SWOT Analysis of Nike

One of the greatest sports brands in the world is Nike. Nike is named after the Greek Goddess, Victory This Multinational company has its headquarters in Beaverton, United States of America. It was founded in the year 25 January 1964. Nike deals in equipments related to sports like shoes, Apparel, and different sorts of footwear. Nike is the world largest manufacture of shoes and sports equipment All the Nike products have Swoosh logo. This logo itself have brand image. Nike has been ranked as 239th in the world according to the Forbes Magazine. Nike’s shoes and sportswear brand is most favourable around the globe. Due to endorsement by famous athletes and through the electronic media the sales of Nike products increased. In the year Nike’s annual sale was around $51.36 billion. Nike has set up its manufacturing plant in India, Indonesia, China Tiwan, and many other countries.

Nike Company Details

What is swot analysis?

Swot Analysis came in the the year 1960, where S stands for strength, W stands for weakness, O stands for opportunity and W stands for weakness. Thus, it is a tool which tells the company about its strength, weakness, opportunity, and threat.

Swot Analysis of Nike Company – 

Strength

• Strong brand value – People are strongly aware of Nike company. Everyone even small children have its name on their tongue. The company has taken very effective measure to make people aware about its brand like, it endorses its products through sports celebrities and youth. It also has launched sponsorship programmes, and has made people aware about itself through its marketing campaign.
• Business model is strong– Nike business model is strong as it goes hand in hand with fashion and functionality.
• Marketing strategy– It has a very strong marketing strategy that the apple Company has seen its strategy and followed it, when they were suffering huge loss and the company was on the verge to be bankrupt.
• Market share– The company enjoys a greater portion of market share compared to its competitors. This brand is becoming very popular day by day.
• Economical prices- Nike shoes are not expensive as compared to other brands like woodland, adidas. Thus, enabling the customer to buy shoes as per their pocket allows.
• Research and development – Their research and development department is very effective and keeps on coming up with new and innovative idea to improve the product.

Promotion- Nike regularly advertises its product through electronic media and newspapers and take out promotional offers like giving heavy discounts in shops to its customers.

• Impressive collection of foot ware and shoes– Nike collection of foot ware and shoes are very good.
• E commerce Platform – Nike aggressively advertises its products through e commerce platforms like Facebook, YouTube, and Television. 

Weakness

•  Legal allegations– Nike has been charged with allegations against child labour in Sri Lanka and Pakistan in the past thus affecting its reputation.
• Relationship with retailors– Sometimes Nike has unfavorable relationship with its retailors. Thus, which indirectly affects the profit of the company.
• Overdependence on US market– Nike is very much dependent on the US market as its major source of income from there. It’s major revenue depends on selling of foot ware and sports shoes.

Opportunity

• Wide range of product– Nike can also enter wide range of products like other fashion lines.
• Collaborations- With the collaboration with local retailors Nike can expand its business even in remote areas.
• Recycled products– Nike should use that raw material that can be recycled. Thus make our environment safe.
• Getting rid of retailers– Nike is trying to open its own shop into the foreign countries, thereby eliminating retailors from between.

Threat

• Competitors– As more and more competitors are entering into the market there is threat to the company It has to regularly introduce something new to differentiate their products from them. These days its main competitors are adidas, Puma, Under Armour and many other.
• Changing customers preferences– The change in customers taste and preferences can be a great threat to the company.
• Disruptions in supply chain– Nike’s has many people involved to make their products reach their customers. Thus, making it complex process.

Thus, Swot Analysis of Nike shoes – This tool will help Nike know about their Strength, weakness, opportunity and threat. Thus, Nike Company slogan “Just Do It” encourages the player to play at their maximum potential. No matter many companies are there in the market, Nike has made its position very strong, thus by introducing more and more features and designs into shoes as demanded by the customers on time. These days Nike is also going to introduce premium products into the market.