Connecting the Dots
Nike found that its organizational structure and techniques were unfavorable to the effective global expansion of the Company’s operations. The firm stood to gain a tremendous amount of knowledge from this experience (Spar 5). The Company could not react quickly enough to changing circumstances and had an unhealthy reliance on labor that was readily accessible at a low cost. In addition, Nike managed to keep its hold on the market domination it had established because of the power of its brand and marketing, both of which were tough for rivals in other countries to copy (Spar 12). Because of this, the Company needed to adopt a more global mindset in scope to succeed in the years to come.
The transformation that General Electric went through over the last twenty years may teach organizations looking to expand internationally several lessons that are pretty helpful. Nike recognized, first and foremost, that for the corporation to be successful in several areas, it needed to become more flexible and adaptive (Bartlett 15). In addition, the Company concluded that to be successful in each region, it was vital to have a substantial presence in the community. Nike ultimately concluded that for the corporation to succeed in each market, the Company needed to have a good knowledge of the diverse cultural and political circumstances.
McKinsey & Company has a long tradition of supporting companies in achieving their goals of expanding into new markets throughout the world. Nike Company has an in-depth knowledge of the numerous organizational structures and methods required for success in various needs. This comprehension is vital for the Company to compete effectively. In addition, McKinsey has a thorough grasp of the numerous competitive forces that are in play in various marketplaces all over the globe (Tan 8). This information allows the Company to serve its clients better. Because of this, Nike organization is in a great position to help other firms efficiently expand into new areas. As a result, the organization is in a solid position to assist other businesses.
The fact that Procter & Gamble was able to launch Vizir in Europe with such phenomenal success demonstrates how important it is to have a firm handle on the market in that region. P&G successfully launched Vizir by first obtaining an understanding of the needs of the European market and then modifying the product appropriately to fulfill those criteria (Beiske 6). This allowed the Company to bring the product to market successfully. In addition, as a direct consequence of P&G’s acquisition of Gillette, the business has solidified its foothold in various local markets throughout Europe. On the other, if Nike can embrace and understand the needs of the European market, it will successfully have a solid foothold in the market.
ABB’s success with its relays business may provide other companies with valuable insights into extending their operations to other countries. First and foremost, Nike understood that for the firm to be successful in any given region, the corporation needed to build a solid local presence (Bartlett, ABB’s Relays Business 13). Second, Nike realized that for the firm to be successful in any market, it was vital for the Company to have a strong knowledge of the diverse cultural and political circumstances. ABB concluded that for the firm to be successful in several markets, the Company needed to be flexible and adaptable.
The fact that Acer has been successful in Taiwan and the United States demonstrates how essential it is to have a solid grasp of the respective local markets. Acer successfully developed into both of these sectors by first getting an insight into the local market’s needs and then adjusting its product offerings and customer service to fulfill those requirements. This allowed Nike to grow effectively in both areas (Bartlett 15). Nike was also able to build a solid presence in these sectors as a direct consequence of its acquisition of Gateway, which allowed the business to expand its product offerings in both spheres.
Philips and Matsushita have been competing head-to-head for a significant portion of the market for some years. Matsushita and Philips have a long history of commercial success in their respective areas, with Philips achieving this success in Europe and Matsushita performing it in Asia (Hanno 4). Although each of these companies has its own set of advantages and disadvantages, it has been possible for both to evolve and change throughout their existence to maintain their position as competitive organizations.
The fact that Jollibee has successfully expanded its operations to other nations demonstrates how essential it is to research the market in the area where the business will operate. Nike was able to efficiently expand into new locations by first being aware of the target market’s needs and then changing its products and services to fulfill those requirements (Bartlett, Jollibee Foods 13). This allowed Jollibee to develop effectively in new areas. In addition, Jollibee created a solid local presence in each room by purchasing local brands. Jollibee is a fast-food chain based in the Philippines.
When contemplating a move into international markets, other companies may benefit from learning a range of essential lessons from the experiences that Lincoln Electric has gained in expanding internationally. Nike recognized, first and foremost, that for the firm to succeed in each market, it was vital for the corporation to have an in-depth grasp of the diverse cultural and political circumstances (Bartlett and Anthony 5). Secondly, Nike concluded that to be successful in several different markets, the firm needed to be adaptable and willing to evolve to remain competitive. In the end, Nike concluded that for the firm to succeed in each region, the corporation was required to have a significant local presence in that market.
The significance of keeping a global perspective while doing business
The articles as mentioned earlier bring to light how important it is to have a global mindset when participating in worldwide growth. Companies such as Nike, General Electric, McKinsey, Procter & Gamble, ABB, Acer, Philips, Matsushita, Jollibee, and Lincoln Electric have different organizational structures, processes, and competitive advantages over one another. However, the one thing they all have in common is that they have a strong understanding of the diverse cultural and political circumstances in each region in which they operate. They are differentiated from their rivals under their distinctive trait. They can be successful in any market due to this kind of understanding. Because globalization is happening quickly, firms need to cultivate a global mindset. Businesses that do not have a global perspective will be at a disadvantage while competing in international markets because of the increased competition.
The need to cultivate a global mindset among companies is brought into sharp relief by the research cited above.
Companies such as Nike, General Electric, McKinsey, Procter & Gamble, ABB, Acer, Philips, Matsushita, Jollibee, and Lincoln Electric have different organizational structures, processes, and competitive advantages over one another. However, the one thing they all have in common is that they have a strong understanding of the diverse cultural and political circumstances in each region in which they operate. They are differentiated from their rivals under their distinctive trait. They can be successful in any market due to this kind of understanding.
Comparison with Adidas
Adidas is another firm that has successfully expanded into international markets. Adidas was able to effectively expand into new areas by first understanding the requirements of the target market and then adapting its goods and services accordingly. This enabled Adidas to enter new markets efficiently. In addition, through developing local relationships, Adidas was able to build a solid local presence in each region. Adidas is a manufacturer and retailer of athletic products. Each Company has distinct competitive advantages. Nike has a comprehensive awareness of the varying cultural and political conditions in each location in which it works. This permits Nike’s success in any market. Conversely, Adidas has built local alliances in every region in which it operates. This provides Adidas with a substantial local presence in each area.
Recommendations
Nike should prioritize developing a comprehensive awareness of the different cultural and political contexts in each location in which it operates. This will enable the organization to stay flexible and adaptive in the face of shifting conditions. Nike should also continue to spend on establishing a strong local presence in each area. This will help the organization to better meet its clients’ demands. Nike must continue to invest in its brand and marketing initiatives. This will help the corporation to retain its market leadership position.
Works Cited
Bartlett, Christopher A., and Anthony St. George. “Acer America: Development of the Aspire.” Harvard Business School, 2001, pp. 1–20.
Bartlett, Christopher A., and Jamie O’Connell. “Lincoln Electric: Venturing Abroad.” Harvard Business School, 1998, pp. 1–22.
Bartlett, Christopher A., and Meg Wozny. “GE’s Two-Decade Transformation: Jack Welch’s Leadership.” Harvard Business School, 2005, pp. 1–25.
Bartlett, Christopher A. “ABB’s Relays Business: Building and Managing a Global Matrix.” Harvard Business School, 1999, pp. 1–23.
Bartlett, Christopher A. “Jollibee Foods Corporation (A): International Expansion.” Harvard Business School, 2001, pp. 1–23.
Begley, Thomas M, and David P Boyd. “The Need for a Corporate Global Mind-Set.” MIT Sloan Management Review, vol. 44, no. 2, 2003, pp. 1–10.
Beiske, Ben. “Procter & Gamble Europe: Vizir Launch.” Harvard Business School, 1989, pp. 1–18.
Hanno, Maha. “Philips versus Matsushita the Competitive Battle Continues.” Harvard School of Business, 2003, pp. 1–20.
Hastings, Donald F. “Lincoln Electric’s Harsh Lessons from International Expansion.” Harvard Business School, pp. 1–12.
Spar, Deborah L. “Hitting the Wall: Nike and International Labor Practices.” Harvard School of Business, 2002, pp 1-23.
Tan, Valerie. “McKinsey & Company: Managing Knowledge and Learning.” Harvard School of Business, 2000, pp. 1–20.