Question

1. How has the COVID-19 virus impacted Nike (SWOT/5 Forces)?

Answer 1

answer-

Five force analysis of Nike based on Impact of COVID-19 virus-

Due to COVID-19 virus, The bargaining power of suppliers has increased on Nike's business. When this power is high then suppliers can charge high prices on thier supplies and company has to pay if they want to start manufacturing. The Pandemic caused lockdown and lack of supplies so local suppliers will take opportunity of this situation and will charge high prices because Nike can not procure materials from foreign suppliers.

The intensity of rivalry has been decreased due to COVID-19 because this virus has affected all the firms in this industry. Rebook, Adidas, Puma etc like companies are also facing same situation so there are no tactices and attacks are used by these companies against Nike.

The bargaining power of customers is increasing because Customers are not going to gym,not playing sports and not purchasing foreign products due to this pandemic. This lowering demand of its products and customers can affect thier pricing strategy because Nike has to stock out thier products but demand is getting low.

The threat of entry of new company is low because Corona caused everything shutdown so there is no chance of new company to start manufacturing shoes and sell them in the market.

Threat of subsititute products is low because there is no substitute of sports, accessories and apparel products not in this situation where everything is shutdown and Businesses of footware industries are facing crisis.