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For Complete Nike Case Study solution by top experts
Formerly known as the Blue Ribbon Sports, Nike is popular as an American sportswear organisation. The headquarter is located at Oregon, Beaverton. The company was developed in the year of 1964. The first retail outlet was developed in the year of 1966 and the brand Nike (especially for the shoe) was introduced during the year of 1972. Rename of the company was published two years after its official launch. From the year of 1980s the company expanded the business as well as diversified the product through different acquisition procedure including the companies producing shoes such as Cole Haan and others.
Considering the history of the organisation, researchers have mentioned that, the students of University of Oregon were being coached by the Olympic gold medallist as well as Bowerman during the year of 1960s. During this time, the company has sold almost 1300 pairs of shoes trending the Japanese fashion, worth $8,000 and reached up to $20,000 during the year of 1966. During the year of 1971, the company pledged for serving their products almost in 170 countries covering the entire world. Along with this, the company is operating with more than 30,000 skilled people serving with complete dedication. The following section will mention a structured analysis of the organisation’s internal and external strengths and weaknesses through different strategic tools.
| Strengths | Weaknesses |
| · The company has established a strong brand awareness. · It contains a huge consumer base. · The company is much concerned about the notion of sustainability development. It has situated the company one step ahead in building competitive advantage. · The company maintains an iconic relationship with their consumers and partners. · The company includes a low manufacturing cost that automatically reduces their product cost. · The company exclusively promotes different marketing campaigns to engage their consumers. | · The condition of the labours is poor especially in the foreign countries. · Considering the global retail industry, the company holds a weak position. · The company is alleged with different pending debts which is almost $9.54 billion. · The company is highly depended on the marketplace of United States. · The company is associated with different lawsuits including discrimination, class-action and equal pay act. · The company lacks the notion of diversification in promoting the products and services. |
| Opportunities | Threats |
| · The company need to focus on the emerging market trends. · They need to invest for product diversification and introduce innovative products. · They need to invest for efficient integration between the supply and manufacturing. · They can utilise the procedure of artificial intelligence and also the feature of machine learning. · The company need to accelerate their speed by investing on the notion of direct marketing strategies. | · Increasing popularity of the counterfeit products are significantly affecting the business. · Increasing pressure of competition within the industry is also another threat for the organisation. · Potential rivals including Adidas and Under Armour are investing more on R&D and different advertising campaigns to pressurise Nike. · The economic uncertainty during the pandemic situation is also threatening the organisation. · Tension related to trading or expansion is restricting the company from further progress. |
As shown in the aforementioned matrix, the company is belonging to the group of popular brands. The name is easy to recognise and pronounce. The company provides almost 31$ of the entire global athletic footwear. The company performs with a huge number of consumer base. As a means of enhancing their competitive advantage, the company is solely focused for promoting sustainability through their products and different advertising campaigns. Along with this, the iconic relationship with their consumers is one of the major plus points of Nike.
Despite the remarkable strengths, the organisation is also associated with different weaknesses that restricts the company from achieving the desired goals. It includes the poor labour conditions especially in the foreign countries. The company is also alleged with huge pending debts that counts almost $9.54 billion. Third important threat for the organisation is the complete dependency on the US market. Researchers have mentioned that almost 59% of the entire income of Nike comes from the US retail industry. Most important threat on the company is the different lawsuits including not concerning about discrimination, filing class-action, and violating the Equal pay act. Apart from this, the company is observed with lack of diversification in serving their products and services.
There are huge opportunities for Nike to overcome the observed issues and receive their targeted goals. Firstly, Nike has already started to expand the business in the foreign countries. However, the company is missing out the potential countries including India, Brazil and China. Secondly, they need to bring innovation in their product range. Including modern technology for product innovation and service innovation that will help the organisation to attract more consumers. Thirdly, the company needs to establish an effective integration between their production procedure and the suppliers. The company need to focus on either on the notion of new market segments or new technologies. In this regard, the researchers suggested to invest on the features of artificial intelligence and machine learning. It is the latest technological invasion that helps an organisation to reduce the manual labour and enhance the quality of their products and services at the same time. Finally, the researchers suggested to implement the procedure of direct marketing strategy in the field of global expansion. The company may introduce different strategies to strengthen the physical stores. During the fiscal year of 2020, the company can increase their sales up to 35% by strengthening the financial condition.
Considering the current situation of the existing business industry, the company is observed with different emerging threats. Firstly, the emergence of counterfeit products can significantly affect the procedure of revenue generation for the organisation. Secondly, the existing rivals including Adidas and Under Armour are providing continuous challenges to the organisation. They have already started to strengthen their research and development procedure to surpass the success level of Nike. Finally, these companies are also creating a kind of budget pressure on Nike which needs immediate attention to resolve. As you can see, when you avail our Philips case study assignment help service, you get all-round assistance. Thus, if you want to stand out from the rest of the class, you can contact us.
| Factors | Analysis |
| Political | Researchers have mentioned that political factors play the role of a backend of an organisation. Political alteration within the country restricts an organisation to follow a particular set of regulations. An organisation needs to accustomed with a set of political regulation. Hence, United States presents an ideal marketplace for the organisation to utilise the fantastic regulations. In this regard, Nike is completely depended on the United States marketplace which is also considered as a drawback of the organisation. |
| Economic | The company serves products from medium to higher range. Hence, it can provide their products for a wide range of consumers. However, the recent market collapse introduced various bad information for the organisation. It is becoming incapable to compete with the big brands including Adidas. Along with this, researchers have mentioned that, the revenues of Nike is mainly dependent on the low cost labour especially in the eastern nations. This notion is changing that can introduce huge challenges for the organisation. |
| Social | Nike maintains a stronger relationship with the public. They maintain a good social status through maintaining all the features of corporate social responsibility. They try to promote worldwide health consciousness and encourage the consumers to lead a better lifestyle. In this regard, they assure their consumers to provide best quality of sports apparel that makes the organisation confident and happy. On the contrary, the company also associated with huge criticism for its dubious production procedure. The company is solely dedicated to provide quality products to the consumers and providing prominent warrant with every product they sell. Moreover, the company maintains a healthy social relation through their extraordinary services. |
| Technological | Technology helps an organisation to elevate their performance through better management of different aspects. A great innovation of technology is the digital marketing procedure. The company maintains a stronger relationship with their consumers through the effective optimisation of their social media profiles. It allows the business like Nike to showcase their initiative towards the consumers and the entire environment. It also helps the organisation to create a kind of transparency between them and their potential consumers. |
| Legal | Legal factors sometime combine the first four components of the PESTLE analysis – political, economic, social and technological factor. Researchers have mentioned that, most of the successful organisation contain the tendency to dodge the notion of taxation. It is already mentioned in the SWOT analysis that the company is associated with a huge amount of debt. Along with this, the company is alleged to not abiding by the Equal Pay act. As per the corporate industry rules, every organisation needs to treat equally to all their employees irrespective of their special features. |
| Environmental | The mass production of the organisation is undoubtedly threatening the environment. The factories also release huge amount of pollution like the other factories. However, the production centres of Nike do not posses any direct connection with the rivers. Irrespective of this, Nike has established a promising image to adhere and abide by the sustainability agenda for the entire world. |
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