Today’s dynamic business environment has no national borders, and many of today’s global brands are making use of this by looking for cheaper options for production in countries across the world. One example is Nike. Since its inception in 1964, Nike has come a long way- from being just an importer of Japanese running shoes to a global sporting-goods retailer. In fact, Nike is one of many sporting-goods brands with production centers in the less-developed parts of the world. Places such as Indonesia, Honduras, Vietnam, and China became attractive opportunities due to their low labor and distribution costs. With manufacturing centers in more than 50 countries, Nike takes advantage of the beneficial exchange rates and greater cost-to-profit ratios through globalization. In chapter 3, we read that there is no one “right way” to seize the opportunity in global markets. International trade can offer new profit streams and lower costs, but it also introduces a higher level of risk and complexity to running a business. (BUSN10 p. 44) For this discussion, identify a brand in the fashion industry that is pursuing an opportunity by doing business globally. Present that company to us by describing its activities to “go global”. Give specific examples of the company’s strategies for foreign outsourcing, importing, exporting and/or foreign licensing. Describe the advantages and risks to the brand. Do you think these activities are a competitive advantage for the brand?
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