SWOT Analysis of Nike

One of the most renowned sporting brands in the world is Nike. Nike is named for the Greek goddess, Victory This Multinational company is headquartered located in Beaverton, United States of America. It was established on the year of its inception on January 25, 1964. Nike is a manufacturer of equipment that are related to sports, such as apparel, shoes and various kinds of footwear. Nike is the world’s largest manufacturer of footwear and sports equipment. All Nike products are branded with the Swoosh logo. The logo itself has a the image of the brand. Nike is ranked 239th globally according to Forbes Magazine. Nike’s brand of sportswear and shoes is the most popular across the world. Because of the endorsements by famous athletes as well as the internet, the sale of Nike products grew. In 2012, Nike’s annual sales were around $51.36 billion. Nike has erected its manufacturing facility at India, Indonesia, China Tiwan, as well as a variety of other nations.

Nike Company Details

What is SWOT analysis?

Swot Analysis began in 1960s, when S is to indicate strength. W is for weak, O means opportunity, and W is for weakness. It is therefore an instrument that informs the company its strengths potential, weakness, and threats.

Swot Analysis of Nike Company –

Strength

• A strong brand name People are well conscious of the Nike company. Everybody, even children, has its name on their lips. It has employed an effective steps to make the public aware of its brand. Like it promotes its products by involving sports stars and youngsters. It has also introduced sponsorship programs and created awareness of the brand through its marketing campaigns.
• Business model is strong. Nike company’s business strategy is solid because it is in sync with style and function.
• Marketing strategy: It has an extremely effective marketing strategy. The apple Company has understood and embraced it, even while they were suffering a massive losses and were close to becoming insolvent.
• Market share: The company has a larger share of market share when compared to its rivals. This brand is becoming popular every day.
• Prices that are affordable Nike shoes are not costly when compared to other brands, such as Woodland, adidas. So, it allows customers to purchase shoes based on what their budget.
• Research and development Research and development division is extremely efficient and always comes with fresh and creative ideas to improve the quality of their product.

PromotionalPromotion Nike often promotes its products through newspapers and electronic media. It also offer promotional deals, such as offering huge discounts in stores for its customers.

• Amazing collection of footwear and shoes. Nike collection of footware and shoes is excellent.
• E commerce Platform Nike actively promotes its products on e-commerce platforms such as Facebook, YouTube, and Television.

Weakness

• Legal claimsLegal claims Nike was charged with allegations of child labour throughout Sri Lanka and Pakistan in the past, which has impacted its image.
• Relationships with retailers- Sometimes Nike has a negative relations with its retailers. This indirectly impacts the earnings of the business.
• Dependence on US market Nike is heavily dependent upon the US market for its main source of income. The majority of its revenue comes from the sale of footware as well as sports footwear.

Opportunity

• A wide range of products available Nike can also be a part of a broad variety of items similar to other fashion brands.
• Collaborations- Through the collaboration with local retailers, Nike can expand its reach even in remote regions.
• Recycled items- Nike should make use of the raw material that is able to be reused. This will ensure that our environment is safe.
• Eliminating retailers – Nike is attempting to launch its own shop in international markets, and thus eliminate retailers from.

Threat

• CompetitorsWith increasing numbers of competitors come into the market, it poses a danger to the company. It must constantly introduce something new in order to differentiate their offerings from the competition. Today, its principal competition is adidas, Puma, Under Armour and a myriad of others.
• A shift in the preferences of customersThe shift in customers’ preferences and tastes can pose very dangerous for the business.
• Supply chain disruptions Nike’s supply chain has many stakeholders in order to ensure that their products are available to their customers. This makes it a complicated process.

Therefore, Swot Analysis of Nike shoes – This analysis tool can help Nike to understand their strength as well as their weaknesses, opportunities and danger. This is why the Nike Company slogan “Just Do It” inspires players to perform at their best potential. Whatever other companies are on the market, Nike has made its standing very solid, by introducing new features and designs to footwear as requested by clients on time. Today, Nike will also introduce premium brands to the market.