Recommendations of Nike Considered An Environmental Sustainability Initiative Case Analysis

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Recommendations of Nike Considered An Environmental Sustainability Initiative Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of numerous options, the business is suggested to consider alternative 3. As alternative 3 would enable the business to broaden in global markets without any decrease in its regional profits and any deterioration of its market position. The company might pursue alternative 1 which would allow the business to focus on potential global markets rather than the local markets however as the business is extremely reliant on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the substantial decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Nike Considered An Environmental Sustainability Initiative Case Analysis Stores

The business has a long term market position in United States which can not be generated quickly in the new markets. The option would help the company to broaden in worldwide markets along with the elimination of concerns raised in its regional markets related to its variety.

Pros:

• Expedition of new worldwide markets.
• Boost in income from international markets.
• Removal of concerns connected to diversity.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competition.
• Differences in cultures might resulted in a failure of the brand specifically in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Nike Considered An Environmental Sustainability Initiative Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could present a severe danger to the market share of company. In this circumstance the business could think about presenting Click and Recommendations of Nike Considered An Environmental Sustainability Initiative Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competitors risk
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Incomes
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Threat to the marketplace position
• Removal of brand Originality
• Elimination of the fantastic store experience.
• Threat of decrease in elite sales.

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

Another choice that the company might think about, is to expand towards the global markets without closing its domestic stores that adds to the major part of revenues of the business. The benefits and drawbacks related to Alternative 3 are offered below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Expanding customer base
• Big Profits
• Exploration of brand-new worldwide markets.
• Increase in revenue from international markets.
• Profits diversification.
• Action towards being a strong global brand name.

Cons:

• Extension of concerns associated with variety.
• Distinctions in cultures might led to a failure of the brand particularly in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to acquire market share.



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