outreach letter and proposal
sasseventy
JointVentureBusinessProposalforSasseventy11.docxRunning Head: BUSINESS PROPOSAL 1
BUSINESS PROPOSAL 5
BUSINESS PROPOSAL
Author’s Name
Institution Affiliation
Executive summary
Global trade is becoming more competitive each day because new enterprises with new ideas emerge and they are a threat to the incumbent companies in the industry that have dominated for a long. Regardless of how long we have stayed in the industry, our position is under constant threat because each enterprise in the industry is thinking of various ways it can reinvent itself and attract more customers for more growth. With this in mind, Nike and Tamimi’s outlet has dominated their respective industries and they can leverage their strengths by entering into a partnership that can increase their market reach globally. The partnership will see all Tamimi’s outlets display and sell Nike products including shoes.
Tamimi is a trusted brand in Saudi Arabia, the group has established itself in the country for many years and it is well-known for providing numerous quality products in different sectors. The said partnership will benefit both parties with more revenue and profits. The venture will be a strategic move because it will not include marketing costs since the two parties are trusted brands in their respective fields. The venture will allow the Nike Company to penetrate the Saudi Arabia market while Tamimi will generate more sales as a result of providing products from a trusted brand globally.
Owing to Saudi Arabia's large population, the partnership will lead to a significant increase in revenue for both companies. The country’s economy is growing rapidly and the government takes actions to promote involvement in physical activities and this implies that most people will be glad to visit multiple Tamimi’s outlets to purchase basic commodities as well as Nike sporting equipment such as uniforms and shoes. The venture seeks to generate over $13 billion which will be shared equally by the two companies. To understand the potential of the partnership, the next parts give background information about the two enterprises.
Nike company background information
Nike is an American based multinational company that designs, develops, manufactures, and sells sporting equipment such as footwear, equipment, apparel, services, and accessories. It is the largest producer of athletic apparel and shoes. The company is committed to doing everything possible to promote human potential. To achieve this, the company creates groundbreaking innovations in the sporting industry so that its products are sustainable (Sichol, 2019). The company has been successful due to the innovation mission that has given it a competitive edge through the designing of footwear that is not only used for sporting activities but also fashion and leisure. The shoes are designed with a comfortable feel that makes them unique and most sought after.
One of the company’s most popular shoe designs is sneakers. The product has been in existence for many years and it is redesigned and given a new name regularly. Each new release comes with new features that give sneaker fans a reason to purchase it. To enhance its global reach, Nike products are produced or sold by independent enterprises that act as sales representatives, distributors, and licensees. Nike’s historic points can be associated with its advertisements. The company has had some of the most influential advertisements in history. These advertisements have contributed to the company’s historic sales.
Nike’s milestones and unique aspects include its strategy to target women with its products. To take care of women's tastes, the company has taken action to revise its sizing options so that it can produce sports shoes and sneakers that favor women. Some of the vintage sneakers that were designed without considering women have been redesigned to reach women who may wish to have them.
Tamimi background information
Tamimi is a group of companies that operate in Saudi Arabia. The group operates in different sectors of the country’s economy where they offer supplies, catering, hotels, supermarket chains, transportation services, and road construction. It is one of the fasted growing companies in the country. Although the companies have specialized in different areas of the economy, they have strongly established themselves as the leading outlet stores and supermarkets whose mission is to offer the best products to the people of Saudi Arabia at the lowest prices possible (Mansour, 2019). To embrace consumers’ diversity, the company imports from different countries such as Canada, Brazil, Chile, Egypt, Australia, Mexico, France, Syria, China, Lebanon, and the USA.
Besides food products, the group’s outlet stores import other consumer products from other countries to give its stores a diverse stock from which customers can select from. Some of these products include footwear, clothes, family appliances, and other commodities. These commodities are made locally according to the country’s culture while others are imported from different countries that offer the best products. One of the group’s powerful strategies is the unveiling of the Grab and Go option that allows customers to purchase the best products at their most convenient time. The solution saves time because the payment mechanism is implied such that consumers can purchase without interacting with the sales personnel.
Tamimi’s success is associated with its strategy of serving customers with commodities at affordable prices. Through this approach, the group has remained relevant in the country and it has been recording a continuous revenue growth. Additionally, the group has taken most of its stores to online platforms such as Facebook, Twitter, and Instagram for easy product promotion and that has been working effectively.
Reference
Sichol, L. B. (2019). From an Idea to Nike: How Marketing Made Nike a Global Success. Houghton Mifflin Harcourt.
