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Karl-Loic Landeut190845
Unit 5
P1 – Explain why two businesses operate in contrasting international markets
In this part of assignment 1, I will explain why two businesses operate in contrasting
international markets. The two businesses that I have chosen will be Nike and Tesla.
What is an International business?
An international business is business that operates in multiple countries, in other words
they exchange goods and services between two parties or countries. Nike and Tesla are
good examples of these, they have independent operation in each country with set offices,
employees and more.
Examples:
- McDonalds
- KFC
- Microsoft
- Apple
- Virgin Media
Exporting Businesses
An exporting company is an independent company that performs the duties that a firm’s
own export department would execute, in simple terms it is something that is shipped or
brought to another country to be sold or traded. An example of export is cocoa beans being
shipped from Nigeria to be sold in many different countries with high economy. The UK’s
main exports are: Mechanical Machinery, pharmaceutical products, crude oil, aircraft and
refined oil.
Importing Businesses
Importing consists of taking in a product or service into a country for sale that have been
made elsewhere. Basically, importing is the process of introducing or bringing goods from
one country to be sold in another. An example of Importing would be if you introduced a
friend from another country to a certain sweet that is sold in a particular nation other than
theirs. The UK imports many goods like: Food, fuels, crude materials, beverages and
tobacco.
Multinational Enterprises
A Multinational Enterprise is a company that has affiliates in other nations and conducts
business there. Multinational Enterprises, have significant and diverse people resources,
financial resources, knowledge, and technology, as well as a significant competitive
advantage. For example: Microsoft, Apple, Coca Cola and IBM.
Associated Businesses
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, Karl-Loic Landeut
190845
In its broadest definition, an associate company is a corporation in which a parent firm owns
a stake. In contrast to a subsidiary company, in which the parent firm owns a majority
position, the associate company's parent company often owns only a minority stake. For
example: Sports Direct, House of Fraser and Flannels.
Promotion
Promotion is a marketing tactic that is utilised as a communication method between
vendors and purchasers. The merchant uses this to try to influence and persuade customers
to purchase their items or services. It aids in disseminating information about a product,
service, or corporation to the general public.
Nike
Nike is an American multinational
sportswear business that distributes
footwear, apparel, equipment, accessories
and services. The company is
headquartered near Beaverton, Oregon, in
the Portland. It is the worlds largest
supplier of athletic shoes and clothing. Nike was founded by Bill Bowerman, it was initially
known as Blue ribbon. They changed their name to Nike in 1978. As of 2021 their market
share has increased to $229.66 Billion that is the 43th most valuable company market share.
Why does Nike conduct business internationally?
Nike conducts internationally due to many reasons one being to increase market share, as
they are a company that runs in more than one country their income will skyrocket
increasing their share to the market. To communicate with their foreign consumers, Nike
additionally uses partnerships and sponsors as worldwide marketing platforms.
Nike’s Growth
In order to grow as a business Nike collaborates with several world-class sportsmen,
including Michael Jordan, Neymar, Cristiano Ronaldo, and Tiger Woods, to mention a few.
These athletes have a global following, particularly in their own country. For example,
Neymar has a sizable fan base in his native Brazil, and Cristiano Ronaldo has a sizable fan
base in Portugal. Nike can quickly engage with audiences from diverse nations that would
otherwise be difficult to reach by working with these athletes. Many customers see these
players as role models and heroes, thus what they wear may have a significant impact on
their followers' purchasing decisions. Nike is always looking for new ways to extend its client
base, not only in the United States, but across the world. They have a solid platform for
worldwide development and will remain the market leader in sportswear.
Nikes competitive advantages
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, Karl-Loic Landeut
190845
Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Training, and Sportswear are
the six key categories in which they sell their products. Converse and Hurley are two of
Nike's other subsidiary brands, in addition to Jordan. Customer trust, customer experience,
and customer engagement are just a few of the many aspects that influence band equity.
Brands that have established a high level of market and customer trust are ahead of the
competition. Nike's commercial strategy is intimately connected to their commitment to
innovation. It invests in research and development to gain a better understanding of their
clients' preferences and fashion trends. Nike's fame has resulted in a sizable and devoted
following. However, because the competition is fierce, Nike is implementing new techniques
to improve its products and keep existing customers while also recruiting new ones. Its
industry-leading position and extensive client base continue to be major assets that
distinguish it as a standout brand.
Nikes Additional revenue
Nike gets additional revenue from collaborations. They have had a good relationship with
the Air Jordan brand and make sneakers together. Nike have also made shoes with big
brands like Off White, a company that operates internationally from Virgil Abloh. They are
also paid when they manufacture jersey’s for teams to compete in, this also reaches other
customers.
Types of economies:
Developed Economies
A developed economy is one that is found in a developed country with a high level of
economic growth and security. The income per capita or per capita gross domestic product,
the level of industrialization, the general standard of living, and the amount of technological
infrastructure are all standard metrics for assessing a country's level of development.
Examples:
- Norway
- Switzerland
- Ireland Germany
Less Developed Economies
Less-developed nations (LDCs) are low-income countries with considerable structural
barriers to long-term development.
Examples:
- Afghanistan
- Angola
- Bangladesh
- Benin
Emerging Economies
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