SWOT Analysis
Section here about the overall SWOT analysis and the benefits of doing one for a company. Should introduce the topic to others… especially group members so they know what the analysis does for us and why it is important. Such as,
Strengths
Strengths are characteristics of the company that give the business a competitive advantage over others. Nike has a strong international brand in which everyone recognizes it from their logo. The logo can be presented by itself without the name and everyone will know what it is. This is a huge, competitive strength that Nike claims. Expanding their product is something else Nike is really good at. In the beginning, Nike started out making shoes. Now they are world-wide leader in sports apparel and equipment. Nike does well to present itself on an international level with endorsement deals usually with the hottest, most talked about athlete in the world. Right now that athlete is Lebron James and before that it was Michael Jordan. We couldn’t think of two more prominent figures in sports. To promote in America, Nike uses current, prominent figures from different sports and have them wear Nike branded clothes from head to toe. Nike is a clothing brand, so it is hard to innovate new products. However, Nike has found ways to innovate new products that cater to different demographics and are offered at different prices. This proves Nike is very adaptable and therefore will remain an industry leader. Some of these new innovative products consist of the new Flyknit shoe, the FuelBand wristband, and Dri-Fit clothing technology. The FlyKnit shoes are very exclusive in that they give the athlete a barefoot running experience, while the wristband moves into the market of wea...
... middle of paper ...
...sure.
Threats
Threats are potential elements that could cause problems for the business. A potential threat for Nike would be their competitive brands (Reebok, Addidas, Under Armor). Since they are the highest brand in the market, it puts them at risk of eliminating a portion of their market. Another threat facing Nike would have to be repeating the same mistake of child labor in another country. It could be happening right now and we wouldn’t know about it. Hopefully Nike is taking precautions to not make the same mistake because it could prove detrimental to the brand, the name, and company forever. Nike being such a large, multi-national company, they are faced with different pay rates every day. Dealing with these different currencies could ultimately produce a loss of profit. Refer to the SWOT Analysis chart to evidence the something something (page 4)
Nike: A Strange and Terrible Saga. Image is vital to the success of the giant international sports footwear and apparel corporation Nike. Endorsements by sports superstars like basketballer Michael Jordan, soccer maestro Eric Cantona and sprinting ace Cathy Freeman -- to name just a few -- have made the company's "Swoosh" logo synonymous with "cool" for millions of young people worldwide. That image would be badly tarnished if it became widely known that the Nike empire is built on cheap Third World labour (including child labour), denial of trade union rights and collaboration with repressive regimes, most notably the Suharto regime in Indonesia. Nike Australia's public relations spokesperson, Megan Ryan, was coy about how much the company spends on marketing and sponsorship when Green Left Weekly spoke to her recently.
Nike's marketing strategy is in many ways the reason for the company success. Nike is now positioned as a premium-brand. Nike advertising is one of the most effective emotional branding examples in the advertising marketing in today’s world. Their customer loyalty is off the charts. All credit goes to the Nike brand strategy and masterful application of the emotional branding. That's exactly the kind of shrewd marketing attitude that drove Nike's past success. After perfecting in the art of big branding, Nike has now moved into a world in which its consumers want to be told less and just do more. Which is in a way, is such a big change after all.
...st people would buy Nike products during sales when the products are sold at a cheaper price or during sports related events, such as the FIFA World Cup every four years, when there is a “sports fever”. They look for performance and design in the products and also whether or not it is “value for money”. Nike also tries to attract people of different user status to buy their products. Nike attracts ex-users to use their products again by showing that they provide superior customer value when compared to other competitors, potential users and first-time users are attracted by the benefits that the product can offer them. Nike retain their hard core loyals by offering premium quality products with unique designs to allow consumers to stand-out, soft core loyals are captured by providing products at cheaper price as compared to similar products offered by competitors.
Nike, as many other companies do, facilitates production in other countries to help grow sales in those particular regions. The main difference between Nike and some of the other companies is that other companies do not support the exploitation of labourers or human rights. Not to suggest that Nike promotes labour exploitation, but they are less strict about these rules than other companies in foreign markets. Impacts on health and safety are a major factor for employees in sweatshops. However, physical and sexual abuse is another serious concern of many of the sweatshop workers. Most of the sweatshops run by Nike contractors are factories located in relatively small spaces to save on real estate costs. They are often soiled with dirt and kept unheated to save on expenses. Broken glass and dangerous equipment is left on the floors causing potential dangers to any people scattered within the factory. Employees are subject to harassment and violent punishments if work is not being completed as thoroughly and efficiently as the contractors would like. Workers slave under unfavourable conditions for up to 14-hour days often with no breaks. These employees are paid less than $100 US and work on average over 250 hours per month. "Substandard wages keep factory workers in poverty and force them to work excessi...
One thing I like about Nike is how accessible it is. You can find Nike products just about anywhere such as Nike outlets, Dicks Sporting Goods, Khols, Macy and other big department stores, as well as online. Some companies don’t make it as easy to find and buy their products which can be a struggle. I hate when I’m in need of a certain product but companies limit their access, and I can’t get what I need when I need it. Nike makes it easy to find and buy their products at any
Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.
The corporation should invest more money in research and innovation since this is what has helped them to make a product that rivals their competitors. At the same time, it is imperative for them to improve their machinery for cheap labor costs which will help the company increase its production allowing it to meet the demand in the market. By improving production leading to lower costs of making shoes, apparel, and equipment, Nike will achieve higher demand assuming a quality product is maintained in that process. They will stand a better chance of competing in the industry (Hill, 2009). The organization is already in a better position for meeting the demand, customer taste, and needs. The company should improve quality by focusing on developing lightweight products that are more durable compared to those offered by the competitors. Also, Nike can keep up their success by continuing to reinvent and improve their items and continue to meet the current demand by using new technology. It can also use the Internet to communicate with consumers (Hill, 2009). By developing new technology, Nike will allow the customers to suggest and design their shoes online. To achieve this goal, it is fundamental to enhance areas such as their website to make it more user-friendly. Finally, the company should pay attention to small startup organizations that enter the
The factories around the world (China, Asia, and Vietnam) assist in manufacturing and distribution of the products. (Mahdi et al., 2015). The globalization and technology have impacted competition and larger expansion of the corporation around the world. The Nike brand is nearly in every culture of the world from the result of globalization and technology impact. The technology has grown on the quality of the research and innovation the company is performing that is resulting in great volumes of customer cares and choices. The globalization and technology have also helped stabilize the prices of the products and avail them all year round so that there are no experiences of low supply and thus raise in the products prices. (Mahdi et al., 2015). The market is always satisfied with the quality and volume of supply that meets all the fluctuation like the sudden increase in demand or its fall. The impacts of globalization have made the company produce high quality, durable and limited the production impact on the environmental pollution and degradation. It is playing a global roll in the management and conservation of the environment worldwide by taking part in community participation and charitable organizations that serve the society in community issues alongside environment (Mahdi et al.,
The essay, “The Noble Feat of Nike” by Johan Norberg basically talks about the effects of Nike going into third world countries, particularly Vietnam. Norberg explains how Nike’s factory gains from being in its desired location, Vietnam. Vietnam being a communist country comes to Nike’s advantage, because if they were located elsewhere they would have to pay workers higher wages and use more of their machines. Workers in these countries are provided with an air conditioned building with regular wages, free meal plans, free medical service, and training/education to operate the machinery within the factory. The workers find all of this beneficial and in their own favor because of the fact their earning double to five times the amount in wages than if they were working outdoors on a farm. This great deal, blinds them to notice the meaning behind the company’s location in Vietnam. The Nike factory was rather clever in making their location in that specific area to gain benefits for Western owners. The catch Nike gains from is simple. The owners pay factory workers only a small monthly sum from what they make selling the shoes to customers. Globalists state that the company doesn’t pull this fast one on the Western population because of our advancements compared to the Eastern countries. Western people would protest and strike to demand better wages for their work, but the people in Eastern countries have no choice but to deal with the injustice in order to support their families and educate their children.
international markets. The company wants to generate more than half of its revenue from overseas. In my opinion, Nike’s strategies and tactics are to seek on the opportunity to do the marketing on its radical, rebellious and anti-establishment images to the international markets and to benefit from its use of overseas factories to outsource manufacturing processes. For example,
This project concentrates on the Nike Sports shoe; Nike is one of most significant shoe manufacturing company worldwide. Sportswear manufactured by Nike is known for quality and is most liked brand of athletes. (Daniel, 2011)
Lululemon Athletic Inc. (Lululemon) is a retail company that specializes in athletic yoga-inspired apparel for active men and woman. This company is headquartered in Canada and was founded in 1998 by Dennis Wilson. Wilson’s passion was technical athletics which resulted in him opening a studio to design yoga clothing in 2000 in Vancouver. To help pay his rent, Wilson held yoga classes at night when the design studio wasn’t being utilized. By 2011, Lululemon’s yoga apparel was being sold in over 130 stores located throughout Canada, United States and Australia. With much success expanding into a global market, Lululemon’s vision was to evaluate the world from mediocrity to greatness. To achieve this vision, a strategy was developed with
...rible situations for people who do not have the laws like U.S. workers have. Even though NIKE has implemented different methods to improve the companies’ image, there have still been many reports that show there has not been much change at all. At a net worth of 67 billion dollars and expected to grow, loyal customers is what allows this multi billion dollar company to grow in profit, the only way there will be an impact on those working in NIKE sweatshops is if today’s society takes action.
Nike is the number one innovator in the world in athletic footwear, apparel, equipment, and accessories. This worldwide company operates in an extremely different organizational structure than other companies, such as Reebok and Adidas. Nike operates tremendous marketing strategies and develops inventive designs to inspire athletes around the world. This company is one of the largest suppliers in the world in athletic footwear and apparel, main producer of sports equipment, and making Nike the most valuable brand among sports companies. The task for Nike is to join diversity and inclusion to encourage ideas and innovation. Around the world, this company is a popular brand.
Nike, Inc is one of the leading companies in the world that is known for its brand of athletic footwear, apparel, equipment and accessories.