Nike in Brazil: a Host Country View

dis completelyow loads of Nike from brazils usher of fit brazil nut is rapidly privatizing many industries and its locating toward a free commercialize economy has changed significantly in the noncurrent 10 years. However, it seems the country still has a perception that often times associates capitalist economy with greedy developed countries. If the opinion of brazils electric chair is a disapproval of how some of its race feel this is surely the case. In two hundred8, brazils president lambasted US corporations and the US government for infecting his acres with riddles that were not of its making (The New York Times, 2008). This attitude seems to nurture created some problems for brazil-nut treeians in name of their view of Nike. The kind of leverage and defend that such(prenominal) a large play along can exert on football in the country is huge. This issue was thrown and twisted into the light when in 1998 the Brazilian national group lost in the manhood cupful finals to France. Earlier on in the year, Nike had invested a record amount ($200 million US) for the right to sponsor the Brazilian national team in the mankind Cup.As a requisite for sponsorship, Nike demanded that the team play an inordinate amount of order games leading up to the event. Many Brazilians, including Brazilian football legend Pele (who filed a pillow slip against Nike), still blame Nike for Brazils loss. They claim that the unusual number of exhibition games tired the players divulge. Similarly, another interesting problem is Nikes effect on emulation in Brazil. Nikes recent scholarship of UK sporting wear social club Umbro allowed it to overtop Adidas as the biggest brand in the universe of football (The Financial Times, 2007).This is particularly deplorable for Brazilian retailers, who worry ab extinct the preoccupancy of brands amidst two large Multi-Nationals and the effect this might have on their business. Lastly, as with many interaction s amid MNCs and exploitation countries environmental issues have been a problem. Brazil is a massive supplier of flog used for products like Nike shoes. However, much of the cows that the strap comes from graze on what was erst Amazon rain forest. A emcee of Brazilian ranchers have clear-cut whole swaths of rainforest in an attempt to chance on room for more cattle.This goes against Brazils need to preserve what is arguably its close to precious natural resource (The Ends Report, 2009). In proximo business interactions, Nike needs to be weary of using manoeuvre that could be perceived by the Brazilian people as greedy, dominating, or imperialistic. Such tactics may erode authority inwardly the Brazilian population and could turn out to be a bigger PR headache than they are worth. Advantages of having Nike in Brazil from Brazils point of view On the other hand, the fact that Nike is such a large and powerful company can have its benefits for the Brazilian people.With i ts big buying capability Nike can truly shift the way products are produced in some countries by pressuring suppliers. As was discussed earlier, Nike has been using leather procured from suppliers who have clear-cut forests in order to make room for their cattle. However, in August of last year, Nike along with stand by from Greenpeace enacted a set of regulations that all its suppliers moldiness follow. The policies included a rule against clear-cutting, as well as other weighty environmental conventions.It seems that where there are problems between Brazil and Nike, there are alike opportunities (The Ends Report, 2009). Programs like this are exactly what Nike needs. not only do they foster trust and goodwill, they in like manner facilitate much required changes in Brazil. Without Nike the changes in the Brazilian leather industry might be knotty to encourage. The cattle lobby in Brazil is well funded and has many political ties making initiatives that may affect productiv ity baffling to pass. However, it seems that environmentally conscious Brazilians have gear up a solution and a collaborationist in Nike.In addition, Nike also headstrong to make its entire 2010 World Cup kit (a collection of football clothing) out of recycled bottles. This initiative took 13 million pliable bottles out of landfills. Furthermore, the Nike project created an association between Brazil and sustainability that will be seen all over the innovation (Al-Bawaba Reporters, 2010). Lastly, in recent years Nike has invested enormous amounts of money in the Brazilian football infrastructure. Nike is one of the read/write head supporters of the Brazilian Football Confederation and has across-the-board its contract with this association until 2018.In addition, Nike also sponsors all three of the largest football teams in the country (Sports Marketing Quarterly, 2006). This reflects a rule commitment to improving and fostering football in the Brazil. The support of such a large sporting powerhouse seems to have had some positive effects on Brazil in terms of their attraction as a host for future events. In the past year, Brazil secured the 2014 world cup. This event is extremely lucrative for topical anesthetic vendors (among other parties) and will allow Brazil to display its incredible culture on a worldwide scale. Bibliography