Swot Analysis Of Nike Essay Sample

SWOT analysis is the strategic procedure which incorporates the rating of the strengths. failings. chances and menaces of an organisation or the undertaking undertaken by it. Strength refers to the advantage the company has over the other rivals in the industry. Failings are the disadvantage a company has comparative to the rivals. Opportunities and menaces are external to the concern ; it is the external opportunities of bettering or confronting a problem in the hereafter. The company chosen for analysing on the footing of SWOT is Nike Inc. Nike Inc. is one of the world’s taking companies in athleticss industry. The company was established in the twelvemonth 1968 in the province of Oregon. United States. It is one of the celebrated participants in athleticss footwear. dress. and equipment and accoutrement merchandises. Many different athletic trade names have been introduced by Nike viz. ; . Nike Pro. Nike + . Air Jordan. Nike Air. Max Air. Zoom Air. Nike Golf etc. Nike’s SWOT analysis is as follows: Strengths:

Strong direction: Nike has attained a trade name image worldwide ; it has strong managerial capablenesss because of which the company has been able to put itself globally. Nike uses a multinational scheme that follows a flexible and decentralised construction of the organisation. therefore making a grade in the planetary universe. The company uses its direction schemes in such a manner that helps it to be advanced. focused. committed and technologically advanced. Therefore. a strong direction capableness is one of the strength of the company. First mover in E- commercialism: Nike was the first company to come in into selling the merchandise through E- commercialism. The online merchandises are sold with the aid of NIKE ID. The web site can be used by the clients to buy the merchandises and customization is besides allowed to certain extent. The client can buy the merchandise and can besides inquire the company to plan the merchandise harmonizing to his ain specification. The first mover advantage is enjoyed by Nike and it helps it to out crush its rivals.

Brand acknowledgment and image: Nike’ logo i. e. ‘swoosh’ and its ticket line “Just make it” is recognized worldwide. The trade name of Nike is one of taking trade name and is recognizable easy by the clients. The logo represents the Grecian goddess of Victory. Product scope diverseness: The Company provides a broad scope of merchandise line from footwear to dress ; it has been able tosuccessfully diversify. The client is given a broad scope of footwear scope. The company has focused on the creative activity of the association of its merchandises with the clients worldwide. The manner is besides taken into consideration and Nike has been diversified in the insouciant section. Strong control over the supply concatenation: The Company pursues strong supply concatenation so as to hold fast and ready handiness of its merchandises in the market. Strong client trueness and invention: The Company’s chief focal point is on client satisfaction and invention. The company besides associates different jocks with its trade name so as to construct a connexion with its clients. It uses different engineerings in order to introduce in its merchandise scope. Failing:

Nike Sweatshops: Nike can be taken as an illustration for an unethical behaviour. as it has been accused of utilizing the sweatshop labour that is against the CSR ( corporate societal responsible behaviour ) . i. e. utilizing the kids as their labourers. The company claims to supply top quality merchandises chiefly in the athletics class but is moving wholly irresponsibly towards the society. E- Commerce restraints: The E- commercialism installations are non to the full developed all over the universe. it is merely possible in some parts of United States. Even the NIKE ID has a complicated interface. which makes it hard for the consumer to interact. Thus. Nike should concentrate on planing its web site in more synergistic manner. Opportunities:

Globalization: The operations of the company are spread in more than 170 states. with the coming of globalisation ; new country can be taken into consideration specially which are untapped. Due to the globalisation and easy handiness of the merchandises. the demand for on-line shopping has increased. Nike should use this chance so as to increase its client base. Increased engagement of females in sports: The active engagement of the females in athleticss can move like a market for Nike. The merchandise scope of Nike should concentrate on adult females every bit good in order to spread out and capture new client base. E- Commerce should be used every bit much as possible throughout the universe as it reduces the cost associated with the merchandising. It should be expanded globally to commercial bases like China and Canada. Menaces:

Negative image due to “sweatshops” : The overall on the job conditions of the mills of Nike are non at all standardized. The issue like human trafficking in a mill in Malaysia was besides confronted. demoing a negative image of the company. Increasing competition from the rivals: The amalgamation of the companies like Reebok and Adidas has intensified the competition of Nike. Fluctuation in foreign currency and minutess – As Nike operates globally ; the fluctuation in currency can impact the profitableness and the monetary value of the merchandises of Nike.