Nike in Japan

Japan is a densely populated island nation which boasts one of the strongest economies in today's global market. The country has a high literacy rate and a strong emphasis on the group rather than the individual. The group can be the family, company or country, but individual needs are traditionally subjugated to those of the group. Business relationships are critical to success in Japan as business is rarely conducted with individuals who are not personally known to the principals ("Background Notes," 1998, pp. 2, 5). As consumers, the Japanese have a high affinity for American

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hole, lacking significant levels of long-term debt, and its internal structure as a whole has proved beneficial to establishing a dominant position within its market. Since the stagnation of the early 1990s has passed, Nike has continued to outpace its closest American rival, Reebok, in sales, and has continued to expand its international presence across its product lines, and its domestic presence in the apparel market. While there is the risk that the entry into apparel may spread Nike's resources too thin, this has not been the case to this point, and Nike should be expected to continue to have strong growth in the coming years (Carini, 1998, p. 1681M). Strategic Analysis Nike Japan is the Tokyo-based subsidiary of Nike; this corporate structure enables Nike to sell in Japan through a Japanese organization. Given that Nike produces its shoes in Asia, there is considerable transportation savings in this structure, as well, and Nike Japan is not subject to the same restrictions as independent foreign companies would be (although it is recognized as being foreign owned by the Japanese government). Nike uses two advertising agencies for its Asia and Eastern European markets; it is not clear whether this strategy will lead to
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Approximate Word count = 1787
Approximate Pages = 7 (250 words per page)

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