As Nike is a multinational
business Laws may affect its distribution of products globally. Being an
international business Nike has to follow by the competitive tax system in
The growth and advancement of
Nike always have adverse effects due to recession. Nike growth is not just affected by local economy but also
in the international economy. Increases in health consciousness means that’s
there is more demand in sports apparel. Nike
has a global presence therefore it needs to focus of consumers buying habits
and preferences. Nike
applies marketing information systems to the economic of innovation and
segmentation. Innovative products which are technically advanced and fulfils
the requirement of its consumers.
World leading brand for
sports shoes. Company
logo that enhances the recognition of the brand globally. Strong control over its distribution channel
•Innovative designs in footwear. Product expansion
(sunglasses, sports wear)
•environment friendly programmes
•New technology and innovation
•The retail sector is very price sensitive
•Lack of stable production units
•Very much dependent upon its share of footwear market
•High price of products due to premium brand
•Competition pressure from Adidas and Under Amour
•Competitors focusing on niche market segments.
•Expansion into developing markets.
•The bargaining power of Nike’s buyers is low to moderate.
•The switching costs for customers are low.
Nike focuses on
•Competition in the athletic footwear industry is very
•Major competitors of Nike are Adidas, Under Armor and
•The threat of substitute products is moderate for Nike.
•Large number of competing brands make similar or matching
•Several brands offer lower priced substitute products for
1: Slow sales growth due to high competition(Adidas
and Under Armour)
Issue 1: Nikes cuts
jobs as sales growth slows due to high competition ( Adidas and Under Armour)
Inventory problems as Nike has excessive inventory which has
a negative impact of the company.
•Across the world Nike has over 47,000 branches over 100
•Nike maintain its management and organization effectively.
•Research, development and advertising campaigns are the
main systems that Nike uses
•Nike’s management implements
a lifestyle wear to employees.
•Nike incorporates sports to
implement competitive spirt for employees.
value is to produce top quality athletic footwear.
aims to build relationships around trust and respect
•In order to reach out to a
wider audience Nike’s strategy is to use celebrity athletes to endorse their
•For their advertisement of
products Nike uses athletes as sponsors.
•Nikes strongest skill is to advertise and market products
above and beyond competition
•Nike acquire the best athletes to promote and wear certain
products on commercials.
•There are approximately
74,000 Nike employees worldwide
•Staff have good knowledge and
experience about the company and the industries in which it operates
• It is crucial for Nike to implement these strategies
within the company
•It is clear from the internal and external strategy that
Nike’s biggest competitor is Adidas.
•From the strategies options 2 in the Implementation
Nike operate in a highly competitive sport shoes apparel.
In the past 7 years have been able to remain as the market leader in the shoe
apparel industry. In order to still compete in the marker Nike should adopt new
strategies. However Nike have been experiencing Slow sales growth due to high
level of competition. In order to stay as the market leader Nike should adopt
strategies that enables Nike to differentiate and increase sales.
By focusing on the implementation strategy of option 2
Nike is able to focus on its digital investments. Nike can sell more items
directly to consumers online, which is convenient and fast. In order to speed
up product development Nike could minimize time needed to get new products on
Many consumers have started shopping online due to its
convenience. Nike could focus on this strategy to increase its sales growth.
The sports wear and apparel
industry is vey competitive. Nike’s major competitors are Adidas, Under Armour
and Rebook. Nike provides higher quality of product and services in comparison
to its competitors.
Nike’s biggest threat is
Adidas as they offer the similar product with lower pricing strategy. Therefore
in terms of pricing Nike’s products are relatively higher than its competitors.