Nike’s Threats
Threats are external factors that affect Nike’s performance negatively. Despite Nike being a giant
in the industry, some threats can limit its growth and development in the market. These threats
include:
Tough Competition. Due to increased research and development, and the rate at which
companies are developing, Nike may face competition from other giants such as Adidas,
Reebok, and Puma in future, threatening its growth in the market. Although they do not
MAKETING PLAN
13
offer a product compared to the Nike Comfy, it is probable that they may start offering in
the near future.
Rapid technological advancement can help the company to increase its competitiveness
in the market by integrating new technology into the products to suit the needs of the
consumers satisfactorily. Currently, many of the products are going out of fashion
resulting in the company’s struggle in the industry.
Lastly, imitation can be a great threat for the company too.
This emanates from poor legal protection for patents particularly, in the developing countries.
Therefore, for Nike to remain a giant and global leader in the sports apparel and equipment
industry, as well as the smooth introduction of the Nike Comfy, it has to include technological
advancement and legal protection in its fundamental strategies.
Recommendation
From the SWOT analysis, the company has enough strengths that can support its leadership in
the global industry. Nevertheless, Nike should address factors such as competition, labor and
employment practices, and patent protection by collaborating with relevant bodies including the
government for patent protection.
In general, the company is in a good position to introduce a new product and grab substantial
market share in the global market. It would need to redefine its strategies according to the
recommendations and the SWOT and PESTEL analysis.
g.
Critical Concerns
The SWOT analysis indicates that Nike Company has been the giant in the apparel industry for
long. While its competitors such as Adidas, Reebok, and Puma have experienced a significant
MAKETING PLAN
14
decline in sales, Nike has been reporting explosive growth in sales due to its strengths and
opportunities in the market. However, despite the explosive growth and the strengths of the
company, Germano (2016) points out that the company has been facing and continues to face
critical concerns. They include struggling in the industry, increased women athleisure, and
popular products becoming out of fashion.
According to Germano (2016), Nike has been having strong immune to the struggles of the
industry. However, with the ailing sector, consumers’ preferences for the products have changed,
and they no longer want to purchase the company’s products. On average, the company’s growth
in sales is predicted to drop by about five percent in a year-to-year three month moving averages
(Hirsch, 2018).
