Nike Company Information
Nike is one of the largest companies with significant financial turnover and capital. Due to effective marketing, leadership, and business strategies, the company has gained worldwide popularity and a strong position in the market. Starting with sneakers, sports suits, t-shirts, sweaters, pants, bags, hats, and various accessories are now produced under the Nike brand. However, globalization, on the one hand, had positive effects on the company and, on the other hand, brought some difficulties.
Harmful Impacts of Globalization on Nike
For example, the COVID-19 pandemic has had an impact on the global supply chain and created transportation challenges. Nike, like many other companies, is dependent on logistics since it needs to cover the demand for a vast network of stores around the world (Lechner & Boli, 2020). As a result, the company had severe challenges covering budgetary problems due to the closure of many major transport hubs and the paralysis of the logistics system. This happened not only because of the pandemic but also because of globalization, which made the company dependent on logistics.
The next challenge is the high percentage of counterfeit goods, which affects the company’s income. Moreover, it can significantly damage the reputation if consumers think that they are buying the original, acquiring a low-quality fake (Badar et al., 2021). Again, globalization has made it easy for counterfeiters to advertise and ship products. As a result, it complicates the fight against counterfeit products and affects the company’s ratings. Although this problem is relevant not only for Nike, a significant proportion of counterfeit goods falls on this company.
Benefits of Globalization for Nike
Finally, it is worth noting that the main advantage of globalization is also a challenge for Nike. Thus, the ability to easily and quickly convey information to the target audience makes the company’s competitors stronger, posing difficulties (Ernst & Haar, 2020). In addition, globalization makes it possible for competitors to negatively influence the company through fakes, information, and other methods.
References
Badar, M. A., Srivastava, P., & Gupta, R. (2021). Transitioning from globalized to localized and self-reliant economies. IGI Global.
Haar, J., Ernst, R. (2019). Globalization, competitiveness, and governability: The three disruptive forces of business in the 21st century. Springer International Publishing.
Lechner, F. J., & Boli, J. (2020). The globalization reader. Wiley.