Considers consumer awareness about the value of its

Nike Inc. considers consumer awareness about the value of its products. This value is used to
determine the maximum price consumers are willing pay in buying the company’s sports shoes,
apparel and equipment.
SWOT Analysis
Strengths (internal) Weaknesses (internal)
Opportun
ities
(external)
Strength/Opportunities
 World’s #1 shoemaker.
 Nike sports a large variety of
products
 Nike sells their products in over 180
countries.
 Nike is a global brand. And is the
number one sports brand in the
World.
 Nike is on the forefront of research
and development, as is evidenced
by its ever evolving and
innovative products.
Weaknesses/Opportunities
 Product development offers Nike as a
large amount of untapped opportunities
throughout the globe.
 Nike believes it is not a fashion brand,
however many consumers worldwide,
especially in the United States that
purchase Nike product do not always do
so to participate in sport.
 Youth culture in western cultures,
especially see Nike as a fashion brand;
which creates numerous own opportunities
in the market

NIKE INCORPORATION 7
 Their famous ‘Checkmark -
Swoosh’ logo is instantly
recognizable all over the globe.
 The business could also be developed to
grow more on an international scale,
building upon its strong global brand
recognition. And can advertise at global
events such as FIFA and the Olympics.
 Nike also has the opportunity to develop
other products such as sunglasses, sport
wear, etc. Based off their Brand
Threats
(external)
Strength/Threats
 The retail sector of business is very
price sensitive. And most of Nike
income comes from selling to
vendors and retailers, who are
pressuring Nike for better deals, and
the retailers and vendors try to get
the best deals to sell their customers.
 The income of Nike is still heavily
dependent upon its share in the
footwear market. Meaning that Nike
would be vulnerable if the footwear
market crashed or plummeted.
Weaknesses/Threats
 The market for sports shoes and garments
is very competitive. Due to this there are
many Competitors that are developing
alternative brands trying to take away
Nike’s market share in the market.
 Nike buys and sells in many different
currencies; global currencies are not
always stable over long periods of time.
Meaning that with any shift in the
geopolitical landscape, Nike could end up
manufacturing and/or selling their
products at a loss.
Competition
In terms of market share, Nike's biggest competitors are Adidas and Under Armour. Other
competitors include Puma, Skechers, Anta and Li Ning. Nike is the global market leader, but it
faces increasing competition in Europe and China. The competitor gaining the most ground is
Under Armour. The company is actively pursuing lucrative U.S. sponsorship deals similar to
Nike’s, giving it a growing piece of market revenue. In Europe, Adidas is developing new
products to compete head to head with the giant. Chinese companies Anta and Li Ning show a
steady increase in sales within China. Both Puma and Skechers occupy a smaller part of the