The company was founded on the principle that it would make shoes for anyone who could walk or run and this has been the guiding philosophy behind Nike. Strength of the company is that it has outsourced all aspects of its production to overseas facilities and thereby, does not have any manufacturing outlet of its own. This has helped the company focus on higher value adding activities like design and research and development and at the same time, it has saved the high labor costs that are part of the traditional manufacturing sector.
Strengths Dominant market position with a strong brand portfolio It is no doubt that NIKE is one of the leading suppliers of footwear for athletes all over the world. S, they were listed as one of the top 30 of most valuable brands in Each of the brands specializes in different aspects, for example, the Jordan is more focused on the collection of athletic wear for basketball players.
They focus on technical innovation that brings more comfort, while also reducing injuries for athletes. They also make use of the services of experts in athletes such as the coaches, trainers, and athletes who they consult to produce better products.
Multi-channel approach NIKE distributes their merchandise through retail stores, but both online and physical as well as other channels.
They own a lot of retail stores all over the world, and they also distribute their products through a mix of independent distributors and licensees.
In total, NIKE has retail stores all over the world, and they also sell their products through their website www. Their multi-channel approach has substantially increased their reach and their customer base in total.
Weaknesses Dependence on independent contract manufacturers NIKE largely depends on independent manufacturers outside of United States to supply it fabrics and also to produce most of its products. Hence they have limited control on the quality of their product. Some of the countries where they have contract manufacturers include China, Indonesia, and Vietnam.
This means that any mistake on the part of the contract manufacturers affects them too. Opportunities Growing global footwear market Recently, there has been tremendous growth in the total revenue generated from footwear.
There was an increase of about 4. Growing online retail channel There has been a preference to shop online by customers recently.
This is evident in the statistics of the amount spent on online stores by citizens of the United States increasing every year and recently at a high rate. A similar trend has also been recorded in Europe in respect to this.
Threats Growth in counterfeit products With the increase in internet usage, there is no doubt that there will be a bad side to this. It has aided the full spread of counterfeit product all over the world. Intense competition NIKE is involved in one of the most competitive businesses in the United States as well as in the world.NIKE SWOT Analysis.
NIKE Inc. is a company that designs, markets and distributes athletic footwear, apparel, and equipment for sports, and they have grown to become one of the largest is their business. 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. We will address these issues by performing an easy-to-follow SWOT analysis of the company, evaluating its Strengths, Weaknesses, Opportunities, and Threats.
NKE . Nike SWOT. 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. Introduction. This SWOT analysis looks at Nike, a global retailer that specialises in sportswear, including shoes, clothing and accessories.
It is listed on the NYSE and is headquartered in the United States.
SWOT Analysis Nike Strengths. Very good Leadership is one of Nike’s strengths. Nike is a very competitive organization. Founder and Owner, Phil Knight is .