International expansion strategy development and implementation require the executive team to analyze and evaluate opportunities and outcomes from several aspects. Indeed, they need to explore basic benefits to consider and understand if the corporate-level plan should be multi-domestic, global, or transnational (Hitt, Duane Ireland, & Hoskisson, 207). Moreover, appropriate entry models should be selected from exporting, licensing, strategic alliances, acquisitions, or opening new subsidiaries (Hitt et al., 207). Lastly, competitive outcomes such as improved performance or enhanced innovation are necessary to be determined for further risks evaluation and management (Hitt et al., 207). Market analysis is also critical for clarifying the perspectives for a companys expansion. Understanding how the logistics, production, selling operations and consumers expectations work at a given segment provides a basis for adjusting the existing strategies.
Nike is the apparel and sports footwear company that started its operations in the United States in the 960s, expanded worldwide, and is now one of the most famous and trustworthy brands. Successful strat
egic decisions helped Nike enter different niches, develop efficient supply chains, create sustainable production, and implement online selling (Fortune, 202). Furthermore, international expansion performed by the company addressed the growing demand for sports teams apparel and equipment, including sponsorship and participation at global events (Kim, 2020). Consequently, Nike became a well-known brand associated with high product quality, events, experiences, and a strong mission for promoting sports.
Nike is a global brand, and it keeps expanding its production and distribution to new countries by entering their markets. The approaches the company with a significant competitive advantage, such as the brands authority uses, are the manufacturing facilities establishment, acquisitions, and subsidiary opening (Hitt et al., 207). Besides, the pandemic led Nike to enforce its online selling and shipping strategies, making the firm a nearly 50% increase in digital sales for one fiscal year with $5,5 billion in revenue (Fortune, 202). SWOT analysis is the appropriate analysis tool for exploring how the companys international expansion is performed.