Nike is facing high competition in the marketplace and need to adopt new methods and strategies in order to maintain its position in the marketplace. The SWOT analysis help the company in evaluating its internal factors and external factors with the motive to make suitable changes in its work process.
- Brief description of Nike?
- Determine the external and internal factors taking place in Nike?
- What steps Nike should take to improve its performance in market?
Nike earlier known as Blue Ribbon Sports, is an American sports company located in Oregon. The company was established in year 1964 and mainly dealing in sports shoes. In year 1978 it has been renamed as Nike. With its hard work it has able to make its brand name in marketplace and is now dealing in more than 170 countries across the globe. The main objective of the company is to support athletes by providing them footwear, athletic wear, equipments, apparel and accessories. Nike is facing high level of competition in the marketplace hence need to analysis its current situation with the motive to improve its position in the marketplace. The SWOT analysis is effective way by which it will be able to identify the various areas which they have to focus on. Here's a detailed evaluation of Nike SWOT analysis.
Awareness- Nike is among those brand which is highly recognised brand in the world. By providing quality products to its potential customers and working hard on its vision it has able to make strong brand awareness in the marketplace. Furthermore Nike's competitors are also focusing on brand awareness.
Focus on Sustainability- In this current business world the issues related to environment are taking place and Nike is considering them. They are taking effective steps in its productions activities with the motive to improve the current situation of the environments. Other brands dealing in sports that is Nike's competitors are also focusing on sustainability development.
Customer base- The company has build strong brand image in the marketplace by providing quality products according to the preferences of the customers. Hence it has strong and huge customer base as it take feedback from customers on timely bases. According to the feedbacks they make changes in its current operations in order to meet the customer standards and desires.
Relationship- Nike is among those companies who has able to build strong bond and trust with others people. The proof of this is, its strong relation with Michael Jordan as they are working effectively and efficiently from long duration in partnership.
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Labor condition- Nike is working at global level hence have large work force which is working hard to achieve the goals and objectives of the company. The company is always targeted for its poor labor condition from last 20 years. They are involved in issues like child labor, low wages, etc and also for not providing safe and healthy working environment to its work force.
Dependence- Nike is working at globe level but still it is highly dependent on US market as its major portion of earning is from US market only.
Lack of Diversification- Nike is highly dependent on sport wear and is dealing in sport products. They need to focus on other aspects too in order to come up with diversified range of products. With the help of diversified range of products it will be able to capture large area of marketplace as Nike's competitors are focusing on diversification.
Innovative products- Nike is having wide range in sports wear but still there is great scope for innovation. With the increasing demand of customers and advancement in the technology the need for innovation is necessary in order to attract more number of customers.
Direct strategy- Nike from the stating is directing interacting with its customers in order to know the points which they need to improve. This has provided great help to them as they would be able to take on spot action and decisions if anything goes wrong.
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Use of artificial intelligence- With the help of last technology Nike would be able to carry its business operations in most effective and efficient manner. Furthermore this will help in improving and enhancing its production process and help in increasing the sales and revenue margin.
Level of competition- In this current market scenario the level of competition is increasing with the increasing needs and preferences of customers. Nike is facing tough competition in the marketplace as Nike's competitors are Adidas, Puma, etc. The company need to focus on its marketing strategy that is by implementing effective advertising strategy. This will help in attracting and engaging large number of potential customers.
Budget pressure- According to the current market analysis it has been identified that other brands are highly spending on advertising and marketing activities. Hence building pressure on Nike as it is not doing such activities to capture marketplace.
NIKE is one of the top brand in the sports industry as their quality products and accessories is famous among their consumers and NIKE is associated with various athletes and sports personality which also makes them famous among their consumers. NIKE focuses on providing the product favourable for their consumers according to their needs and wants and makes sure that by their quality product consumers stays loyal to the organisation. SWOT analysis of NIKE helps their managers to understand their strengths and weaknesses and focuses on maintaining the standards of their products by grabbing the opportunities in the market. NIKE competes with Adidas, Puma, Reebok etc. and in order to compete with these companies NIKE have to focus on producing the products according to the needs of the consumers and understanding the lifestyle of the consumers as it helps them in innovating their products and focuses on creating the strategies to compete with the competitors and achieve the desired goals and objectives.