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Transformation Plan, Stages 1–4 Global Cultural Updates

Gabrielle A. Miliner

College of Doctoral Studies, University of Phoenix

BUS/733: Transforming the Business

Dr. Joyce Boyd

December 11, 2023

Comprehension of Your Organization

It is indisputable that Nike’s transformation strategy should be built upon their foray into untapped global markets. Increasing its presence in emerging markets, such as Asia and Africa, would significantly benefit the renowned Nike corporation. A growing population of active individuals with higher disposable incomes interested in sports and fitness makes this a lucrative market for Nike.

Nike should employ a strategic combination of joint ventures, franchising, and e-commerce platforms to penetrate these markets. Nike can achieve rapid expansion with minimal direct investment risk by utilizing franchising. This facilitates using the market knowledge and pre-existing relationships of regional collaborators. On the contrary, joint ventures deliver a more cooperative methodology. As Nike collaborates more with regional enterprises, it gains a deeper understanding of local consumers’ preferences, routines, and optimal methods. The collaborative model described by Jin (2021) facilitates the navigation of local regulatory landscapes and cultural nuances.

Nike effectively expands its customer base despite maintaining a minimal physical footprint by leveraging e-commerce platforms, which provide a low-barrier-to-entry approach. This strategy demonstrates its efficacy in areas experiencing a rapid expansion of internet access and a surge in the popularity of online purchasing. Before undertaking more substantial investments, Nike may employ this approach to assess the market.

To respond and adapt effectively to the dynamics of local markets, Nike’s expansion strategy necessitates modifications to its organizational structure. A significant change might involve relocating decision-making authority to regional offices. This modification would enable regional teams to make more informed and expeditious decisions by leveraging their distinct understanding of the local market, customer preferences, and cultural intricacies (Alsharari & Aljohani, 2023).

Nike can further tailor its products and marketing campaigns to the interests and preferences of various regions by establishing localized product development and marketing teams. Through such collaboration, the brand can expand its consumer base globally by offering products that resonate with individuals’ distinct values and lifestyles. To enhance the reception and reception of Nike’s worldwide brand message by local audiences, the company may customize its marketing approaches to align with regional cultures and consumer inclinations.

Organizational Preparation for Change

Nike must adopt a strategic and proactive position to navigate the political risks associated with its worldwide expansion effectively. Difficulties and dangers related to politics are unique to each global market. This may encompass a wide range of factors, such as changes in trade regulations, currency fluctuations, political climate shifts, or new trade restrictions. BeforeBefore venturing into or conducting business in any particular market, Nike must conduct exhaustive analyses and continuous monitoring of the political climates to navigate this complexity successfully. To accomplish this, it is imperative to possess knowledge of the current and forthcoming political environments and any potential transformations that might impact the organization’s functioning (Meyer, 2022).

Political dangers

Solid relationships with local administrations and community members are the most effective means of mitigating the effects of political risks. Nike can gain valuable insights into the policy, regulations, and politics trajectory by engaging in dialogue with influential individuals and other local stakeholders. Establishing a positive relationship with governmental entities can facilitate the resolution of regulatory issues and bureaucratic procedures more quickly and easily, enabling businesses to operate more efficiently. Furthermore, active participation in local communities facilitates the development of a favorable brand reputation and comprehension of social and cultural subtleties, both critical for market acceptance and achievement.

Strategic Consortiums

Nike emphasizes establishing strategic alliances with local businesses and international counterparts as a vital element of its global strategy. The knowledge of the market acquired via these alliances can assist Nike in making more informed business judgments. Influential information regarding regional marketing strategies, consumer preferences, and industry competition can be obtained from local partners. In addition to providing insights into the regional regulatory environment, they can counsel on the local business climate (Ramaswamy et al., 2008; Sudirjo, 2023).

To effectively address the preferences and demands of regional sports communities, Nike must prioritize collaborative endeavors, particularly in product innovation. How consumers perceive and experience sports differs considerably between regions. Nike is capable of developing products customized to meet each region’s specific requirements through collaborations with local organizations. Utilizing local craftsmanship and materials, adapting product designs to regional preferences, or developing merchandise for sports that are prevalent in particular regions are all methods of accomplishing this.

Analyses of Environment

As a multinational corporation, Nike stands to gain significantly from the cautionary counsels presented by Doh, Luthans, and Gaur concerning the perils associated with worldwide change. As the organization navigates the complexities of going global, it is vital to implement a strategy that reduces the probability of unfavorable endings. Increasing the diversity of Nike’s market is one strategy that has been proven effective. Nike can enhance its overall performance by expanding its market reach beyond a limited number of sectors. Diversification is the best action if one wishes to reduce exposure to market saturation, political unrest, and economic fluctuations. Two such instances are a stable operation in one region compensating for a political crisis in another or an expansion in emergent markets recouping a recession in a critical need.

Additionally, assessing and modifying strategies frequently in response to market feedback and global trends is critical. Shifts in industry standards, consumer preferences, and market dynamics distinguish the dynamic global market. Nike must execute strategy evaluations with agility and responsiveness to real-time market data and feedback. The company can maintain its competitiveness and relevance by adjusting its strategies in response to evolving consumer preferences, market demands, and technological advancements (Werther & Chandler 2005; Sudirjo 2023).

Nike’s global success is concurrently predicated on the corporation’s capacity to identify and adapt to regional cultural conventions and inclinations. Each market possesses a unique consumer culture, set of values, and set of beliefs. Nike’s potential to establish connections with these diverse cultural subtleties holds significant market share and popularity potential. Adhering to local values while conducting community-oriented initiatives is one method of reaching this objective. A second approach is to adapt products to regional preferences. Another is to make modifications to marketing campaigns. Nike can enhance its global standing and foster stronger connections with consumers across the globe by demonstrating cultural sensitivity and effectively addressing their demands.

To effectively confront the obstacles posed by global transformation, Nike must prioritize market diversification, remain vigilant regarding cultural trends and norms, and promptly adjust to emerging opportunities.

Aspects of a Global Nature in the Transformation Strategy

Nike’s transformation plan should encompass not only the distinct phases but also global concerns, including but not limited to regulatory compliance across markets, organizational cultural diversity management, and global supply chain challenges. Ethical sourcing and sustainable practices are gaining importance among consumers worldwide. Additionally crucial is implementing digital technologies for market research and consumer engagement. By employing these technologies, Nike will enhance its ability to customize its strategies to consumers’ preferences and demands in various geographical areas.

Nike’s current transformation strategy must ultimately be adaptable, responsive, and capable of addressing the unique opportunities and threats associated with international markets. The principal aims of the system ought to be to enhance market penetration and acquire knowledge of and adjust to the distinctive risks and challenges of untapped markets.

Reference

Alsharari, N. M., & Aljohani, M. S. (2023). The benchmarking implementation and management control process as influenced by interplay of environmental and cultural factors: institutional and contingency perspectives. 
Benchmarking: An International Journal.

Jin, W. (2022, January). Nike’s Relation with Non-government-organizations. In 
2021 International Conference on Public Art and Human Development (ICPAHD 2021) (pp. 1132-1135). Atlantis Press.

Meyer, K. E., & Li, C. (2022). The MNE and its subsidiaries at times of global disruptions: An international relations perspective. 
Global Strategy Journal, 
12(3), 555-577.

Ramaswamy, V. (2008). Co‐creating value through customers’ experiences: the Nike case. Strategy & leadership, 36(5), 9-14.

Sudirjo, Frans. “Marketing Strategy in Improving Product Competitiveness in the Global Market.” 
Journal of Contemporary Administration and Management (ADMAN) 1, no. 2 (2023): 63-69.

Werther Jr, W. B., & Chandler, D. (2005). Strategic corporate social responsibility as global brand insurance. Business Horizons, 48(4), 317-324.