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 AnalysisStrengths (internal)Weaknesses (internal)Opportunities(external)Strength/OpportunitiesWorld’s #1 shoemaker. Nike sports a large variety of products Nike sells their products in over 180countries.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/OpportunitiesProduct 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 opportunitiesin the market
NIKE INCORPORATION7Their 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 BrandThreats(external)Strength/ThreatsThe 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/ThreatsThe 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. CompetitionIn terms of market share, Nike's biggest competitors are Adidas and Under Armour. Othercompetitors 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
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