Nike’s Expansion Strategy: Analysis

Topic: Marketing
Words: 582 Pages: 2

Many transnational corporations sell their products worldwide, causing a sense of familiarity among global citizens. Nike is one of these corporations translating its message to the world through efficient marketing strategies. The company has come to the current globalization situation through the authenticity it provides to the customers by addressing the whole world in its advertising, constructing a relationship with an elite in a sport, and enhancing its image.

Nike established an authentic expansion strategy by addressing the interests of its customers through marketing. For example, sponsorship convinces customers to purchase the shoes because it satisfies the athletes’ needs. When major sports events are held, the athletes have the sportswear with Nike’s logo, making Nike’s sports credentials part of the actual sportsmen, teams, and their success. The strategy benefits because Nike never changed its focus on footwear from its foundation. As Marshall and Morreale (2018) point out, “the most successful transnational corporations are identified as purveyors of a more homogeneous culture. (p. 132)” Initially, it was founded in response to the boom in jogging and running during the 1970s. If a customer needs footwear, he knows that Nike provides comfortable shoes. Therefore, the brand’s homogenous culture enhancing its image, and proximity to customers’ daily needs are the reasons for its authenticity strategy’s success.

Nike generates high profits due to its expansion strategy focusing on elite athletes. One of the advertising campaigns involves Michael Jordan, the famous basketball player and role model for many people around the globe. His ability to hang in the air before dunking inspired Nike to create Air Jordan. The image-athlete worked hard to bring advantages such as the “incredible desire for Air Jordans among urban youth in the late 1980s and 1990s. (Marshall & Morreale, 2018, p. 142)”. The main advantage of this strategy is increased demand and more customers.

Nike is a hollowed corporation because its authenticity focuses on the images and sign values generating profits. Therefore, its sales depend on advertising campaigns, causing disadvantages like a constant need to address this cynicism (Marshall & Morreale, 2018). When a company fails to generate a successful advertisement, its sales decrease significantly. Another disadvantage is the knock-offs and clones of its shoes for lower prices that replace some of Nike’s products. Moreover, the company is also involved in the conflict if the Nike athlete fails or violates ethical norms. Therefore, it thoroughly chooses the brand’s representatives to eliminate such risks.

Globalization encourages world cultures and economies to accelerate and unite. It positively influences many transnational businesses that receive a chance to target broader markets than ever before. Moreover, it allows manufacturers and retailers worldwide to combine their efforts to create joint production and consumption patterns driven by market forces. Nike takes advantage of globalization by successfully expanding markets beyond its original home in Oregon, creating demand for its products in foreign countries, and selling its goods across the globe (Marshall & Morreale, 2018). The successful strategy of moving products internationally through advertising and creating a reputation for authentic footwear helped Nike to become a leading shoe-manufacturing company.

To conclude, Nike’s strategy focuses on the brand image facilitated by the homogenous culture and production of specific items such as footwear. Although its intention to attract sports fans by relating the strategy to the athletes helps to increase sales, it has some risks of building an unreliable or unethical reputation. During globalization, Nike destroyed all physical and abstract limits of the targeted markets to provide iconic and authentic shoes to everyone.


Marshall, P. D., & Morreale, J. (2018). Globalization and Advertising: The Case of Nike. In Advertising and promotional culture: Case histories (pp. 129-148). Basingstoke, Hampshire: Palgrave Macmillan. Web.

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