Marketing and Nike Swot Analysis Essay

Nike Swot Analysis Strengths * A very professionally competitive company. * Has ownership of no physical factories so production can be moved to a more cost effective location when necessary. * Very well branded among consumers. * Offers their products worldwide. * Have offices in forty five different countries. * Fortune 500 company. * Employs over thirty thousand people across the world. * Has a very strong marketing campaign that increases brand familiarity. * Chains of retail stores such as Niketown. * Has ventured into many different rebranding opportunities with successful results. * Providing lightweight shoes by incorporating lunarlite foam materials. Read more: http://www.quality-assurance-solutions.com/swot-analysis-nike.html#ixzz2IzMDg4a0 Swot Analysis Nike Weaknesses * Profits are largely dependent on the footwear products while other branded products are not as strong. * History of violations of over time laws and minimum wage rates in Vietnam. * Accusations of poor conditions in the work place. * Accusations of exploiting workforces that will work for cheap in overseas countries. * Constant focal point for negative criticism by the anti-globalization groups. Read more: http://www.quality-assurance-solutions.com/swot-analysis-nike.html#ixzz2IzMHweg2 Swot Analysis Nike Opportunities * Creating sportswear items by incorporating the waste from regular manufacturing. * Stepping into the line of economy boosting projects that will encourage recycling. * Product development that changes as the trends change. * Expansion into sport sunglasses and jewelry lines. * Expansion in the global markets to create larger brand recognition. * Reducing controversy surrounding their trade and production practices. Read more: http://www.quality-assurance-solutions.com/swot-analysis-nike.html#ixzz2IzMJaFq6 Swot Analysis Nike Threats * Operating business internationally opens them to the possibilities of currency value fluctuations that can lead to losses. * Competitors are becoming more aggressive and creating high quality products that are taking from the profits of NIKE. * Sensitivity to price among consumers leads them to purchase the most cost effective pair of sports shoes. * Maintaining the reputation of being eco-friendly. * Managing the financial conditions in the economy today. Read more: http://www.quality-assurance-solutions.com/swot-analysis-nike.html#ixzz2IzMLVeVp SWOT Nike February 26, 2010 By Hitesh Bhasin Leave a Comment SWOT ANALYSIS Strengths: * Nike is the world’s no. 1 shoemaker. It designs and sells shoes for a variety of sports including baseball, golf, cheerleading, volleyball, tennis and football. * Nike uses a â€Å"Make to Stock† customer order which provides a fast service to customers from available stock. * Nike operates Nike Town shoe and sportswear stores, Nike factory outlets and Nike Women shops. Nike sells its products throughout US and in more than 180 countries. * Nike is strong at research and development, as is evidenced by its evolving and innovative product range. They then manufacture wherever they can produce high quality product at the lowest possible price. * Nike is a global brand. It is the number one sports brand in the World. Its famous ‘Swoosh’ is instantly recognizable, and Phil Knight (Founder and CEO) even has it tattooed on his ankle. Weaknesses: * The income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes. * The retail sector is very price sensitive. However, most of its income is derived 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. Opportunities: * 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 consumers that wear Nike product do not always buy it to participate in sport. In youth culture especially, Nike is a fashion brand. This creates its own opportunities, s * There is also the opportunity to develop products such as sport wear, sunglasses and jewellery. Such high value items do tend to have associated with them, high profit * The business could also be developed internationally, building upon its strong global brand recognition. There are also global marketing events that can be utilised to support the brand such as the World Cup (soccer) and The Olympics. Threats: * Nike is exposed to the international nature of trade. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. Such an exposure could mean that Nike may be manufacturing and/or selling at a loss. This is an issue that faces all global brands. * The market for sports shoes and garments is very competitive. Competitors are developing alternative brands to take away Nike’s market share. SWOT Analysis Nike, Inc. Would you like a lesson on SWOT analysis? Strengths. * Nike is a very competitive organization. Phil Knight (Founder and CEO) is often quoted as saying that ‘Business is war without bullets.’ Nike has a healthy dislike of is competitors. At the Atlanta Olympics, Reebok went to the expense of sponsoring the games. Nike did not. However Nike sponsored the top athletes and gained valuable coverage. * Nike has no factories. It does not tie up cash in buildings and manufacturing workers. This makes a very lean organization. Nike is strong at research and development, as is evidenced by its evolving and innovative product range. They then manufacture wherever they can produce high quality product at the lowest possible price. If prices rise, and products can be made more cheaply elsewhere (to the same or better specification), Nike will move production. * Nike is a global brand. It is the number one sports brand in the World. Its famous ‘Swoosh’ is instantly recognisable, and Phil Knight even has it tattooed on his ankle. Weaknesses. * The organization does have a diversified range of sports products. However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes. * 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. Your marketing qualification We’re delighted to offer you online marketing courses which give you total flexibility and the freedom to learn marketing when you like – from anywhere in the world. You can sign up to a course today. It takes 5 minutes! Marketing Teacher is the most popular marketing education content site in the world. You can gain certification and qualifications from Marketing Teacher. Opportunities. * 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 opportunities, since product could become unfashionable before it wears out i.e. consumers need to replace shoes. * There is also the opportunity to develop products such as sport wear, sunglasses and jewellery. Such high value items do tend to have associated with them, high profits. * The business could also be developed internationally, building upon its strong global brand recognition. There are many markets that have the disposable income to spend on high value sports goods. For example, emerging markets such as China and India have a new richer generation of consumers. There are also global marketing events that can be utilised to support the brand such as the World Cup (soccer) and The Olympics. Threats. * Nike is exposed to the international nature of trade. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. Such an exposure could mean that Nike may be manufacturing and/or selling at a loss. This is an issue that faces all global brands. * The market for sports shoes and garments is very competitive. The model developed by Phil Knight in his Stamford Business School days (high value branded product manufactured at a low cost) is now commonly used and to an extent is no longer a basis for sustainable competitive advantage. Competitors are developing alternative brands to take away Nike’s market share. * As discussed above in weaknesses, the retail sector is becoming price competitive. This ultimately means that consumers are shopping around for a better deal. So if one store charges a price for a pair of sports shoes, the consumer could go to the store along the street to compare prices for the exactly the same item, and buy the cheaper of the two. Such consumer price sensitivity is a potential external threat to Nike.