Nike Inc. Situation & SWOT Analysis

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American Multinational Corporation, Nike Inc was founded in the year 1964. It is headquartered near Beaverton, Oregon, near the metropolitan area of Portland. The company has been engaged in the production of various items such as accessories, footwear, apparel, equipment and other services. It designs, develops, sells and advertises them. In all these years, the company has become a brand and the world’s largest supplier of apparel and athletic shoes. Also, apart from these two big positions, it has become a major manufacturer of sports equipment. The revenue of the company is more than US$34 billion.

Manpower resources of the company

As per the data of 2018, the number of employees at the company was approximately 73,000 across the globe. The hard work of the manpower resources has taken the company to the next level bringing it glory and piousness and named as well-renowned brand among sports business. The leading footwear brand is one of the top three players in the world. Let us discuss the strengths, weakness, opportunities, and threats (SWOT Analysis).

Strengths of Nike in SWOT Analysis

There are several achievements and features of the company to increase the count of the strengths.

  • The leading footwear brand designs, and sells shoes for a huge number of sports such as volleyball, tennis, football, cheerleading, baseball, and golf.
  • The operation of Nike Town shoe and sportswear stores, Nike Women shops, and Nike factory outlets.
  • The company has its outlets in more than 180 countries of the world.
  • The competitive approach of the leading footwear brand makes it out of the ordinary and it is the reason for its success.
  • The attitude and the slogan of “Just Do It” defines the approach of the brand towards doing business.
  • The guiding philosophy behind Nike is making shoes for every person who can walk and run.
  • All the aspects of the production of the company are outsourced. That is why the company does not have any manufacturing plant. The direct linking of the absence of the duty of a manufacturing unit is the focus on higher value-adding Research, design and the development processes are performed the best.
  • The company saves its high labour costs by not manufacturing the products.
  • It has become a globally recognized brand attracting the youth in particular.

Weaknesses

  • Only the shoe business makes up a huge amount of the company’s revenue. Due to this, it becomes dependent on the shoe business for its survival which is not a good business practice.
  • The retailers of the company also deal in other brands as well. The exclusiveness is still missing at a huge number of the company’s outlets. This shows its weak business strategy
  • Most of the times, middle-class people address the brand as too premium and luxury. This shows the customer’s migration towards tier.

Opportunities

  • The change which the customers are introducing in the lifestyle seems to prove a turn for the company. Billion new consumers aspire to the western culture and thus adopting new types of apparels. It results in more receptive to the brands like Nike.
  • The company has added various other items by its diversification to various accessories and many premium products.
  • Offers value for money. The quality of the products adds to the hilt in terms of newer consumer segments.

Threats

  • It is natural to face some ups and down in the international trade of the company as it operates worldwide. The most common is the currency fluctuation which varies its margins and decreases its control over the geopolitical events. These events are important as these lead to potential disruption of the global supply chain.
  • Need to improve brand image as resorting to exploitative business practices of the outlets worldwide.

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