Question

(a) What are the key strategic challenges that Nike faces? (b) Provide specific recommendations for how Nike can address the challenges that you identified in (a). Think big. Avoid focusing on trivial issues.

Answer 1

Nike Inc. is a multinational organization that is located in USA that is involved in global marketing and sales of footwear, apparel, equipment etc.

With the fast changing world, following are the key strategic challenges faced by Nike :

(a)

1. Limitation in Product mix: With Nike's product focused initiatives it is depriving of expanding product mix. NIKE is hugely depending on its major retail partners DICKS and Foot Locker, leading it to focus on concentrated products and consumer base which will thus pose as a key strategic challenge for NIKE because of continued shifts in broader US marketplace.

2. Independant Retailers, thus Limited presence in developing markets: With Nike focusing on it major big retailers, thereby ignoring it's chain of intermediary retail influencers and thus limited to only selected consumers and markets. struAlso massive structural change going in the sports industry ,the independant running and sporting goods store pose a sublime challenge to Nike.

3. Consumer Market : With Nike banking heavily on its direct consumer base and mass distribution it is missing on its potential speciality partners.Specialty retailers are the front lines for connecting the consumer with brands.

(b)

Proactive strategies for this concern can lead to an improved brand image.

1.Nike can take up on the opportunity to improve its product mix to attract more customers, especially non-athletes.

2.The company also has the opportunity to improve its presence in developing markets to benefit from these markets’ high growth potential. Nike Inc. must reform some of its policies and strategies to ensure its continued leadership in the global athletic footwear, apparel and equipment market.

A SWOT analysis of Nike to help you understand better and also help in making key strategic decisions for challenges faced by Nike :-

Strengths: 1.Strong Brand image 2.Consumer Base 3.Iconic relationships 4.Low manufacturing costs 5.Superior marketing capabilities	Weakness: 1.Retailers have strong hold 2.Dependency on US market 3.Presence missing in developing countries
Opportunities: 1.Emerging markets 2.Innovative products 3. Independent manufacturers	Threats: 1.Counterfeit products 2.Increased competitive pressure