Name: Saif Siddique

Class: MS 1st

Roll No: 23952

Subject: Strategic Management

Professor: Ma’am Dr. Alia

 Nike SWOT Analysis
“An In-Depth SWOT Analysis of Nike”
1. Background of Nike
Nike is an American multinational corporation that is engaged in the design,
development, manufacturing, and worldwide marketing and sales of footwear, apparel,
equipment, accessories, and services. The company is headquartered near Beaverton,
Oregon, in the Portland metropolitan area. It is the world's largest supplier of athletic
shoes and apparel and a major manufacturer of sports equipment.
Company’s Name NIKE, Inc.
Company’s Former Names Blue Ribbon Sports, Inc. (1964-1971)
CEO John Donahoe
Company Type Public
Year Founded 1964
Number of Employees 75,400 (2020)
Annual Revenue 37.4 billion USD (2020)
Founder Bill Bowerman, Phil Knight
Area Served Worldwide
Headquarters Beaverton, Oregon, US
Operating Income 3.12 billion USD (2020)

1.1. Overall Overview of Nike

1.2. Introduction to Nike

The first step to conduct Nike SWOT analysis is to know about the brand. Nike is one of
the top-rated sportswear brands which offer good quality sports shoes and is associated
with several sports stars like Cristiano Ronaldo, Neymar, James LeBron, and Rafael
Nadal. The brand was established in 1964 and flourished within a few years. The
company currently has retail outlets in more than 170 countries, and they provide
online service as well. Their Swoosh logo is one of the most recognized symbols in the
world.

1.3. Milestones/ Development Timeline of Nike

1964 Bill Bowerman, Phil Knight, establishes Blue Ribbon Sports
1971 The company cuts ties with Onitsuka Tiger (Asics)
1971 The company changes name to Nike, gets the Swoosh logo
1972 First endorsement program with Ilie Nastase
1980 Nike in IPO with a price of 18 cents per share
1984 Nike signs Michael Jordan launches Air Jordan Series
1990 First Niketown store opens in Portland, Oregon
2002 Nike’s acquisition of surf-apparel company Hurley
2004 Nike’s acquisition of Converse for $309 million
2012 Nike becomes the official supplier for NFL apparel
2015 Nike becomes the official supplier of NBA apparel

2. SWOT Analysis of Nike

Nike SWOT analysis will reveal their strengths and weaknesses that are hindering their
growth. Simultaneously, identifying the opportunities and threats present in the current
market scenario will hint at their possible business strategies to tackle the situation.

2.1. Nike SWOT Analysis in Detail

 Strength:
For significant and famous companies like Nike, it is essential to know their strengths. It
is their strengths that have helped them to reach one of the top positions. As a top-
notch company, Nike has several vital areas. Some of them are:

 The brand is successful in creating strong brand awareness. They are also
associated with several non-profit organizations.
 As a sports apparel company, Nike has successfully created a fantastic customer
base in the entire world. Their low manufacturing cost allows them to have a
cheap product range. Hence, they can attract many customers.
 The brand has total control over its retail business as well as its online business.
Their online business is also successful as its retail business.
  The company knows how to do campaigns. They are associated with several
celebrated athletes and also receive praise for their product quality.
 Weakness:
Just like many other top-rated companies, Nike also has its weaknesses. Besides
strengthening its vital areas, working on their strengths can improve its services,
eventually supporting its growth.

 Though the company provides a world-wide service, the company largely depends
on the North American market.
 The retailers get upper margin cuts, which is one of the significant weaknesses of
the company.
 There are several accusations against Nike regarding their poor labor conditions in
several countries. They are also suffering from controversies, like sexual
harassment and lawsuits. The constant highlight of their negative criticism is
hampering the growth of their business to some extent.
 The company's outsourced manufacturing is a weakness for the brand. For quality
management and good brand awareness, the company must have a dedicated
worker group. For outsourcing, Nike cannot always have control of its product.
Hence, their product may not have the same quality in all countries.

 Opportunities:
Though Nike is considered one of the top brands, the retail market, especially for sports
apparel, is highly competitive. Several high-rated brands are continually struggling their
way to the top. Nike must look for opportunities that can help them to expand their
business.

 The company’s association with non-profit organizations can allow them to create
more products from recycled goods if one of the top brands takes the initiative to
involve its R&D team to work on recycled products that will surely encourage
other small brands. It will support the environmental cause and also send the
right message to the customers.
 Nike should seize an opportunity by standing firm against any accusations about
upper management. The high number of controversies related to the higher
authority is harming their image. Nike should take steps against labor treatment
and sexual harassment, helping them develop a more dedicated workforce.
  Since Nike has a successful online business, it can create more AR/VR-related
products.
 Nike has an association with many celebrated athletes, so they have a better
chance of growth if they bring in sports sunglasses, accessories, or other fashion
lines.
 Nike should try to look for more expansion in the global market while controlling
product quality.

 Threats:
In a highly competitive market like sports retail, several threats can affect a company's
business. Recognizing them from Nike SWOT analysis can help the company to take
several strategies that will negate them. It will help them to concentrate on their
opportunities to expand.

 The post epidemic economy is creating the wrong time for most of the
companies. Even top brands like Nike cannot stay away from the effects. The
budget pressure due to the low economy can adversely affect their growth.
 The presence of counterfeit products is a severe threat to the brand. Since the
market for these sorts of products is diverse, it is difficult for Nike to Control
them.
 The retail market is ready to accommodate more companies that are threatening
for the existing ones. Though Nike is one of the top brands, it is also challenging
for them to ensure their highly competitive market growth. Many brands offer
the best quality products at a cheaper rate, attracting more customers towards
them.
 The company's brand reputation is under constant threats because of the
accusations against the higher authorities, poor labor treatment, and inconsistent
product quality.
3. Key Takeaways
Nike SWOT analysis shows specific issues that need to take care of to retain their
position in the current competitive market. Nike SWOT analysis shows that the brand
has several weaknesses that add to its threats and prevent growth. Based on the Nike
SWOT analysis, here are some recommendations for the brand:

 The company needs to take care of their product quality. In the countries they
are using outsourcing for product development; they need to have specific
guidelines to ensure that their quality is good.
 Nike must not take the charges against the higher authorities casually.
Workplace sexual harassment is a serious accusation. The company should
 investigate such charges on their level and take the necessary steps. It will
revive their image and help them to get rid of the negative impressions.
 Many retailers in the current market are offering similar products. Nike has
limited itself in shoes only; they should start other labels and fashion lines with
their signature style and be different from the other companies. It will support
the company in its growth.