Introduction Nike is a global leader in the shoe industry. Having created an image of excellence in the US, the company has become highly successful in other countries as well owing to its superior products and strong brand. In this report, it is assumed that Nike is contemplating a move into an emerging country-China. One must analyze the business environment, location, industry and major challenges that the organization will face when trying to achieve this. Why the company should consider moving from the current location Currently, the organization is headquartered in the US and has a very strong presence in other western countries. However, competition is growing immensely. Companies such as Adidas, Puma, and New Balance are getting as innovative as Nike. Recently, organizations such as Adidas and Reebok have merged to create a very strong force in the sports footwear industry. Product differentiation is no longer enough to give Nike that competitive edge. Furthermore, the threat of market saturation is a reality. Growth rates in the US and European markets have dwindled dramatically. It takes too much input from the organization to record even one percentage increase in sales within these mature markets. Consequently, Nike needs to look elsewhere to maintain its impressive sales records. The company has diversified in various products and market segments. In the past, Nike was known for its high-end products. Therefore, it carved a niche amongst these types of consumers (Nike, 2011). The creation of low-end products may dilute the Nike brand and threaten their position in the market. Consumers can illustrate this through diminished customer loyalty to the brand. A large multinational such as Nike is struggling to keep its record level performance especially in the wake of the 2008 economic recession. The US was hardest hit by this global phenomenon, so Nike must reorganize its market strategy in order to cushion itself against harsh economic conditions in one primary market. In fact, the company’s growth rates are yet to recover from the economic recession that started in 2008. Nike is a premium brand, and many others like it tend to be susceptible to economic and industry fluctuations. The company needs to look for strategies to neutralize these negative external forces. Nike uses endorsements as one of its primary promotional strategies. It often selects promising athletes in almost all types of sports and uses them to endorse their products. The firm spends millions on endorsing even one candidate. Therefore, making many wrong moves has immense repercussions for the company’s profit margins. Recently, the company endorsed a controversial athlete-Tiger Woods. It spent millions on the project, but after the latter individual got involved in a personal scandal, Nike could no longer associate its brand with Tiger, and this meant that the endorsement was a lost investment. It is difficult for Nike to predict how the selected athletes will behave. As a result, the organization must be ready for the risks associated with sponsorship deals. This means that marketing expenditures will always be high for the company. Nike must look for creative and sustainable ways of dealing with the situation through other avenu