Table of Contents
Internal:
Advantages
Areas of Improvement
Opportunities
Dangers
Internal:
Strengths include
Nike’s strength is its outsourcing of all production processes to outside facilities. This saves the company money on labor and allows them to focus on design and research using the extra capital.
– Nike is a brand that is globally known and is loved by its customers. Nike is a brand that athletes and fitness lovers love because of its reputation for quality.
Nike’s competitiveness and catchy slogan are two of its strengths. Weaknesses – Some people perceive Nike as being too expensive and premium. This is a problem as many people are switching to cheaper athletic wear that is more focused on quality.
– Nike sells other brands through its retailers. This reduces the brand’s exclusivity as it is constantly in competition against other brands, such as Nike in price and quality.
Nike, like many other companies, outsources its manufacturing to cut costs. Many companies that outsource to overseas locations face negative publicity because of the bad reputation of “Sweatshops”. People could be turned off by Nike’s sweatshop-like conditions.
Opportunities- Nike’s emerging markets are a major opportunity. No matter what brand, many people will buy their favorite team regardless. Nike would be able to sell more tickets if they were able to access the best sports teams.
– Nike can start to dominate other markets if they continue to diversify beyond footwear.
Nike is able to offer new customers a lower price by compromising on quality. Because they have loyal customers, they have high profit margins. They could increase their revenue by lowering their prices.
Threats- Nike faces a lot of competition from Puma, Adidas, and Under-Armor. Nike is constantly under threat from competitors in the market.
Nike is under threat from the rising prices of its competitors. Today’s consumers are more concerned about price and will choose the lowest-priced products.
Nike manufactures its products in overseas locations. There is always the risk that they might be exposed for their poor trade practices. They could be exposed and it would affect the company’s image. Consumers might then choose to shop with other suppliers.
* What are our strengths and where do they intersect with external opportunities. This is where the company’s resources are matched with external opportunities.
Nike’s strengths within the company match their external opportunities. Nike has strong customer loyalty and is globally recognized. Nike could capitalize on an external opportunity by lowering their prices to attract customers. Nike has a strong brand reputation, which makes them a popular brand, even if their prices drop. Potentially, increasing customer base could result in increased profit and longer-lasting customers.
* What are our weaknesses and external opportunities? What opportunities can we not seize?
Nike’s biggest weakness is its reputation as a premium brand that is too pricey for many consumers. This means that Nike must lower its prices to attract new customers. Nike doesn’t want this prestige to be compromised by the low price of their merchandise. This is why it’s so difficult for them to grab this opportunity. Nike’s prestige would not have the same effect if everyone could afford it, which could lead to customers losing their trust.
* What are our strengths and weaknesses in relation to external threats. What resources might we have to make a threat a possibility?
Nike relies on overseas facilities for all its production in order to reduce costs. These facilities are very poor and pose a threat to Nike’s reputation. Nike could suffer if this report is ever published. Nike could use the pressure from Puma or Adidas to increase its growth and decrease in a highly competitive industry.
* What are our weaknesses and how do they relate to the external threats? These are some of the most dire scenarios an organization could face.
Nike does its majority of business through retailers. This is a danger because many customers can compare Nike’s prices to those of other retailers. This could result in consumers being able to purchase products at lower prices than rival brands.
