100%(10)10 out of 10 people found this document helpful
This preview shows page 17 - 19 out of 32 pages.
Nike also has the opportunity to establish itself even more as a trend setting company by blending fashion and sport to an even greater extent. Just like what Adidas did with its Yeezy collaboration with Kanye West, Nike could develop yet a new line that would keep the brand’s vibe but that would really dig into high fashion and novelty.By trying to come up with a more high-end, luxury affiliate brand, Nike could open itself up to a new market full of possibilities. Nike could alsotry to explore other kinds of high-value items like watches, sunglasses or jewelry.Finally, like many other businesses, Nike could expand its operations in emerging markets, for instance by opening more Nike stores in newly industrialized countries instead of only relying on onlineand retail sales. The opening of Nike store is always quite an event for a town and it could boost local sales and increase the company’s visibility in the area.PAGE 16
THREATSA number of variables could also have a negative impact on the firm’s business and should be considered as threats. First of all, Nike operates in a highly competitive market and the company’s tough competition means that whatever little missteps Nike could make would have a major impact on the company’s sales. Alternatives to the brand are plentiful and as the market’s leader, people expect a lot more from Nike than from some of its rivals. Even if as of today, Nike is on top of its competition, it still has to face a lot of pressure and must make sure it won’t fall off track because of a single fail.Nike is also exposed, just like any other multinational businesses, to currency exchange rate risk. The factories where the products are assembled are mostly located in China and in South-East Asia, but more than half of Nike’s profit comes from the United States. Nike has important sales numbersin Western Europe too. All these different geographic areas are important to Nike’s financial well-being, and change in the exchange rate between, for instance, the Chinese Yen, the European Euro and the American Dollar could end up costing Nike some of its profit.STRENGTH:The first strength of the brand is their Logo the “SWOOSH” which is widely recognizable and unforgettable. The “Swoosh” completely embodies the brands image, and whoever sees the logo automatically identifies the brand. Moreover, it is an international brand, present in more than 180 countries over the world, which gives to Nike a huge influence in world.Indeed over years the brand managed to build a strong relationship with their customer, amutual strong feeling of belongness that keeps the customer faithful to the brand. This becomes a strong strength to the company from the moment that, even though a product may be expensive, the faithful customer is ready to pay a big price to get the product from this brand he is so attached to.