reviewing its strategy and how it is performing against external and internal

Reviewing its strategy and how it is performing

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reviewing its strategy and how it is performing against external and internal factors, these strengths, weaknesses, opportunities and threats can be considered as the basis for recommendations on how the company might change its short-term and long-term strategic direction. Prepared by: El Mahrouk Rose Page 13
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Strategic Management Nike Strengths 1. Strong Brand Awareness – Nike is one of the most recognizable brands in the world as its name alone is memorable, easy to pronounce, and very unique. Its swoosh symbol is easily recognized by everyone. Nike has captured approx. 31% of the global athletic footwear market. 2. Huge Customer base – Nike has millions of customer from around the world who loyally follow Nike’s trends, participate in Nike events, and even provide customer feedback. Due to its huge customer base, Nike’s market cap has grown to $115.19 billion as of 2018. 3. Aimed For Sustainability – Nike’s CEO Mark Parker has addressed that they will continue to acknowledge the environmental issues in the communities. The CEO ensures that Nike will help to contribute in finding a solution against these environmental issues. 4. Iconic Relationships – Nike’s long-term partnership with Michael Jordan has proved to be beneficial in terms of sales for the company. Their collaboration resulted in “ Air Jordan 1 Shoes ”. Additionally, Nike teamed up with the famous basketball player to help design the “Air Jordan 1 Shoes”. 5. Side Brands – Nike’s ability to maintain and enhance its side brands has enabled it to enjoy unparalleled success for decades. 6. Low Manufacturing Cost – Most of Nike’s footwear is manufactured in foreign countries. In the year 2018, Vietnam produced 47%, China produced 26%, and Indonesia produced 21% of total Nike’s footwear. Other operations are in Argentina, Brazil, India, Italy, and Mexico. 7. In-house Professionals – Nike has a team of professionals that design its shoes and other athletic accessories. Nike believes that their business has flourished due to the thorough research that is conducted for each product. 8. Superior Marketing Capabilities – Nike has excellent marketing campaigns. The brand heavily relies on digital marketing. In the year 2016 and 2017, Nike spent $3.2 and $3.3 billion respectively. The brand has successfully utilized social media and marketing campaigns to target more customers . Prepared by: El Mahrouk Rose Page 14
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Strategic Management Nike Weaknesses 1. Poor Labor Conditions in Foreign Countries – In the last 20 years, Nike has been consistently targeted regarding their poor labor conditions. These issues include child labor, low wages, and horrific working conditions that were deemed “unsafe”. 2. Retailers Have a Stronger Hold – Nike’s retail sector makes Nike weak due to its sensitivity against pricing. About 60-70 % of Nike’s stocks are sold directly to retailers. With retailers serving as their core customers, Nike does not put up a fight against their pricing structures whatsoever.
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