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Commercial strengths and weaknesses of Nike

Nike has both commercial strengths and weeknesses.However, in the 50 years the Nike has been in production; it has shabby the majority face up to. For its unconventional person days as an nonentity sports shoe product being sell out of the back of the track of its owner” car at road meet during the eighty and ninety when it sumptuous multi – million dollars support deal on sports icon. Following is a SWOT analysis of this vast American industry project.

INTRODUCTION:

The company stable out just an airplane built-up in arranges to make happy path job at Stanford University. Mr. Phil knight a adapt student at Stanford University and a comprehensive space messenger firm that he would create small price organization shoes in Japan and then advertise them in USA. Knight solicits the help of a history teacher Bill Bower man to help him in his big business project and in 1964 they ongoing Blue Ribbon sports. Knight called his first shoe Tiger and began allocation at path meet. Blue Ribbon in 1971 earned its Swoosh and knight introduces the most important Nike brand line. In 1978 the Blue Ribbon becomes Nike and both years their earnings grow gradually. Owing to Nike attention in informal shoes in the 1980, they missed the leaning to aerobic shoe and cut down after allowing Reebok to manage the marketplace.

MISSION AND VISION:

In its mission announcement Nike state that it entail responsibility commerce in a guilty way, most significant to sustainable monetary increase. With the advance in knowledge, Human resource practices, the healthy knowledgeable and skilled employment power, here is extremely small deficient to distinguish organization’. Living being seen to go added than the lowest amount necessary on community issue can draw and keep patrons. This bottle sea green refinement attracts concentration to the association; they are view as thoughtful and public liable (Mullins, L. 2005).

A speech, on the construction put into practice of Nike during its make available succession accuse the association of creature concerned in scant operational circumstances, defiance of hard work civil rights, low salary and pestering of its labor force. Nike takes this information seriously. On the source of the study reply the corporation has make stronger the monitor of its supplier (Hummels, H and Timmer, D.2004)

OBJECTIVE OF THE STUDY:

The SWOT examination aim to propose the participate government of the Söderköping growth with an instrument to charge their past contribution in the Söderköping procedure as fit as to appraise the option for the modus operandi to bear on after the conclusion of the in progress development in February 2009.

The SWOT study is not course for at the Söderköping course itself, as adequate opportunity for evaluation of the procedure by Governments willpower be provide at an additional summit of the older height evaluation gathering.

SWOT ANALYSIS:

STRENGTH:

The company is the most important and nearly everyone documented name in sportswear. The Nike shoes sign and motto “Just do it” are appreciated by the people. Nike has physically powerful distributions, it supply its products almost in every part of the world. Manufacture assortment of sports products including sports shoes, trousers, shirts, sports utensils and additional accessories. Sturdy financial position, net income of US $ 1.49 billion in year 2009.It employed approx 30,000 people rather like the world. Strong Marketing efforts by sport athletes for TV commercial. It belongs to wealth 500 companies. Nike has no factories; relatively it uses contract factories to get the work done which makes it realistically a lean organization. It has contracts with above 700 shops worldwide in about 45 different countries. It uses linarite foam and flies wire resources in regulate to make the manufactured shoes lighter and handier. Strong research and growth in sports footwear. Nike has made number of acquisitions including Cole Haan, Hurley International, Converse Inc.

Nike being a competitive organization has a healthy dislike towards its competitor’s i-eduring Atlanta Olympics, Reebok expensed on sponsoring the games; Nike however sponsored the top athletes and due to this step, it gained precious coverage. Nike has no factories; rather it uses contract factories to get the work done which makes it quite a lean organization. it has contracts with above 700 shops globally in about 45 different countries. Nike is quite strong regarding its research and development; quite evident regarding its growing and innovative product range. They manufacture high quality at the lowly possible price, if prices rise due to price slog then the production process is made cheaper by changing the place for production. It belongs to the Fortune 500 companies.

•It uses linarite foam and flies wire materials in regulate to make the manufactured shoes lighter and more controllable.

manufactured goods multiplicity

capability for improvement

distribution knowledge

on its own make

star support

union industrialized

Large portfolio of products Nike, Inc is listed in NYSE and positioned as a US headquartered worldwide sportswear trader and supplier : Contracts with about 700 shops worldwide, runs offices in 45 countries, and manages factories in China, Indonesia, Taiwan, Thailand, India, Vietnam, Philippines, Pakistan, and Malaysia. Belongs to wealth 500 companies which 2007 total returns exceeded 16 b. USD Employs more than 30.000 people worldwide; Owns best marketing strategy under Nike brand that assumes the participation of world top-class athletes and sportsmen in Nike’s ‘Just do it’ advertising campaigns; Operates a chain of Nike town retail stores; lead its international business operations through acquisitions and re-branding: contrary Inc, 2003; appetizer athletic clothing, 2004; Umbro, 2008; Nike’s finest brand is used to manufacture and promote a broad variety of products for all types of sport-oriented and leisure activities; Manages the US premier training program SPARQ Training Program; Applies linarite head and fly wire materials to decrease the weight of manufactured shoes (Aader, 2002)

WEAKNESS:

Still the Revenues of the company are much needy of footwear crop. It is not very easy for the third planet and Asian countries to have enough money for this product, it is measured as the very expensive brand .A smaller quantity diversification in goods which add to their depends on a small number of crop. Criticize of by numeral of community assembly on paying small salary to employees, after a while the young person service the put on the market division is accusation perceptive; retailers typically have a tendency to offer a exceptionally parallel understanding to the customers with an additional very high expensive product, which in come back tend to search out compress as retailer effort to get ahead of a number of near to the position price opposition heaviness on peak of Nike. The company was fairly a number of times disinclined to make known whichever sort of in the order with reference to its associate company. Organization has a diversify multiplicity for sportswear, the production proceeds , however, it is motionless a great transaction conditional winning it’s contribute to the footwear marketplace which undergrowth it at a moderately subject mark for some motivation its marketplace supply to erode. The put on the bazaar subdivision is price susceptible; retailer more often than not is liable to recommend a very similar understanding to the customers with an supplementary very high expensive item for consumption, which in come back lean to acquire squeeze as retailer endeavor to get ahead of a quantity of near to the position consequence rivalry heaviness on top of Nike. Nike was for quite some time unwilling to reveal any type of information concerning its partner company. It is emotional with the breach of finally and least amount wage rates in Vietnam, 1996, it was seen as having poor working conditions, and it is in addition stimulating for exploiting despicable personnel out of the country. The company is in adding together testimonial to encompass serviceable young person employment in Cambodia to manufacture soccer ball.It is situated when a subject material of disparagement by anti-globalization group due to its wild and dominated behavior so as to be moderately a tragedy designed for its standing.

on its personal product

as well lots of star sustain

contract industrialized

raise collection of crop

reliant on retailer

reduction of intention bazaar reluctant to make known in order with reference to its associate company, which cause unfeeling vilification from Stopwatch and other company; contract factory in Vietnam, China, Mexico and in Indonesia; desecrated after at the similar moment in occasion as law smallest amount take-home pay excise and in Vietnam, provide underprivileged operational circumstances, and tend to take advantage of contemptible labor force out of the country, particularly in free of charge trade zones where; Some of Nike’s ads are associated with US female empowerment; the company report to be suitable kid labor in Pakistan to manufacture soccer balls. Compulsory the Labour applications in partner clothing factory in Malaysia, connecting mandatory Labour.

OPPORTUNITIES:

The brand is definitely protected by its owners who consider that Nike is not a fashion brand, however, a large number of consumers wear Nike product because they extend a fashion tendency rather than to contribute in a sport. It is mostly argued in youth culture, Nike is a fashion brand name which also creates opportunities for Nike since its products would become old-fashioned before even the product wears out i.e. consumers will think the need to alter the product with a newer Diversification in products range. Diminish prices in Asian and third world countries to increase market share enter into the unused markets. Make efforts to minimize the pollution generated from the Nike manufacturing factors. Utilization of shoes production waste. The brand is sternly protected by its owners who believed that Nike is not a fashion brand, however, a large number of consumers wear Nike product because they obtain a fashion tendency rather than to participate in a sport. It is generally argued that in youth culture, Nike is a fashion brand which also creates opportunities for Nike since its products would become old-fashioned before even the product wears out i.e. consumers will believe the need to change the product with a newer tendency. There are many international regions that still need drumming and there is need for sportswear and with Nike’s strong global brand recognition, it can commence in many markets that have the throwaway income to spend on high value sports goods.

Nike gives a lot of endeavor on its corporate marketing mainly all over the promotion of corporate brand and backing agreements.

THREATS:

Nike is uncovered to the international nature of do business so it sells its product in different currencies which destabilize the costs and margins for profits over long periods of time. This kind of contact may make Nike to be manufacturing and or selling at a loss, even if that is not the case for a vast as itself. The market for sports shoes and sportswear is somewhat competitive; the competitors are frequently developing substitute brands and techniques to take away Nike’s market share. Consumers are habitually shopping about for a better deal that recommend a good quality and if one store charges a higher price for the products, the consumer would try to look for out a better deal of the same product in the location that delivers the same value but cheaper of the two, this type of price understanding among the consumers is a likely threat to Nike. The textile industry unpleasantly upsets the atmosphere, and therefore the organization is continually struggling to keep its eco-friendly reputation. A hopelessness may lead to job shortages in most of Nike’s worldwide branches. The organization has experienced many unfavorable publicity feedbacks owing to its extensive advertising.

competition

Fashion trend

Contract manufacturing and copying of product (rational property)

Consumer lifestyle change

Competition

unpleasant press associated with Nike

Outlets cancelling information

Sarsi industry negatively affects the environment, and therefore the company is everlastingly motivated to maintain its eco-friendly reputation; financial disaster may lead to job shortages in a number of Nike’s worldwide subsidiaries; The Company has experienced negative publicity feedbacks owing to its extensive advertising in mass media Kasey. Nike; Minor Threat at; Beatles song; Chinese-themed at, Horror ad etc .

PORTER’S 5 MODELS:

This model is used to identify the source of competition, and how to enhance benefit over them.

Potential Entrants

Extra sportswear manufacturer increasing their portfolio.

Economical copies from the Far East.

Buyers

The buyers of sports footwear have altered in the past decade.

That has been raise in women purchasing of shoes.

Generation Y has a diverse tastes and purchasing methods.

Substitutes

When essential for skilled use there is no substitute goods, but as a fashion entry there are many other goods that could be purchased.

Suppliers

Using production conveniences in the Far East has give Nike economies of scale. Even though there are now problems arising from these factories, they are switching to making their own goods, labour and taking sides unrest causes delays in manufacturing or shipping of the goods,

Competitive Rivalry

Reebok, offering more choice of shoe, introducing endorsement by sports personalities, sponsoring sporting leagues

Adidas have recovered from the problems that overwhelmed them, and have a good product mix, covering a large range of sports.

PESTEL:

This will regard as environmental influences on the organization, both in the past and with future considered plans.

Political

salient dock workers

Political unrest in to production countries

Terrorism in to habitat country

Economic

Slow downward in the economy

Decrease in consumer confidence

Barriers of entry in the EU

Agreement manufacturing

Socio-cultural

Brand aware consumers

Change in buying behavior in the younger people

Generation Y prefer new types of footwear

Enhance in the female allocate of the market

Corporate social responsibility

Technological

Speed of modify of product

Propose capability

rapidity of News reporting

Environmental

Re utilize a shoe

Sustainability philosophy

Climate force

Legal

Threaten action by immature workforce

Poor employment verification.

Corporate social responsibility.

Contract manufacturing and doubling of product (intellectual property).

sales tax.

Like every large IT undertaking, the team accountable for the achievement of Nike Supply Chain (NSC) began in a place of specific, declared goals:

Attractive Nike’s ability to take action to changing conditions;

sinking stock and capital investment risk;

Improving service to get together customer consumer needs;

Improving process, in sequence and product quality; and

CONCLUSION AND RECOMMENDATION:

SWOT analysis should always be measured by all companies as it helps show companies all their weaknesses and threats. At the same time it also shows what the companies’ strengths and opportunities. Using this analysis companies can spotlight on their good part of the business and focus more on the bad part to make it good. Also a company can see what factors are external or internal which helps the business in a long run to be more capable

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