Nike, Inc. has set extraordinary superiority criterions for athletic footwear and apparel globally. Catering men, women and kids, Nike grosses a substantial revenue. With remarkable strategies, this company has successfully earned its place in the global market. For auxiliary amplification, below are assessed SWOT analysis:
This globally recognized brand has certain hard core strengths. It’s exceptionally competitive image and can do approach entices the customers all around the world. The most popular tagline of “Just Do It”, represents not only the brand but also its customers. The slogan synchronizes with the company’s vision of brand personifying with that of athletes. Nike’s iconic “Swoosh” symbol has gained world recognition especially amongst youth. The company saves higher labor costs by outsourcing the company’s manufacturing sector. Hence, it does not own any manufacturing outlet. By outsourcing the production aspects of the company, Nike saves the higher labor costs. The research and development sector of Nike is much pronounced.
Nike focuses less on the selling of supplementary performance products. Though company generates hefty revenues from the footwear division, it is not sagacious to be contingent highly on one in particular for the endurance of business. Nike needs to upsurge its horizons horizontally and vertically to diversify its business. It should pay some focus on the apparel and other accessories as it is a standard business practice. Nike is thoroughly criticize over labor conditions includes ‘child labor’ and ‘low wage’ in countries outsourced. Burlesqued of abhorrent conditions of labor, triggered decline in sales.
For global companies, the emerging markets generate substantial prospects. Rapidly growing economies like India, China and Brazil are potential markets. Though Nike has already made a presence in these developing countries for future earnings growth, it needs to calibrate its product portfolio according to the predilections and perceptions of the region. Innovative products should be designed with in-depth research and development. The company can diversify latest product range with the amalgamation of technologies.
Nike has numerous competitors in athletic footwear and apparel. “Puma” and “Adidas “are the 2 global competing giants. These companies have extraordinary range of products in the market and are popular. Technological advancements and consumer preferences are also the risk factors for Nike. With high completion level, Nike has to cope the changing trends to successfully attract their customers. Being a global company, Nike also faces currency fluctuations significantly. The risk factors for company gets high when the value of dollar increases.
Overall, the global footwear market is subjugated by Nike. Association with premium quality, resilience, endurance and fitness makes it the first choice for millions.