Recommendations of Nike In Transition (B): Phil Knight Returns Case Solution

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Recommendations of Nike In Transition (B): Phil Knight Returns Case Study Solution

On the basis of above internal and external analysis of the company in addition to the examination of various options, the company is advised to think about alternative 3. As alternative 3 would permit the company to broaden in global markets without any reduction in its regional revenues and any wear and tear of its market position. By thinking about Alternative 3, the company might keep its store experience and brand name uniqueness. It could also think about alternative 2 that could enable the company to access the markets without any prospective investment. The company could pursue alternative 1 which would enable the business to focus on possible global markets rather than the local markets but as the company is extremely reliant on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the significant decline in business's profits. Therefore, the business is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Nike In Transition (B): Phil Knight Returns Case Help Stores

Expansion towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although a good alternative for increasing the international existence of the company. However, the closing of domestic stores might highly affect the profits of the firm as above 90% of its shops lie locally and closing those stores would eventually lower the earnings of the firm. The company has a long term market position in US which can not be produced soon in the new markets. The alternative would help the business to broaden in global markets along with the elimination of concerns raised in its local markets related to its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of brand-new worldwide markets.
• Increase in earnings from worldwide markets.
• Elimination of problems related to variety.
• Revenue diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive earnings from the regional markets.
• Boost in competition.
• Distinctions in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Nike In Transition (B): Phil Knight Returns Case Analysis Stores

Alternative 2 consists of the introduction of online market places through creating an appropriate company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might position a serious risk to the market share of company. The rivals are shifting towards click and Recommendations of Nike In Transition (B): Phil Knight Returns Case Help shops with Gap introducing Piperline. This shift towards online markets could minimize the revenues for company. In this situation the company could consider presenting Click and Recommendations of Nike In Transition (B): Phil Knight Returns Case Help shops. These stores with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic shops. The advantages and disadvantages of option 2 are provided as follows;

Pros:

• Low investment
• Minimizing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Profits
• Low Operating Expense
• Easy new market entrance

Cons:

• Threat to the marketplace position
• Elimination of brand Individuality
• Elimination of the excellent shop experience.
• Threat of decrease in elite sales.

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

Another alternative that the business might consider, is to broaden towards the global markets without closing its domestic shops that contributes to the huge part of revenues of the business. The benefits and drawbacks associated with Alternative 3 are given below;

Pros:

• Reducing competition threat
• Access to the world markets
• Expanding consumer base
• Big Profits
• Exploration of new global markets.
• Boost in revenue from international markets.
• Revenue diversity.
• Step towards being a strong global brand.

Cons:

• Continuation of concerns related to variety.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.



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