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Nike Inc SWOT Analysis

Nike Inc SWOT Analysis

 Hello, and welcome to today’s presentation on Nike Inc. The presentation highlights the company’s mission and an analysis of the company’s strengths, weaknesses, opportunities, and threats. Based on the SWOT analysis, a conclusion that includes a recommendation on how the company should proceed in the future will be made. Will be made.

Nike’s mission is ‘To bring inspiration and innovation to every athlete.’ The company’s mission emphasizes inclusivity, implying that it focuses on a broader customer base, including people with disabilities, as long as they feel that they can compete (Nike, 2023). Another significant aspect of the company’s mission is innovation, as the company incorporates top-notch design and cutting-edge technology to enhance the athlete’s comfort, style, and performance as they chase their dreams. Consistently, Nike is not limited to just making products for profit. Instead, the company is focused on leaving an enduring impact by participating in initiatives geared toward making a difference, such as sponsoring athletes to achieve their dreams and inspiring upcoming talents. Also, the company’s global approach, including regions where its business prospects are not blossoming, shows how the company is not just interested in profits but the greater good and making impactful contributions to all sportsmen and women.

 One of the main strengths of Nike Inc. is its strong brand. Nike is the strongest brand among all sports apparel companies. The strength makes it possible for the company to leverage the international market to its advantage relative to other brands, such as Adidas (Ahmed et al., 2016). Also, the company’s global presence means that it has many markets to rely on. In case primary markets in Europe and America go down, Nike can still draw revenue from other jurisdictions such as Asia and Africa. Besides, the solid grasp of its distribution channels has helped the company move its products to different corners of the world. Some of the company’s main distribution partners include eBay, Walmart, and Amazon. Since Nike controls these distribution channels, it gets its products to different corners of the world without much struggle. Also, the company has a solid retail network, including stores and retail outlets, that help the company enhance its sales. The diverse product portfolio is another strength that works to the company’s advantage. Apart from traditional running shoes and sportswear, Nike also manufactures other products, including smartwatches and sports equipment, that expand its bottom line (Hill et al., 2017).

Nike Inc. continues to contend with its lack of company-owned distribution channels. As a result, it has to partner with external retailers to distribute its products. The external partners may influence pricing upward, hence, likely to scare away potential customers (Ahmed et al., 2016). Besides, the company’s manufacturing plants are concentrated in Asia, specifically China. Adverse economic changes in these regions will likely affect production and hurt the company’s global business. Besides, Nike has faced corporate image issues, such as labor controversies in its contracted factories (Hill et al., 2017). A poor corporate image harms a company’s reputation and will likely cause consumer backlash. The stiff competition in the sports apparel industry from competitors New Balance and Adidas also pushes the company to invest heavily in research and development to gain a competitive edge. Such competition leaves the company with little to invest in other equally important initiatives, such as athlete sponsorship, which is equally vital. Further, premium pricing at Nike tends to scare away potential customers. Although such pricing appeals to price-insensitive consumers and big brands, new price-sensitive consumers tend to be scared. The other issue that affects the company’s reputation adversely is concerns about environmental sustainability. Although Nike has made efforts to improve in this area, there are concerns that reliance on products like cotton pollutes the environment.

 Although Nike Inc. has tried to establish its business in more locations, there is still an opportunity to improve its business by moving into new areas. By creating more brick-and-mortar stores, the company will alleviate overreliance on external retail partners and effectively control its pricing (Hill et al., 2017). Further, there is an opportunity to incorporate technology and gain a competitive edge. To that end, Nike can invest in 3D printing, wearable technology, and other advanced materials (Ahmed et al., 2016). Such a move will help the company gain a competitive edge. Nike also has the opportunity to improve its corporate image by improving its labor policies. Although the company is not directly involved in controversial labor practices, it can make policies that only permit partners with clean labor policies to work with the company. Such a move is vital since modern customers pay attention to a company’s corporate social responsibility (CSR) before purchasing. Nike should also consider adopting e-commerce platforms to make its business more efficient. Currently, the company relies on partners like Amazon and eBay, but creating its platform will bolster sales globally.

Nike faces competition from industry participants such as Puma, New Balance, and Adidas (Ahmed et al., 2016). When a company faces such threats, it has no option but to invest heavily in research and development. That poses operational challenges since the company is left with limited resources to undertake other business activities. Another significant threat is the manufacture of counterfeits and imitation by other players. Counterfeits are sold at relatively lower prices, threatening Nike’s market share. Further, supply chain disruptions due to geopolitical factors affect production, leading to product delays and shortages. For instance, the recurring US-China trade wars threaten to disrupt the company’s production hub in China (Hill et al., 2017). Human rights concerns about employee treatment in the company’s factories also exist. If left unattended, these issues threaten to cause consumer apathy. Also, economic downturns globally reduce consumers’ purchasing power, leading to reduced sales by the company. Another significant threat is associated with unforeseen global health and safety issues. For instance, the recent COVID-19 pandemic and the regulations afterward, such as banning flights, disrupted the company’s supply chain network.

 In summary, Nike is one of the leading sports apparel manufacturers in the world. Based on the company’s mission, it is clear that it is not only focused on the business aspect but also the well-being and competitive ability of aspiring athletes. Regardless of athletes’ origin, Nike seeks to improve their competitive power by sponsoring some of them and leveraging technology to manufacture products that suit their needs. The company’s strong brand places it at the center of success since it is more popular than most competitors. However, a few issues ought to be addressed to improve business and create a competitive edge. First, the company should make a policy whereby it only partners with companies with a clean bill of health as far as labor practices are concerned. Expanding into new locations and creating more brick-and-mortar stores is also needed. Another significant change that will be helpful is to differentiate its products such that imitations and counterfeits cannot dislodge the company from the market.

Ahmed, R. R., Brohi, H., Bhutto, A. H., Prithiani, J., Khubchandani, R., Kumar, S., & Abbas, Z.   (2016). „Strategic Marketing Plan of Nike “. ResearchGate, Indus Institute of Higher   Education.

Hill, C. W. L., Schilling, M. A., & Jones, G. R. (2017). Strategic Management : an Integrated Approach : Theory & Cases. Cengage Learning.

Nike. (2023). Our Mission. Nike.com; Nike. https://about.nike.com/en

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Question 


Nike Inc SWOT Analysis

A SWOT Analysis is used to evaluate the strengths, weaknesses, opportunities and threats for a business. This analysis can be used to help in the creation of strategic plans for the future. You will perform a SWOT Analysis for a real-world organization and complete your assignment as a PowerPoint presentation.

Instructions:

Choose a real-world organization.

Perform a SWOT Analysis on the organization, creating a PowerPoint with your results. Follow this format:

Requirements: 

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