NIKE EFE MATRIX AND COMPETITIVE PROFILE MATRIX

Afable, Gabriel B.
Villamor, Mc Andy
Tapaganao, Ron Ian

TABLE 1 - EFE MATRIX Nike Considered: Getting Transaction on Sustainability

Key External Factors Weight Rating Weighted Score_____
Opportunities___________________________________________________________________
1. Emerging Markets 0.04 2 0.08
2. Innovative Products 0.06 3 0.18
3. Efficient Integration 0.09 1 0.09
4. Cutting ties with big retailers 0.07 2 0.14
5. Acquired Artificial Intelligence Start-up 0.08 3 0.24
6. Consumer Direct Strategy 0.08 4 0.32
7. Low Manufacturing Cost 0.05 3 0.15
Threats________________________________________________________________________
8. Counterfeit Products 0.06 1 0.06
9. Increased Competitive Pressure 0.08 2 0.16
10. Marketing Budget Pressure 0.04 3 0.12
11. Currency Foreign Exchange Risks 0.08 2 0.16
12. Patent Disputes 0.04 3 0.12
13. Economic Uncertainty 0.06 3 0.18
14. Trade Tensions 0.06 2 0.12
15. Contradicting Strategies 0.12 4 0.48________
TOTAL 1.00 3.00
In conclusion, the total weight of the key external factors is 1.00 and the total of the weighted score is 3.00.
The highest rate factor in opportunities is consumer direct strategy because Nike has accelerated the
consumer-direct strategy, which means shifting its focus to digital business and subsequently closing
physical stores. In fiscal year 2020, 35% of its Nike brand revenue comes from online sales. Clearly, the
pandemic is shaping up how Nike interacts with its customers. And in threats is contradicting strategies
because Nike pledged to shift all its facilities to 100% renewable energy with net-zero carbon emissions
under the “Move to Zero” scheme. While the strategy is great and welcomed, it contradicts Nike’s
strategy that favors innovation over sustainability. This creates the perception that Nike is not committed
to addressing climate change and its pledge is just a marketing stunt.

TABLE 2 - CPM Nike Considered: Getting Transaction on Sustainability

___________________________________Converse___________Umbro_________Hurley____
Critical Success Factors Weight Rating Score Rating Score Rating Score_
Strong Brand Awareness 0.05 1 0.5 4 0.20 3 0.15
Huge Customer Base 0.20 4 0.80 1 0.20 2 0.40
Aimed for Sustainability 0.10 4 0.40 3 0.30 2 0.20
Iconic Relationships 0.15 4 0.60 2 0.30 3 0.45
Side Brands 0.10 4 0.40 3 0.20 3 0.30
Low Manufacturing Cost 0.10 3 0.30 2 0.20 4 0.40
In-house Professionals 0.10 4 0.40 3 0.30 2 0.20
Marketing Capabilities 0.20 1 0.20 4 0.80 3 0.60
TOTAL 1.00 3.15 2.50 2.70
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