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Nike SWOT Analysis

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Paper - SWOT Analysis for NIKE

A primary challenge for every company is to understand what it is doing well, what it could improve upon, what new business it could go after, and what my prevent it from being successful. These concepts are capture in a SWOT analysis, which analyzes the Strengths, Weaknesses, Opportunities and Threats of the company.

Perform a SWOT analysis on that company. Write a paper that includes a SWOT table with at least three bulleted items per quadrant.

Strengths
? Strength 1
? Strength 2
? Strength 3

Weaknesses
? Weakness 1
? Weakness 2
? Weakness 3

Opportunities
? Opportunity 1
? Opportunity 2
? Opportunity 3

Threats
? Threat 1
? Threat 2
? Threat 3

Write a body of text that describes and expands upon each item in the table. Make at least one recommendation that the company should do to improve its business by addressing a weakness, an opportunity or a threat. For example, explain an opportunity that the company should go after, a threat for which the company should mitigate risk, or a weakness that the company should eliminate.

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Solution Summary

This solution gives a SWOT Analysis of Nike, a popular shoe manufacturer.

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Here is a ranking of shoes in the global market. Jones (2011) identifies the following world rankings:

1. The first brand is NIKE from America
2. The second brand is Reebok from UK
3. The third brand is Adidas from Germany
4. The fourth brand is PUMA from Germany
5. The fifth brand is FILA from Italy

NIKE SWOT Analysis
Source: Marketing Teacher (2011). SWOT Analysis Nike, Inc., Retrieved on 9/30/2011 from http://marketingteacher.com/swot/nike-swot.html.

STRENGTHS
a.) A very competitive organization
b.) Nike has no factories, and
c.) Nike is a global brand".
A very competitive organization can make a big difference. The absence of factories (production is consigned to a third party) means that there will be minimal overhead cost to the company. Nike's global brand makes it popular to the world market.

WEAKNESSES
a.) Does have a diversified range of sports products. However, the income of the business is still heavily dependent upon its share of the footwear market". Cite that this is dangerous to the company. It might lose its market share to competitors, and b.) The retail sector is very price sensitive. Nike does have its own retailer in Nike Town. However, most of its income is derived from selling into retailers. This spells disaster to the potential income of the company. It should have a marketing link to the ultimate shoe buyers.

OPPORTUNITIES
a. Product development offers Nike many opportunities. The brand is fiercely defended by its owners ...

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