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Competitive Marketing Analysis
Nike evolved as a result of the use of continuous innovative strategies using a cushioning
and stability system in the firm’s products. Nike’s approach to marketing changed in its 2002
“Secret Tournament” campaign, the first truly integrated approach. Reebok approach to the
industry has very similar strategies, but with a focus toward fitness. The products from Nike
offer continuous new and innovative methods from research and development directed for the
company’s consumers. Reebok produces a product called “Easytone” that is targeted to women
in fitness using a technology invented by a former NASA engineer. Nike operates in over six
geographies; North America, Western Europe, Eastern/Central Europe, Greater China, Japan, and
emerging markets. Reebok has expanded to a Global Corporate Citizenship that helps under
privilege youth around the world. Nike promotes the brand of footwear, apparel, and equipment
product engines through creative methods of communication targeting customers. Reebok
provides unique and authenticity to give diversity to customers. The Nike’s retail price and
quality are relatively high, and the unit price is low as it creates large quantity sales. Reebok
offers a lower retail price and quality.
External Market Environment – PEST Analysis
Political Environment
Nike contributes to federal, state, and local level political campaigns. Nike supports politics
through political action committees made up of employees of the corporation. PAC supports both
political parties favoring those most sensitive to the support of Nike’s business interest and goals.
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Economic Environment
Nike has over 36,000 employees globally. Nike collects billions of dollars in revenue. More than
$2.5 billion comes from the affiliate brands.
Social and Cultural Environment
Nike’s support of the 2002 “Secret Tournament” created expansion to the consumers showing a
diverse effort at the World Cup. Nike’s (RED) is a united way of fighting against HIV/AIDS in
Africa, partnering with the Global Fund and the world football community.
Technology Environment
Nike IHM, Inc. is a facility Nike owns that produces AIR-SOLE cushioning components. Nike
also sells these special parts used in Nike footwear products to other manufacturers. Nike has
won the Gigaton Award for Energy-Saving Programs Aimed at Reducing Global Greenhouse Gas
Emissions in 2011.
SWOT ANALYSIS
Strengths:
Nike is the world’s no. 1 shoemaker. It designs and sells shoes for a variety of sports
including baseball, golf, cheerleading, volleyball, tennis and football.
Nike uses a “Make to Stock” customer order which provides a fast service to customers
from available stock.
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Nike operates Nike Town shoe and sportswear stores, Nike factory outlets and Nike
Women shops. Nike sells its products throughout US and in more than 180 countries.
