SWOT Analysis Of Nike
Nike is a worldwide established brand providing sports and fitness related products. They are well established and currently hold 31% market share for fitness related apparel and 46% of market share in all sports footwear. (Market Watch). Another strength for Nike would be there huge sponsorship deals with the world’s biggest sports teams and sports stars which hugely increases the awareness of the brand by promoting and advertising their brand. E.g. Manchester United, Rory Milroy and Neymar Jr. in recent times.
The sponsorship and endorsements of all these huge sports teams and athletes comes at a huge cost which leaves them with a massive advertising bill of $909 Million in athlete endorsements and a total of $2.75 Billion in “demand creation” in 2013. (Portland Business Journal) . Nike is hugely reliant on the footwear market which makes up the bulk of their sales which may leave them vulnerable in the future. (Friesner)
Nike has the opportunity to increase sales through their e-commerce site which is a market that is growing every day. Nike currently has e-commerce sales of around $540 Million today which is expected to rise upwards of $2 Billion in years to come. (Value Line). A major opportunity for Nike would be growing markets such as China who have a huge population and a growing number of middle class citizens who would be ideal consumers for the Nike brand.
Threats to Nike include competition such as Adidas in the clothing and footwear departments and Under Armour and the North Face in the sports clothing departments. The high prices of Nikes goods may be a threat as consumers are now shopping around for the best deals.
Objectives and Issues
Although Nike is the world’s leading business in this industry it still has not established itself above the other company’s such as Adidas and Puma. The Objectives of this Marketing plan is to raise Nikes brand...
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