Nike SWOT Analysis Essay

Custom Student Mr. Teacher ENG 1001-04 1 October 2016

Nike SWOT Analysis

NIKE is the world’s #1 shoemaker and controls over 20% of the US athletic shoe market. The company designs and sells shoes for a variety of sports, including baseball, cheerleading, golf, volleyball, and wrestling. NIKE also sells Cole Haan dress and casual shoes and a line of athletic apparel and equipment. In addition, it operates NIKETOWN shoe and sportswear stores, NIKE factory outlets, and NIKE Women shops. NIKE sells its products throughout the US and in about 200 other countries.[i]

υ Strengths

Χ Strong branding and name recognition – achieving 95.3% Brand awareness[ii]
Χ Positive Wallstreet analyst approval
Χ Strong International sales – 2004 international sales exceeded US sales
Χ Proven Marketing strategy
Χ Large global supply chain
Χ Successful multi-branded approach to business (Converse, Bauer, Starter, Shaq)
Χ Able to compete at all consumer price levels by new acquisitions
Χ Consumers associate quality with name
Χ Leader in Technology and Design
Χ Significant retail presence – over 300 retail chains carry product
Χ Diverse product lineup

υ Weakness

Χ Although they have products at all price points, items with Nike logo are pricey

υ Opportunities

Χ Marketing to women
Χ Entering China market
Χ Capture global public approval by controlling overseas factory conduct and conditions and helping the world poverty situation through the Nike Foundation

υ Threats

• Strong competition from Reebok and Adidas
• Accusations of unfair labor practices
• Association with Kobe Bryant
• Counterfeit Nike’s being produced

[i] 2005, Hoover’s, Inc by Catherine Colbert–ID__14254–/free-co-factsheet.xhtml [ii] Results based on a nationwide survey of consumers between the ages of 10 and 65 that was conducted exclusively for SGB/Footwear Business by Leisure Trends Group of Boulder, CO.

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