SWOT Analysis - Nike

Extract

[...] 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. [...]

[...] ) 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. [...]

[...] 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. [...]

[...] Nike and Adidas compete with the brands. ( . [...]

[...] 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. [...]