Recommendations

Primary Recommendation (#1)

Nike has a chance to increase its profits if it could focus on serving nations that are politically stable.

Government and politics are outside forces that impact on business either positively or negatively.

Expand the business in regions like China as they have a stable government and a market-driven economy that is favorable for Nike products.

Open up branches in stable regions as this will imply using less funds on lobbying to create the brand’s bottom line. Having a local partner in such markets as the Asian will indicate a good number of customers.

Taking advantage of the stable governments like Japan, Australia, and Western Europe to work hand in hand with policy makers to develop favorable trade policies that will positively impact the Nike business.

Expanding its investments in stable markets like the Chinese to utilize the commodities as well as this nation’s local resources.

Nike is a suitable company known to have quality products that satisfy the sports industry. To increase the value of its brand more implies taking advantage of stable political and government environs will suggest spending less on lobbying as well as incurrence of less tax charges. Besides, such nations like Australia with a stable government also has a stable economy, suitable for the Nike products. In this case, Nike’s products will go high an act that will lead to increased profit.

Recommendation #2

Nike could invest more in research and development.

To satisfy the potential demand for sports products requires embracing computing technologies to come up with brands that meet the customer needs.

Research and development make a business to be active and be familiar with the ever changing trends on the market hence developing the matching products that are suitable for increasing sales.

Study shows that R&D allows any given company to create strong advertising and marketing campaigns. Developing new product designs can only be easy if adequate research has been done on what attracts customers.

With competitors like Puma and Addidas, research and development can help Nike survive the market. Research and development does not produce value directly proposal to how much the department receives but depends on the practices as well as innovations. It implies that Nike can actually spend less money on R & D than Puma and Addidas but still be in a position to secure good profit.

Recommendation # 3

Nike has to take advantage of the free trade policies to expand more globally.

Free trade policy is detrimental to Nike’s significant performance on the market as the policy tips the scales favoring those with special interests and seek protection from global competition. However, imposing of heavy tariffs limits freedom to internal trade, a reflection that have seen many companies failing.

Restrictions on international trade in most case harm both the consumers and producers. This makes it hard for consumers to buy products, an act that drives up prices for commodities.

However, trade treaties increase the freedom to commodity exchange that further progresses more extensive international relations.

Great companies think differently. When Nike combines R&D in emphasizing for innovation and core values, it is easy to create stability and productivity for the company. This is so since great businesses are those that are always striving to gain a competitive edge. In other words, R&D is a considerable step for Nike to prosper even more.

1. Next action steps for primary recommendation

Studying the needs of the customers through the internet on the given nations. The step is to be accomplished by the research personnel.

Investing more in innovative products. This is specifically for the marketer.

Pricing. The financial personnel will do pricing.

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