Strengths – one of the best things about Nike is that it’s a famous global brand that is recognized all over the world for its quality sports gear. It also has no factories, which makes it a very lean organization. It produces the goods through the help of contract factories. This reduces cost, which helps them to make the product for the highest quality at the lowest price. (Adam , 2009) Weaknesses – although it does have a diversified product range, most of its sales are dependent on its footwear. This makes it vulnerable if its market share erodes.
Another weakness of Nike is that it is ready to give contract to companies that are involved in unethical labor practices, such as child labor. It has also been strongly criticized by anti-globalization groups that it is exploiting workforces for cheap money. (Watts, 2009) Opportunities – Although the owners of this company may argue that Nike isn’t a fashion brand, but the reality is that most of its consumers buy it as a fashion statement rather than for playing sports. Hence, Nike can come out with fashion products. Furthermore, there are many international countries where Nike isn’t being sold.
Due to its global presence, Nike can tap those markets for greater revenue. Lastly, it can expand into other products like sunglasses. (Adam, 2009) Threats – the number one threat that Nike faces is the irregularity of prices in the international markets. As it buys and sells in different currencies, Nike wouldn’t be able to maintain its costs and margins in the long-run. Hence, such exposure can lead to a loss. Furthermore, the athletic sports industry is getting cluttered and there are other significant brands like Adidas, Reebok, etc that are constantly fighting for ways to reduce the Nike’s market share.
(Watts, 2009) References Adam. (2009, November 2). Nike SWOT Analysis. MBA Tutorials. Retrieved July 11, 2010, from www. mba-tutorials. com/marketing/240-nike-swot-analy Nike, Inc. SWOT. (n. d. ). Marketing Teacher. Retrieved July 11, 2010, from http://www. marketingteacher. com/swot/nike-swot. html Watts, J. (2009, July 22). SWOT Analysis of the NIKE Company – Associated Content – associatedcontent. com. Associated Content. Retrieved July 11, 2010, from http://www. associatedcontent. com/article/1961202/swot_analysis_of_the_nike_company. html? singlepage=true&cat=35