1.Introduction and background
With the globalization, there are an increasing number of international businesses. NIKE Inc. is one of them. NIKE is an American multinational firm that is focuses on designing, manufacturing and selling sportswear worldwide.
The essay aims to analyze reasons of the emergence of international businesses, evaluate both advantages and disadvantages of being an international business, NIKE Inc. will be used as a case to illustrate these analysis.
2. When NIKE Inc. became an international business
International businesses are firms that their commercial transactions take place between two or more nations or regions. The company, Blue Ribbon Sports, as predecessor of NIKE Inc. was founded in 1964 and it officially became NIKE Inc. in 1971. By 1978, with the successful advertising, the company had captured nearly 50% market share in America and after that, NIKE began to explore its overseas market, including Canada, Australia, European and South America.
Because brilliant design and original advertising, Nike's athletic shoes were very popular among the international marker and it entered Chinese market in 1980. NIKE Inc. stick to "Local for Local" and has made great development in international market. Throughout the 1980s, Nike established and expanded its product line all over the world.
3.The reasons why NIKE became an international business
Theoretically, there are six drivers which facilitate the emergence and development of international business. The six drivers are the division of labor, communication, codification of tacit knowledge, containerization, new information and communication technologies and differential in factor inputs. Ã§Â»ÂÃ¥ÂÂCASEÃ¥ÂÂÃ¦ÂÂ.
Practically speaking, NIKE Inc. became an international corporation base on several reasons. 3.1Desire to make profit
Firstly, the company desired to expand markets in order to increase sales and make more profits. In fact, every businesses want to minimize its costs so that they enter the international market to...