NIKE SPACE MATRIX NIKE INC 2014

EXTERNAL FACTORS
Stability Position (SP)
Economic Recession
(Biggest threat to consumer income
and buying pattern)
-6
Soaring Input and freight cost (cotton,
leather and labor prices are raising).
-5
Regulatory Risk (Risk of government
regimes)
-6
Competitive Pressures (Bitter
competition by Adidas and others)
-7
Price Wars among rivals -7
Translational Risk (Currency Risk) -5
AVERAGE -6
INTERNAL FACOTRS
Financial Position (FP)
Return of Investment
(Higher than the competitors)
7
Financial Leverage
(Rising debt)
4
Liquidity Position
(Very strong liquidity )
7
Working Capital
(In billions higher than other
competitors)
7
Inventory Turnover 7
Profitability Growth
(11.86% Increase)
7
AVERAGE 6.5
Competitive Position (CP)
Market Share
(Biggest market share)
-1
Customer Loyalty
(Highest customer base)
-1
Brand Image
(Strongest brand image)
-1
High Quality Products
(Quality superior than any other
competitor)
-1
Competitive Pricing
(Very expensive product)
-6
Marketing Activities
(Extraordinary marketing activities)
-1
AVERAGE -1.83
Industry Position (IP)
Growth Potential
(Nike has huge potential to grow)
7
Profit Potential (The Company can
boost its sales)
7
Financial Stability 6
Ease of entry to market
(Entrance is very easy)
2
Capacity for Innovation
(Lots of for blue ocean strategies)
7
AVERAGE 5.8
Y-Axis 6.5+(-6) (FP+SP) 0.5
X-Axis 5.8+(-1.83) (IP+CP) 3.97

GRAPHICAL REPRESENTATION OF SPACE MATRIX
ANALYSIS:
After illustrating the space matrix it is obvious that Nike Inc should follow aggressive strategies
which includes forward and horizontal integration, market development, market penetration,
product development and diversification (related or unrelated).




FINANCIAL POSITION
INDUSTRY
POSITION
STABILITY POSITION
COMPETITIVE
POSITION

1 2 3 3.97
0.50
1.00
Aggressive Profile
Conservative Profile
Defensive Profile
Competitive Profile