Nike. Factors Affecting Nike’s Success. Business & Marketing Essay

Nike
Name
Institution
Nike
Nike started operations in 1964, even though it was formerly known as Blue Ribbon Sport. The company’s headquarters are in Oregon and was founded by Bill Bowerman. Nike is renowned for manufacturing innovative and high-quality products. It also relies on innovative technologies and materials to come up with new products. Over the year, the company has been marketed by high raking teams and sorts athletes such as Tiger Woods, Michael Jordan, and Roger Federer (Constantine, 2018). Nike relies on a geographical divisional structure so that it serves its global markets better. This means it has a global corporate leadership which consists of corporate managers who are in the company’s headquarters. For instance, the marketing group handles the company’s marketing campaigns that are released worldwide. The company also has semi-autonomous geographic decisions which are divided into segments depending on the regional market. The regional divisions include Japan, Greater China, Central, and Eastern Europe, North America, Western Europe, and emerging markets (Araujo et al. 2018). The company also has two global divisions for brand licensing and Converse. The Converse division deals with managing the Converse brand, and the brand division handles brand licensing. The company has over 19,000 retailers and operates worldwide in over 170 countries (Araujo et al. 2018). Nike is the leading manufacturer of sporting goods worldwide.
The company relies on a combination of subsidiaries, licensees, and independent distributors who sell its products. All of the products manufactured by the company are a result of its research and design efforts. This has ensured that it has a large market for its products in different sports ranging from wrestling, volleyball, tennis, hiking, and aquatic activities. Since its establishment, the company has continued to grow while diversifying its business. It purchased other brands, including Converse, Haan, Bauer, and Umbro (Araujo et al. 2018). The company created the Nile ACG brand in 1996, which focused on extreme sports like mountain biking and snowboarding. Nike is an international company that develops, manufactures, sells, markets, sporting apparel, accessories, footwear, equipment, and services. The company has also started selling sports technology such as high-altitude watches and compasses, and heart-rate monitors (Araujo et al. 2018). Even though the products are mainly designed for athletic use, they can also be used for the leisure of casual activities.
Factors Affecting Nike’s Success
The first key factor in the organization’s external environment, which will affect its success, is the economy of a country. The economy is an essential factor that influenced the demand and supply of a product, which will directly affect the company. For instance, if the economy grows, then the company will gain profits since it will have the resources to make shoes while also meeting the demands of the economy. If the economy declines, then the company might have difficulties with its supply chains and even the manufacture of the products. Another economic factor is inflation rates (Brohi et al. 2016). In cases of high inflation, Nike will have d...