nike china case study

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Nike in China: A tale of community engagement and women’s empowerment

• November 14, 2023
• Athleisure in China , China's sportswear market , foreign brand in China , nike

Nike first entered the Chinese market  in 1981 , and its growth was characterized by a unique approach. Instead of directly introducing its products, Nike in China opted to support sports clubs and athletic events. A pivotal moment occurred during the 2008 Beijing Olympics when Nike proactively sponsored multiple sports teams, effectively extending its brand presence across the entire country.

Michael Martin, VP of Nike China ,  explained that due to the country’s technological advancement paired with people’s willingness to connect with products via digital applications, Nike set the priority to keep up and utilize upcoming tech opportunities. The brand also focuses on Chinese e-commerce taking advantage of the high penetration of online shopping platforms.

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Nike’s historical presence in China

Since brand’s establishment and over the years, China has been a significant growth driver for the US sportswear brand. In 2022, the total revenue of Nike China reached USD 7.2 billion , with USD 5.4 billion coming from footwear and USD 1.6 billion from apparel. Nike’s worldwide revenue in 2022 was USD 46.7 billion meaning China accounted for 15.5% of Nike’s total revenue.  

Guochao brands are giving Nike a run for its money

In recent years, there has been a noticeable shift in consumer preferences, within the Chinese sports market, with domestic sports brands like Li Ning and Anta gaining popularity due to avant-garde designs and reasonable pricing. This shift can be attributed to several key factors, includingthe Xinjiang cotton scandal and the rise of Guochao (国潮, “National tide”). Young people start favoring cultural heritage, social values, and domestic products. The era of relying solely on international brand names and celebrity endorsements, exemplified by figures like Kobe Bryant and Messi, to capture the Chinese market is showing signs of decline. Instead, brands must focus on crafting compelling narratives that resonate with consumers and invest in understanding their preference for products with a distinctly “Chinese feel.”

This transformation in consumer behavior holds significant implications for Nike’s strategy in China, and it underscores the importance of aligning with these evolving preferences and cultural dynamics to maintain and expand its market presence in the country.

Nike’s journey to 50% digital sales in China

As a response to modernization, Nike has developed new  digital marketing strategies to continue engaging digitally active Chinese audience. The brand integrates retail stores, digital platforms, and offline activities to establish a comprehensive omnichannel experience and foster the community. This approach aims to build a brand ecosystem in China, encompassing consumer insights, product innovation, customer experiences, and value creation.

Nike’s sales growth in China can be predominantly attributed to its digital strategy. In 2012, Nike started its online journey in China by opening its first flagship store on  Tmall , one of China’s largest  e-commerce shopping platforms . Then, the digitalization continued with the launches of Nike’s official website store, the SNKRS app, and its WeChat Store. In November 2019, the sports brand developed a one-stop shop delivering exclusive content, events, and personalized services. By 2022 digital sales comprise over  42% of Nike’s sales and the brand believes it is well on track to earn more than 50% of its business from digital sales in the nearest future.

Nike’s D2C evolution: Cutting retailers, boosting revenue, and enhancing brand control

Nike has been establishing a Direct-to-Consumer (or D2C) retail framework covering online and offline stores, and a digital supply chain since 2012. The brand is always placing a heavy emphasis on D2C channels through Nike.com, brand-owned Apps, the Nike WeChat store, and its own retail stores.

In China, D2C’s revenue share increased from 23% in 2014 to 40% in 2019, while Nike’s wholesale business declined from 81% in 2013 to 61% in 2021 . Nike also streamlined its wholesale partnerships, reducing the number of retailers from around 30,000 in 2013 to just 40 strategic partners by 2019. Additionally, Nike China decreased its reliance on department stores, focusing more on its own channels, which proved beneficial during the pandemic.

This shift toward Nike’s own channels not only reflects their increased emphasis on D2C business but also their commitment to providing “a consistent, connected, and modern shopping experience”.

Navigating from third-party platforms to brand-owned success

Alongside its official Nike China website, Nike utilizes its WeChat mini-program and the Nike App. These platforms serve as owned media channels through which Nike offers a broad range of products and services, establishing more personal connections with Chinese consumers.Since the launch of the Nike China App in 2019, Nike has been directing traffic from its website, WeChat program, and Nike.com to the brand-owned app. This app offers the most personalized access to products, exclusive content like coaching tips, and personalized services.

By gradually shifting sales to brand-owned channels, such as the Nike App and Nike.com, Nike in China has experienced increased profits and a more loyal customer base compared to third-party e-commerce platforms. The sports brand initially leveraged well-known platforms for Chinese consumers but is now actively transitioning them to its own channels.

Cooperation with e-commerce platforms

Despite brand’s prime focus on D2C channels, collaborations with e-commerce paltforms like Tmall continue to play a significant role in navigating the Chinese market successfully. Currently, Nike maintains its position as the leading apparel seller in the e-commerce sector. These partnerships have not only boosted sales but have also led to a substantial increase in new members.For instance, on Single’s Day in 2019 , Nike’s membership program, Nike+, gained an impressive 3 million new members.

Furthermore, Nike’s collaboration with Tmall extends to data-driven marketing projects. By leveraging a variation of e-commerce platforms, Nike in China can access extensive consumer behavior and industry trend data, enhancing its understanding of Chinese consumers and refining its products and services.

New retail strategy of Nike: Starting from Nike 001

Opened in October 2018, Nike’s first global flagship store (Nike 001) brings digital-driven sports retail innovation and personalized services to the Chinese market. It is a cornerstone of Nike’s new retail and digital strategy in China , aiming to integrate digital and physical retail.

Nike 001 features “ new retail ” through digitalization, personalization, and online-and-offline integration, offering mobile checkout and exclusive experiences for Nike+ members. This store signifies Nike’s leadership in transforming sports retail in China. Through advanced or in-store booking, the Nike Expert Studio of the Nike 001 gives Nike+ members unrivaled access to try on exclusive and personalized products in one-on-one sports expert sessions. Also, members can access customized products, get private services through online reservations, and learn about the latest products and exclusive members’ benefits. Starting from Shanghai 001, Nike is leading the transformation of sports retail in China.

Nike shuts down NIKE Run Club (NRC) app in China in 2022

While Nike has previously achieved success in fostering a vibrant community with its social-enabled apps and community events, the brand has deactivated its Run Club app in China as of July 8, 2022. This move affected over 8 million users who collectively covered 600 million kilometers. While the specific reason wasn’t stated, it is likely due to increased compliance requirements from the Chinese government aimed at safeguarding personal information and data privacy .

Nike does not plan to abandon its runners and wants to launch a localized platform , emphasizing regional consumer needs and continuing to invest in its digital platforms.

Nevertheless, these new curbs on collecting and exporting personal data in China will make the collection of consumer data much more difficult in the Chinese market, forcing both domestic and foreign companies to revisit their data collection methodologies. While the Chinese market remains appealing, the end of the era of easy consumer data collection will make business decisions more difficult for Nike China.

Nike’s community – the gateway to members’ loyalty

Nike’s brand community in China allows two-way interactions, drawing regular customers closer to the brand, as well as offering Nike an understanding of customer behaviors and needs.

Nike has harnessed the community’s insights and preferences through various offline activities. These include annual sports events like the China High School Basketball League and regular gatherings through community clubs. For instance, Nike’s “Just Do It Sunday!” running campaigns, held in multiple cities, infuse elements like books, music, and charity to enhance the events’ appeal and significance. Additionally, the lifestyle community also revolves around the  Nike+  platform.

While building the offline presence, Nike in China actively fosters customer engagement within its online brand community, where fans share workout photos, goals, struggles, and achievements using Nike templates and hashtags. These community members also serve as brand ambassadors, particularly on platforms like Weibo , using hashtags like #NikeTraining or #Nike+训练营. Through social media, user-generated brand stories showcase customer loyalty and the brand’s popularity, influencing prospective customers. This approach has enabled Nike to effectively connect with million users on Chinese social media, nurturing long-lasting relationships between the Chinese customers and the brand. 

As a result, by incorporating the offline and online community events with their engaging themes, the brand can establish emotional resonance with its members to build brand equity with Nike’s Chinese customer base.

Female customers as the new brand’s target

There is a vivd growth in women’s running around the world, but especially in China where the female Nike+ runner market is growing faster pace than the male runner market. Thus, Nike has emphasized the female consumer market by launching various community campaigns and providing tailored services targeting women.

By activating the Nike Training Club (NTC), the brand provides all-level female runners with comprehensive running programming and elite coaching. Additionally, Nike launched the Nike Women WeChat account.

Through its wide digital platform base (integrating NRC, NTC, Nike App, Nike, and Nike Women WeChat account), Nike China is able to realize its woman-based marketing strategy and build a more cohesive female fitness community.

Nike’s marketing strategy fuels women’s empowerment

In addition, Nike launched its global “Better for It” campaign meant to spark women’s interest in sports. In China, the campaign was localized under the tagline “Just for better (只为更赞)”. Nike leveraged female influencers, such as actress Wang Luodan, to relate to consumers’ frustrations with everyday exercise and their love-hate relationship with working out. Influencers on WeChat and Weibo helped Nike connect with the target audience by sharing their training stories and inspiring women to be “Better for It.”

Nike China opens women’s only store

In 2014, Nike launched its second women’s-only store in Shanghai, offering specialized services, weekly programs, and tailored events to inspire active women. The store features a digital community area with updated calendars for NRC, NTC classes, and store events, as well as profiles of Nike coaches, product information, and campaign updates.

What brands should know about the new Nike’s China strategy

• Nike has successfully grown in the Chinese market through strategic measures such as supporting sports clubs and athletic events, particularly during the 2008 Beijing Olympics.
• The brand focuses on digital applications and e-commerce to connect with tech-savvy Chinese consumers, with over 42% of its sales coming from digital channels.
• Nike has adopted a Direct-to-Consumer (D2C) retail framework, emphasizing its brand-owned channels, online stores, and a digital supply chain to enhance customer experiences.
• The brand has collaborated with e-commerce platforms like Tmall and opened flagship stores to integrate digital and physical retail, offering personalized services and mobile checkout.
• Nike actively engages with its brand community through offline and online events, particularly targeting female consumers and fueling the empowerment of women in sports.

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Nike in china description.

Nike is reviewing its strategy for producing shoes in China for the U.S. market. Compares the experience in China with that in other countries.

Case Description Nike in China

Strategic managment tools used in case study analysis of nike in china, step 1. problem identification in nike in china case study, step 2. external environment analysis - pestel / pest / step analysis of nike in china case study, step 3. industry specific / porter five forces analysis of nike in china case study, step 4. evaluating alternatives / swot analysis of nike in china case study, step 5. porter value chain analysis / vrio / vrin analysis nike in china case study, step 6. recommendations nike in china case study, step 7. basis of recommendations for nike in china case study, quality & on time delivery.

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Case Analysis of Nike in China

Nike in China is a Harvard Business (HBR) Case Study on Leadership & Managing People , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Nike in China is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Nike in China case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Nike in China will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Nike in China case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Leadership & Managing People, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Nike in China, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Nike in China case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Leadership & Managing People Solutions

In the Texas Business School, Nike in China case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Nike in China

Step 1 – Problem Identification of Nike in China - Harvard Business School Case Study

The first step to solve HBR Nike in China case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Nike China is facing right now. Even though the problem statement is essentially – “Leadership & Managing People” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Nike China, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Nike in China. The external environment analysis of Nike in China will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Nike in China case study. PESTEL analysis of " Nike in China" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Nike in China macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Nike in China

To do comprehensive PESTEL analysis of case study – Nike in China , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Nike in China

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Nike in China ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Nike China is operating, firms are required to store customer data within the premises of the country. Nike China needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Nike in China has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Nike China in case study Nike in China" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Nike China in case study “ Nike in China ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Nike China in case study “ Nike in China ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Nike in China ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Nike China can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Nike in China case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Nike China needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Nike in China

Social factors that impact nike in china, technological factors that impact nike in china, environmental factors that impact nike in china, legal factors that impact nike in china, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: nike in china case study solution.

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NIKE in China (Abridged)

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Decoding Nike’s Global Strategy: A Guide to Market Dominance

• January 16, 2024

Table of Contents

Introduction: decoding nike’s global strategy for market dominance, 1. nike’s international pricing strategy, 2. nike’s global market segmentation and targeting, 3. nike’s global marketing and distribution channels, 4. nike’s global manufacturing and outsourcing strategy, 5. nike’s global human resource management approach, 6. nike’s global social responsibility and sustainability commitments, 7. nike’s global strategy in action: a case study of china, achieving global success with adaptability, cultural sensitivity, and ethical practices, accelingo: your culturally sensitive ally in nike’s footsteps.

Nike, a name synonymous with athletic excellence, has firmly established itself as a global sportswear and apparel giant, boasting a rich history of innovation and success. With a revenue of over $51 billion in 2023, as reported by Statista , Nike’s dominance in the global market is undeniable . This remarkable achievement can be attributed to a combination of strategic approaches, including a well-crafted global pricing strategy, targeted market segmentation, effective marketing and distribution channels, and a commitment to ethical practices.

Nike’s global pricing strategy is a cornerstone of its success. The company employs a premium pricing strategy, positioning its products as high-quality, exclusive items (Hill & McKaig, 2015). This strategy is supported by Nike’s strong brand image, built on years of innovation and association with top athletes (Mahdi et al., 2015).

To cater to a wider audience, Nike employs value-added services, limited edition releases, and tiered pricing (Taylor, 2012). Value-added services such as customization options and personalized shopping experiences further enhance the customer experience and justify the premium pricing (Wang et al., 2016).

Nike’s global market segmentation is another key factor in its success. The company targets major sports markets like North America, China, and Western Europe (Arora & Aggarwal, 2012). This approach allows Nike to tailor its products, marketing campaigns, and distribution channels to the specific needs and preferences of consumers in each market, resulting in a more effective and personalized customer experience (Lund-Thomsen & Coe, 2015).

Nike’s global marketing and distribution channels are extensive and diverse. The company maintains a network of retail stores worldwide, emphasizing its direct-to-consumer approach (Soni, 2014). Additionally, Nike partners with wholesalers and distributors to reach a broader market (Arora & Aggarwal, 2012). The company’s use of digital marketing platforms, such as Nike.com and social media, further expands its reach and engages with consumers on a global scale (Samuels, 2014).

Nike’s commitment to ethical practices is evident in its global manufacturing and outsourcing strategy. The company carefully selects manufacturing locations based on factors such as labor costs, raw material availability, and government policies (Murphy & Mathew, 2012). Nike also maintains a code of conduct for suppliers and factories to ensure fair working conditions and ethical treatment of workers (Kell, 2016).

Nike’s success in the global market is deeply rooted in its well-defined pricing strategy, which effectively balances premium pricing with a touch of versatility to cater to a broad spectrum of consumers. The company’s pricing strategy is characterized by its emphasis on quality, exclusivity, and brand equity , while also incorporating value-added services, limited edition releases, and tiered pricing to attract a wider audience.

Premium Pricing: A Pillar of Brand Image

Nike has established itself as a premium brand, synonymous with innovation, performance, and athletic excellence. This positioning is reflected in its pricing strategy, which consistently places its products at a higher price point compared to competitors . This premium pricing strategy is driven by the company’s strong brand equity, built over decades of delivering high-quality products and associating itself with iconic athletes (Hill & McKaig, 2015).

Cultivating Exclusivity through Limited Edition Releases

To further reinforce its premium positioning and appeal to a discerning clientele, Nike strategically introduces limited edition releases of its products. These exclusive offerings, often collaborations with renowned designers or athletes, create a sense of scarcity and exclusivity, driving demand and justifying the higher prices (Mahdi et al., 2015). Limited edition releases also serve as a marketing tool, generating excitement and buzz around the brand, attracting new customers and enticing existing ones to purchase the coveted items.

Tiered Pricing for Wider Appeal

While maintaining its premium positioning, Nike also incorporates tiered pricing to cater to a broader audience . The company offers a range of products at different price points, from entry-level essentials to high-end performance gear. This tiered pricing strategy allows Nike to reach consumers across various income levels and preferences, expanding its market reach and increasing its overall sales volume.

Value-Added Services for Enhanced Customer Experience

Nike goes beyond traditional pricing strategies by offering value-added services that enhance the overall customer experience and justify the premium pricing. These services include customization options, such as personalized shoe designs, and personalized shopping experiences, providing unique and differentiated offerings to consumers. Customization options allow customers to tailor their products to their specific needs and preferences, increasing their perceived value and willingness to pay the premium price. Personalized shopping experiences, such as exclusive access to limited edition releases or tailored product recommendations based on individual preferences, further enhance the customer experience and create a sense of exclusivity.

Nike’s Pricing Strategy: Achieving Global Success

Nike’s international pricing strategy has played a pivotal role in its global success. The company’s premium pricing, coupled with value-added services, limited edition releases, and tiered pricing, has enabled it to attract a wide range of consumers while maintaining its brand image as a leader in innovation and performance. This strategic approach has allowed Nike to expand its market dominance and become a global icon in the sportswear industry.

Nike’s global success is not solely attributed to its innovative products and premium pricing strategy; it is equally driven by its strategic approach to market segmentation and targeting. The company has effectively identified and targeted major sports markets , such as North America, China, and Western Europe, understanding the specific needs and preferences of consumers in each region.

North America: A Core Market with Diverse Preferences

According to Statista , North America remains Nike’s largest and most established market, accounting for over 44% of its total revenues. This region comprises a diverse population with varying athletic preferences and lifestyles. To cater to this diverse audience, Nike employs localized marketing campaigns that resonate with local trends and cultural nuances . For instance, the company has partnered with prominent NFL and NBA athletes to connect with sports enthusiasts in the United States and Canada.

China: Surging Demand with Cultural Sensitivity

China has emerged as a significant market for Nike, driven by a growing middle class with an increasing interest in fitness and sports (Ko et al., 2012). To penetrate this market, Nike has adapted its products and marketing strategies to align with Chinese cultural preferences . For example, the company has introduced products that incorporate traditional Chinese design elements, such as the use of red and gold colors. Nike has also partnered with Chinese celebrities and influencers to promote its products and connect with local consumers.

Western Europe: A Market of Established Athletics

Western Europe, with its rich sporting heritage and passion for athletic performance, has been a key market for Nike. The company has tailored its products and marketing campaigns to appeal to the region’s discerning consumers. For instance, Nike has partnered with European soccer clubs and athletes to leverage their popularity and enhance brand recognition . The company has also developed products specifically designed for European consumers, considering factors such as weather conditions and athletic preferences.

Localized Marketing for Global Reach

Nike’s success in these diverse markets is attributed to its strategic approach to localization . The company recognizes that simply translating marketing materials and products into different languages is not enough. It actively engages with local communities, understands their cultural nuances, and adapts its messaging and products accordingly. This localized approach enables Nike to connect with consumers on a deeper level and build a strong brand presence in each market.

Product Development Tailored to Local Needs

Nike’s product development process is also guided by market segmentation and targeting. The company recognizes that consumers in different regions have varying needs and preferences. For instance, Nike has developed lightweight and breathable apparel for hot and humid climates, while also offering waterproof and insulated gear for colder regions . This focus on adapting products to local conditions has been instrumental in Nike’s global success.

Nike’s Global Market Segmentation Strategy: Achieving Omnipresence

Nike’s ability to segment and target global markets has been instrumental in its expansion and dominance. By understanding the specific needs and preferences of consumers in each region, the company has tailored its marketing campaigns, products, and distribution strategies accordingly . This localized approach has allowed Nike to connect with consumers on a deeper level, foster brand loyalty, and achieve omnipresence across the globe.

Nike’s global success has been fueled by a sophisticated and multifaceted marketing and distribution strategy that encompasses both physical and digital channels . The company leverages its extensive network of retail stores, strategic partnerships with wholesalers and distributors, and innovative digital marketing tactics to connect with consumers worldwide and drive sales.

Direct-to-Consumer Approach: A Gateway to Customer Connection

Nike’s commitment to a direct-to-consumer (DTC) approach has been instrumental in its global expansion. The company operates over 1,000 retail stores in over 190 countries, as per Statista , providing a direct connection with consumers and allowing for personalized customer experiences . These stores serve as experiential hubs, showcasing Nike’s latest products and engaging with customers through various interactive features.

Partnerships with Wholesalers and Distributors: Reaching a Wider Audience

While Nike’s DTC strategy plays a crucial role, the company also collaborates with wholesalers and distributors to reach a broader market. This partnership enables Nike to expand its reach into smaller towns and cities, particularly in emerging markets . Wholesalers and distributors play a vital role in stocking Nike products in various retail outlets, providing consumers with convenient access to the brand’s offerings.

Leveraging Digital Platforms for Global Reach and Engagement

In today’s digital age, Nike has embraced the power of digital marketing to connect with consumers worldwide. The company utilizes a variety of online platforms, including its website, social media channels, and mobile apps, to reach a global audience and promote its products. Nike’s digital marketing efforts are data-driven , allowing the company to tailor its messaging and campaigns to specific demographics and interests.

Nike App: A Multifaceted Platform for Customer Engagement

Nike’s mobile app serves as a central hub for customer engagement. The app allows users to browse products, make purchases, track their workouts, and access personalized recommendations. Additionally, the app provides exclusive content, such as behind-the-scenes access to Nike athletes and events. This comprehensive platform has been instrumental in fostering brand loyalty and driving sales among Nike’s global customer base.

Nike’s Global Marketing and Distribution Strategy: A Winning Formula

Nike’s combination of direct-to-consumer stores, partnerships with wholesalers and distributors, and innovative digital marketing strategies has been a driving force behind its global success. By leveraging these channels effectively, Nike has been able to connect with consumers worldwide, build brand loyalty, and achieve market dominance in the sportswear industry . The company’s commitment to understanding local markets and adapting its messaging and products accordingly has been key to its success. As Nike continues to expand into new markets, its well-defined marketing and distribution strategy will be instrumental in its continued growth and global reach.

Nike’s global manufacturing strategy has been a cornerstone of its success, enabling the company to produce high-quality products at competitive prices . The company’s decision to outsource most of its manufacturing to overseas countries has been driven by several factors, including labor costs, raw material availability, and government policies.

Outsourcing for Efficiency and Cost-Effectiveness

Nike’s outsourcing strategy stems from the desire to optimize production processes and reduce costs. By manufacturing its products in countries with lower labor costs, such as China and Southeast Asia, Nike can minimize labor expenses and maintain its competitive edge in the global market (Murphy & Mathew, 2012).

Access to Specialized Materials and Infrastructure

Outsourcing also provides Nike with access to specialized materials and infrastructure that may not be readily available in its home country. Many overseas manufacturing centers possess advanced manufacturing capabilities and expertise in producing high-quality athletic footwear and apparel (Lund-Thomsen & Coe, 2015).

Government Policies and Incentives

Government policies and incentives in various countries have also played a role in Nike’s outsourcing decisions. Many governments offer tax breaks, subsidies, and favorable labor regulations to attract foreign investment in their manufacturing sectors (Arora & Aggarwal, 2012).

Addressing Ethical Labor Concerns

Nike’s outsourcing practices have not been without scrutiny. The company has faced accusations of labor abuses, including low wages, excessive working hours, and unsafe working conditions in its overseas factories (Kell, 2016). In response to these concerns, Nike has implemented various initiatives to improve labor standards and ensure ethical practices in its supply chain.

Code of Conduct and Supplier Monitoring

Nike has established a comprehensive Code of Conduct that outlines its expectations for labor practices among its suppliers. The code prohibits forced labor, child labor, discrimination, and unsafe working conditions. Nike also conducts regular audits of its suppliers to monitor compliance with the code.

Fair Labor Association Partnership

In 1999, Nike joined the Fair Labor Association (FLA), an independent monitoring organization that promotes ethical labor practices in global supply chains . The FLA audits Nike’s suppliers and provides recommendations for improvement.

Community Initiatives and Worker Empowerment

Nike has also implemented community initiatives to improve the lives of workers and their families in its supply chain regions. These initiatives focus on education, healthcare, and economic development . Nike also encourages worker participation and empowerment through training programs and feedback mechanisms.

Nike’s Commitment to Ethical Sourcing

Nike remains committed to ethical labor practices and fair working conditions in its global supply chain. The company recognizes that ethical sourcing is not just a matter of legal compliance but also a strategic imperative for building a sustainable and responsible business . Nike’s efforts to enhance labor standards and empower workers are essential for maintaining its brand reputation and ensuring its long-term success in the global market.

Nike’s success as a global leader in the sportswear industry is not solely attributed to its innovative products and marketing strategies; it is also deeply rooted in its commitment to building a strong and talented workforce around the world . The company recognizes that its employees are its most valuable asset, and it invests heavily in their development and empowerment.

Investment in Local Talent

Nike places a high value on building the skills and capabilities of its local employees. The company recognizes that cultural understanding and local expertise are crucial for success in diverse markets . Nike’s global HR approach focuses on providing training, development opportunities, and mentorship programs to its employees worldwide.

Employee Training and Development

Nike invests heavily in training and development programs to equip its employees with the skills they need to excel in their roles. The company offers a variety of training programs, ranging from technical skills training to leadership development courses. Nike also encourages employee participation in professional development activities and encourages networking opportunities.

Empowering Employees for Success

Beyond training and development, Nike also fosters a culture of empowerment among its employees. The company believes in giving employees the autonomy and authority to make decisions and contribute to the company’s success . Nike encourages open communication, feedback mechanisms, and employee participation in decision-making processes.

Standards for Ethical Treatment of Workers

Nike’s commitment to ethical practices extends beyond its direct employees to its suppliers and factories in the global supply chain. The company adheres to a strict Code of Conduct that outlines its expectations for labor practices among its partners. The code prohibits forced labor, child labor, discrimination, and unsafe working conditions. Nike also conducts regular audits of its suppliers to ensure compliance with the code.

Collaboration with Ethical Organizations

In addition to its own Code of Conduct, Nike collaborates with organizations like the Fair Labor Association (FLA) to promote ethical labor practices in its supply chain. The FLA conducts independent audits of Nike’s suppliers and provides recommendations for improvement.

Nike’s Global HR Approach: A Catalyst for Success

Nike’s global HR strategy is a key pillar of its success. By investing in local talent, providing training and development opportunities, and fostering a culture of empowerment, Nike cultivates a workforce that is well-equipped to drive innovation, adapt to local markets, and contribute to the company’s global growth. Nike’s commitment to ethical labor practices and fair working conditions further reinforces its reputation as a responsible and sustainable corporate citizen . As Nike continues to expand its global footprint, its strong HR practices will remain essential for attracting, retaining, and developing the diverse talent required to achieve sustainable success in the ever-evolving global marketplace.

As a global leader in the sportswear industry, Nike recognizes its responsibility to go beyond profit and contribute to a more sustainable and equitable world. The company has made significant strides in integrating social responsibility and sustainability into its business practices, demonstrating its commitment to making a positive impact on the communities and environments it touches .

Minimizing Environmental Impact: A Sustainable Future

Nike has taken concrete steps to reduce its environmental footprint, aligning with its vision of “ Move to Zero ” by 2040. The company has set ambitious goals to achieve zero carbon emissions from its operations and supply chain, zero waste to landfill, and 100% sustainably sourced materials.

• Energy Efficiency: Nike has implemented energy-efficient practices in its facilities, including installing LED lighting, optimizing HVAC systems, and utilizing renewable energy sources.
• Materials Innovation: The company is constantly exploring innovative materials that reduce environmental impact, such as recycled polyester and organic cotton.
• Waste Reduction: Nike has implemented waste reduction initiatives across its operations, including recycling, composting, and reducing packaging.
• Supply Chain Sustainability: Nike is working with its suppliers to implement sustainable practices, such as reducing water consumption and adopting cleaner production processes.

Supporting Social Causes: Impacting Communities

Nike’s commitment to social responsibility extends beyond environmental sustainability to encompass initiatives that empower communities and address social issues. The company supports a range of causes, including education, economic empowerment, and gender equality .

• Education Initiatives: Nike has partnered with organizations like the Nike Foundation to provide educational opportunities for underserved communities, particularly girls in developing countries.
• Economic Empowerment: The company supports initiatives that promote entrepreneurship and job creation in underserved communities, such as microfinance programs and vocational training.
• Gender Equality: Nike is committed to gender equality and has implemented initiatives to promote women’s leadership and economic participation in sports and beyond.

Transparency in Reporting: Accountability and Stewardship

Nike is committed to transparency in reporting its environmental and social performance. The company publishes annual sustainability reports that detail its progress towards its sustainability goals and its efforts to support social causes. Nike also engages with stakeholders, including employees, customers, and investors, to communicate its sustainability commitments and progress.

Nike’s Global Social Responsibility and Sustainability Strategy: A Blueprint for the Future

Nike’s commitment to social responsibility and sustainability is not just a marketing ploy but a fundamental part of its business strategy. The company recognizes that sustainable practices not only benefit the environment but also contribute to long-term profitability, attract talent, and foster a positive brand reputation. As Nike continues to expand its global footprint, its commitment to social responsibility and sustainability will be crucial for maintaining its position as a leader in the sportswear industry and building a more sustainable future for all.

Navigating the Chinese Market: A Success Story of Adaptability

Nike’s expansion into the Chinese market serves as a compelling case study of the company’s ability to adapt its strategy to suit local preferences and cultural nuances. With a population of over 1.4 billion people and a rapidly growing middle class, China represents a significant market opportunity for global brands like Nike . However, entering this complex and diverse market also presents unique challenges and requires a deep understanding of local consumer behavior.

Challenges and Opportunities in the Chinese Market

Nike faced several challenges when entering the Chinese market, including:

• Establishing Brand Recognition: In a market dominated by local brands like Anta and Li-Ning , Nike had to establish its brand identity and gain recognition among Chinese consumers.
• Adapting Products to Local Preferences: Chinese consumers have different tastes and preferences for sportswear than those in Western markets. Nike had to adapt its product offerings to suit local preferences, such as incorporating traditional Chinese design elements.
• Building a Strong Distribution Network: Establishing a robust distribution network in China was crucial to reach a wide audience and provide a seamless shopping experience for Chinese consumers.
• Navigating Cultural Differences: Effective cross-cultural communication was essential for Nike to build relationships with Chinese partners, suppliers, and consumers.

Nike’s Strategies for Successful Market Entry

To overcome these challenges and capture market share in China, Nike implemented a multi-pronged strategy:

• Strategic Partnerships: Nike formed partnerships with local distributors and retailers to gain access to the market and build trust with Chinese consumers.
• Localized Marketing Campaigns: Nike tailored its marketing campaigns to resonate with Chinese consumers, using local celebrities, sporting events, and cultural references.
• Product Innovation: Nike developed products specifically for the Chinese market, incorporating traditional Chinese design elements and catering to local preferences.
• Digital Engagement: Nike embraced digital marketing, leveraging social media platforms and e-commerce channels to reach a wider audience and connect with Chinese consumers.

Nike’s Success in China: A Testament to Adaptability

Nike’s strategy proved to be successful, as the company has become a leading player in the Chinese sportswear market . In 2021, China accounted for over 20% of Nike’s global revenue (Ko & Zhang, 2022). Nike’s success in China highlights the importance of understanding local markets and adapting strategies to suit cultural preferences. The company’s ability to navigate the complexities of the Chinese market and establish a strong brand presence serves as an inspiration for other global brands seeking to expand into emerging markets.

Nike’s journey to becoming a global powerhouse is a testament to the company’s strategic approach to international expansion. By embracing adaptability, cultural sensitivity, and ethical business practices, Nike has successfully navigated the complexities of diverse markets , establishing a strong brand presence and achieving remarkable growth.

Key Takeaways from Nike’s Global Strategy

• Adaptive Pricing Strategy: Nike’s premium pricing strategy has been crucial in maintaining its brand image while also catering to a wider consumer base through tiered pricing and value-added services.
• Targeted Market Segmentation: Nike has effectively segmented global markets, understanding the specific needs and preferences of consumers in each region. This has enabled the company to tailor its marketing campaigns, products, and distribution channels to local tastes.
• Omnichannel Marketing Approach: Nike’s combination of direct-to-consumer stores, partnerships with wholesalers and distributors, and robust digital marketing has ensured a seamless customer experience across various channels.
• Global Manufacturing Strategy with Ethical Sourcing: Nike’s outsourcing approach to manufacturing has allowed for cost-efficiency and access to specialized expertise. However, the company has also prioritized ethical labor practices and fair working conditions, ensuring a sustainable supply chain.
• Commitment to Human Resource Development: Nike invests heavily in developing the skills and capabilities of its local employees, fostering a global talent pool that drives innovation and contributes to the company’s success.
• Global Social Responsibility and Sustainability: Nike’s commitment to environmental sustainability and social responsibility has earned the company a positive reputation and contributed to long-term profitability.
• Effective Cross-Cultural Communication: Nike has demonstrated a deep understanding of cultural differences, building relationships with local partners, suppliers, and consumers through effective cross-cultural communication.

Nike’s remarkable journey to global dominance is a testament to its strategic approach to international expansion , emphasizing adaptability, cultural sensitivity, and ethical business practices. As Nike continues to conquer new markets, Accelingo stands as a trusted partner, providing the professional translation services that are essential for success in diverse cultural landscapes.

Accelingo’s team of experienced linguists understands that effective global marketing goes beyond simply translating words; it’s about understanding the nuances of each culture, adapting your message to resonate authentically, and establishing a genuine connection with local consumers . Our culturally sensitive translation services empower you to replicate Nike’s success, forging deeper connections with global audiences and achieving sustainable growth in the international arena.

Partner with Accelingo and Experience the Nike Effect

Embrace culturally sensitive translation and unlock the true potential of your global expansion strategy . Let Accelingo be your trusted ally in navigating the complexities of diverse markets , just as Nike has successfully done. Together, we’ll help you translate your brand’s message into a language that resonates with local audiences, fostering trust, loyalty, and enduring success in the global marketplace.

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Nike in Asia: A Case Study of the “China Plus One” Strategy

Where are nike shoes, apparel, and sports equipment made.

Nike, the iconic brand of sportswear and footwear, is a global giant with a fascinating manufacturing history. But where exactly are Nike products made?

This guide and video explore the behind-the-scenes of Nike’s production in Asia, shedding light on the processes and strategies behind this global success, perfectly illustrating the “China Plus One” strategy .

The Legacy of Nike: From Oregon to Asia

Nike’s journey began in 1964 under the name Blue Ribbon Sports, a small distributor of Japanese running shoes founded by Bill Bowerman and Phil Knight. In 1971, the company rebranded as Nike, inspired by the Greek goddess of victory. Nike’s path, marked by innovation and strategic expansion, has made it an undeniable force in the sports industry.

In the 1980s, Nike made a decisive move by relocating much of its production to Asia. This strategic decision was driven by several factors, including the availability of skilled labor, efficient factories, and expanding markets.

Countries like South Korea, Taiwan, and China became key partners, allowing Nike to explore new techniques and incorporate cultural influences into its products. In 1995, Nike established itself in Vietnam, becoming a major economic player. This move marked a turning point for the brand, solidifying its presence in the region and deploying the “China Plus One” strategy.

Why Relocate Production to Asia?

In recent years, Asia has emerged as a global manufacturing hub, attracting companies from around the world. Several factors explain this attractiveness:

• Lower labor costs in many Asian countries allow for more cost-effective production, providing a competitive edge in the global market.
• Companies can easily find skilled individuals mastering the latest manufacturing techniques, ensuring high-quality products that meet international standards.
• Well-established supply chains in Asia, developed over years, facilitate the movement of goods from factories to consumers.

Nike’s Footprint in Asia

Nike’s manufacturing network in Asia exemplifies the use of regional expertise for global success. Vietnam, in particular, has become a pillar of Nike’s supply chain and a flagship country in their “China Plus One” strategy.

Watching this video will allow you to:

• Understand Nike’s manufacturing strategies in Asia.
• Discover where most of Nike’s suppliers are located.
• Learn how to leverage this information to identify key factories and suppliers for your business.

By 2023, Vietnam became Nike’s largest manufacturing hub, producing 50% of the company’s footwear, more than any other country in the world. Vietnam is also the largest producer of Nike apparel, contributing 29% to the brand’s global output.

>> Related article : The Best of ‘Made in Vietnam’ products for Sourcing

China, with its vast industrial base and technological prowess, remains a key player in producing Nike apparel and other products. Indonesia, known for its diverse manufacturing capabilities, contributes to the production of specialized sports equipment.

Vietnam’s legacy of craftsmanship and quality assurance, combined with China’s industrial strength and Indonesia’s specialized capabilities, creates a dynamic and resilient network that drives Nike’s global success.

Other Brands Manufacturing in Vietnam

Nike is not the only brand exploiting the potential offered by Vietnam to centralize part of its production and adopt the “China Plus One” strategy.

Other giants in the sportswear and fashion industry, such as Adidas, Puma, and Uniqlo, have also made Vietnam a central hub in their supply chains.

Adidas has significantly reduced its production in China and shifted much of it to Vietnam. Currently, about 50% of their shoes are made in Vietnam.

>> Related article : Where are Adidas factories located?

Vietnam has become the largest sourcing region for Puma’s shoes, with about 26% of their branded products made in the country.

Uniqlo, Japan’s largest fashion chain, has also recognized Vietnam’s manufacturing potential. The company has increased its number of major suppliers in the country by 40% over the past year.

These examples from numerous major brands highlight Vietnam’s prime position as an ideal destination for supply chain diversification and a strategic reallocation of production away from China.

>> Related article : How to Implement a Global Sourcing Strategy with Vietnam?

Nike’s strategy in Asia, perfectly illustrating the “China Plus One” approach, is a lesson in leveraging regional expertise for global success. By adapting to the specificities of each region, Nike has created a dynamic and resilient manufacturing network, ensuring a prosperous future for the brand and maintaining control over their global supply chain.

Guillaume Rondan

CONTRIBUTOR | Guillaume Rondan ([email protected]) is an expat living in Vietnam for 6 years. He owns different businesses and is the founder of Movetoasia : a community for investors, business leaders and foreign buyers who wish to invest, do business or do manufacturing from Vietnam. He helps them avoid pitfalls and take proven shortcuts to make the right decisions and thrive in the next 5-10 years.

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Nike in china case study analysis & solution, harvard business case studies solutions - assignment help.

Nike in China is a Harvard Business (HBR) Case Study on Leadership & Managing People , Fern Fort University provides HBR case study assignment help for just $11. Our case solution is based on Case Study Method expertise & our global insights.

Leadership & Managing People Case Study | Authors :: James E. Austin, Francis J. Aguilar

Case study description.

Nike is reviewing its strategy for producing shoes in China for the U.S. market. Compares the experience in China with that in other countries.

Joint ventures, Manufacturing

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[10 Steps] Case Study Analysis & Solution

Step 1 - reading up harvard business review fundamentals on the leadership & managing people.

Even before you start reading a business case study just make sure that you have brushed up the Harvard Business Review (HBR) fundamentals on the Leadership & Managing People. Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.

Step 2 - Reading the Nike in China HBR Case Study

To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information. My case study strategy involves -

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Step 3 - Nike in China Case Study Analysis

Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. You can do business case study analysis by following Fern Fort University step by step instructions -

• Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
• HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Use these instances and opinions to mark out the organization's culture, its people priorities & inhibitions.
• Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey. Time line also provides an insight into the progressive challenges the company is facing in the case study.

Step 4 - SWOT Analysis of Nike in China

Once you finished the case analysis, time line of the events and other critical details. Focus on the following -

• Zero down on the central problem and two to five related problems in the case study.
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• SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the Nike in China
• SWOT analysis will also provide a priority list of problem to be solved.
• You can also do a weighted SWOT analysis of Nike in China HBR case study.

Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis Nike in China

In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point. Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.

Step 6 - PESTEL, PEST / STEP Analysis of Nike in China

Another way of understanding the external environment of the firm in Nike in China is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies.

Step 7 - Organizing & Prioritizing the Analysis into Nike in China Case Study Solution

Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case. You can use the following strategy to organize the findings and suggestions.

• Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals.
• Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy. For example you can recommend a low cost strategy but the company core competency is design differentiation.
• Case study solutions can also provide recommendation for the business manager or leader described in the business case study.

Step 8 -Implementation Framework

The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Implementation framework differentiates good case study solutions from great case study solutions. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives -

• Detailed understanding of the case,
• Clarity of HBR case study fundamentals,
• Analyzed case details based on those fundamentals and
• Developed an ability to prioritize recommendations based on probability of their successful implementation.

Implementation framework helps in weeding out non actionable recommendations, resulting in awesome Nike in China case study solution.

Step 9 - Take a Break

Once you finished the case study implementation framework. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops.

Step 10 - Critically Examine Nike in China case study solution

After refreshing your mind, read your case study solution critically. When we are writing case study solution we often have details on our screen as well as in our head. This leads to either missing details or poor sentence structures. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Be very slow with this process as rushing through it leads to missing key details. Once done it is time to hit the attach button.

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• Nike in China
• Leadership & Managing People / MBA Resources

Definition of PESTEL / PEST / STEP Analysis

What is PESTEL / PEST / STEP Analysis? How you can use PESTEL Analysis for Nike in China

At EMBA PRO , we specialize at providing professional PESTEL analysis & other strategic management MBA resources. Nike in China case study PESTEL analysis includes macro environment factors that impact the overall business environment – Political, Economic, Social, Technological, Environmental, and Legal factors. Nike in China case study (referred as “Nike China” for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Leadership & Managing People and strategic management. It is written by James E. Austin, Francis J. Aguilar and shed light on critical areas in field of Leadership & Managing People, Joint ventures, Manufacturing that the protagonist in the case study is facing. Managers at Nike China need to examine three inter-related environments in order to come up with an effective strategy. The three inter-related environments are – industry environment in which the company operates in, the geographic market or country in which company operates, and wider socio economic / macro environment. PESTEL analysis is mainly the assessment of macro environment factors.

Case Description of Nike in China Case Study

Nike is reviewing its strategy for producing shoes in China for the U.S. market. Compares the experience in China with that in other countries.

Case Authors : James E. Austin, Francis J. Aguilar

Topic : leadership & managing people, related areas : joint ventures, manufacturing, case study solution & analysis of nike in china, swot analysis of nike in china, urgent - 12hr.

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Importance of PESTEL Analysis in Strategy Management & Planning Process

Strategy planning process often requires five steps – 1. Choosing the vision, mission and the reason of existence for Nike China. 2. Analyze the Nike China external competitive environment to identify opportunities and threats. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Thus significantly impacting the ability of Nike China to build sustainable competitive advantage 3. Analyze Strengths and Weaknesses of Nike China. 4. Developing strategies that can capitalize on Nike China strengths and help mitigate weaknesses and impact of threats of macro-environment. 5. Execution of the strategy and building a feedback loop, using which managers at Nike China can fine tune processes and strategies going forward. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Nike China. According to Michael Porter organizational performance is to large extend determined by various industry forces.

What are Political Factors in PESTEL / PEST Analysis

The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as – Nike China. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Some of the political factors are – governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc.

Political Factors that Impact Nike in China

- Segregation of Political Responsibilities between Different Government Agencies – There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances.

- Likelihood of Entering into an Armed Conflict – From the information in the Nike in China case study, I don’t think there is a likelihood of country entering into an armed conflict with a neighboring country.

- Transition of Government and Changes in Policy – There is consistency in policy making from one government to another. Secondly governments from all parties adhere to the treaties made by the previous governments.

- Political Governance System – Based on the information provided in the Nike in China case study, it seems that the country have a stable political system. Nike China can make strategies based on the stable political environment.

- Size of Government Budgets – both Local Governments and National Government – The government at both national level and local levels are running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. The bond rating of national government is investment grade.

- Government Regulations and Deregulations – The government is adhering to all the rules and regulations under World Trade Organization norms. There is consistency in both policy making and implementations of those policies.

- Unrest within the Country & Chances of Civil Unrest – We don’t think that Nike China business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country.

- Democracy & Other Democratic Institutions – According to James E. Austin, Francis J. Aguilar the democratic institutions are needed to be strengthened further so that business such as Nike China can thrive in an open, transparent and stable political environment. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country.

What are Economic Factors in PESTEL / PEST Analysis

Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Some of the economic factors that Nike China should evaluate both in the present market and one in which it wants to enter are – inflation rate, GDP growth rate, disposable income level etc.

Economic Factors that Impact Nike in China

- Foreign Exchange Rate – Number of companies have incurred losses in past few years because of forex risk in – Venezuela, Brazil, and Argentina. Nike China should be careful about the history of forex risk before entering new market. Many US companies have incurred losses in Mexico in regular forex crisis in that country.

- Demand Shifts from Goods Economy to Service Economy – The share of services in the economy is constantly increasing compare to the share of manufacturing, goods, and agriculture sector.

- Financial Market Structure and Availability of Capital at Reasonable Rates – The quantitative easing policy of Federal Reserve has led to liquidity flooding all across the global financial markets. Nike China can borrow cheaply under such circumstances. But this strategy entails risks when interest rate will go up.

- Fiscal and Monetary Policies – The Republican government tax break culture has increased the deficit and it can lead to fiscal trouble for the economy in coming years.

- Employment Rate – If the employment rate is high then it will impact Nike China strategies in two ways – it will provide enough customers for Nike China products, and secondly it will make it expensive for Nike China to hire talented & skillful employees.

- Work Force Productivity – Work force productivity in US has grown by 25-30 % in last two decades even though the salaries are not reflecting those gains. It can enable Nike China to hire skilled workforce at competitive salaries.

- Government Spending – As mentioned in the political factors, government of the country is running deficit budgets. The implication for Nike China is that it can boost sales of its product in short run but also expose Nike China to medium term forex and currency depreciation risks.

What are Social Factors in PESTEL / PEST Analysis

Social factors such as demography trends, power structure in the society, women participation in workforce etc have immense impact over not only the country's economy but also on workforce talent availability and level of consumer demand.

Social Factors that Impact- Nike in China

- Power Structure in Society – Nike China should carefully analyze both - What is the power structure in the society? How it impacts the demand in the economy. For example the power structure in US economy is slowly moving towards the older generation as that generation has higher disposable income compare to the younger generation.

- Level of Social Concerns & Awareness in Society – Higher level of social concerns in the society often result higher consumer activism and pressure from non-governmental organizations, & pressure groups.

- Attitude towards Authority – Various cultures in different part of the world have different attitude towards authority. In Asia authority is respected while in west it is something to rebel against. Nike China should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services.

- Gender Composition in Labor Market Nike China can use gender composition of labor market to understand the level of liberal nature of the society, women rights, and women’s say in matter of societal issues and consumption decisions. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs.

- Nature of Social Contract between Government & Society – Before entering into a market Nike China needs to understand the nature of social contract between government and society. For example it has been extremely difficult for US companies to enter UK health market as UK health system is a nationalized system and everything goes through contracts at national level.

- Immigration Policies and Level of Immigration – What are the immigration policies of the country, what is the level of immigration, and in which sectors immigration is encouraged. This will enable the Nike China to determine – if required can it hire talent globally to work in that particular market.

- Attitude towards Leisure – Nike China should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers.

- Types of Immigration & Attitude towards Immigrants – Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Attitude towards immigration has come under sharp focus. Nike China should have capabilities to navigate under this hyper sensitive environment.

What are Technological Factors in PESTEL / PEST Analysis

Technology is fast disrupting business models across various industries. Some of the technology trends that are impacting the macro environment are – developments in artificial intelligence, use of machine learning and big data analytics to predict consumer behavior, growing importance of platforms over service providers etc.

Technological Factors that Impact Nike in China

- Technology transfer and licensing issues for Nike China – laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Nike China can avoid shakedowns and IPR thefts.

- E-Commerce & Related Infrastructure Development – As E-Commerce is critical for Nike China business model. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market.

- Integration of Technology into Society & Business Processes – Uber failed in China because it tried to enter before smartphone were widespread in China. Nike China should build a strategy that can integrate societal values, infrastructure, and Nike China business model.

- Likelihood of Technology Disruption – If the country is hub of technology companies then there is a high chance of technology disruption among various industries. Nike China has to assess whether it can live with the fast pace of technology disruption in its industry.

- Research and Development Investment Levels – If there is high level of investment in technology development sector then there are high chances of building a self sustaining ecosystem that drives innovation. Nike China can leverage such a situation to hire the best people in business.

- Transparency & Digital Drive – Nike China can use digitalization of various processes to overcome corruption in the local economy.

- Mobile Phone & Internet Penetration – Nike China should assess the level of internet and mobile phone penetration in the country as it will it in building a requisite business model based on local needs and realities.

- Acceptance of Mobile Payments and Fintech Services – One of the areas where US are lacking behind China is Mobile Payments. Nike China should assess what are preferred choice of mobile payments in local economy and chose the business model based on it.

What are Environmental Factors in PESTEL / PEST Analysis

Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Climate change and changing ecosystem is leading to the extinction of more than 20% of species on the planet by the turn of this century.

Environmental Factors that Impact Nike in China

- Per Capita and National Carbon Emission – What is the per capita carbon emission of the country and what is the overall level of carbon emissions of the country. This will help in better predicting the environment policy of the country.

- Level of Consumer Activism Regarding Environmental Concerns – Nike China needs to know the level of consumer activism regarding environmental concerns is. It will help Nike China in both developing environmentally friendly products and thwarting PR stumble blocks.

- Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry.

- Paris Climate Agreement and Commitment of National Government under the Agreement – What are the commitments of the country under the Paris Agreement and what is the general level of consensus regarding Paris Climate Agreement in the country. For example Trump not standing by US commitments created an environment of uncertainty.

- Influence and Effectiveness of Environmental Agencies – The role of environment standards enforcement agencies is critical in safeguarding norms. But often in emerging countries these agencies delay the process as a tactic to extract bribes. Nike China should be aware of presence of such practices in a country.

- Corporate Social Responsibilities Culture – Are Nike China present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market.

- Environmental Standards and Regulations both at National & Local Levels – Often the environment policy at national and local level can be different. This can help Nike China in numerous decisions such as plant location, product development, and pricing strategy.

What are Legal Factors in PESTEL / PEST Analysis

Legal factors often govern – conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. If the legal system is not strong then Nike China can face numerous challenges – from consumer petitions to shakedowns from authorities.

Legal Factors that Impact Nike in China

- Employment Laws – What are the employment laws in the country and are they consistent with the business model of Nike China. For example Uber employment system is not consistent with French laws and it is facing challenges in the country.

- Transparency in Judiciary System & Processes – Transparency is essential for fair and consistent decision making. If the process is consistent and transparent then Nike China can plan ahead with greater conviction.

- Data Protection Laws – Nike China needs to assess what are the data laws in the country and what it needs to do to comply with them. For example most of EU countries now want the EU citizen data to be saved in EU countries only.

- Laws regarding Monopoly and Restrictive Trade Practices – As a new player Nike China shouldn’t be worried about the monopoly and restrictive trade practices law.

- Intellectual Property Rights Protection – Nike China should assess the level of protection that intellectual property rights get under the legal system of the country.

- Time Taken for Court Proceedings – Even if the country has best of the laws, it doesn’t mean much if they can’t be enforced in a timely manner. Nike China should do a primary research regarding how much time it often takes to conclude a court case in the country given the sort of legal challenges Nike China can face.

- Health & Safety Laws – What are the health and safety laws in the country and what Nike China needs to do to comply with them. Different countries have different attitude towards health and safety so it is better for Nike China to conduct a thorough research before entering the market.

5C Marketing Analysis of Nike in China

4p marketing analysis of nike in china, porter five forces analysis and solution of nike in china, porter value chain analysis and solution of nike in china, case memo & recommendation memo of nike in china, blue ocean analysis and solution of nike in china, marketing strategy and analysis nike in china, vrio /vrin analysis & solution of nike in china, pestel / step / pest analysis of nike in china, case study solution of nike in china, swot analysis and solution of nike in china, references & further readings.

James E. Austin, Francis J. Aguilar (2018) , "Nike in China Harvard Business Review Case Study. Published by HBR Publications.

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Nike in China Case Study Solution

Posted by John Berg on Feb-16-2018

Introduction

Nike in China Case Study is included in the Harvard Business Review Case Study. Therefore, it is necessary to touch HBR fundamentals before starting the Nike in China case analysis. HBR will help you assess which piece of information is relevant. Harvard Business review will also help you solve your case. Thus, HBR fundamentals assist in easily comprehending the case study description and brainstorming the Nike in China case analysis. Also, a major benefit of HBR is that it widens your approach. HBR also brings new ideas into the picture which would help you in your Nike in China case analysis.

To write an effective Harvard Business Case Solution, a deep Nike in China case analysis is essential. A proper analysis requires deep investigative reading. You should have a strong grasp of the concepts discussed and be able to identify the central problem in the given HBR case study. It is very important to read the HBR case study thoroughly as at times identifying the key problem becomes challenging. Thus by underlining every single detail which you think relevant, you will be quickly able to solve the HBR case study as is addressed in Harvard Business Case Solution.

Problem Identification

The first step in solving the HBR Case Study is to identify the problem. A problem can be regarded as a difference between the actual situation and the desired situation. This means that to identify a problem, you must know where it is intended to be. To do a Nike in China case study analysis and a financial analysis, you need to have a clear understanding of where the problem currently is about the perceived problem.

For effective and efficient problem identification,

• A multi-source and multi-method approach should be adopted.
• The problem identified should be thoroughly reviewed and evaluated before continuing with the case study solution.
• The problem should be backed by sufficient evidence to make sure a wrong problem isn't being worked upon.

Problem identification, if done well, will form a strong foundation for your Nike in China Case Study. Effective problem identification is clear, objective, and specific. An ambiguous problem will result in vague solutions being discovered. It is also well-informed and timely. It should be noted that the right amount of time should be spent on this part. Spending too much time will leave lesser time for the rest of the process.

Nike in China Case Analysis

Once you have completed the first step which was problem identification, you move on to developing a case study answers. This is the second step which will include evaluation and analysis of the given company. For this step, tools like SWOT analysis, Porter's five forces analysis for Nike in China, etc. can be used. Porter’s five forces analysis for Nike in China analyses a company’s substitutes, buyer and supplier power, rivalry, etc.

To do an effective HBR case study analysis, you need to explore the following areas:

1. Company history:

The Nike in China case study consists of the history of the company given at the start. Reading it thoroughly will provide you with an understanding of the company's aims and objectives. You will keep these in mind as any Harvard Business Case Solutions you provide will need to be aligned with these.

2. Company growth trends:

This will help you obtain an understanding of the company's current stage in the business cycle and will give you an idea of what the scope of the solution should be.

3. Company culture:

Work culture in a company tells a lot about the workforce itself. You can understand this by going through the instances involving employees that the HBR case study provides. This will be helpful in understanding if the proposed case study solution will be accepted by the workforce and whether it will consist of the prevailing culture in the company.

Nike in China Financial Analysis

The third step of solving the Nike in China Case Study is Nike in China Financial Analysis. You can go about it in a similar way as is done for a finance and accounting case study. For solving any Nike in China case, Financial Analysis is of extreme importance. You should place extra focus on conducting Nike in China financial analysis as it is an integral part of the Nike in China Case Study Solution. It will help you evaluate the position of Nike in China regarding stability, profitability and liquidity accurately. On the basis of this, you will be able to recommend an appropriate plan of action. To conduct a Nike in China financial analysis in excel,

• Past year financial statements need to be extracted.
• Liquidity and profitability ratios to be calculated from the current financial statements.
• Ratios are compared with the past year Nike in China calculations
• Company’s financial position is evaluated.

Another way how you can do the Nike in China financial analysis is through financial modelling. Financial Analysis through financial modelling is done by:

• Using the current financial statement to produce forecasted financial statements.
• A set of assumptions are made to grow revenue and expenses.
• Value of the company is derived.

Financial Analysis is critical in many aspects:

• Decision Making and Strategy Devising to achieve targeted goals- to determine the future course of action.
• Getting credit from suppliers depending on the leverage position- creditors will be confident to supply on credit if less company debt.
• Influence on Investment Decisions- buying and selling of stock by investors.

Thus, it is a snapshot of the company and helps analysts assess whether the company's performance has improved or deteriorated. It also gives an insight about its expected performance in future- whether it will be going concern or not. Nike in China Financial analysis can, therefore, give you a broader image of the company.

Nike in China NPV

Nike in China's calculations of ratios only are not sufficient to gauge the company performance for investment decisions. Instead, investment appraisal methods should also be considered. Nike in China NPV calculation is a very important one as NPV helps determine whether the investment will lead to a positive value or a negative value. It is the best tool for decision making.

There are many benefits of using NPV:

• It takes into account the future value of money, thereby giving reliable results.
• It considers the cost of capital in its calculations.
• It gives the return in dollar terms simplifying decision making.

The formula that you will use to calculate Nike in China NPV will be as follows:

Present Value of Future Cash Flows minus Initial Investment

Present Value of Future cash flows will be calculated as follows:

PV of CF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n

where CF = cash flows r = cost of capital n = total number of years.

Cash flows can be uniform or multiple. You can discount them by Nike in China WACC as the discount rate to arrive at the present value figure. You can then use the resulting figure to make your investment decision. The decision criteria would be as follows:

• If Present Value of Cash Flows is greater than Initial Investment, you can accept the project.
• If Present Value of Cash Flows is less than Initial Investment, you can reject the project.

Thus, calculation of Nike in China NPV will give you an insight into the value generated if you invest in Nike in China. It is a very reliable tool to assess the feasibility of an investment as it helps determine whether the cash flows generated will help yield a positive return or not.

However, it would be better if you take various aspects under consideration. Thus, apart from Nike in China’s NPV, you should also consider other capital budgeting techniques like Nike in China’s IRR to evaluate and fine-tune your investment decisions.

Nike in China DCF

Once you are done with calculating the Nike in China NPV for your finance and accounting case study, you can proceed to the next step, which involves calculating the Nike in China DCF. Discounted cash flow (DCF) is a Nike in China valuation method used to estimate the value of an investment based on its future cash flows. For a better presentation of your finance case solution, it is recommended to use Nike in China excel for the DCF analysis.

To calculate the Nike in China DCF analysis, the following steps are required:

• Calculate the expected future cash inflows and outflows.
• Set-off inflows and outflows to obtain the net cash flows.
• Find the present value of expected future net cash flows using a discount rate, which is usually the weighted-average cost of capital (WACC).
• If the value calculated through Nike in China DCF is higher than the current cost of the investment, the opportunity should be considered
• If the current cost of the investment is higher than the value calculated through DCF, the opportunity should be rejected

Nike in China DCF can also be calculated using the following formula:

DCF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n

In the formula:

• CF= Cash flows
• R= discount rate (WACC)

Nike in China WACC

When making different Nike in China's calculations, Nike in China WACC calculation is of great significance. WACC calculation is done by the capital composition of the company. The formula will be as follows:

Weighted Average Cost of Capital = % of Debt * Cost of Debt * (1- tax rate) + % of equity * Cost of Equity

You can compute the debt and equity percentage from the balance sheet figures. For the cost of equity, you can use the CAPM model. Cost of debt is usually given. However, if it isn't mentioned, you can calculate it through market weighted average debt. Nike in China’s WACC will indicate the rate the company should earn to pay its capital suppliers. Nike in China WACC can be analysed in two ways:

• From the company's perspective, it can be analysed as the cost to be paid to the capital providers also known as Cost of Capital
• From an investor' perspective, if the expected return on the investment exceeds Nike in China WACC, the investor will go ahead with the investment as a positive value would be generated.

Nike in China IRR

After calculating the Nike in China WACC, it is necessary to calculate the Nike in China IRR as well, as WACC alone does not say much about the company’s overall situation. Nike in China IRR will add meaning to the finance solution that you are working on. The internal rate of return is a tool used in investment appraisal to calculate the profitability of prospective investments. IRR calculations are dependent on the same formula as Nike in China NPV.

There are two ways to calculate the Nike in China IRR.

• By using a Nike in China Excel Spreadsheet: There are in-built formulae for calculating IRR.

IRR= R + [NPVa / (NPVa - NPVb) x (Rb - Ra)]

In this formula:

• Ra= lower discount rate chosen
• Rb= higher discount rate chosen
• NPVa= NPV at Ra
• NPVb= NPV at Rb

Nike in China IRR impacts your finance case solution in the following ways:

• If IRR>WACC, accept the alternative
• If IRR<WACC, reject the alternative

Nike in China Excel Spreadsheet

All your Nike in China calculations should be done in a Nike in China xls Spreadsheet. A Nike in China excel spreadsheet is the best way to present your finance case solution. The Nike in China Calculations should be presented in Nike in China excel in such a way that the analysis and results can be distinguished to the viewers. The point of Nike in China excel is to present large amounts of data in clear and consumable ways. Presenting your data is also going to make sure that you don't have misinterpretations of the data.

To make your Nike in China calculations sheet more meaningful, you should:

• Think about the order of the Nike in China xls worksheets in your finance case solution
• Use more Nike in China xls worksheets and tables as will divide the data that you are looking at in sections.
• Choose clarity overlooks
• Keep your timeline consistent
• Organise the information flow
• Clarify your sources

The following tips and bits should be kept in mind while preparing your finance case solution in a Nike in China xls spreadsheet:

• Avoid using fixed numbers in formulae
• Avoid hiding data
• Useless and meaningful colours, such as highlighting negative numbers in red
• Label column and rows
• Correct your alignment
• Keep formulae readable
• Strategically freeze header column and row

Nike in China Ratio analysis

After you have your Nike in China calculations in a Nike in China xls spreadsheet, you can move on to the next step which is ratio analysis. Ratio analysis is an analysis of information in the form of figures contained in the financial statements of a company. It will help you evaluate various aspects of a company's operating and financial performance which can be done in Nike in China Excel.

To conduct a ratio analysis that covers all financial aspects, divide the analysis as follows:

• Liquidity Ratios: Liquidity ratios gauge a company's ability to pay off its short-term debt. These include the current ratio, quick ratio, and working capital ratio.
• Solvency ratios: Solvency ratios match a company's debt levels with its assets, equity, and earnings. These include the debt-equity ratio, debt-assets ratio, and interest coverage ratio.
• Profitability Ratios: These show how effectively a company can generate profits through its operations. Profit margin, return on assets, return on equity, return on capital employed, and gross margin ratio is examples of profitability ratios.
• Efficiency ratios: Efficiency ratios analyse how efficiently a company uses its assets and liabilities to boost sales and increase profits.
• Coverage Ratios: These ratios measure a company's ability to make the interest payments and other obligations associated with its debts. Examples include times interest earned ratio and debt-service coverage ratio.
• Market Prospect Ratios: These include dividend yield, P/E ratio, earnings per share, and dividend payout ratio.

Nike in China Valuation

Nike in China Valuation is a very fundamental requirement if you want to work out your Harvard Business Case Solution. Nike in China Valuation includes a critical analysis of the company's capital structure – the composition of debt and equity in it, and the fair value of its assets. Common approaches to Nike in China valuation include

• DDM is an appropriate method if dividends are being paid to shareholders and the dividends paid are in line with the earnings of the company.
• FCFF is used when the company has a combination of debt and equity financing.
• FCFE, on the other hand, shows the cash flow available to equity holders only.

These three methods explained above are very commonly used to calculate the value of the firm. Investment decisions are undertaken by the value derived.

Nike in China calculations for projected cash flows and growth rates are taken under consideration to come up with the value of firm and value of equity. These figures are used to determine the net worth of the business. Net worth is a very important concept when solving any finance and accounting case study as it gives a deep insight into the company's potential to perform in future.

Alternative Solutions

After doing your case study analysis, you move to the next step, which is identifying alternative solutions. These will be other possibilities of Harvard Business case solutions that you can choose from. For this, you must look at the Nike in China case analysis in different ways and find a new perspective that you haven't thought of before.

Once you have listed or mapped alternatives, be open to their possibilities. Work on those that:

• need additional information
• are new solutions
• can be combined or eliminated

After listing possible options, evaluate them without prejudice, and check if enough resources are available for implementation and if the company workforce would accept it.

For ease of deciding the best Nike in China case solution, you can rate them on numerous aspects, such as:

• Feasibility
• Suitability
• Flexibility

Implementation

Once you have read the Nike in China HBR case study and have started working your way towards Nike in China Case Solution, you need to be clear about different financial concepts. Your Mondavi case answers should reflect your understanding of the Nike in China Case Study.

You should be clear about the advantages, disadvantages and method of each financial analysis technique. Knowing formulas is also very essential or else you will mess up with your analysis. Therefore, you need to be mindful of the financial analysis method you are implementing to write your Nike in China case study solution. It should closely align with the business structure and the financials as mentioned in the Nike in China case memo.

You can also refer to Nike in China Harvard case to have a better understanding and a clearer picture so that you implement the best strategy. There are a number of benefits if you keep a wide range of financial analysis tools at your fingertips.

• Your Nike in China HBR Case Solution would be quite accurate
• You will have an option to choose from different methods, thus helping you choose the best strategy.

Recommendation and Action Plan

Once you have successfully worked out your financial analysis using the most appropriate method and come up with Nike in China HBR Case Solution, you need to give the final finishing by adding a recommendation and an action plan to be followed. The recommendation can be based on the current financial analysis. When making a recommendation,

• You need to make sure that it is not generic and it will help in increasing company value
• It is in line with the case study analysis you have conducted
• The Nike in China calculations you have done support what you are recommending
• It should be clear, concise and free of complexities

Also, adding an action plan for your recommendation further strengthens your Nike in China HBR case study argument. Thus, your action plan should be consistent with the recommendation you are giving to support your Nike in China financial analysis. It is essential to have all these three things correlated to have a better coherence in your argument presented in your case study analysis and solution which will be a part of Nike in China Case Answer.

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