SWOT Analysis of Nike

Abstract

Nike has earned a significant reputation in young people in relation to its sports related products around the world. The company offers broad products line to its customers and competes in global markets. In order to understand the global competitive environment for Nike it is essential to perform SWOT analysis of the company. This paper presents SWOT analysis of Nike Inc. with its strengths, weaknesses, opportunities and threats.

Table of Contents

Abstract2

Introduction4

Discussion5

Strengths5

Weaknesses6

Opportunities7

Threats7

Conclusion8

References9

SWOT Analysis of Nike

Introduction

Nike is usually recognized as a well-known and popular brand among the youth across the globe due to the promotion of products by celebrities. It is also important to know that company's main customers are those who play basketball and people who like running. In fact, Nike can be seen as a leading producer, seller and distributor of sports shows and other sportswear products (Frisch, 2011). It is also essential to discuss that Nike has now left the American boundaries and currently markets its products in all continents of the world from America to Europe and Africa to Asia. This suggests that company has brought a significant change in its business strategy by shifting its attention from internal to international markets. In addition, Nike outsources products mainly from Korea and Taiwan in order to bring its cost down (Carbasho, 2010). While, company's brand strategy entails that Nike focuses on rebuilding its image and make promotions in relation to specific target markets and product positioning.

In fact, company's brand strategy is to increase the customer base putting emphasis on the product promotion with creative marketing strategies (John, 2008). SWOT analysis, on the other hand, can be defined as an important method of strategic planning that is used by many organisations to analyze as well as evaluate their strengths, weaknesses, opportunities and threats (Hitt et al., 2012). There is no doubt about the fact that SWOT is not only a powerful but also a most widely used tool that help organisations analyse their business environment and conduct audit of their strategic position. This paper aims to present SWOT analysis of Nike by analyzing company's strengths, weaknesses, opportunities and threats.



Discussion

Strengths

Innovation Capabilities

Innovation has been identified as Nike's key strategy that enables company to bring creative and innovative products to customers. The main examples of Nike's innovation are Air Jordan XX3 and Nike Air Native (John, 2008).

Strong Brand Equity

The brand equity of the company is also ...