Nike Swot Analysis

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Nike.inc SWOT analysis
Strengths:
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Nike is a globally recognized for being the number one sportswear brand in the World.
Nike being a competitive organization has a healthy aver sion towards its competitors i.e. during Atlanta Olympics, Reebok expensed on sponsoring the games; Nike however sponsored the top athletes and due to this step, it gained valuable coverage. Nike has no factories; rather it uses contract factories to get the work done which makes it quite a lean organization. It has contracts with above 700 shops globally in about 45 different countries.

Nike is quite strong regarding its research and development; quite evident regarding its evolving and innovative product range.
They manufacture high quality at the lowest possible price, if prices rise due to price hike then the production process is made cheaper by changing the place of produ ction. It has a strong sense of marketing campaign by sponsoring top athletes. It uses lunarlite foam and flywire materials in order to make the manufactured shoes lighter and more controllable.

Nike, Inc is listed in NYSE and positioned as a US headquartered worldwide sportswear trader and supplier that: Contracts with about 700 shops worldwide, runs offices in 45 countries, and manages factories in China, Indonesia, Taiwan, Thailand, India, Vietnam, Philippines, Pakistan, and Malaysia.

Belongs to Fortune 500 companies which 2007 total re venue exceeded 16 b. USD Employs more than 30.000 people worldwide;
Owns strong marketing strategy under Nike brand that assumes the involvement of world top-class athletes and sportsmen in Nike s Just do it advertising campaigns; Operates a chain of Niketown retail stores;

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Leads its international business operations through acquisitions and re -branding: Converse Inc, 2003; Starter athletic clothing, 2004; Umbro, 2008; Nike s premium brand is used to manufacture and promote a wide variety of pro ducts for all types of sport-oriented and leisure activities; Manages the US premier training program SPARQ Training Program; Nike is a global brand. It is the number one sports brand in the World. Its famous Swoosh is instantly recognizable, and Phil Knight (born February 24, 1938 is the cofounder and Chairman of Nike, Inc.) even has it tattooed on his ankle.

Weakness:
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Even though the organization has a diversified range for sportswear, the income of the business, however, is still heavily dependent upon its share of the footwear ma rket which leaves it at a quite vulnerable spot if for any reason its market share erodes/falls.

The retail sector is very price sensitive. Nike does have its own retailer in Nike Town. However, most of its income is derived from selling into retailers. Retailers tend to offer a very similar experience to the consumer. Can you tell one sports retailer from another? So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Nike

Nike was for quite some time unwilling to disclose any type of information concer ning its partnering companies. It was charged with the violation of overtime and minimum wage rates in Vietnam, 1996

It was positioned as a subject of criticism by anti-globalization groups due to its unruly and exploited manner that was quite a disaster for its reputation. Unwilling to disclose information concerning its partnering companies, which caused harsh criticism from CorpWatch and other companies;

Contracts factories in Vietnam, China, Mexico, Indonesia;
Provides poor working conditions, and tends to exploit cheap workforce overseas, especially in free trade zones where;
Some of Nike s ads are associated with US female empowerment; In 1990s, Nike was reported to apply child labour in Pak istan and Cambodia to produce soccer balls; Contracts in overseas companies that apply non-transparent and inadequate labour...
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