Reference no: EM133046500

Respond to below with 200 words

Nike pursues an international diversification strategy, a strategy through which a firm expands the sales of its goods or services across the borders of global regions and countries into a potentially large number of geographic locations or markets (Hit et al., 2019, pg. 264). Its geographic market scope is extensive, with operating segments in North America; Europe, Middle East & Africa; Greater China; and Asia Pacific & Latin America, and international branch offices and subsidiaries located worldwide (SEC, n.d.).

Nike, Inc., formally Blue Ribbon Sports, began its operations from Eugene, Oregon, as a U.S. distributor and then designer for the Japanese shoemaker Onitsuka from 1963-1971. After ending their exclusive contract with Onitsuka, the company took production under their control, established a network of subcontractors across Japan, launched the Nike brand shoe, and eventually renamed Nike, Inc. in 1978 (Business Casual, 2018).

In the first year of distribution, the company expanded operations to its first foreign market, Canada and Australia. The company gained substantial growth due to the aggressive promotion of its brand by having its shoes worn by prominent athletes. Due to the demands of its products, Nike opened overseas production facilities in Taiwan and Korea, and international sales were expanded to Asia, South America, and Europe.