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The management of global trade distribution for Nike Essay Example

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The management of global trade distribution for Nike

Through its fiscal reports, it is apparent that Nike Incorporation earns more revenue from international sales compared to the income obtained from sales in the United States of America. This trend can be attributed to its innovative nature, marketing strategies and its reliable distribution channels. The company has four distribution centres in America and many others located in different countries around the world. One of the biggest distribution centres is the Chinese subsidiary located in Taicang. It serves the Asian region and has also led to increased sales, as numerous retailers that have cropped up to take advantage of the cheap high quality products. Through various marketing strategies such as advertisements, the company has been able to market its products in Asia and distribute them effectively through the Taicang distribution centre (Haig, 2004:99).Nike Incorporation utilises licensees and independent distributors to avail its products to the customers. Nike Incorporation has an excess of thirty thousand licensees located in over a hundred countries. Through the retailers, the company has seen the international market surpass the American market in terms of sales. Nike Incorporation has various brand stores such as Nike Town stores, Nike stores, Cole Haan stores, Nike factory stores and web sites, which play a key role in marketing, distributing and trading the products (Nike Annual Report, 2011:7). Nike uses the differentiation strategy where it targets different customers and produces many products that attract them. It distributes its products to different market segments, therefore, providing the costumers with numerous choices. Lately, the company has been targeting football fans by producing affordable sportswear that is affiliated to the sport. The company is utilising a similar strategy to the one it implemented in the American market, where it sold shoes and apparel by affiliating them to basketball. It used a few great basketball players to endorse the brand, which led to its popularity among the people. In order to achieve this goal, Nike Incorporation has to ensure that it has great distribution channels. Fortunately, one of the company’s strength lies in its distribution channels. This means that the company can increase its sales by using this strategy, as it already has the distribution channels in place. Nike Incorporation only needs to increase them if the demand increases (Nike Annual Report,

References

Haig, M. (2004). Brand royalty: how the worlds top 100 brands thrive and survive. London: Kogan Page.

Kreng, V.B. & Wang, B.J. (2013). An innovation diffusion of successive generations by system dynamics — An empirical study of Nike Golf Company. Technological Forecasting and Social Change, vol. 80, no. 1, pp. 77-87.

Lancellotti, J. & Ruiz, P. (2013). Nike Inc (NKE). Investment Report.

Nike Annual Report (2011). Nike Inc. Oregon: Nike.

Proffesor, R. (2012) Nike: "Make Yourself". Media Planning. 1-16

Saviolo, S. & Marazza, A. (2013) Lifestyle brands: a guide to aspirational marketing. Houndmills, Basingstoke, Palgrave Macmillan.

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preview essay on The management of global trade distribution for Nike
  • Pages: 5 (1250 words)
  • Document Type: Essay
  • Subject: Marketing
  • Level: Undergraduate
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