Nike in Brazil: a Host Country View

Negative set ups of Nike from brazils point of prospect brazil is speedily privatizing many industries and its attitude toward a free commercialise economy has changed signifi tin cantly in the past 10 eld. However, it seems the pastoral still has a perception that ofttimes times associates capitalism with greedy developed countries. If the sound judgement of brazil nuts president is a objurgation of how some of its people feel this is certainly the case. In 2008, brazils president lambasted US corporations and the US government for infecting his nation with problems that were not of its making (The newfound York Times, 2008). This attitude seems to start created some problems for brazil nutians in cost of their view of Nike. The kind of leverage and control that much(prenominal)(prenominal) a magnanimous company can observe on footb both game in the country is huge. This start was thrown into the light when in 1998 the Brazilian theme team lost in the origination cup finals to France. Earlier on in the year, Nike had invested a disgrace amount ($200 million US) for the right to booster the Brazilian national team in the World Cup.As a requisite for sponsorship, Nike demanded that the team gyp an inordinate amount of exhibition games leading up to the event. Many Brazilians, including Brazilian football legend Pele (who filed a lawsuit against Nike), still blame Nike for Brazils loss. They claim that the unusual number of exhibition games timeworn the players out. Similarly, another interesting problem is Nikes effect on competition in Brazil. Nikes youthful acquisition of UK sporting wear company Umbro allowed it to overlook Adidas as the biggest brand in the world of football (The Financial Times, 2007).This is particularly troubling for Brazilian retailers, who vexation about the c erstntration of brands between two large Multi-Nationals and the effect this might redeem on their business. Lastly, as with many interactions between MNCs and developing countries environmental issues have been a problem. Brazil is a long supplier of lash used for products like Nike shoes. However, some(prenominal) of the cattle that the leather comes from graze on what was once Amazon rain forest. A host of Brazilian ranchers have clear-cut entire swaths of rainforest in an attempt to puddle room for more cattle.This goes against Brazils need to preserve what is arguably its most precious natural resource (The Ends Report, 2009). In hereafter business interactions, Nike needs to be weary of development maneuver that could be perceived by the Brazilian people as greedy, dominating, or imperialistic. Such tactics whitethorn erode trust within the Brazilian population and could turn out to be a bigger PR headache than they be 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 its enormous buying capability Nike can actually 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 on with help 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 important environmental conventions.It seems that where there are problems between Brazil and Nike, there are to a fault opportunities (The Ends Report, 2009). Programs like this are exactly what Nike needs. non only do they foster trust and goodwill, they in like manner facilitate much needed changes in Brazil. Without Nike the changes in the Brazilian leather industry might be difficult to encourage. The cattle lobby in Brazil is well funded and has many political ties making initiatives that may affect produc tivity hard to pass. However, it seems that environmentally apprised Brazilians have found a solution and a partner in Nike.In addition, Nike also resolute to make its entire 2010 World Cup rig (a collection of football clothing) out of recycled bottles. This initiative took 13 million plastic bottles out of landfills. Furthermore, the Nike project created an affiliation between Brazil and sustainability that will be seen all over the world (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 chief supporters of the Brazilian Football conspiracy and has extended 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 direct commitment to upward(a) and fostering football in the Brazil. The support of such a large sporting powerhouse seems to have h ad some positive effects on Brazil in terms of their attractiveness as a host for future events. In the past year, Brazil secured the 2014 world cup. This event is extremely lucrative for topical anaesthetic vendors (among other parties) and will allow Brazil to break its incredible culture on a cosmopolitan scale. Bibliography