
terms of gamepads
 featuring soccer, Golf etc.
 It may have proper management in controlling the labor issues.
 It may include online video training sessions for athletes’ celebrities and
as to increase its product awareness to them
 Nike could have merger and acquisition with other companies to expand
its business and
 To implement its Global growth strategy of 2015 to attain sustainable,
long term growth.

Findings of the project:

 In 2012, Nike was so confident about China that it predicted sales would
double to $4 billion in four years. The company’s expectations of a
compounded revenue growth of 18% in China have proven to be wildly
over-optimistic. Sales in China fell for five straight quarters before this
slump was arrested in the Q2 FY’14, in which Nike posted a 4% growth.

 In an extraordinarily dynamic time, Nike’s strong results are testament to

our deep consumer connections, compelling product innovation and agile
teams around the world. We know it’s in times like these that strong
 brands get even stronger, CEO John Donahoe said in a statement. As we
start to see recovery in China, no one is better equipped than Nike to
navigate the current climate.

 In February, Nike had said it anticipated a “material impact” on its

operations in Greater China due to the coronavirus outbreak taking place
there early in the year. Nike closed the bulk of its locations and cut store
hours at others in China during the height of the outbreak. Most physical
locations there returned to normal operations by mid-March. Nike derived
16% of revenue from Greater China in 2019.

 While Nike’s brick and mortar retail sales were impacted by the
temporary store closures, a surge in e-commerce sales helped stem sales
declines in the region. Digital sales jumped more than 30% in Greater
China during the quarter, which the company attributed to strong
conversion as customers logged onto Nike’s digital app for at-home
workouts. But overall, revenue from China dropped 4% on a currency-
neutral basis, snapping a 22-quarter streak of double-digit percentage
growth.

Discussion of the project:

 One main issue of Nike corporation is it is leading and planning without
proper
 Management, the company is suffering from child hood labor
 It has negative media attention due to which it may lose reputation
 Has fault of poor factory conditions and environmental problems
 It has been blamed of abandoning sites
 The Nike products have become equal with slave wage, they only pay
worker with
 Minimum wage from which they can only fulfill their basic necessities,
forced overtime and subjective abuse.
 Suppliers are having overlapped and conflicting issues from diverse
customers so can be
 Issue for Nike outsourcing strategy.

MARKET ANALYSIS
Nike’s Marketing Mix

PRODUCT
Nike’s mission of bringing inspiration and innovation to everyone is the

driving motivation to do everything possible to expand human potential

(Nike, 2020). With the continuous innovation, the products are more

sustainable.

Partnering with sports’ stars thought to promote the brand (SportsRec,

2009). Since the 80s Nike marketed for the appearance of athletes as

steamrollers, rather than the underdog of old, and that had a great

impact, by which Nike became the marketer of the year 1996 (Jensen,

1996). As sports grew, Nike grew as well by expanding its activity and

productivity, from footwear to clothes and accessories, from supporting

men’s sports to women’s sports, from local marketing to global

marketing. Different campaigns and programs took place; “P.L.A.Y”,

“If you let me play”, “Nike vs Evil”, “part of cultural fabric”…etc

PRICE

When Phil Knight was talking back in 1998 about moving factories, a

question was raised as majority of Nike products were manufactured in

Asia; "Why don't you bring shoemaking back to the United States?”. He

explained that $100 to be added on the price of each pair of shoes if

factories would be brought back.

Since last decade, China is the biggest Nike’s market outside the US.

Despite the faced challenges of increased cost of labour and material,

but sales continued (China Daily, 2011) and revenue grew over the

years (Fig.1).

Nike’s market in China started in 1981, by providing affordable and

low-price products. Nike sponsored teams, clubs, and events. Sales

increased by 53% after hosting Olympics 2008 in Beijing and apparel

are manufactured in China (Form10K, 2020).

FISCAL 2019, were $6,208M increased to $6,679M as per FISCAL

2020 (Fig.2).
PLACE

All of Nike’s footwear and apparel are manufactured outside the US

through 122 and 329 factories, located in 12 and 38 countries,

respectively. 22% and 23% of the total NIKE Brand footwear and

apparel are manufactured in China (Form10K, 2020).

Marketing or distribution channels of Nike has different ways, through

338 retail stores in the US, and 758 outside the US distributed in over
 45 countries, or online via Nike Direct, which uses various digital

platforms. China has always been considered as an important sourcing

country and consumer market. Comparing between Fiscal 2019 and

2020, there was a regression in all operating geographic segments

except the Great China segment where there was 8% gain. Revenues in

FISCAL 2019, were $6,208M increased to $6,679M as per FISCAL

2020 (Fig.2).

PROMOTION

Nike’s philosophy of advertising extends to honesty, openness,

positiveness, being ethical and cool (Wieden, 1992). Nike since early

stage bonded very well with athletes. In 1990, Nike started targeting
 women in its advertisement and campaigns. The successful outcome

noted afterwards could be related to the storytelling format used in the

advertisement (Grow, 2005). Slogan like “Just Do It”, or “There Is No

Finish Line” had contributed somehow in good marketing, but it is not

all about slogans and advertisements. It is actually when Nike showed

understanding of the consumers’ need and desires, hence worked on

individualism and innovative designing to support that, by which

emotional ties were created (Willigan, 1992). Nike had applied those

philosophical concepts practically in the Chinese market. Li Yao, a

weekend player of basketball said “Nike understands why Chinese are

proud” indicating that Nike has gone far beyond the slogans.

PESTLE ANALYSIS – NIKE IN CHINA

POLITICAL

Many factors under politics can impact the marketing activity of any

company. In this section there will be a light shedding on some aspects

that could have an impact on Nike’s market in China. Data was gathered

from Global Economy website (Global Economy, 2020)

Governmental stability:
On a political stability index (-2.5 to +2.5, weak to strong);

China’s index was -0.26 in 2018, with a global rank of 119

 among 195 countries. Over the last 10 years, there is an

improvement of this index as it was -0.66 in 2010.

Employment and operational laws:

In China, the unemployment rate in 2019 was 4.32%. Rule of law

index is better than used to be, -0.2 in 2018 on a scale of (-2.5 to

+2.5). An improvement was also witnessed on the Government

Effectiveness Index, 0.48 the highest ever index in twenty years,

which reflects on the quality of civil services and its

independence from the political pressure.

Tax regulations:
Corporation tax in China is 25% since 2008. It was 33% before that.

Corruption:
Corruption Perceptions Index (100 means no corruption) of China
was 41 in 2019, indicating some administration and political
corruption. However, there is an improvement in comparison with
2014 and 2005 when the index was 36 and 32 respectively.

Country risk indicators:

China has a low political risk on both short and long term, leading

to low special transactions risk as well as currency

inconvertibility and transfer risk. However, it has relatively high

expropriation risk, by which the investor could be deprived of the

government investment without an adequate compensation.

Over the US-China relationship, US Vice President Mike Pence

 criticized Nike for what he described as a “failure to stand up to the

Chinese government to chase profit” (Sandler, 2019). This kind of

interference from politicians may have some negative impacts on the

trade. It is a pressure, but with the wisdom and vision of Nike, it went

off without suffering from any percussion.

ECONOMICAL

China is a middle-income country but the world’s second largest

economy. However, there are about 373 million Chinese people having

an income of less than $5.50 per day (World-Bank, 2020). Such people

could become vulnerable to be employed with ridiculously small wages

as little as 14 cent an hour, get abused or even their children would be

taken as labour. Nike was honest and transparent about those issues. A

big revision and changes in the company happened in 1998 as Nike

ended child labour and applied US rules abroad (Cushman, 1998),

started producing a regular document about conditions of factories

(Lutz, 2015), Furthermore, number of big corporates in Asia, Nike one

of them, produced codes of conduct not allowing or supporting

“sweatshops” and “forced labour” (Bain, 2020).

There was some concern about accuracy of China’s GDP growth rates.

However, studies showed there is no falsification of the GDP figures (Ji,

2019), (Bank of Finland, 2016). There were suggestions to rely more on

 other indicators, rather than the GDP, such as Tax Revenue. Since the

tax fraud is difficult in China, then tax revenue would be a good marker

for the growth as it should go up parallel with the claimed growth of the

GDP (Kopf, 2019).

SOCIAL/CULTURAL

Over the last 12 years, China’s Global Gender Gap Index has

deteriorated steadily, putting China in the 106th rank after being on the

57th in 2008 (Yujie, 2019). Discrimination in recruitment and reduced

women’s pay are also not uncommon in China (Dawson, 2019).

Nike had a different view; it organised campaigns to empower and

support women. In 1995, “If You Let Me Play” campaign was a turning

point for some women at that time, followed by opening “Nike

Women” stores (Warner, 2002) which became popular.

In 2015, “Better for It” Nike’s initiative came to empower women

through sport, followed by “Nike+ Training Club Tour” for five hours

of challenge, took place in 13 cities across the world, three cities from

China hosted Nike Women Race for first time (Beijing, Guangzhou and

Shanghai) (Nike, 2015). Diversity and inclusion are something that

Nike is performing better than its competitors in the industry. Following

the recent turmoil in US streets that comes after murdering George

Floyd by a white Police Officer, Nike has announced $40M will be

 spent over next four years to support the Black community and fight the

systemic racism (Kohan, 2020).

TECHNOLOGICAL/INNOVATION

Technology advancing rapidly during the 21st century and China is

aiming to be a global leader in digital technologies. Digital technology

such artificial intelligence has a promising future in different fields

including health, education business and industry. However, there could

be a huge impact on the fate of current workers as well as the future

employment’s rules and required skills. The “strategic reform agenda

for promoting productive China” had discussed 6 strategic choices that

are facing the Chinese policy makers, one of them is “Preparing for the

future impact of technological changes” (World-Bank, 2019).

Michael Martin, vice president of Nike direct products, growth and

innovation has announced that Nike is a technology company (Witte,

2019).In 2018, Nike Shanghai, “the first house of innovation” was

inaugurated in China, followed by number of innovation houses in

number of countries.

LEGAL

The improvement in the legal system in China had helped employees

asking for their rights, exactly similar to what happened in 2014 when

tens of thousands went out in a strike against Yue Yuen, a supplier to

 Nike, where employees were asking for add payment to their social

insurance and housing benefits (Flannery, 2014).

ENVIRONMENTAL

The vision of China’s President “Xi Jinping” for China to be a

superpower and a global leader in the science and innovation of

different aspects including the environmental challenges (Harris, 2018).

In 2017, China was considered as a leader in the renewable energy

investment (Pennington & Kastner, 2018). Nike has worked on research

and development of recycling programmes and invested in utilising

lower carbon materials. In 2008, Nike had introduced a line of athlete

clothes in Beijing made from 100% recycled polyester and they outlined

their strategy of “closed loop” products, that are made and designed to

be recycled (Nike, 2009).

 China’s Sportswear Market

The sportswear market in China is one of the largest and fastest-growing in the
world, and is driven by several factors, including the presence of a large
millennial population, an increase in active lifestyles and sports participation
among the population, and the popularity of sportswear as an extension of
casual wear in fashion, as epitomized by athleisure.
According to report published by Euromonitor International China’s sportswear
market grew 12% to ¥212.1 billion ($31.4 billion) in 2017, making it the
second-largest sportswear market globally after the USA and the top-three
industry players were Nike, Adidas and Anta Sports. Euromonitor also
estimates that China's market for sportswear will surpass luxury goods market
by 2020.
The report also stated that sportswear industry in China is expected to maintain
its momentum, with an average annual rate of 11% growth in the five-year
period through 2022.
Two main trends that contributed to the dynamism of the market are
1. An increasing number of consumers pursuing active lifestyles and
participating in sports.
2. The popularity of sportswear as an extension of casual wear in fashion, as
epitomized by athleisure.
Chinese people are even more enthusiastic about sports and often actively
register for sporting events like marathons. This also means a booming market
for trendy sportswear. A growing middle class, pro-sports government, and
rising health awareness have contributed to the rapidly increasing consumer
appetite for sportswear, making China the world's second-largest sportswear
market in 2017.
In the year 2019 the retail sector generated maximum revenue for the industry.
A massive chunk of the revenue in retail was generated through numerous
marathon runners who need to equip themselves with proper outfits and digital
gadgets before participating in such events.
According to Jia Wei, a Beijing-based representative of Mailman Group, a
company that manages digital presence of international brands in sports and
entertainment industries, branded sportswear along with digital devices like
smart watches and fitness trackers are some of the major pillars,
 Factors Influencing China’s Sportswear Market

INCREASED HEALTH AND WELLNESS AWARENESS AND

PHYSICAL ACTIVITY UPTAKE
Active lifestyles have become increasingly important among Chinese
consumers. Regular exercise is regarded as the main way to stay healthy by the
majority of Chinese people.
NEW TECHNOLOGY ADDING INTEREST TO SPORTSWEAR
With design, comfort and performance being important features of sports
footwear, the leading companies continued to invest in new product
development with a focus on innovation and new technology. For example, in
Nike launched its Nike Hyper adapt range in 2019 which features an adaptive
shoe lacing system, which consumers can adjust through their smart phone, and
lighting in the sole.
EXPANSION AND GROWTH OF LOCAL BRANDS
Anta (China) Co Ltd remained the leading local player in sportswear in 2019
with it seeing a further increase in its value share. By acquiring brands such
as Fila, Descente and King Kow the company is able to offer a wide range of
sportswear from performance apparel to sports-inspired apparel and outdoor
apparel, as well as a wide range of sports footwear.
BIG SPORTING EVENTS
Large sporting events raise interest in sports among the population and
encourage active participation. In China, this process is often helped by
government initiatives. For example, in preparation for the Beijing Winter
Olympics in 2022, the Chinese government has been promoting winter
sports and is looking to increase the number of ski resorts to 1,000 by 2030
from 500 currently, and to boost the number of skiers to 300 million from
about 5 million currently.
 Analysis of Challenges and benefits

Benefits:

When Nike first entered the international market through China, they
gained many benefits. This is because China is a low-priced state, so
NIKE has no engagement in the fabrication of its merchandises and all
of its production has been outsourced mainly to makers. For
illustration, Good baby Group, China ‘s top maker and retail merchant
of babe attention merchandises, has announced an online retail
partnership with the Nike Inc as portion of its attempts so that they
able to win more trade name acknowledgment.

Nike has been working with makers in China for approximately 20 old
ages. The employees and mills produce a batch of Nike ‘s highest-
performance athletic merchandises. One of the most cardinal impacts
Nike have is to make positive, systemic alteration in their planetary
supply concatenation, and for the industry as a whole. The deep trade
name and supply concatenation footmarks in China create typical
chances for Nike while it continues to assist influence and addition
from China ‘s success. The accomplishment in China is built sing the
deep connections with China ‘s Nike-branded footwear and jocks.
Harmonizing to Barney Jopson (2012) , the dress and equipment
merchandise are produced by about 700 contract makers worldwide,
and using about 800,000 employees.

China represents the largest sourcing state for Nike, with

approximately 180 contract makers using more than 210,000 workers.
China is the major sourcing market for Nike, which bring forth(foamy)
around 35 per cent of footwear and besides an of import sourcing
market for Nike dress and equipment. Besides this, the company
engages in public discourse and policy formation in China by sharing
their experiences. First is the legal protection of employees that went
into consequence in January 2008, for the purpose of beef uping legal
protection for China ‘s employees. Nike supports the regulative
environment that strengthens legal protections for employees and
promotes well-bred working conditions throughout the supply
sequence and this helps to forestall favoritism. Second is the
international trade. Since China ‘s World Trade Organization (WTO)
entry in twelvemonth 2001, Nike has worked to guarantee that trade
differences between China and its trading spouses are settled and
negotiated in a mode consistent with international norms. For
illustration, trade differences over dress and footwear and equipment
with China ‘s chief trading spouses in United States.

Harmonizing to a study by the American Chamber of Commerce, three

United States companies say their China operations are profitable
while most say their borders are higher in China than other
topographic points in the universe. Nike not only supported the
development of Chinese football, it besides concerned about the
development of child’s by establishing a series of activity called ‘I
have a dream ‘ in August 2002, a big graduated table of young person
athletes.

Since Nike established in China in the early part of 1980, it gained

several early entry timings of foreign direct investing, which includes
new markets, distribution channels, and deficiency of strong
competition. Nike foremost launched their merchandises in China and
this gave the company to monopoly in market through different
distribution channels. At that period, not much company were
supplying the same countries of concern, hence Nike did not face
much rivals. Other than this, the company besides gained advantage
related in merchandises, such as material supply, new merchandise
placement, and trade name trueness. China continues to be a very
viable resource when covering with overall trade and labor markets
around the universe. Nike now has more than 7,000 retail shops in
China and the company plans to expand their distribution to 2nd and
third-tier metropolis.

Challenges

When Nike entered China, it faced some challenges It is was really

hard for Nike to command all the quality merchandises around the
universe. Nike has involved in a serious of quality dirt’s in China.
Many merchandises had been recalled due to low quality and some
merchandises have been caused hurt to consumers in China.
Harmonizing to Ni and Hu say that Shanghai quality governments have
been found out three sample braces of Nike places do non run into the
criterions and in 2011, adult female athletics places had diluting
colloidal suspensions than required. Harmonizing to Ni and Hu,
Bureau prohibited Nike continues produces the places and
subsequently asks for callback all the places which do not fit into the
quality criterion, but the shoe still available at Zhabei mercantile
establishment of RT-Mart on October 10. However, the places were so
pulled off the shelves.

In 2011 September, Beijing had all right Nike Zoom Hyperdunk due to
false advertisement and low quality. Nike has been fined US $ 779,416
for selling gym shoes had merely one air shock absorber in each shoe
at a higher monetary value and low criterion in China compared those
selling in other states which has two air shock absorbers and has much
lower monetary values. The Nike Zoom Hyperdunk does not run into
the quality set by the authorities and therefore they need remember all
the gym shoes and offered refund. Besides that, Consumer Products
Safety Commission warning consumers stop utilizing Nike football
helmet and returned to Nike. The Helmet Chin Straps plastic cups can
interrupt and caused exposing the participant to facial or caput hurts.

It was a large concern that Nike portions declined 1.1 % in the year
2009 in China and in future the company expect the orders will down
to 6 %. Furthermore, gross earn by Nike in China is dropping due to
extra stock list, high discounting and decelerating in demand. Manager
in China does non maintain sufficient stock list record because they
unable to relay the information to order stuffs from other state. They
do non cognize what stuffs need to be imported and when in advanced
and do the production can non run in agenda. As a consequence, there
have extra stock list in Long March Factory in Guangzhou. The
employees who are responsible for look ingoing stuffs does non
cognize what are the stuffs needed to be order in following month
production agenda and they did non often coordinate the records with
the contrivers, . The contrivers order the stuff does not establish on the
consumer demand but alternatively base on thinking method, and they
barley look into what the stuffs left are in storage. As a consequence,
Nike needs to dismiss the monetary values in order to cut down the
extra stock list, ( Marcial, 2013 ) . Sale of extra stock list at
discounted monetary values could significantly impair the Nike trade
name image. Fail to analyze accuracy demand of merchandises could
impact the gross and net income earn by Nike.

There is intense competition faced by Nike, either ways be it local

trade names such as Li Ning, Anta Sports, China Dongxiang and Peak
Sports or international trade name such as Adidas from U.S., Reebok,
Asics, and New Balance. Even now, Nike is good positioned at the top
in China; nevertheless, there have multi trade names still compete
ferociously with Nike. Based on the study, Nike is known in the first
topographic point, with a 2009 market portion of 10.2 %; Li Ning at
the following slot which is 2nd topographic point for the first clip,
with 10.0 %; therefore Adidas, in 3rd topographic point, with a 9.6 %
portion. The gross revenues lead that Nike and Adidas held over
domestic rivals has vanished. From this study is demoing that the
consequences of these top three sportswear trade name are close
propinquity with each other, hence this screening that Nike still in
unsafe status although it is remained in the first place. Furthermore, in
the terminal of 2011, Li Ning had 8,255 shops while Nike had 7,500
mercantile establishments in China. As a consequence, Nike non
merely needs to confront this “strong” local rival, Li Ning, but besides
need to make the readying for confronting other rivals in China
 CONCLUSION
A Cautious, yet bright future

While Nike does face significant threats, it has acted to mitigate some of
them. Consumers want high performing products and experience, but the
sportswear market is becoming significant. Specifically, middle income
consumers care less about cutting-edge products vs prices, and high-income
consumers are looking for premium branded products.
Ultimately Nike cannot keep to one vision if it wants to appeal to these
consumers. However, it must care for its extremely valuable brand. Juggling
this reality and risk outlined above it will be difficult to maintain its historic
growth.
Also, there are still several other reasons consumers prefer going for Nike
are its price, durability, comfort level, good reputation, trendy and good
quality. The company should do marketing research to get consumers
opinion to improve their product.
In addition, company should add new features to attract more customers to
buy their products. New features can expand the scope of product and may
develop a new market.
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