Background

·NIKE, Inc. has grown to be the world’s largest marketer of
athletic footwear

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·Nike produces a wide range of sports equipment such as
running shoes, footwear, sportswear and sports equipment’s

·Nike’s strategy and key initiatives is to achieve
sustainable, long-term growth across its global portfolio of brands and businesses. 

•As Nike
is a multinational business therefore laws may affect its distribution of
products. 

•The tax
systems in other  countries are very competitive therefore as Nike is an
international business they have to follow accordingly.

•The
growth and advancement have adverse effects on Nike due to recession.

•As well
as the local economy, Nike growth also have an affect within the international
economy

• 

•Worldwide
increases in health consciousness means that’s there is more demand in sports
apparel

Due to constant change in customers buying habits Nike
will need to focus on these elements and make changes  

•In
terms of economic innovation and segmentation Nike applies its marketing
information systems effectively.

•Nike
creates products that are Innovative and advanced which fulfils the requirement
of its consumers.

 

Strengths

•Nike is
a leading brand for sports shoes

•Ccompany
logo that enhances the recognition of the brand globally

•Strong
control over its distribution channel

•Innovative
designs in footwear

 

 

 

 

Opportunities

•Eexpansion
of product into sports wear and sunglasses.

•environment
friendly programmes

•Product
development

•New
innovation and technology

 

Weaknesses

•The
retail sector is very price sensitive

•Lack of
stable production units

•Very
much dependent upon its share of footwear market

•High
price of products due to premium brand

 

Threats

•Competition
pressure from Adidas and Under Amour

•Competitors
focusing on niche market segments.

•Expansion
into developing markets.

• •The
bargaining power of Nike’s buyers is low to moderate.

•The
switching costs for customers are low.

•Nike
focuses on performance and design.

•Competition
in the athletic footwear industry is very strong. 

•Major
competitors of Nike are Adidas, Under Armor and Rebook.

•The
threat of substitute products is moderate for Nike.

•There
are number of competing brands that create similar products as Nike.

•There
are several brands that offer lower price substitute products.

Strategy

•In order to reach out to a wider audience Nike’s strategy
is to use celebrity athletes to endorse their products .

•For their advertisement of products Nike uses athletes as
sponsors.

Structure

•Across
the world Nike has over 47,000 branches over 100 different countries

•Nike
maintain its management and organization effectively.

 

 

Systems

•Research,
development and advertising campaigns are the main systems that Nike uses

Skills

•Nikes
strongest skill is to advertise and market products to a high standard than its
competitors

•Nike
acquire the best athletes to promote and wear certain products on commercials.

Shared
values

Nike’s
value is to produce top quality athletic footwear.

Nike
aims to build relationships around trust and respect

Style 

•Nike implements a lifestyle wear for their employees.

•In order to create competitive spirit for employees Nike
incorporates sports within management

 

Staff

• Nike employs 74,00 employees worldwide.

•Staff have experience and good knowledge about the company
and the industries in which it operates

 

• •It is crucial for Nike to
implement these strategies within the company

•It is clear from the internal and external strategy that
Nike’s biggest competitor is Adidas.

•From the strategies options 2 in the best out of the three
strategy to implement within he business.

Implementation

Nike operate in a highly competitive sport shoes apparel.
In the past 7 years have been able to remain as the market leader in the shoe
apparel industry. In order to still compete in the marker Nike should adopt new
strategies. However Nike have been experiencing Slow sales growth due to high
level of competition. In order to stay as the market leader Nike should adopt
strategies that enables Nike to differentiate and increase sales.

 

By focusing on the implementation strategy of option 2
Nike is able to focus on its digital investments. Nike can sell more items
directly to consumers online, which is convenient and fast. In order to speed
up product development Nike could minimize time needed to get new products on
shelves.

Many consumers have started shopping online due to its
convenience. Nike could focus on this strategy to increase its sales growth.

In terms of traditional customer segmentation strategy the
rise of e-commerce has resulted in a transformation for online shopping.

Nike’s strategy meets the expectation however the risks
are of reducing costs of operation requires time investment extensive research.

The strategy is feasibility as it targets a wider
audience. It is relatively easier to sustain the strategy as it lowers on the
operational costs.

Competitor Analysis

The sports wear and apparel industry is vey competitive.
Nike’s major competitors are Adidas, Under Armour and Rebook. Nike provides
higher quality of product and services in comparison to its competitors.

Nike’s biggest threat is Adidas as they offer the similar
product with lower pricing strategy. Therefore in terms of pricing Nike’s
products are relatively higher than its competitors.

 

Strategic
issues

 Issue
1: Due to high competition from Adidas and Under Armour Nikes cuts jobs as sales growth slows.

 

Issue
2: Inventory problems which has had a negative impact on
the company.

 

Digital
investments, Focus on increasing its digital sales strategy to drive sales
through Nike.com.

Manufacturing revolution,
focusing on innovative material and assembly procedures.