Key Notes on SWOT Analysis of Nike

A SWOT analysis helps identify internal and external factors that affect Nike's business performance.

Background of Nike

Nike is a US multinational company committed to designing, developing, manufacturing, marketing, and selling shoes, clothing, equipment, accessories and services. The company has its headquarters near Beaverton, Oregon, located in the Portland Metropolitan District. It is the world’s largest shoe and sportswear supplier and a significant sports equipment manufacturer.

Nike SWOT Analysis 2022

Strengths of Nike

Knowing its strengths is critical for a big, well-known company like Nike. Its strengths helped it reach great heights. As a top company, Nike has several crucial areas. Some of them are:

The brand has built a trustworthy reputation, affiliated with several non-profit organisations.

As an athletic apparel company, Nike has managed to gain a following across the globe. Their product range is cheap due to low production costs. Therefore, they can attract many customers.

The brand has complete control of its retail and online operations. The online business is as successful as the retail business.

The company knows how to campaign. They are associated with several famous athletes and are popular for the quality of their products.

Weaknesses of Nike

Although the company has diversified into several international markets, the growth of its business is mainly dependent on the revenue it generates in its country of origin. Nike’s presence in emerging markets is relatively limited. Therefore, it is difficult for the company to compete with local brands in the host country’s market. Nike works with a limited number of product categories. The company operates in three major product categories: footwear, apparel, and equipment. Nike has faced severe controversy over its operations for years. Labour disputes over the mistreatment of workers in developing countries have given companies a bad corporate image. So this may deter some customers and investors.

Opportunities of Nike

Opportunities are factors outside the enterprise. They can use these factors to obtain profits and use them. Nike SWOT analysis will help managers consider them before the subsequent significant actions.

Newmarket: Although the government has agreed to help economic development, it will create a new market. This will allow Nike to expand its broad business field of business. In particular, these Olympic Games may be an excellent opportunity for Nike to increase its marketing and promotional departments’ auctions.

Business diversification: Even if Nike has many products on sale, they can launch many new products. People now know his existence. Thus, it will be beneficial to the company. Diversifying activities can make people have more interest and investment in the company. It will act as an advertisement and increase income. Throughout the 1980s, Nike expanded its product scope to cover many sports and regions worldwide.

Threats of Nike

In competitive markets such as sporting goods stores, various threats will affect the company’s operations. Recognising them from Nike’s SWOT analysis can help companies take different strategies to cancel them. This will help them focus on extension options.

The post-pandemic economy is accomodating the wrong time for most companies. Even big brands like Nike cannot stay away from this impact. The fiscal pressure caused by economic weakness will affect their growth.

The existence of counterfeit products poses a serious threat to the brand. Because the market of such products is diversified, it is difficult for Nike to control them.

The retail market is ready to welcome more threatened companies to join the existing population. Although Nike is one of the biggest brands, it is difficult for them to ensure that they are very competitive in the market. Many brands provide the best products at lower prices and attract more customers.

Due to the allegations of superiors, abuse of employees, and inconsistent product quality, the reputation of the company’s brand is constantly threatened.

Conclusion

After going through the SWOT analysis of Nike, we can conclude that Nike is a large-scale organisation in a challenging market, but its performance is incredible. Nike can earn billions of dollars every year with its compelling brand and low cost. Unfortunately, Nike depends very much on the US market, and there are not many samples outside the shoe and sportswear market. Nike should pay attention to threats related to these weaknesses and other hazards such as financial suppression of counterfeiting. Fortunately, Nike has several opportunities to develop business. The most effective option is to expand sportswear by gaining the best players in the market.