Nike SWOT Analysis, Nike, SWOT Analysis, Puma, Adidas, New Balance, Asics, sport, sports shoes, sportswear
Nike originated in the 1960s, it started as a collaboration between Bill Bowerman and Phil Knight, and shoes were then sold under the name Blue Ribbon Sports.
The company name changed to Nike in 1978 : the name Nike reflects a Greek goddess that symbolises victory. The vision behind the company is to bring inspiration and innovation to athletes globally.
Nike continually seek to produce, design and develop products to enhance athletic performance. Their desire is to produce products that initiate true performance and technological advantages to help athletes progress in their desired sport.
Nike finds it important that if you have a body, you are an athlete.
Nike is the brand for everyone and this is emphasised in their Just Do It slogan.
Their headquarters are situated in the United States but they have stores worldwide and employs over 40,000 people.
[...] Nike and Adidas compete with the brands. ( . [...]
[...] Nike Swot Analysis A SWOT analysis is a useful way to identify the external and internal factors that influence Nike ● Nike's logo, the so-called swoosh has been a large part of the brand's strength ● People identify the Nike logo without the brand name ● This allows them to be able to identify it as Nike, which shows the power of the brand and design of the logo ● Nike have a good Research and Development department which puts them ahead of technology ● Although they are highly innovative, they do have weaknesses ● Nike has a large range of sportswear and shoes but relies mostly still on shoe sales ● The enormous advertising costs mean they invest a lot of money into marketing ● The marketing strategy works but does come at a very high cost ● Although Nike is seen as an elite sports brand, more people are enjoying the products and choose to wear them as they are fashionable ● Playing in a highly competitive sports industry market, Nike is able to easily expand to emerging markets ● The famous Nike name and “swoosh” logo allows them to target countries where the passion for sport is high ● Brazil, Russia and China are all massive sports enthusiast countries ● Nike need to ensure they are able to adapt to constant consumer needs and desires in a highly competitive market so they do not lose market share ● The world's economic status and a country's economic downturns can affect the consumer goods industries ● During the recent credit crisis that many countries face, the market for Nike's products suffer and can make it weaker A. [...]
[...] ) with $ 6.6 billion in direct sales, Nike ranks fifth worldwide and Adidas (with $ 4.6 billion) sixth. With double-digit growth rates.” As of 2018 Nike's market share was at II. [...]
[...] The sporting goods market ● Nike promote a highly competitive sports apparel, footwear and accessories industry ● They compete with other large number of players, such as Puma, Adidas, New Balance and Asics ● The sportswear and accessories industry are exposed to continuous changes in consumer needs and technology ● Nike needs to ensure they are able to quickly adapt to changes or it will immediately lose its market share by staying focused on their audience and product lines ● When they compare the results to their competitors, Nike recorded a total increase in sales in their 2nd quarter of 2020 of 10% year-on- year ● Nike believes that the growing competition from new entrants and existing competition in emerging markets are focusing on unique market segments and continually improving their product quality ● A major threat and competitor to Nike are Adidas ● Adidas are in a similar strong position and have the second-largest market share - 21% for Nike and for Adidas in 2017 in the footwear market ● Adidas is a German brand created in 1949 which designs and manufactures athletic shoes, clothing and accessories ● The main slogan of the marketing strategy for Adidas is: "Impossible is nothing," which aims to show that no matter who you are, you are capable of following your dreams as nothing is impossible ● Puma is another German multinational company founded in 1924 and is the third-largest competitor for Nike ● Puma brand is based on the values that make an athlete excel ● New Balance, an American company founded in 1906 is another one of Nike's competitors ● They manufacture mainly in the United States and United Kingdom and as a result has made their shoes more expensive ● Another competitor to Nike is Japanese brand Asics which was established in 1949 ● Its name translates to “Healthy Soul in a Healthy Body” ● According to an article in the newspaper Les Echos (April 2017), “The distribution of sporting goods is growing by per year worldwide. [...]
[...] Weaknesses ● Nike have been faced with controversies surrounding their exploitation of cheap labour ● There were alleged reports of them using child labour in Pakistan and Cambodia ● This has negatively impacted the company especially considering their production and factories are in developing countries ● Although they have a diverse range of products, their product line is still limited and they rely mostly on their sports shoes sales ● Their global growth is somewhat limited too as other retailers provide a very similar product experience ● Nike are also faced with pricing issues in developing countries where imitations are available ● Their patent protection is also an issue and contributes to these difficulties ● John Donahoe has been elected as the new CEO of Nike after numerous changes in leadership since Phil Knight's resignation in 2005 C. [...]
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