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Nike’s Threats Threats are external factors that affect Nike’s performance negatively. Despite Nike being a giantin 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 PLAN13offer 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. RecommendationFrom 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 ConcernsThe 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 PLAN14decline 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).