Nike SWOT Introduction A SWOT Analysis is probably the simplest ways for administrators and corporate authorities to envision every one of the variables that could assume a job in the achievement or defeat of their organization. However, it is also the most trusted brand of sports shoes and apparel because of the premium quality of its products. However, the company has taken a very innovative approach to market its brand. Weakness of NIKE in SWOT Analysis. Once the pandemic’s impact is over, these economies could generate substantial revenue for Nike if it can grow its penetration of these markets. Still, DTC sales account for just around one-third of its net revenues in 2020. Its market leading position is a result of its consistent focus on product  design, quality and changing consumer preferences. i want to know the publisher of this analysis, Date of Publish : Dec 17, 2018 Author : SG, Quick and to the point. Due to the outstanding quality and design of Nike shoes and apparel, Nike products are the favorite of the young customers worldwide. Nike SWOT Analysis Presentation. Good read. Now, its focus is on digitalization and offering its customers a superior customer experience. Nike is a very competitive organization. Their dependence on digital technology has also grown. Technological innovation is an area Nike must take very seriously. Nike, Inc. is an American multinational corporation. Nike uses AWS to serve its customers globally. Your information is safe and will never be shared. From 2016 to 2020, Nike’s net revenue has grown by around $5 billion. However, considering the level of competition and how customers’ expectations have changed over the years, it is difficult for Nike to control operating expenses from growing in most areas. However, the competitive pressure has kept intensifying and to beat the competition, Nike grew its focus on technology, customer experience, product quality and marketing. The pandemic has had a strong negative impact on the sales and revenue of businesses like Nike leading. S.K. Here’s a detailed breakdown of Nike SWOT analysis. A few years back, the company was hit with a lawsuit by female employees related to gender pay discrimination. There’re approximately 75400 people are working for the company by the end of 2020. Just like the retail industry technology has been driving sweeping changes in the sports shoe industry as well. The net profit of the company has decreased by approximately 37.5% in 2020. Nike has brought several game changing shoe technologies for its  customers and fans like NIKE Air, Lunar, Zoom, Free, Flywire, Dri-Fit, Flyknit, Flyweave, ZoomX, React, Adaptive and NIKE+ technologies which prove Nike’s dedication to the design of innovative products. Nike’s DTC revenue increased to $12.9 billion in 2020 from $12.3 billion in 2019. The effective tax rate in FY 2018 was 55.3% which was 13.2% in the year 2017. Moreover, increased competition has, to some extent, affected Nike’s growth rate negatively. Thanks it will help me my upcoming presentation. Nike has its headquarters in Beaverton, Oregon, United States. As a sports shoes and apparel brand, Nike enjoys the strongest popularity of all the brands in the industry. Roughly every four years, Nike throws a World’s Fair for sport tech, showcasing the brand’s latest innovations in gear ahead of the summer Olympic Games. The women were left devastated and felt unsafe while working at Nike. Nike also enjoys the best profit margins in the industry. This detailed SWOT analysis of Nike aims to examine the strengths and the weaknesses of Nike. While the company faced several controversies in the past related to supply chain management, with time it has improved its supplier management practices a lot with a clear focus on ethics, quality, and labor management. One of its core strengths is product quality and also one of the leading factors that differentiates Nike from the other brands. The company’s supplier management practices have also played an important role in helping it manage product quality better than its rivals. Technological innovation can also help Nike find faster growth and expand its market share. Apart from its great quality products, Nike is known for its excellent marketing strategy and techniques that have helped the brand gain a distinct position and identity in the global market. All of them accounted for more than 10% of the company’s footwear production during the year. Phil Knight (Founder and CEO) is frequently quoted as saying that ‘Business is war without bullets.’ Nike has a healthy aversion of is competitors. Coronavirus severely hurt economic activity across several markets and various industries, including travel and fashion. The entire. This is a great threat Nike is facing and it also affects its net income by 54% which is a great offset for the revenue growth. ... Adidas used to be the main apparel sponsor for the NBA, however, it lost the contract to Nike. Over the next several years, technology can also help Nike widen the gap between itself and its rivals. Coronavirus has brought new challenges before Nike and the company has experienced a decline in its sales and profitability. Nike SWOT analysis paper. Words 1144 (4 pages) Views 381. Read out this article, to get an understanding of where Adidas stands. Share your thoughts and experiences in the comments section below. Search for: Log In . In countries like India, Brazil, and Mexico, a large group of middle class buyers has emerged in recent years. Lack of Diversification: Nike’s over-dependence on sporting apparel or lack of diversification is a major weakness. Sexual Harassment: Former female employees also pointed out that sexual harassment and misconduct was very common in the company. contact: support@notesmatic.com, admin@notesmatic.com, Easy Ways Businesses Can Incorporate Sustainability, What You Need To Know About Marketing for Your New Business. Overall, the level of competition in the shoes and apparel industry has grown very fast during recent years, which has led to a higher focus on marketing and product quality and innovation. Nike is a very competitive organization. While Nike has already benefited in this area by moving its business to the clouds earlier than its rivals, the company can gain significant leverage by sustaining its focus on technological innovation in the coming years. Did you find this article interesting? Apart from the growing competition in the industry, it also shows the company’s increased focus on marketing. However, while the company is trying to get rid of the counterfeit problem by expanding its reach through direct to consumer channels, counterfeits still remain a difficulty for the brand. I am glad you liked our analysis. Nike did not. Nike dropped Amazon in 2019, mainly because of the problem of counterfeits on the platform. Counterfeit products of lower quality and priced lower than original products can affect Nike’s brand image. Nike’s revenue in 2019 reached $39.1 billion compared to $36.4 billion in 2018. Nike was able to manage the impact of the pandemic to a large extent successfully due to its investment in technology over the last few years. Together, the three countries accounted for 49%, 23%, and 21% of Nike brand footwear, respectively. Abhijeet has been blogging on educational topics and business research since 2016. The US market accounted for 39% of its total revenues in 2020 compared to 41% in 2019. Nike did not. Superior product quality has led to higher demand and improved sales and profitability. NIKE annual/quarterly revenue history and growth rate from 2006 to 2020. Nike is a highly competitive brand just as it is highly customer centric. I am guessing the presentation is for school? Among its leading competitors are Adidas, Under Armour, and others, including Fila and New Balance. Extensive global production and di… Nike in 2020: Strengths, Weaknesses, Opportunities, Threats February 13, 2020 Roughly every four years, Nike throws a World’s Fair for sport tech, showcasing the brand’s latest innovations in gear ahead of the summer Olympic Games. – SG. Table of contents. Growth in operating expenses hurts revenue as well as gross profits. 365 Careers 68,713 views. Nike markets its products globally through a diverse spectrum of advertising and promotional programs and campaigns, including social media, mobile applications, and online advertising. The company enjoys the strongest margins in the sports shoes industry. Nike, despite being the world’s biggest sports shoes and apparel. The product was first launched for legendary basketball player Michael Jordan in 1984. Nike’s popularity rests on the design and quality of its products which are produced by independent suppliers and contractors. Hey, who is the author of this report and what year was it finalized. While the company took several significant steps to resolve the problem, it has not been able to establish a culture that fosters higher inclusion and creativity. Sport Sandal Market (Impact Of Covid-19) Segmentation, Swot Analysis, Opportunities And Forecast To 2025 | Nike, Adidas, Clarks. In the year 2020, about 41% of Nike’s sales came from the U.S, while the rest of 59% came globally. Nike therefore needs to grow its focus on the other economies and particularly the emerging economies that are seeing faster growth. Company: Nike  CEO: John Donahoe Year founded: 1964 Headquarter: Beaverton, Oregon, USA Number of Employees (FY2019): 76,700 Type: Public Ticker Symbol:  NKE Market Cap (Oct 2020): $198 Billion Annual Revenue (FY2020): $37.4 Billion  Profit | Net income (FY2020): $2.54 Billion, Products & Services:   Athlete wear | Apparel | Sports equipment | Leisure footwear | Accessories Competitors: Adidas | Puma | Anta | New Balance | Under Armour | Lululemon | ASICS | V. F. Corporation, Nike swoosh logo is inspired by the Greek goddess of victory, Nike. The abbreviation represents strengths, Weaknesses, Opportunities and Threats. while on the one had, it helps the company deliver superior customer experience, on the other it helps the company grow its profit margins. This would help the company improve its employees’ performance and organizational productivity. However, Nike has focused on developing its own digital channel rather than depending on others like Amazon. By growing its direct to consumer sales channels’ penetration, the company will be able to offer better customer experience and win higher customer loyalty. Further, the product was introduced to common customers in late 1980 (Nike Air Jordan, 2018). The company has experienced growth in its revenue from direct to customer sales channels. October 19, 2020 9 . Its focus on customer experience has only increased with time resulting in growth in brand equity and profitability for the brand. Based on its performance over the last five years, it is not difficult to infer that shaking Nike from its leadership position is very difficult for the rivals. He likes to blog and share his knowledge and research in business management, marketing, literature and other areas with his readers. SWOT analysis of Nike. 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