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Northeastern University
International Affairs
INTL 1101
Denise Horn

Nicole Hicks Globalization and International Affairs Ch. 20 Miguel Korzeniewicz Commodity Chains and Marketing Strategies - Nike  Global Commodity Chains (GCCs) "help us understand how marketing and consumption patterns in core areas of the world shape production patterns in peripheral and semi peripheral countries." -- dynamic in nature  Distribution of athletic footwear  Teens are the most important consumers -- think culture, b/c shoes are a symbol of social status AND identity  Hundreds of models, styles, and designs = product differentiation = vehicle for competition (between Nike, Rebok, Adidas...) and price stratification  Nike's sales have gone from $2million (1972) to $270million (1980) to over $3 BILLION (1991)  The organization of the footwear market has a lot of permeability for success and competition by new enterprises  The most important businesses (Nike, Rebok, etc) have grown by increasing control over pieces involved in the material production of shoes -- most importantly though, has been the CREATION of the shoe market itself  Nike Corporation/Marketing  Nike started by importing shoes from Japan... they don't know, and never did know, anything about manufacturing. Their success is that, in the US, they're a design and marketing firm  3 things gave Nike a competitive edge from 1976-84, along with their subcontracting i) The fitness boom (1) Starting in the mid 1970s, exercise became part of American culture -- this required Nike to change its m
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