Recommendations of Nike In Transition (A): The Ascendancy Of Bob Woodell Case Analysis

Home >> Hbr >> Nike In Transition (A): The Ascendancy Of Bob Woodell >> Recommendations

Recommendations of Nike In Transition (A): The Ascendancy Of Bob Woodell Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of different alternatives, the business is recommended to think about alternative 3. As alternative 3 would permit the business to broaden in worldwide markets without any decrease in its local incomes and any degeneration of its market position. The business could pursue alternative 1 which would make it possible for the company to focus on possible global markets rather than the local markets however as the company is highly reliant on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the substantial decline in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Nike In Transition (A): The Ascendancy Of Bob Woodell Case Analysis Stores

Growth towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although a good choice for increasing the global existence of the business. Nevertheless, the closing of domestic stores might highly affect the revenues of the firm as above 90% of its stores lie domestically and closing those shops would ultimately decrease the earnings of the company. Additionally, the business has a long term market position in United States which can not be produced quickly in the brand-new markets. The option would assist the company to broaden in international markets along with the removal of issues raised in its regional markets associated with its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Expedition of brand-new worldwide markets.
• Increase in earnings from global markets.
• Removal of concerns related to diversity.
• Income diversification.
• Step towards being a strong international brand.

Cons:

• Loss of substantial incomes from the local markets.
• Boost in competitors.
• Differences in cultures might resulted in a failure of the brand name specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Nike In Transition (A): The Ascendancy Of Bob Woodell Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could posture an extreme threat to the market share of company. In this situation the business could consider presenting Click and Recommendations of Nike In Transition (A): The Ascendancy Of Bob Woodell Case Solution shops. These stores with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Decreasing competition risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Removal of brand name Originality
• Elimination of the great shop experience.
• Threat of decrease in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another alternative that the company could think about, is to expand towards the global markets without closing its domestic shops that contributes to the huge part of revenues of the business. The advantages and disadvantages connected to Alternative 3 are given below;

Pros:

• Minimizing competition threat
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Expedition of brand-new international markets.
• Increase in revenue from international markets.
• Earnings diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of issues connected to diversity.
• Differences in cultures could resulted in a failure of the brand specifically in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to acquire market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.