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SWOT Analysis for Nike Company?

SWOT Analysis for Nike Company

Nike Company is considered amongst some of the biggest sports apparels, footwear and sports Equipment Company globally. In This SWOT Analysis for Nike Case Study, the presentation is being made on Nike’s SWOT Analysis evaluating its Strengths, Weaknesses, threats and opportunities. The prime focus of Nike Company is to produce high quality and innovations in producing sports goods of excellent quality. The company is already listed on NYSE. Nike’s headquarter is located in Oregon, U.S.A. Our is completely aware of its excellence in respect of strength and other Brand qualities that are necessary in guiding to carryout SWOT Case Study Report.

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Strengths of Nike in SWOT Analysis

Brand awareness - Its excellent awareness of its Brand – Nike is one of the most reputed and recognised brands all over the world and its name itself is memorable, can be comfortably pronounced, and extensively unique. Its attractive product symbol can be easily identified and recognized by its consumers. The company has already captured approximately 31% of the athletic footwear market globally.

Excellent Customer attraction – Nike has owned over millions of customer scattered all over the world that exclusively use branded products of Nike, take part in the Marketing events arranged by Nike, and regularly provide customer feedback. As a consequence of its huge customer base, Nike’s market has shot up to $115.19 billion as reported in 2018.

Maintenance of Sustainability – Nike Management has declared that they will continue to follow the guidelines related to environmental issues in the communities. The company ensures that Nike will continue its investment and contribution in finding a solution against various statutory environmental guidelines.

Iconic and excellent Partnership – Nike’s long-term bonding with the company like Michael Jordan has attracted high benefits in terms of marketing its Branded products. This collaboration has earned in attracting consumers in buying “Air Jordan 1 Shoes”. In addition to that, Nike has joined hand with the famous basketball player to help in designing the “Air Jordan 1 Shoes”.

Side Brands – Additionally, Nike’s maintenance and up-gradation of its side brands have enabled them to enjoy excellent success for a long time.

Low production Cost – Major Nike’s footwear products are manufactured in foreign countries with cheap labour cost. It has been reported that during 2018, Vietnam produced 47% of total Nike footwear products, China produced 26%, and Indonesia produced 21 %. Other operators are Argentina, Brazil, India, Italy, and Mexico.

In-house Professional strength – Nike has recruited professional teams that design its shoes and other athletic products. Nike has claimed that their business has flourished as a result of a thorough research study that is regularly conducted for each product.

Potential Marketing Capabilities – Nike has an excellent marketing network. Its brand is highly dependent on its digital marketing. During 2016 and 2017, Nike Company has spent $3.2 and $3.3 billion in marketing campaign respectively by successfully utilizing its social media to attract more customers all over the world.

Weaknesses in SWOT Analysis

Nike is dependent heavily on its markets in the U.S.A. for its revenue and sales. It was reported in 2018 that 42% of revenue is generated by its US market and the remaining in the Non-US market.

It is true that the footwear industry highly prices sensitive. Nike is dependent on its retailers and is generating a great fraction of its revenue selling to its retailers. Retailers create pressure onto Nike in the instant when they offer low prices to neutralise competition in marketing footwear and apparel industry.

Opportunities in SWOT Analysis

In the present era, people are becoming more health-conscious and adopting a healthier lifestyle. This makes sport to become an integral part of human being and making them more fashionable when actively participating in sports. In future, the market of global sports and lifestyle is expected to grow. This is a good opportunity for Nike for its expansion of the market of sports products.

Threats in SWOT Analysis

The company tax is widely varying globally and is reported at 55.3% FY 2018, which was about 13.2% in 2017. This is a great threat that is being faced by Nike, and this also affects its net income by 54%, which proved to be a great offset for the growth of revenue.

Sports apparels and equipment market is highly competitive. Every competitor is trying to adopt innovative ways to apply advanced technologies similar to “Manufacturing revolution” and develop an alternative brand.

All global brands, including Nike, are facing currency fluctuation that is affecting its revenues, inventory as well as.


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