SWOT ANALYSIS OF NIKE

Strength
nike being a competitive organization has a healthy aversion towards its competitors i-eduring Atlanta
Olympics, Reebok expensed on sponsoring the games; Nike however sponsored the top athletes and due
to this step, it gained valuable coverage.

•Nike has no factories; rather it uses contract factories to get the work done which makes it quite a lean
organization. It has contracts with above 700 shops globally in about 45 different countries.

•Nike is quite strong regarding its research and development;quite evident regarding its evolving and
innovative product range.

•They manufacture high quality at the lowest possible price,if prices rise due to price hike then the
production process is made cheaper by changing the place of production.

•It belongs to the Fortune 500 companies.

•Nike employs about more than 30.000 people worldwide.

•It has a strong sense of marketing campaign by sponsoring top athletes.

Weakness

Even though the organization has a diversified range for sportswear, the income of the business,
however, is still heavily dependent upon its share of the footwear market which leaves it at a quite
vulnerable spot if for any reason its market share erodes.

•The retail sector is price sensitive;retailers usually tend to offer a very similar experience to the
consumers with another cheaper product, which in return tends to get squeezed as retailers try to pass
some of the low price competition pressure onto Nike.

•Nike was for quite some time unwilling to disclose any type of information concerning its partnering
companies.

•It was charged with the violation of overtime and minimum wage rates in Vietnam, 1996, that was seen
as having poor working conditions, and that it was also charged for exploiting cheap workforce overseas.

•Nike was also reported to have applied child labor in Pakistan and Cambodia to produce soccer balls.

•It was positioned as a subject of criticism by anti-globalization groups due to its unruly and exploited
manner that was quite a disaster for its reputation.

Opportunities
The brand is sternly defended by its owners who believe that Nike is not a fashion brand, however, a
large number of consumers wear Nike product because they derive a fashion trend rather than to
participate in a sport. It is mostly argued that in youth culture, Nike is a fashion brand which also creates
opportunities for Nike since its products would become outdated before even the product wears out i.e.
consumers will feel the need to replace the product with a newer trend.

•There are many international regions that still need tapping and there is need for sportswear and with
Nike’s strong global brand recognition, it can initiate in many markets that have the disposable income to
spend on high value sports goods.
•Nike gives a lot of effort on its corporate marketing mainly through the promotion of corporate brand and
sponsorship agreements.
Threats

• Nike is exposed to the international nature of trade so it sells its product in different currencies which
destabilizes the costs and margins for profits over long periods of time. This type of exposure may make
Nike to be manufacturing and/or selling at a loss, although that is not the case for a giant as itself.

•The market for sports shoes and sportswear is quite competitive; the competitors are constantly
developing alternative brands and techniques to take away Nike’s market share.

•Consumers are constantly shopping around for a better deal that conveys a good quality and if one store
charges a higher price for the products, the consumer would try to seek a better deal of the same product
in the premises that delivers the same value but cheaper of the two,this type of price sensitivity among
the consumers is a potential threat to Nike.

•The textile industry unpleasantly upsets the atmosphere, and therefore the organization is constantly
struggling to retain its eco-friendly reputation.

•A recession may lead to job shortages in most of Nike’s worldwide branches.

•The organization has experienced many adverse publicity feedbacks due to its widespread advertising.

 
CONCLUSION
Both Adidas and Nike have used the same theoretical systems to create their brand building programs. The
companies are benchmarking each other, using the techniques from each others successes, when Nike launched their
sub brand product Alpha line which was benchmarked on Adidas already launched sub brand of the Equipment
product line for the elite of sports men. We can find many similarities like endorsements strategies and the
companies advertising strategies. What differs in the endorsement strategies is that Adidas focuses in sponsoring
teams and global events, while Nike have their center of attention on stars in specific sport like basketball and
Michael Jordan or in golf and Tiger Woods.
About advertising do both companies have about the same scale and scoop of advertising but they try to
communicate different messages. These messages from Adidas is; the only one you compete with is your self
whereas Nike communicate a provocative, aggressive winner attitude which can be related the American sports
attitude “You don’t win silver, you lose gold”. As we can understand the two companies are aiming at nearly the
same targeted customer group but with a slightly differentiation of attitude. Adidas stand for a competing and
winning over your self-attitude, and Nike stands for a winning over everyone attitude.
We in the group think this differentiation is based on the differences in culture between the
two companies and between Europe and USA.
As an overall reflection one can see that Adidas had to overcome, that the both companies had the same target
group. Adidas choose a brand-building strategy that built on the same theoretical criteria’s as Nike. But they created
a differentiation in identity of the brand compared to Nike.
Adidas had the same strategy within creating equity value to their brand. They challenged Nike in endorsement
strategy, and in advertising, but with a slight difference in communicated message, by doing it trough the same
Medias. To differentiate them self and make totally own awareness activities, events like Adidas Street ball
Challenge was created. Events like those communicated the Adidas brand around the world.
According to the results and positions the brand-building programs have given both Adidas and Nike in the sport
industry, one can say that branding have been a totally determining factor. On top of that they made it so good that
they are used as models in higher education
Introducation

Brief Analysis of Industry

Sport is an integral part of modern contemporary society. Sport has always been associatedwith
discipline, dedication and perfection and hence sportsmen have always beenrespected, across
borders, religions and races. Sportsmen, professional or amateur, needquality gear, specific to
their game, to be able to compete better. It is this market that thetwo conglomerates, the
subjects of our study, cater to. Both these companies started off asfootwear makers for the
modern athlete, their innovative designs and technology creatingwaves. But now these firms have
diversified. They compete on the broader platform offootwear, apparel, accessories and
equipment. Today they are among the worlds topcorporations, with a worldwide presence.Our
study will concentrate on the primaryproduct these two firms make Athletic Footwear.
We will compare their marketing strategies, their targeting and their marketing mixes. Wewill
dissect their segmentation and examine their positioning on the global playing field. Andlastly
well state our conclusions on the comparative marketing strategies of these firms.
Product line
Nike‘s first products were track running shoes which came under the name Nike Air Max,followed
recently by the Nike 6.0, Nike Nyx and the Nike SB skateboarding shoes. Recently,Nike launched
special cricket shoes for bowlers and batsmen called the Nike Air ZoomYorker and the Air Zoom
Opener. But its bestselling line still remains the legendary AirJordan basketball shoes, named
after Michael Jordan. Air Jordan still contributes more than
30% of Nikes shoe sales.
Like Adidas, Nike too entered the sports apparel and equipment market and makes jerseysand
specialist apparel for various sports. Recently Nike teamed up with Apple to launch theNike+ range,
which can monitor a runners performance through a radio device linked toApples ipod.
But Nikes most recent product is the one making waves across the sports world. Called theLunar
Glide, Nike is using Flywire (A thread developed by Nike, composed of Vectran, aliquid crystal
polymer) and Lunarlite Foam to make the worlds lightest shoes. Advertisedusing the slogan
Actually, it is Rocket Science, it reiterates Nikes commitment to technology.
SOLE COLLECTOR