Question

Please provide a comprehensive SWOT analysis about NIKE COMPANY. Please list at least two (2) strengths, three weaknesses, three threats and three opportunities. Please relate your analysis back to the marketing environment factors – which factors that would be a threat? Opportunity? Strengths? Weakness?

Answer 1

This assessment will provide a comprehensive SWOT analysis of the Nike company.

Strengths:

1. Strong brand awareness:

Nike has keen brand awareness, and its brand is easy to recognize. Nike has also captured a significant amount of global athletic footwear.

2. Low manufacturing cost:

Nike has a low manufacturing cost in the foreign countries. Many developing countries manufacturing Nike shoe footwear, including China, India, Brazil, and Argentina.

Weaknesses:

1. Poor labor conditions in the foreign markets:

Nike has persistently getting targeted for their poor labor conditions, including Low wages and unsafe working conditions.

2. Dependency on the US market:

Nike relies on the US market to a considerable extent in terms of revenues and sales. Nike needs to get it changed to improve as depending on a single country might not be the best situation.

3. Lawsuits:

The company has undergone various lawsuits regarding toxic culture for women, and the employees have also claimed that their company has violated equal pay act for women, and they are doing discrimination based on gender.

Opportunities:

1. Emerging markets:

there are various opportunities for Nike because of emerging markets like India, China, and Brazil, which are flourishing gradually. Nike can look forward to mushroom in those countries.

2. Creative and innovative products:

Nike has an opportunity to reach its technology in association with health and fitness like wearable technology that would monitor the physical activities.

3. Efficient integration:

Nike undergo developing a more streamlined and efficient supply chain by acquiring a few independent manufacturers or making some on its own.

Threats:

1. Increased competitive pressure: the company still has much competition from its fellow rivals like Adidas and Reebok. As a result, the company has to spend a lot on marketing and advertising.

2. Currency foreign exchange risks:

Nike deals with many countries, and the company has to undergo some foreign exchange risks.

3. Counterfeit products:

the risk of counterfeit products has become more prominent for the Nike as the company deals globally. Many merchandisers of Nike's counterfeit products at lower prices, which can turn is the image of the brand.

If we Relate the above analysis to the marketing environmental factors, we can see that both would be quite familiar.

The threat would be marketing budget pressure because of increased competitive pressure.

Opportunities would be in innovation in their product and services and new emerging markets.

Strength would be the keen brand awareness, and superior marketing capability is because of Reliance on digital marketing.

Furthermore, weakness would be e a threat to the brand image because of lawsuits and working conditions. The company also has to spend much money on hiring professionals in their advertisement.