Nike Swot Analysis

Topics: Wage, Minimum wage, High school Pages: 4 (1392 words) Published: April 17, 2012
SWOT Analysis Nike

Very good Leadership is one of Nike’s strengths. Nike is a very competitive organization. Founder and Owner, Phil Knight is often quoted as saying that “Business is war without bullets.” Nike has a healthy dislike of its competitors such as Reebok and Addidas. This competition in the market results in the company to strive to have to best products and on the market. Nike sponsors the top athletes and gains valuable coverage through the media. Nike has no factories. It does not tie up cash in buildings and manufacturing workers. They manufacture wherever they can produce high quality product at the lowest possible price. If prices rise, and products can be made cheaper elsewhere Nike will then move production. Another one of Nike’s strengths is research and development; it is evident by its evolving and innovative product range. Nike is a global brand and is the number one sports brand in the World. Its famous 'Swoosh' is well known and is instantly recognizable. Weaknesses

The organization does have a diversified range of sports products like other companies. However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for some reason its market shares erode. The retail sector is very price sensitive. Nike does have its own retailer in Nike Town. However, most of its income is gained from selling into retailers. Retailers tend to offer a very similar experience to the consumer. So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Nike.

Product development offers Nike many opportunities. The brand is fiercely defended by its owners whom truly believe that Nike is not a fashion brand. However, like it or not, consumers that wear Nike product do not always buy it to participate in sport. Some would argue that in youth culture especially, Nike is a fashion brand. This creates its own...
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