Impact of the Japan Tsunami 2011 Disaster on Tourism and Hospitality Industries

Impact of the Japan Tsunami 2011 Disaster on Tourism and Hospitality Industries Introduction Many countries of the world have witnessed catastrophic disasters of one form or another. However, some countries have had to deal with several destructive natural and man-made occurrences that have in turn hit the economic progress in those countries quite hard (Murata Katoh, 2010).Advertising We will write a custom essay sample on Impact of the Japan Tsunami 2011 Disaster on Tourism and Hospitality Industries specifically for you for only $16.05 $11/page Learn More Japan, for instance has experienced highly destructive disasters like high magnitude earthquakes, atomic bombs during the Second World War, tsunami, and nuclear crisis, coupled with numerous consequences of aftermath usually resulting in humanitarian crisis (Fraser, 2011).For Japan, Tsunamis are one of the most destructive phenomena due to its vulnerability. Tsunami is usually caused by the disturbances of the earth’s crust usually with a net vertical displacement of the ocea n base or its surroundings (Bradley Statler, 2011). Japan is currently the third largest economy world wide as well as one of the highest consumers of oil. This essay discusses short term and long term effects of the Tsunami on tourism and hospitality industries in Japan. It also focuses on the importance of a risk management strategic approach, the importance of applying risk plans and strategies like risk identification, analysis, monitoring, evaluating and reporting. Furthermore, the existing risk management processes and disaster recovery processes by the Japanese government and other business operations as well as the necessary risk management processes for the management of a business in vulnerable regions are explored. Short Term and Long Term Effects of the Tsunami It is important to note that most countries found along the major oceans and seas are the most vulnerable to the most destructive tsunami.Advertising Looking for essay on communications media? Let's see if we can help you! Get your first paper with 15% OFF Learn More Countries found along the Pacific Ocean have been the most affected but also those found along the Atlantic and Indian Oceans as well as in the Mediterranean Sea have felt the impact of tsunami (Satake Borrero, 2007). Most coastal regions in the Pacific countries are highly populated due to the fact that the inland regions are usually mountainous and inhabitable compared to the relatively flatland in the coastal areas (CRTWFSONTP NRC, 2011). Most economic activities in these countries involve international trade and a number of people operate large fleets of ships and the ports are well developed. The countries in the Pacific Ocean especially those with extensive continental coastal areas use small coastal ships as means of transport. This has necessitated the development of many small ports to facilitate inter-island economic activities. Japan for instance have numerous ports as well as well develope d shipbuilding facilities, nuclear energy plants, engineering structures, aqua culture industries, electric plants, refineries and other crucial structures and infrastructure (Fraser, 2011). With this wealth of resources, it is evident that Japan and other countries in the major oceans are socially and economically vulnerable to the effects associated with tsunami. The earthquake and subsequent tsunami that visited Japan in March 11, 2011 will remain one of the most destructive occurrences over a very long period of time.Advertising We will write a custom essay sample on Impact of the Japan Tsunami 2011 Disaster on Tourism and Hospitality Industries specifically for you for only $16.05 $11/page Learn More The earthquake was so huge that it read 8.9 magnitudes against the Richter scale setting off a massive tsunami (Prothero, 2011). Thousands of people have been confirmed dead, thousands have been displaced, similar range of number is still missing, and the infrastructure in the affected area has been massively destroyed. These have numerous short and long term economic and social effects both at the national and international level. The Dow Jones Industrial Average dropped far below the daily support level which ranges between 11,000 and 12,000. This has been a key indicator for most traders and economists and hence has significant implications. The price dynamics in any given market is of interest to participants and this has been witnessed in Japan as a result of the Tsunami crisis. They have been interested in determining the impact of the disaster on the Japanese as well as global economy (OECD, 2011). Market volatility increased significantly causing a drop in major currencies and indexes which in turn reversed all the gains that had been made earlier on. During the period, volatile short term impacts were felt with the dollar falling against the Japanese yen. The prices in the stock have rapidly dropped giving great opportunitie s only to those who may wish to buy shares. The general economic growth may decrease just for a short period of time as a result of the post-disaster effects.Advertising Looking for essay on communications media? Let's see if we can help you! Get your first paper with 15% OFF Learn More Tsunamis remain to be one of the most destructive phenomena usually with immediate and long-lasting effects. The recent Japanese tsunami caused great loss of lives and most coastal infrastructure were massively destroyed. The rice fields were swept away when the tsunami waves spread over 8 kilometers into the inland regions (Bradley Statler, 2011). The impacts of this natural phenomena range from human, social, economic, and cultural in nature. The immediate effects may be too shocking and raising much uncertainty. However, it is generally believed that the impacts and recovery efforts could turn to be beneficial to Japan and even help the country surpass initial productive levels. Impact of the Tsunami on the Tourism and Hospitality Industries The disastrous effects of the tsunami that occurred in Japan have had direct impacts on the transport and tourism sector worsening the risks posed by the effects of a staggering economic recession since 2008/2009 financial year (Jones Phili ps, 2011). Shortly after the earthquake and tsunami were reported, both the inbound and outbound travel arrangements by hundreds of people were canceled. This was expected to extend for many months due to the destruction caused by the tsunami and earthquake as well as the not-easy to fade fears of after-shock and similar catastrophic phenomena (Macdougall, 2011). A number of countries in the world advised their citizens to avoid travelling to Japan during the disaster period until they are advised otherwise. This had direct impact on the Japanese tourism industry. Regional tourism business association recorded reduced bookings from the affected regions of Japan (the North Eastern prefectures) and this was expected to go on for the better part of the year which will result in significantly low earnings. The tsunami also triggered fears across other regions in the Pacific and hence many tour arrangements had to be temporarily suspended which in turn affected the tourism sector in thos e countries (Bradley Statler, 2011). For instance, tourists from Thailand cancelled their trips to Japan for fear of another earthquake and tsunami and related chain of effects like the nuclear power crises. Other airlines cancelled their flights to Japan soon after the country was hit by the earthquake and tsunami. It is not possible to talk about the tourism sector without mentioning the hotel and hospitality industry (Satake Borrero, 2007). Furthermore, major tourist reception centers were temporarily closed as well as other recreation and entertainment events which had been scheduled had to be abruptly halted. This implied that the income that would be generated were lost as a result of the tsunami disaster. Many businesses and other investments were massively destroyed and hence several people lost their livelihoods. Their appetite for travel would definitely be lost as a result of the tragic occurrences in Japan. The beach resorts in the affected areas were thriving before t hey were virtually wiped out by the earthquake and the subsequent tsunami (OECD, 2011). During summer period, thousands of tourists would choose these as their destinations due to their attractive nature. The first class guest houses that shone on the Japan’s northeastern coastal region were no more after the devastating effects of the tsunami. The accommodation services were strategically located since most tourists visit this region to collect shellfish, take boat tours of the numerous islands covered with pine, as well as eat the oysters commonly found in the bay (Jones Philips, 2011). They have remained to be the major Japanese tourist trails but they were no more after the wrecking impacts of the disaster (Satake Borrero, 2007). The major coastal towns in the northeast of Japan were literally washed away by the 10-meter tsunami waves that extended almost 10 kilometers inland, crushing down executive buildings, taking thousands of lives, and subsequently causing massive loss of jobs (Jayasuriya McCawley, 2011). The train network has also been a major facilitator of tourist activities in Japan. However, the major stations were jumbled up with the connecting tracks along the coastal region having been torn away and twisted beyond any immediate repair. This has had immeasurable impact on both the hospitality and tourism industry in Japan, particularly the areas bearing the brunt of the tragic events (Bryant, 2008). Moreover, the major tourist attraction features like the outstanding cliffs on the island of Miyatoshima were brought down by the forceful force of the tsunami waves. The magnificent bridge connecting to the island was swept away and tourists will not be able to visit the island until it has been rebuilt (Macdougall, 2011). This has direct impact on the tourism industry as it will take a while before the tourists chose this destination. As an inducement to woo tourists to visit Japan, holiday prices will have to drop significantly implyin g that the sector will get very low overall revenues. Existing Risk Management Processes and Disaster Recovery Processes Despite the fact that mankind has been faced with catastrophic physical phenomena since antiquity, it is evident that little can be done to prevent natural occurrences (Murata Katoh, 2010). These may include earthquakes, floods, droughts, volcanic activities, hurricanes, and high-magnitude tsunami. Although they may happen infrequently, their human, social, and economic effects are usually detrimental. People in vulnerable areas have learnt how to adapt to the otherwise life-threatening conditions. Before man became inventive, such events were experienced passively with little if any effort to prevent them. However, as the years went by, humankind has made effort to reduce the negative impacts of such activities like the number of lives lost, and property destruction (Macdougall, 2011). There is need for proper planning in the vulnerable areas if the associated ri sks are to be significantly minimised. A number of factors must be considered when planning to deal with the tsunami crisis (Hebenstreit, 1997). Apart from understanding the physical orientation of the tsunami itself including how it is usually manifested in each specific geographic area, it is paramount to be acquainted with the general physical nature, social and cultural factors (Edgar, 2011). The areas in the identified vulnerable zones have relatively different degree of vulnerability from each other (OECD, 2011). The frequency of tsunami in the Pacific Ocean is usually very high and hence the regions in this part of the world have received much attention from the hazard management bodies. There is need to consider the possibility of a tsunami when initiating development projects in the coastal regions. Land use practices along the coastlines have been greatly influenced by the unfavorable conditions in the rural or interior regions which are most mountainous (Satake Borrero, 2007). Despite the willingness to risk, government agencies in these countries ought to encourage people to live in the interior of the country where they are assured of safety and minimal risk compared to the coastal regions (Prothero, 2011). This implies that governments should also distribute development projects to these areas in order to attract more people out of the comparatively populated coastal areas. Furthermore, the government agencies should introduce land use policies which regulate investments in the coastal area with an aim of reducing the impact of tsunami once it occurs (Hebenstreit, 1997). Areas which have been known to sustain the impacts of massive tsunami should be identified as the best area for investment. High risk regions should be classified as such and people as well as government discouraged from investing heavily. Planning is therefore very important both to the government and industry development regimes since it helps in minimizing hazards related to tsunami and other natural events. As already mentioned, technological advancements in the modern days have facilitated the prevention of massive destruction as a result of natural catastrophic phenomena. It is possible to tell the possibility of a tsunami using sophisticated technological instrumentation (CRTWFSONTP NRC, 2011). These devices are designed to collect important data which are in turn used to communicate warning signs of a probable tsunami. Countries in the vulnerable regions have developed ultramodern technologies for issuing warning signs (Edgar, 2011). These countries include the Soviet Union, Japan, the United States, and Canada. As a measure of enhancing preventive approaches, the countries have agreed to share sensitive but crucial information that may help in evading the impacts of tsunami and related disaster found in the Pacific (Hebenstreit, 1997). They have developed specific oceanographic centers for this purpose and strategic positioned so as to enhance th e accuracy of the data collected through regular observation and measurement (Satake Borrero, 2007). One of the major centers to have been developed is in Honolulu where there is the Pacific Tsunami Warning Center (PTWC) operated by the United States National Weather Service and is currently the most trusted international source of tsunami warnings (Tankut, 2009). This station is linked to other stations dealing with specific factors associated with tsunami. There are a number of separate stations for monitoring seismic waves, others for observing ocean/sea tides and numerous information dissemination centers spread across the entire Pacific Basin in the different member countries (Bryant, 2008). Basically, the International Tsunami Warning System aims to detect as well as tell the location/epicenter of major earthquakes occurring in the Pacific area, determine whether they have the potential of causing tsunami, and subsequently issue timely and effective warnings and other importa nt information to the concerned populations in order to reduce the hazardous effects on humankind and property (CRTWFSONTP NRC, 2011). The earliest information about the Japan earthquake and subsequent tsunami was disseminated by the PTWC. It is important to understand how this warning systems functions. First, any of the recognized seismic observatory system detects an earthquake of significant magnitude of about 6.5 or more on the Richter scale (Tankut, 2009). Such earthquakes usually draw a lot of interest for investigation. The next step is for the PTWC to gather sufficient data of an earthquake and then determine its magnitude. When the information indicates that a possible tsunami is a threat to the people living in a given region, a warning message is disseminated to other agencies which are responsible for transmitting to the members of the public (Kumar, 2009). Thirdly, it is the duty of these agencies to act in advance in determining the appropriate immediate measures tha t will help move people to safe areas. If in case the tide stations later reveal that the negligible tsunami was generated, the PTWC reverses earlier warning. In most Pacific areas where there are frequent tsunamis, several warning stations have been established (Satake Borrero, 2007). Although the tsunami warning systems cannot be said to be excellent in predicting tsunamis, they help in sensitising about the potential hazards of the tsunami and hence facilitate the conviction of the members of the public to evacuate (Bryant, 2008). It is through these warning systems that many lives have been saved from the devastating effects of the tsunami and other natural catastrophes. However, failure by the members of the public to have confidence in government agencies has caused varying awareness of the tsunami disaster. This has been occasioned by the use of inadequate data and knowledge to make over-warning of tsunami which in turn unnecessary alarms. Regular incidences of false warning s have caused laxity when it comes to responding to subsequent warnings (Murata Katoh, 2010). Often, failure to comply with warnings has resulted in unnecessary loss of lives and destruction of businesses. There is need, therefore, for the education of members of the public on the risks associated with tsunami. Fortunately, newer technologies are enabling more accurate prediction of tsunami and the potential risks. Necessary Risk Management Processes for the Management of a Business in Vulnerable Regions Being a seismically active region, Japan has over the ages enhanced its ability to deal with the various natural disasters associated with it like high-magnitude earthquakes, floods, tsunami, and so forth (Kumar, 2009). It has developed mechanisms of detecting as well as responding to such natural crises in order to minimize their potential impacts. For a long period of time now, the legal system in Japan has not taken into consideration the risk posed by natural disasters (OECD, 2 011). In 1961, the Basic Law for disaster management was developed. With the continued emergence of both natural and artificial disasters, the public sector risk management took center stage in such cases. In the 21st century, there is need to develop appropriate risk management processes that will help in the management of businesses in the vulnerable areas. Importance of a Risk Management Strategic Approach It is ultimately necessary to have risk management strategic approaches in place in disaster prone areas. Businesses by multinational corporations, small-medium sized enterprises, the public sector, as well as communities are prone to disasters which may be beyond the control of the management and the policy makers (Murata Katoh, 2010). These risks range from high prices of commodities and services, business and market conditions, disruption of operations, technological changes, natural catastrophes, and so forth. Available strategies that I would need to address these risks a re varied. In the case of natural disasters, there is need for strategic risk management approaches. Businesses should be prepared to respond accordingly to unexpected events by taking maximum precautionary measurers in advance (Edgar, 2011). The management should be able to deal with market volatilities associated with the disasters through the formulation of appropriate risk management strategic approaches. Importance of Applying Risk Plans and Strategies The risk plans and strategies must be applied in a systematic manner if risks are to be minimised and these include; Risk identification, Analysis, Monitoring, Evaluation and Reporting. The first step in setting up a formal risk management process involves the classification of factors that influence businesses in vulnerable regions. Next, the vulnerability to the various types of risks are analysed and the potential effects estimated. The associated losses help in the determination of possible benefits if risks are mitigated (Ja yasuriya McCawley, 2011). The success of risk management process requires continuous monitoring and evaluation of how the measures taken are performing. This implies that the formal risk management strategy is an ongoing process and hence calls for regular reports of how the business under consideration is performing. It is through these reports that new interventions are introduced in order to reduce risks and maximise the existing opportunities before the anticipated disasters strike. Conclusion Despite the fact that there has been advancement in technology over the past few decades, it is still not easy to issue timely warnings of earthquakes and tsunami in highly vulnerable Pacific regions like Japan. The impacts of the recent earthquake and tsunami in Japan are very significant. The effects were both short term and long term. However, the tourism and hospitality industries were the most affected with far reaching economic and social implications. About 25,000 thousand people w ere left dead as well as missing, and thousands were left injured as a result of the destructive tsunami triggered by the 9.0-magnitude earthquake. It has emerged from the discussion that the disastrous effects of the tsunami that occurred in Japan have had direct impacts on the transport and tourism industries. Shortly after the earthquake and tsunami were reported, both the inbound and outbound travel arrangements by hundreds of people were canceled. This was expected to have long-term effects on the tourism industry. Many countries have also advised their citizens against travelling to Japan during the disaster period. This has had direct impact on the Japanese tourism industry. The hospitality industry has also not been spared. Due to the reduced number of visitors into the country, many hotels and guest houses have recorded decreased number over the disaster period, particularly in the North Eastern prefectures. A number of effects on the tourism and hospitality industries have been discussed broadly in the paper. The paper has also pointed out the importance of risk management strategic approaches, the importance of applying risk plans and strategies like risk identification, analysis, monitoring, evaluating and reporting. Furthermore, the existing national and international risk management processes and disaster recovery processes by the member countries and how they function in vulnerable areas have been discussed. Therefore, it is evident that the recent tsunami disaster in Japan has directly affected both the tourism and hospitality industries and a lot of reconstruction will need to be done if they are to thrive all over again. References Bradley, P. K. Statler, M. (2011) Encyclopedia of Disaster Relief. SAGE Bryant, E, (2008) Tsunami: the underrated hazard. Springer Committee on the Review of the Tsunami Warning and Forecast System and Overview of the Nation’s Tsunami Preparedness (CRTWFSONTP) National Research Council (NRC) (2011) Tsunami Warning and Preparedness: An Assessment of  the U.S. Tsunami Program and the Nation’s Preparedness Efforts. National Academies Press Edgar, T. (2011) The Pearson General Knowledge Manual 2011. Pearson Education India Fraser, T. L. (2011) Body Connection. Xlibris Corporation Hebenstreit, G. T. (1997) Perceptions on tsunami hazard reduction: observation,  theory and planning. Springer Jayasuriya, S. McCawley, P. (2011) The Asian Tsunami: Aid and Reconstruction  After a Disaster. Edward Elgar Plc. Jones, A. L. Philips, M. (2011) Disappearing Destinations: Climate Change and the  Future Challenges for Coastal Tourism. CABI Kumar, M. J. (2009) Natural Disasters: Vulnerability, Preparedness and Mitigation. Springer Macdougall, D. (2011) Why Geology Matters: Decoding the Past, Anticipating the  Future. University of California Press Murata, S. Katoh, K. (2010) Tsunami: to survive from tsunami. World Scientific Organization for Economic Co-operation and Development (201 1). OECD economic  surveys: Japan. Author Prothero, D. R. (2011) Catastrophes!: Earthquakes, Tsunamis, Tornadoes, and Other  Earth-Shattering Disasters. JHU Press Satake, K. Borrero, J. C. (2007) Tsunami and its Effects in the Indian and Pacific  Oceans. Springer Tankut, A. T. (2009) Tsunamis and Earthquakes: Civil engineering Disaster  Management. Springer

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Marketing Strategy and Economic Changes Essay Example for Free

Marketing Strategy and Economic Changes Essay Marketing Strategy and Economic Changes Introduction   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Many organizations and business entities have developed and expanded their operations across the world as a result of the great developments which have been experienced in various economies across the world. One of the major issues that have contributed to the growth of organization is their strategies in marketing their products and services so that the consumers are aware of what they are offering. Marketing strategies when implemented properly often bring good returns to a company in terms of increased market share, increased sales as well as increase in the profitability(Larson, 2011).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Failure of a company to have effective marketing strategy can result in failure and collapse of the business since the company is not able to promote its products and influence the purchasing behaviour of the consumers (Parker, 2011). It is important that an organization should formulate a marketing strategy that will enable it realize its objectives and goals in the short and long run. However, there are changes in the economy which may affect the marketing strategies which an organization applies for its products so that it can be able to stay in the market. Economic issues such recession and depression in the economy may force a company or an organization to change the strategies and adopt new ones that will not affect the company negatively. Nike Inc is a multinational organization that deals in sportswear in terms of clothes as well as shoes for all groups of people(Nike: The Future Of Marketing, 2012). Nike Inc   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Nike Inc is a worldwide known brand of sportswear designer, manufacturer as well as distributor and seller across the world. The company is known to produce one of the top quality brands of products that are used across different sports in the world. The company has been in the forefront in ensuring that its marketing strategies are effective and capture the market as well as help it stay on top of the competition(Zakrevskaya, Mastracci, 2013). The marketing strategies which the company has been using include brand promotion and commercials with the endorsement of famous celebrities in the sports field. The company uses successful sports professionals, college teams as well as celebrities who they sponsor using their products(Nike: The Future Of Marketing, 2012).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   When the successful sports professional such as Michael Jordan are seen by consumers to use the products of the company, there are high chances that the consumers will be influenced to purchase the products since someone that is successful has recommended them and also makes use of them(Larson, 2011). This marketing strategy of using celebrities and successful sports persons builds the notion in consumers that they too can have the same experience as the sports persons that use the same products and also show their association with the persons of their choice. The company has also made use of marketing segmentation as part of its marketing strategy. Nike Inc has majority of the sportsmen as its consumers (Nike: The Future Of Marketing, 2012).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   However, changes in the global economy can have negative impacts and influence the marketing strategies of the company. As mentioned earlier, economic factors such as the occurrence of recession, as well as depression are some of the economic factors which can influence and impact the marketing strategies of the company(DATAMONITOR: NIKE, Inc., 2012). The impacts of the economic changes can be analysed in terms of the effect on the competitive advantage of the company, targeting, market segmentation as well as positioning in addition to branding of products. Impacts of Economic Changes Competitive Advantage   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Economic recession and depression are the major economic changes that can greatly affect the marketing strategies that Nike Inc applies. During the economic recession and depression, it means that there is less supply of cash and that people do not have enough to sustain their normal purchasingbehaviour(Zakrevskaya, Mastracci, 2013). The products that Nike Inc offers to the consumers, especially the sportsmen are often of high price. Recession and depression will mean that the company will have to look for new marketing strategies which can still help sustain its profitability. Sponsoring of the sportsmen is the primary marketing strategy which the company has used for many years and has been seen to be effective (OnurTaÅŸ, CunedioÄŸlu, 2014).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Therefore, during recession and depression, Nike Inc will be forced to forgo some of the sponsorships since it will not be able to sustain the sponsorships which are often free to the athletes in return for the athletes wearing the brands of the company(DATAMONITOR: NIKE, Inc., 2012). The company would want to reduce its costs in sponsoring during the recessions and depression since many people at this time do not have enough funds to spare which they can spend on high-end products such as those of Nike. Companies that produce substitute products which are cheaper will have an added advantage compared to Nike (Groucutt, Forsyth, Leadley, 2004). Consumers would want to purchase less of the high-end products hence accusing Nike Inc to lose its competitive advantage to the competitors that offer cheaper products. Segmentation, Targeting and Positioning   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Nike Inc is a well-known brand and often uses marketing segmentation as a way of promoting is products. The market segment that the company has engaged in is the sportsmen segment in the market (DATAMONITOR: NIKE, Inc., 2012). The primary target has been athletes and people that engage in sporting activities across the world from different age groups. This means that the company relies heavily on sports to promote and sell its products. Therefore, when there is economic recession and depression, the company may want to adapt a new market segment, that of those that are not involved in sports(OnurTaÅŸ, CunedioÄŸlu, 2014). However, the marketing segmentation and targeting of the non-sporting groups will mean that the company has to adjust the pricing of its products.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Furthermore, the targeting strategy of the company will be affected negatively since it will need to change from just sponsorship of the sportsmen but also to check on diversity of its products. Under positioning in the market, Nike Inc has been able to position itself strategically across the globe in many countries(Zakrevskaya, Mastracci, 2013). The company operates in different countries hence has a global presence which is good for the company. The economic recession and depression will not have a major impact on the positioning of the company as it already has a global presence. However, it may have to look at other markets that are developing where the market may not be greatly affected by the changes in the global economy(MacEwan, Miller, 2011). Branding   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The other aspect of marketing strategy that may be affected by the negative economic changes in the global economy is branding. Nike Inc has been observed to have a strong brand that commands a huge market share as compared to other competitors(Lee, Ha, 2012). The branding of the company’s product will not be affected since the company has a fully established brand that is well known and has a great market share in sports. Impact on Consumer Behaviour   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Changes in the global economy, especially issues such as recession and depression in the economy will have an impact on the consumer behaviour and how they make their purchasing decisions; especially regarding the products of Nike Inc(MacEwan, Miller, 2011). Consumers depend on their income to purchase products and when the global economy faces issue such as recession and depression, their income is likely to be affected. Therefore, the consumers in this case will shy away from high-end products since they are expensive.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   According to the law of demand, when the price of an item is high, there are chances that the demand may decline. Income is a determinant factor hence the purchasing behaviour of the consumers will change with consumers seeking for more urgent needs such as food and clothing and other needs instead of spending their money on sportswear (Zakrevskaya, Mastracci, 2013). Therefore, Nike will be forced to seek alternative marketing strategy which will still appeal to the consumers such as offering of discounts and providing affordable products. Consumers during recession and depression will often seek for substitute products that can still function the same way as the primary product hence they will opt to purchase other types of clothing that can still perform the functions of Nike products. Growth Opportunities   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The global economy is constantly experiencing growth which continues to create opportunities for many companies in the world, Nike Inc included, to grow and expand on their business. Nike Inc has potential for growth in various areas based on the technological developments which have continued to increase innovation and creativity (MacEwan, Miller, 2011). Furthermore, the many policies in various countries on business have been changed to open up borders for international trade in various countries across the world which means an increase in the potential market for the products of the company. The growth opportunities that the company has include the growing global market for footwear as well as the growing opportunity in online retail. Global footwear market   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Over the recent years, there has been tremendous growth that has been experienced in the global market on footwear which provides Nike with an excellent opportunity to grow its business (NIKE, Inc. SWOT Analysis, 2014). The company has a strong brand portfolio as well as strong marketing strategies which if properly managed will enhance the business. As mentioned, there has been a lot of reduction in trade barriers in many countries across the world through trade treaties which have opened up new markets especially bin developing countries.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The global market for footwear has grown over the years and in the year 2012; the revenue generated amounted to about $256.6 billion. The European markets as well as the Asian markets have also experienced growth over the years which provide a great opportunity for the growth of the company (Lee, Ha, 2012). The global footwear market is poised to grow a lot and hence Nike should take up the opportunity since there is a growing demand among consumers for footwear products that are comfortable. Online Retail   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The other growth opportunity that Nike Inc has is online retailing. Over the years, there has been a growing trend among consumers to make purchases online as a result of the technological as well as the development of the internet(NIKE, Inc. SWOT Analysis, 2014). Consumers over the recent past have been seen to prefer online purchasing which they consider to be affordable, efficient as well as convenient. Therefore, Nike Inc, through its website and creation of an online store for its products, can growth in the future (Larson, 2011). References DATAMONITOR: NIKE, Inc. (2012). NIKE, Inc. SWOT Analysis, 1-10. Groucutt, J., Forsyth, P., Leadley, P. (2004).Marketing: Essential principles, new realities. London [u.a.: Kogan Page. Larson, D. (2011). Global Brand Management Nikes Global Brand.ISM Journal OfInternational Business, 1(3), 1-14. Lee, K., Ha, I. â€Å".(2012). Exploring the Impacts of Key Economic Indicators and Economic Recessions in the Restaurant Industry.Journal Of Hospitality Marketing Management, 21(3), 330-343 MacEwan, A., Miller, J. A. (2011).Economic collapse, economic change: Getting to the roots of the crisis. Armonk, N.Y: M.E. Sharpe. NIKE, Inc. SWOT Analysis. (2014). NIKE, Inc. SWOT Analysis, 1-8. Nike: The Future Of Marketing. (2012). Marketing (00253650), 28. OnurTaÅŸ, B. K., CunedioÄŸlu, H. E. (2014). HOW CAN RECESSIONS BE BROUGHT TO AN END? EFFECTS OF MACROECONOMIC POLICY ACTIONS ON DURATIONS OF RECESSIONS.Journal Of Applied Economics, 17(1), 179-198. Parker, J. A. (2011).On Measuring the Effects of Fiscal Policy in Recessions.Journal OfEconomic Literature, 49(3), 703-718. Zakrevskaya, O., Mastracci, S. (2013). Differential Effects of the Great Recession by Household Type.Challenge (05775132), 56(6), 87-114. Source document