SWOT Analysis of Nike Inc: Detailed report with company snapshot

nike

Nike Inc Company Snapshot:

Nike Inc Mission Statement: 

Bring inspiration and innovation to every athlete * in the world. * If you have a body you are an athlete.

 

Nike Inc started on September 8, 1969, is primarily into the designing, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services.

Sports Shoe sensation Nike has continued its market dominance in the last decade or so. Thanks to its customer focus sand continue product innovations across categories like - Running, NIKE Basketball, the Jordan Brand, Football, Men's Training, Women's Training, Action Sports, Sportswear lifestyle theme and Golf.

The Punch line “Just do it” has been carefully imbibed into athlete character of doing his or her job at the given moment, where Nike adds value.

Nike Inc has reported a CAGR Growth of 10% during 2011 to 2016 and recorded a Revenue of 32.4 Billion for the year ending 2016. Its return on capital invested in 29% and growing YoY. Which shows management efficiency and ability to keep world dominance in Sports Wear category.

Geographical growth avenues for Nike Inc are North America, Greater China & Western Europe which contribute to 8%, 27% and 14% respectively to the top line in 2016. And increasingly emerging markets are active contributors to Brand Nike’s overall growth in recent years. As a reach initiate Nike.com is now operational in 40 odd countries across the globe.

 

Popular Shoe Brands of Nike Inc:

Nike Jordan

Nike Air VaporMax

Nike Air Max

Nike Air Force 1

Nike Roshe etc…

 

SWOT Analysis of Nike Inc.

Strengths:

Market Share: Nike commands 32% market share in shorts shoes which is way above its nearest competitors, like Adidas, Puma etc... which does not include its subsidiaries like Jordan which commands 10% market share. with market leading brands and commanding market share Nike certainly has an edge in terms of brand recall and connect.

Product Innovation: Nike is known for its innovation backed by design, its recent product offerings like: Aero Blades an aerodynamic is a winner just before Rio Olympics. In emerging markets Lifestyle products are big hit and setting next growth examples.

Technology: Nike partnered with several organisations to stay ahead in the competitive and deliver cutting edge products, for example with association with HP in delivering customised products through 3D Printing which shall result in increased efficiency and less waste.

Manufacturing: Nike has set up its manufacturing units across its key markets, advantage being the efficiency in meeting its immediate demand the control over competitive pricing.

 

Weakness:

Nike has its share of weaknesses, among them most prominent being its limits of success only in footwear. Other products still don’t have meaningful contribution to the top line. So, its fair to access the over dependency on one product line.

Apart from product mix limitations, Nike is often under scanner for its labour policy and the way its overseas factories take of its manufacturing workforce.

 

Opportunity:

For a brand which commands nearly half of shorts shoes market globally, the opportunities are many. Key is to spot the real game changing additions and take innovation to create multiple growth drivers.

One such category can be lifestyle products and extended range of apparels.

Another can be sports accessories or sports equipment’s.

 

Threats:

Competition is increasing especially in emerging markets and Nike has to stay ahead in game it has to beat competition even in all possible sports franchises. The use of technology and its relevance coupled with accessibility is widely available to competitors and niche players can really make an impact.

Emerging markets are price sensitive markets and offering quality products with low cost is a challenge and threat, where local manufacturing facilities can dominate and pose challenge for Nike.

Control over negatives in terms of manufacturing related labour aspects is an immediate need which shall otherwise make computation gain in selected markets.

 

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Author: dwapp

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