He is passionate about analyzing and writing about businesses. The entire. Nike air Jordan is one of the most famous and expensive basketball shoes and active clothing line. Words 1144 (4 pages) Views 381. Together, the three countries accounted for 27%, 22%, and 10% of Nike’s apparel production during the year. The result was that Nike’s operating expenses grew and so did its profits. Opportunities are some of the prospects that the government of a country must take some advantage of, some of those prospects are as follows. Nike has previously courted a lot of controversies related to supply chain management and its labor force. There’re approximately 75400 people are working for the company by the end of 2020. Nike has decided to become a digital-first company. However, the company must address concerns regarding competition, labor practices, imitation and patent protection. One of its core strengths is product quality and also one of the leading factors that differentiates Nike from the other brands. The effective tax rate in FY 2018 was 55.3% which was 13.2% in the year 2017. However, this was more than offset by a decline of 820 basis points in the fourth quarter of fiscal 2020, primarily due to the impacts of COVID-19. The key theme in this article is that Nike is currently at a stage where it has to either diversify into other segments or risk placing all its eggs in one basket. Nike is known globally as a maker of premium shoes and apparel. Its market-leading position and global dominance are backed by the strong brand equity the company has built. From releasing new product lines to building new brands, to outsourcing, and establishing a global presence alone is an extraordinary achievement. 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. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. Phil Knight (Founder and CEO) is frequently quoted as saying that ‘Business is war without bullets.’ Nike has a healthy aversion of is competitors. If the crisis discourages sporting events for longer, Nike’s losses can be catastrophic. The Puma SWOT analysis examines where it is in the market these days as well as how Puma has managed to stay relevant all these years. The company has outsourced all its production but still maintains strong control over the quality of raw material used and that of the final products. Its focus on customer experience has also played an important role in growing the popularity of the brand. Remember me . Technological innovation can also help Nike find faster growth and expand its market share. Nike air Jordan is one of the most famous and expensive basketball shoes and active clothing line. 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. Nike is the most valuable brand for sports in 2018. How Does Credit Karma Work and Make Money? However, the role of technology in Nike’s ecosystem has grown exponentially in the latest years as the company has moved to offer an omnichannel shopping experience to its customers. SWOT analysis of Nike. Nike has its headquarters in Beaverton, Oregon, United States. The pandemic’s impact is going to last even after a vaccine has arrived, and Nike will have to consider how the pandemic has changed consumer behavior around the world to manage its sales and profitability successfully. 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. Over the next several years, technology can also help Nike widen the gap between itself and its rivals. Learn more. However, the decline can be attributed largely to the fall in sales in the fourth quarter due to the pandemic. Further, the product was introduced to common customers in late 1980 (Nike Air Jordan, 2018). This article analyses the company using the SWOT Methodology. I am guessing the presentation is for school? Nike SWOT analysis paper. Nike SWOT Analysis Presentation. Essay type Analysis . As Nike’s focus on customer experience has grown, the company is providing its customers with an omnichannel experience. Its gross margin in 2019 grew to 44.7% from 43.8% in 2018. This has led to superior customer experience and growth in sales from the direct to consumer channels apart from increased customer loyalty. V arious exa mples, for the impressive work of Nike on R&D. The result was that it brought down Nike sales, and its revenue was severely hurt. Adidas is known most prominently for its range of Shoes, but the brand is also a manufacturer for clothing and accessories. Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. All rights reserved | contact@bstrategyhub.com | Logo designed by Looka. The growth of Nike can also be attributed to its focus on quality and investment in technologies that have helped it consistently improve the quality of products and customer service. Category Swot Analysis. Nike is a very competitive organization. Quality is a leading factor that differentiates Nike from the other brands. The women were left devastated and felt unsafe while working at Nike. It was found by, in the communities. Coronavirus severely hurt economic activity across several markets and various industries, including travel and fashion. Phil Knight (Founder and CEO) is frequently quoted as saying that ‘Business is war without bullets.’ Nike has a healthy aversion of is competitors. While Nike’s core market, the United States, is the main source of revenue for the brand, the impact of a recession or a pandemic on the US economy will also hurt Nike sales and profitability. NIKE, incorporated on September 8, 1969, is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. While legal threats are mostly an essential barrier, regulatory threats may sometimes create major pressures that can hurt expansion and growth plans of large businesses. It’s a great help. However, the competitive pressure has kept intensifying and to beat the competition, Nike grew its focus on technology, customer experience, product quality and marketing. Save my name, email, and website in this browser for the next time I comment. The SWOT and PESTEL analysis report of Nike Inc. presents the complex internal and external factors affecting Nike's brand, its operations, business model, market strategy and growth trajectory. 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. 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. While its net income also slipped, the company has still performed well during the crisis. Nike is headquartered in Beaverton, Oregon, USA. He graduated with a Hons. SWOT Analysis of Adidas. Puma SWOT analysis 2020: Case Study in 4 Steps. Nike (NYSE: NKE) is the largest brand of sports shoes and apparel in the world with a global footprint. The US market accounted for 39% of its total revenues in 2020 compared to 41% in 2019. It enjoys one of the most impressive profit margins in the entire shoe industry. Sexual Harassment: Former female employees also pointed out that sexual harassment and misconduct was very common in the company. The abbreviation represents strengths, Weaknesses, Opportunities and Threats. The global growth and popularity of the company is also driven by its focus on product quality. Another area where investment can be highly profitable for Nike is its HRM strategy and organizational culture. Apart from its website and app, it has also brought other fitness apps that engage Nike fans and customers. Its market leading position is a result of its consistent focus on product  design, quality and changing consumer preferences. Comments are turned off. ... Puma SWOT analysis 2020: Case Study in 4 Steps. Nike’s growth in the recent years is a result of its consistent focus on product quality and growing investment in technology. 365 Careers 68,713 views. Category Swot Analysis. It is listed on the NYSE and is headquartered in the United States. Thank you Gargi, I have been through business school not so long ago, so I can totally relate to you. In the year 2020, about 41% of Nike’s sales came from the U.S, while the rest of 59% came globally. This article was very interesting. [Source: 2016 Annual Results Nike Inc] SWOT & PESTLE ANALYSIS OF NIKE . Other sports shoes and apparel brands are also investing heavily in marketing, product design, quality, and innovation. The fiscal 2020 proved to be successful for Nike. According to the statistical analysis by macrotrends.com, the annual revenue of Nike has declined by approximately 6.26% in 2020 compared to the previous years. Nike, Inc. is an American multinational corporation. The company is mainly using digital channels for marketing and mixing it with traditional channels and in-store marketing. October 19, 2020 9 . October 13, 2020 3 . In the year 2020, about 41% of Nike’s sales came from the U.S, while the rest of 59% came globally. Through this SWOT analysis of Nike, you will be able to understand the business model of the brand. ... Bata, Reebok, Nike, Adidas, etc. Read out this article, to get an understanding of where Adidas stands. Corporation, Adidas, ASICS, Lululemon, Anta, Under Armour, and New Balance are some of the major competitors of Nike. It also aims to examine the opportunities the company should explore and the threats it should keep an eye on. While the company’s revenue in 2020 has declined due to the Covid-19 pandemic, the US being the most affected region globally, its impact has also been strong on Nike’s fourth-quarter revenue in 2020. Its gross margin grew 90 basis points mainly due to higher full-price average selling price (ASP), on a wholesale equivalent basis, favorable changes in foreign currency exchange rates and growth in NIKE Direct. finding a solution against these environmental issues. At the Atlanta Olympics, Reebok went to the outlay of sponsoring the games. Nike is a brand of premium sports shoes and apparel that has been enjoying strong sales and profitability over the past several years. Customers’ expectations and preferences have changed fast in recent years. October 23, 2020 8 . The brand is dependent mainly on one market for the highest portion of its sales and revenues. Nike’s SWOT Analysis – Recommendations. Global GOLF CLUBS Market Analysis by Regions. Nike therefore needs to grow its focus on the other economies and particularly the emerging economies that are seeing faster growth. 4.1 Company Profiles. However, the company is also reaping the benefits of being an early mover in the industry. Several sporting teams are on the brink of collapse. Nike, Inc. is an American multinational corporation. Your information is safe and will never be shared. Nike markets its products globally through a diverse spectrum of advertising and promotional programs and campaigns, including social media, mobile applications, and online advertising. who wrote this article ? Comments are turned off. Often it is also cited as one of the most critical barriers to Nike’s faster growth. Taking place in Tokyo this July, the 2020 Olympics are predicted to be the hottest on record. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. Nike is a global brand that is synonymous with quality and excellence. Superior product quality has led to higher demand and improved sales and profitability. Moreover, increased competition has, to some extent, affected Nike’s growth rate negatively. 2. Counterfeit products of lower quality and priced lower than original products can affect Nike’s brand image. SWOT Analysis. Thank You. I am glad you liked our analysis. Nike’s revenue in 2019 reached $39.1 billion compared to $36.4 billion in 2018. The SWOT analysis of Adidas shows the TOWS matrix of one of the strongest sports brand in the world. Essay type Analysis . NIKE, incorporated on September 8, 1969, is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. 1. It has been able to successfully position itself as the brand for athletes. Nike is the world’s no. This SWOT Analysis of Nike Inc. shows that the company has the strengths needed to support its global leadership in the sports footwear, equipment and apparel market. The company specializes in athletic wear, providing footwear, apparel, athletic equipment, and accessories. Rapid innovation processes 3. Contradicting Strategies: Nike pledged to shift all its facilities to 100% renewable energy with net-zero carbon emissions under the “Move to Zero” scheme. The company generated $16.1 billion in FY 2019 from the United States market and in 2020, $14.6 billion. Although the brand is still in debt, the next few years look promising. The company has achieved strong brand awareness and customer engagement through its unique marketing strategy. These benefits were partially offset by higher production costs. Their number was reduced to 338 in FY 2020. Nike did not. Samsung SWOT Analysis 2020 | SWOT Analysis of Samsung, Disney SWOT analysis 2019 | SWOT Analysis of Disney, Amazon SWOT 2020 | SWOT analysis of Amazon, Nestle SWOT Analysis 2019 | SWOT Analysis of Nestle. Share your thoughts and experiences in the comments section below. ... Tesla SWOT analysis 2020 - Duration: 11:09. Puma, V.F. Apart from that, Nike’s debt is … Its growth remained obstructed in many areas in the past and technology has helped it find new high growth segments. The US is the largest market for Nike and in 2019, it accounted for around 41% of the net revenue of the company. 365 Careers 68,713 views. This SWOT analysis looks at Nike, a global retailer that specialises in sportswear, including shoes, clothing and accessories. Strong brand image 2. The company’s operating expenses, including the amount spent on technology and marketing and sales, have continued to increase year on year. However, it is also the most trusted brand of sports shoes and apparel because of the premium quality of its products. Regulations related to consumer data have also grown . “Income before income taxes decreased 40% for fiscal 2020, primarily due to lower revenues and gross margin resulting from the impacts of COVID-19, as well as higher selling and administrative expense. There were 384 retail stores of Nike operational in the US as of 2019, including Nike factory stores, brand inline stores, Converse and Hurley stores. Chapter 4. Since Nike is an early entrant in this area, it will reap the benefits of its investment in cloud technology and digitalization faster than its rivals. It’s to easy to understand and explain to others.. However, in fiscal 2020, while Covid-19 has hurt Nike’s business, the company has managed to control the overall impact to a large extent. Good read. Thanks. 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