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Expanding the Playing Field (A):
Nike’s World Shoe Project
Description: Tom Hartge, Nike’s Footwear Director for Emerging Markets, was challenged with “expanding the playing field” in emerging markets with a range of affordable, durable, and easy-to-produce sports shoes that could effectively reach the huge untapped segment of “Tier 3” countries – developing markets with high potential, characterized by a population of 1 billion and an average of $2,000 purchasing power parity. By January 2001, Hartge and his team had sold only 404,520 pairs in China. Compared to the booming 1.2 billion population of China, this number was a disappointment. This case asks students to determine what Tom should do to persuade senior management to support and continue the project.Teaching Points: “This case study can be used to:
- Identify the differences in business strategies for developed versus developing world markets and explore the disruptive challenges that can face a company attempting to tap emerging markets;
- Offer students a better understanding of the potential internal constraints and need for new business models when exploring emerging markets in developing countries;
- Investigate the sustainability issues surrounding market entry into the Bottom of the Pyramid. “Key Topics: • Base of the Pyramid (BoP)
• BRIC (Brazil, Russia,India, China)
• Change Management
• Consumer Products
• Corporate Social Responsibility (CSR)
• Cross-Border Activities
• Developed Markets / Advanced Economies
• Emerging and Developing Economies
• Emerging Markets
• Environmental Sustainability
• International Business
• Marketing & Sales
• Multinational Enterprises (MNEs)
• Strategic Management
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