Strengths The strengths of Nike are pretty straightforward. The following are the major opportunities in the case of Nike Inc. This seems to have hit the right note with a majority of consumers. In 2016 and 2017, it spent more than 3 Billions on marketing. People are actively participating in fitness clubs and sport competitions. Its growth has been supported by both fashion and sports trends. Besides this some regulated bodies also impose rules related to the business operation like child labor and employment laws.
It is a fortune 500 company. Fill up the assignment help request form on the right or drop us an email at support helpwithassignment. Moreover, the company suffers from limited presence in developing markets, partly because of issues with pricing, imitation and patent protection. However, it can further innovate their design and style to make them suitable for the evolving athleisure market. Additionally, it sells heavily to retails who themselves are price sensitive also.
The data was taken from Nike Inc. Common-Size Analysis for Apple 4 2. External Strategic Factors Nike Inc. Another opportunity is for Nike to improve its product mix to attract more customers, especially non-athletes. Marathons across the world attract more and more participants. Additionally, Nike emphasis on great design and customer health. All investing, stock forecasts and investment strategies include the risk of loss for some or even all of your capital.
It defines how he viewed the world, and it defines how Nike pursues its destiny. It has got its retail chain - Niketown. Nike, a brand that many athletes and non-athletes have come to use to define premium quality athletic products and services. The aim of Nike should be to improve its sales in the next year by attracting more and more customers. Background information on the company i. Nike has retained its top position in the sports shoe category.
Also, rapid technological innovation could further increase competitive pressure if Nike does not innovate as rapidly. They had begun to shift their efforts and targeting the higher end market in the athletic apparel industry to become the dominant premium brand above Adidas. The brands like Adidas and Reebok are using quite aggressive techniques to beat Nike. Fall in sales can be because of the tough economic conditions of European and American markets. If prices rise, and products can be made more cheaply elsewhere, Nike will move its production. Maintaining the hotel as it is would be a major challenge for the new group if they lack the experience needed to run.
Additionally, it also lowers its inventory risk, because if a trend in the market changes it is able to change inventory faster. This has also led to an increase in compliance related costs for Nike. It helps in understanding the internal and external environment that a business undertakes its operations. Operating overhead expenses for 2016 and 2017 were higher than 7 Billion for Nike. Weaknesses - Labor violations, bad repercussion with sweat factory issues and unethical business practice can be faced. Nike is a global brand and is the number one sports brand in the World.
While a wide spread market has meant better trade opportunities, it also entails larger vulnerability to international geo-political unrest that you might see in different parts of the world. Globally, a shift towards athleisure has brought excellent business opportunities for it. It can either acquire a few of them or build some of its own which will help it have a more agile and stronger supply chain and find faster growth. The retail sector is very price sensitive. Nike can take benefits of this influencing social dynamic by introducing its fine quality athletic and other sports products apparel and equipment both. If you created it online you can access your diagram from anywhere and you always have a record of it.
This can be seen in almost any Nike commercial, whereas the main idea is not advertising the specific shoe or other product, rather the idea of overcoming obstacles. It has been quite a journey since 1989 — both for the technology in general and the American sportswear company in particular. Are there some factors that need to be corrected or is there a threat that the company is still not geared to handle? This ultimately means that consumers are shopping around for a better deal. In the sports gear and apparel category Nike is among the most well-known brands. At the Atlanta Olympics, Reebok went to the expense of sponsoring the games.
It has contracts with above 700 shops globally in about 45 different countries. The price sensitivity especially becomes risky when entering recessionary downturns in the economy. However, in the 50 years that Nike has been in business, it has weathered most challenges. Environmental Factors Green products environment friendly are gaining more acceptances by the customers and the government both. Before pursuing any financial strategies discussed on this website, you should always consult with a licensed financial advisor. This model makes it a very lean organization.