NIKE IN MALAYSIA

Nike in Malaysia

Nike in Malaysia

Introduction

Nike with its international dominance, alliances and their recognizable brands is surely a key player in international sports supplies industry. This research paper is a summary of an investigative analysis conducted on Nike Inc. operations in Malaysia. This paper considers Malaysian culture, economy, political ideology, legal factors, geographical factors and competitive rivalry among international sports supplies manufacturers in Malaysia, and their implications for Nike Inc.

Nike Inc. is the leading sports equipment manufacturing firm in the world today. Since its inception, it has enjoyed a formidable position in the sports apparel manufacturing sector. There are various factors that have contributed to Nike's unprecedented success, but two major factors stand out i.e. leadership and strategic management of the firm's operations.

Nike has a history of globalization since inception. It was founded in 1964 by Phill Knight and his university pal Bill Bowerman. Each of the two friends contributed $500 to establish their business idea of producing athletic footwear in collaboration with Japanese producers which had lower cost as compared to producers in United States and Germany. They started their idea with their company named Blue Ribbon Sports (BLS).

In Malaysia, Nike presently provides products in five different categories: Running, Nike+, Football, Basketball and Sportswear. Nike has more than 45 stores and franchises throughout Malaysia with conspicuous presence in its metropolitan cities like Kuala Lumpur.

Thesis Statement

Nike Inc's decision to establish and expand its operations in Malaysia via owned stores and subsidiaries is a successful step in pursuit of strategic goal of becoming highest ranking brand of athletic footwear and achieve US$ 27 billion sales target by 2015.

Culture

Malaysia is predominantly a Muslim country with a high magnitude of tendency towards westernization and this makes it susceptible towards adopting and consuming international brands such as Nike. Sports facilities in Malaysia are conspicuous with support and encouragement for sports at institutional, society and government level. Malaysian culture promotes sports and athletic activities as there is an Olympic council established in Malaysia whose members are Malaysian nationals. In Malaysia there are three cultures and/or ethnicities: Malay, Indian and Chinese.

Organizations like Nike Inc are more than just a instrument for coordinating and controlling people. They also have a personality, like people. They can be rigid or flexible, hostile or friendly, innovative or conservative. The organization theorists know and recognize the important role of culture in the lives of members of an organization.

When organization like Nike Inc. becomes institutionalized, it acquires its own life, apart from its founders or its members. This can be observed by considering Nike Inc operations in Malaysia that are independent of its pioneer, Phill Knight and Bill Bowerman's involvement. Nike is also appreciated for its own existence, not for its goods or services as it acquires immortality. This is because Nike has conspicuous presence in Malaysia and its activities have contributed significantly towards healthy lifestyle of Malay people contributing towards their social and economic welfare.

Institutionalization has the effect of producing a common knowledge among members about what ...