MICROENVIRONMENT

a) Suppliers
 It is important for Nike to build good relationship to the supplier because they
provide resources to make the products.  Nike need to ensure that the supplier have
enough materials to make the product because this would affect the business sales
(allstars12345, 2013). The supply branch of the micro analysis featured these
key points.18% of manufacturing involved in footwear, biggest supplying countries
are Vietnam, China, and Indonesia, 1,079,137 workers in 930 factories worldwide
with 339 factories in China (Blog 2: Macro and Micro analysis of Nike Footwear…,
2015). Nike has diverse suppliers which come through a bid process. This ensures
Nike’s quality assurance as suppliers compete with one another, thus raising the level
of quality (Kade McConville, 2013).

When it comes down to it Nike is in the business of creating tangible product. A lot of
products. However, one of the things that separates Nike from its competitors is that it
outsources most of its production. What this means is that not only does Nike have to
get all its materials from various suppliers, but they also must find additional
manufactures to take the materials and construct the final products. As such Nike
needs to keep a constant eye on the supply environment. Any changes in the laws,
political climate, and regions where Nike gets its materials and does its manufacturing
will have a direct effect on the company (Gonzalez et al., n.d.).

b) Marketing Intermediaries
The points gathered from the analysis revolving around intermediaries were, Nike
online directory, outlet stores and sporting websites (Blog 2: Macro and Micro
analysis of Nike Footwear…, 2015). Nike decided to work without intermediaries
because Nike wants to interact with the public by doing this this would help
development of their own social network Nike+. Many competitors have their own
social networks independently such as Reebok, Puma. Nike used interacts on
Facebook and twitter to communicate with their customers.  Also Nike suggest that
their online is more effective rather than brand advertising in the press and on
television declined by 40% however while the budgets for online advertising grew
increasingly. Also, they used celebrity endorsements to expand their brand of their
product so that their fans can get their buy their products which the celebrity has
design for. By doing this would-be long-term impact on the customer because Nike
would gain more customer and more profit (allstars12345, 2013).

c) Competitors
Main features that were evident when investigating competitor factors were: ‘Nike
appeal’, price leaders and emphasis on design and endorsements (Blog 2: Macro and
Micro analysis of Nike Footwear…, 2015). Nike’s competitors include Adidas, V.F.
Corp., Puma, Li Ning and Under Armour. Nike is the largest seller of fashion
footwear in the world; and therefore, has the largest market share (Kade McConville,
2013). The biggest threat that faces Nike is competition from other large sporting
goods companies such as Adidas and Puma. The sports apparel market will retain its
consistent growth, therefore, focusing on control of the market is the most important
 step for Nike. As the industry is made up of a few large companies with similar
products it is critical that Nike can differentiate itself from the others with better
technology, higher quality products, and a stronger sense of environmental and social
responsibility (Gonzalez et al., n.d.).

d) Publics
Many colleges and universities, especially anti-globalization groups as well as
several anti-sweatshop groups such as the United Students Against Sweatshops, took
campaigns against Nike. These kinds of instances show that Nike has limited control
over its contract manufacturers. Thus, any future instances like these could damage
the company's reputation (Unknown, 2021). Media publics are extremely valuable for
the organization which wants to promote the brand awareness, or the new products
launched in the marketplace. Nike is very successful in this field because to raise the
company’s reputation as well as create good opportunities to promote their product
widely, they spread the trademark very rapidly in the newspapers, social media
(Facebook, Twitter, Instagram, and YouTube), magazines (print and digital), as well
as television outlets (broadcast and digital). For example, in the social media, it is not
only the way Nike advertising, but also a conversation. In social media, Nike’s posts
are fun, short, and often motivational, which make for easy reading, sharing, and
ingraining into the people’s psychology.

e) Company
Nike, Inc. has an enormous number of buyers all over the world which can be
measured through the remarkable revenues ($34, 350 million dollar) of Nike, Inc. in
2017. Not only well-known in Western countries, Nike products also extremely prefer
in Asian market. Nike’s primary target consumer are buyers around 18 to 40 who
have great demand in innovative footwear as well as have a desire to look fashionable
and sporty at the same time.

f) Customers
Nike’s market is global, seeing every single person as a potential customer. There is
no other way about it, a large part of Nike’s success is based on the perception of the
brand. As a manufacture of goods, Nike is dependent on customers buying its
products. They need people that will purchase and continue to buy Nike products
repeatedly. Not only do they need to worry about establishing brand loyalty, but they
also need to focus on getting customers to choose Nike over the competition. By
creating the image of Nike as the premier sporting goods brand, they empower their
customers to feel like they are the premier athletes; Nike is selling more than a
product, they are selling an image (Gonzalez et al., n.d.).
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https://allstars12345.wordpress.com/2013/11/05/micro-environment/

Blog 2: Macro and Micro analysis of Nike Footwear…. (2015, February 8).

Thehartpurymarketsphere; thehartpurymarketsphere.

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analysis-of-nike-footwear/

Gonzalez, G., Gonzalez, G., & Anselmo, K. (n.d.). Environmental & Strategic Analysis.

https://garyxgonzalez.files.wordpress.com/2012/08/nike-inc-strategic-

recommendation-report-part-i.pdf

‌Kade McConville. (2013, October 9). Macro & Micro Market Analysis. NIKE | “Just

Analyse It” from UWE; NIKE | “Just Analyse It” from UWE.

https://justanalyseit.wordpress.com/2013/10/09/macro-micro-markets/

‌Unknown. (2021, April 23). Macro and Micro Factors. Blogspot.com.

http://nikeresearch.blogspot.com/2013/03/macro-and-micro-factors.html