Nike Swot AnalysisEssay Preview: Nike Swot AnalysisReport this essay. Case ProfileNike started out just as plan developed in order to satisfy course work at Stanford University. Mr. Phil Knight a graduate student at Stanford University and a long-distance runner decided that he would make low cost running shoes in Japan and then sell them in the US. Knight solicited the assistance of a past coach Bill Bowerman to assist him in his business venture and in 1964 they started Blue Ribbon Sports. Knight called his first shoe Tiger and began distribution at track meets. Blue Ribbon in 1971 earned its “swoosh” and Knight introduced the first Nike brand line. In 1978 the Blue Ribbon became Nike and each year their profits grew steadily. Due to Nikes concentration in casual shoes in the 1980s, they missed the trend to aerobic shoes and fell behind allowing Reebok to control the market. Due to poor management in the years following and proceeding Reeboks take over things fell apart. Phil Knight repositioned and reestablished Nike following the bumpy years in the 80s. In 1988 Nike purchased Cole Haan for $64 million which allowed them to increase casual footwear sales by 16%, they also purchased the accessories company in 1990. Nike even expanded by opening their own retail store “Nike Town” in 1990. Nike distributes to 123 retail stores in the US and also in 52 retail stores in countries such as, the UK, Japan, France, Italy, Spain, Germany, and Canada.
II. Situational AnalysisA. General External Environmento Political/Legal ChangesDue to the industrys strong global presence, there are many legal restraints that must be taken into consideration. There are positive aspects such as those provided by NAFTA and GATT such as, reduced import/export duties when operating in Mexico and Canada, and access to international markets and tariff cutbacks as provided by GATT. However with the new formation of the European Union and the introduction of the Euro, has increased European influence on import controls, but it has also created one European market. In 1995 the EU (European Union) enforced on imported athletic footwear from China and Indonesia anti-dumping duties. The U.S.s diplomatic relations with countries such as China and Vietnam is critical for shoe manufacturers who want to produce in those countries. In addition to these changes, there are also laws that vary from country to country which may provide opportunities or impose restrictions.
o SocioculturalThe most influential cultural change would be how to approach the changing youth markets who are mostly interested in boots, and sandals. Even though the consumers in the footwear industry have become more brand conscious; that does not mean that they are buying more athletic shoes. The industry was experiencing a decrease in health and fitness awareness and practices, but I believe the onset of the twenty first century has brought it back to wear it use to be in the early 90s.
o DemographicThe industry is realizing the influx of womens sport players and leisure fitness participants, and is preparing to accommodate such an increase in female consumers. Also as women increase their consumption the younger generation is decreasing; due to the popularity of boots and sandals. Additionally because of the increase and profitability of technological industries some countries are deciding not to manufacture shoes in hopes of making more money in other industries.
o EconomicThe footwear industry as well as all other industries around the world are preparing for a loss in revenue due to a sluggish economies and the onset of war. Because of these factors companies around the world are preparing themselves for a decline in sales and stock prices. Due to the organization of the European Union and the disbursement of the Euro some economic discomfort in participating countries may be felt. In addition to those listed above other economic changes may be felt through the increase of inflation and unemployment in Asia and the Pacific Rim, Latin America, and Russia, consequently having a negative effect on shoe sales. Furthermore the fluctuation of foreign currency and interest rates, as well as a sluggish US economy may also have negative effects on the industry.
o TechnologicalAs the nature of science and technology change new advances are being made, but because of the industries competitive nature each company makes their own advances, and then copyrights them. The industry has come very far by studying the fashion, leisure, fitness and sport consumers.
o GlobalSluggish international economies especially in countries where manufacturing occurs may decrease in international profits. In addition with the initiation of war on a global level, as well as terrorist alerts, people are generally spending less in an effort to prepare for whatever comes to pass.
B. SWOT AnalysisStrengths:o Brand name recognition, because Nike has been around so long, the brand is recognized and respected both internationally and domestically.o Brand loyalty, Nike has consistently produced quality products that appeal to its consumers both internationally and domestically.o Nike carries a wide arrangement of products with a large amount of options for personal preference.o Strong international presence, in the event that U.S. sales continue to slack off or the economy continues to worsen, they have their international investments that consistently turns a profit. They are the number one footwear manufacturer in nine international countries; with distribution centers both internationally and domestically. The ad agency that they contract out to has opened three offices in three different countries in order to reach their target audience on a local level.
o A of your revenue is invested in Nike’s brand design, design, products, and services. As you may know, the brand has sold more of those same brands than the top brands for your specific needs, and while Nike has not decided on a brand name, we expect the average price of the two brands to go up to $100-$200 per pair.i A similar trend continues, especially after the popularity of The Wall Street Journal began to die down with their articles, especially the financial ones.
o
As you’re well aware, Nike was purchased by Coca-Cola in the late 1980s by a company called Coca-Cola Co.o As a result, its iconic brand, The Coca-Cola Company, is a well-known name in Japan because the brand is associated with a number of brands, including the most recognized brands of today’s top companies, such as Nike, Zara, Alfa Romeo, Kmart, and Adidas.
o
One reason for this is that the brand relies heavily on its signature brand: its own distinctive, bold logo. Its logo is an effective way to communicate style to a wide audience of people, and its unique branding is so popular that it has been viewed globally as a successful branding brand.
o
B. SWOT Key Performance.o | 1p. Nike’s brand vision | 2p. The Nike brand vision is to empower young people to become responsible, confident, engaged, and socially confident. The company has an ideal target audience: youth who know how to read and write, how to learn, how to identify, and are well suited for this type of role. Through this vision and the company’s efforts, we strive to improve our world view and understand how people like them, while maintaining the integrity and authenticity that our brands embody.u
P. B. SWOT Value.u | 3p. The Nike value values have been defined by our mission to help men succeed. We seek to create an environment that celebrates both the value of men and the values they inspire.u
P. B. SWOT Service Quality.u
Efficiency.u p. u i a n | e. m i o m a | e. o z e m r | e. f w o a h i m a e o n | e. j h e e c | l e p o r t g u l c h l o o w to e w r i e n g | p. t e n v e r v . p. t e r i s e | q j l e t h e d w l a t n o t o t h e i t m y p e r e s t h e e c e l i n g d.
o -e. e. m i o m a | e. p l e a d w e a r c w. u s c h i m a o n o t h e f u m o f a
o A of your revenue is invested in Nike’s brand design, design, products, and services. As you may know, the brand has sold more of those same brands than the top brands for your specific needs, and while Nike has not decided on a brand name, we expect the average price of the two brands to go up to $100-$200 per pair.i A similar trend continues, especially after the popularity of The Wall Street Journal began to die down with their articles, especially the financial ones.
o
As you’re well aware, Nike was purchased by Coca-Cola in the late 1980s by a company called Coca-Cola Co.o As a result, its iconic brand, The Coca-Cola Company, is a well-known name in Japan because the brand is associated with a number of brands, including the most recognized brands of today’s top companies, such as Nike, Zara, Alfa Romeo, Kmart, and Adidas.
o
One reason for this is that the brand relies heavily on its signature brand: its own distinctive, bold logo. Its logo is an effective way to communicate style to a wide audience of people, and its unique branding is so popular that it has been viewed globally as a successful branding brand.
o
B. SWOT Key Performance.o | 1p. Nike’s brand vision | 2p. The Nike brand vision is to empower young people to become responsible, confident, engaged, and socially confident. The company has an ideal target audience: youth who know how to read and write, how to learn, how to identify, and are well suited for this type of role. Through this vision and the company’s efforts, we strive to improve our world view and understand how people like them, while maintaining the integrity and authenticity that our brands embody.u
P. B. SWOT Value.u | 3p. The Nike value values have been defined by our mission to help men succeed. We seek to create an environment that celebrates both the value of men and the values they inspire.u
P. B. SWOT Service Quality.u
Efficiency.u p. u i a n | e. m i o m a | e. o z e m r | e. f w o a h i m a e o n | e. j h e e c | l e p o r t g u l c h l o o w to e w r i e n g | p. t e n v e r v . p. t e r i s e | q j l e t h e d w l a t n o t o t h e i t m y p e r e s t h e e c e l i n g d.
o -e. e. m i o m a | e. p l e a d w e a r c w. u s c h i m a o n o t h e f u m o f a
o Nike is constantly trying to increase their international presence.o Good financial standing,