Question

Provide

SWOT Analysis for the sports brand company "NIKE".

Answer 1

ans....

SWOT Analysis for the company Nike

(1) Strength:

• Nike has a very strong brand image which is the result of its best quality product and effective marketing campaigns.It is the world's number one shoe making company for a variety of sports.
• It uses a "Make to stock" policy for customer orders which provides for a faster service of product to the customers from the available stock.
• another factor contributing to its strength is the continuous innovation process which has been able to satisfy the customers with their changing needs.
• It has a strong global market dominance with its extensive global production and distribution system.It sells its products in more than 180 countries
• Another strength is its low cost manufacturing because it manufactures it footwares outside of the united states through independent contract manufacturers
• Strong research and development

(2) Weakness:

• It has a very limited product mix which has a very limited product line mainly consisting of sportshoes,equipments and apparel.
• Its poor labour practices and controversies in developing countries.
• It has a very limited presence in developing markets because of pricing and imitation issues.
• Higher prices than its competitors

(3) Opportunity;

• It has the opportunity to improve its employment practices which can lead to an improved brand image.
• It also has the opportunity to extend its product mix to attract more customers including those who are non-sportsperson.
• It has the opportunity to improve its presence in developing markets to get benefited from their high growth potential.

(4) Threats:

• High competition in the athelatic footware and equipment industry.Nike faces a tough competition from the major players of the industry like Adidas.
• Rapid technological innovation which increases the competitive pressure on the company.
• Threat of imitation in developing countries with poor legal protection for patents.
• Exposure to currency fluctuation because of the sales generation outside US.