Nike/ Reebok swot
Swot analysis
NIKE
1. Strenghts:
-Low manufacturing cost since the manufacturing chain comes from south Asia were labor costs are low.
-Since Nike does not own the physical factories, production can be switch to another location if necessary.
-Nike wass worth 15 billion in 2011. They have a strong position in the shoe market. For example their gem ''Just do it" has been recognized worldwide.
- High return on equity up to 24.5 % in 1993. Although the return on equity was 21.41 %, it still a very profitable company.
-Significant retail presence with more than 300 retail chaing carrying their products.
2. Weakness
-Profitably is highly dependant on the footwear industry since other products are not as strong. -Human rights violation by their contractors in South Asia. Below minimum wage pay in Indonesia and swet shops all over south Asia.
- Nike products can be pricey and are not accesible for low value customers.
3. Opportunity
- Increase presence in to emerging markets and developing countries. That way Nike can increase brand recognition.
- Expanding their other products rather than footwear. Nike should promote their other products as they promote footwear.
- Promote more social awareness with the Nike foundation. Nike should promote more campaigns to stop hunger and poverty.
4. Threats
- Strong competition from Adidas, Reebok and Puma.
- Accusations of poor work conditions.
- The increase of counterfeit products in overseas markets.
Reebok Swot Analysis.
1. Strengths
-Low manufacturing cost since the manufacturing chain comes from Asia were labor costs are low.
-Since Reebok does not own the physical factories, production can be switch to another location if needed.
- High return on equity up to 27.2 % in 1993. Today is own by Adidas. And generates about 10 % of Adidas net sales.
- Strong branding contracts with famous Athletes to promote their brand.
-Reebok has products in cheaper products as well as in higher value
NIKE
1. Strenghts:
-Low manufacturing cost since the manufacturing chain comes from south Asia were labor costs are low.
-Since Nike does not own the physical factories, production can be switch to another location if necessary.
-Nike wass worth 15 billion in 2011. They have a strong position in the shoe market. For example their gem ''Just do it" has been recognized worldwide.
- High return on equity up to 24.5 % in 1993. Although the return on equity was 21.41 %, it still a very profitable company.
-Significant retail presence with more than 300 retail chaing carrying their products.
2. Weakness
-Profitably is highly dependant on the footwear industry since other products are not as strong. -Human rights violation by their contractors in South Asia. Below minimum wage pay in Indonesia and swet shops all over south Asia.
- Nike products can be pricey and are not accesible for low value customers.
3. Opportunity
- Increase presence in to emerging markets and developing countries. That way Nike can increase brand recognition.
- Expanding their other products rather than footwear. Nike should promote their other products as they promote footwear.
- Promote more social awareness with the Nike foundation. Nike should promote more campaigns to stop hunger and poverty.
4. Threats
- Strong competition from Adidas, Reebok and Puma.
- Accusations of poor work conditions.
- The increase of counterfeit products in overseas markets.
Reebok Swot Analysis.
1. Strengths
-Low manufacturing cost since the manufacturing chain comes from Asia were labor costs are low.
-Since Reebok does not own the physical factories, production can be switch to another location if needed.
- High return on equity up to 27.2 % in 1993. Today is own by Adidas. And generates about 10 % of Adidas net sales.
- Strong branding contracts with famous Athletes to promote their brand.
-Reebok has products in cheaper products as well as in higher value