Nike Swot Analysis

529 Words3 Pages
NIKE Situation Analysis Strengths •Nike is a globally recognized for being the number one sportswear brand in the World. •Nike being a competitive organization has a healthy aversion towards its competitors during Atlanta Olympics, Reebok expensed on sponsoring the games; Nike however sponsored the top athletes and due to this step, it gained valuable coverage. •Nike has no factories; rather it uses contract factories to get the work done which makes it quite a lean organization. It has contracts with above 700 shops globally in about 45 different countries. Weaknesses •Even though the organization has a diversified range for sportswear, the income of the business, however, is still heavily dependent upon its share of the footwear market which leaves it at a quite vulnerable spot if for any reason its market share erodes. •The retail sector is price sensitive; retailers usually tend to offer a very similar experience to the consumers with another cheaper product, which in return tends to get squeezed as retailers try to pass some of the low price competition pressure onto Nike. •Nike was for quite some time unwilling to disclose any type of information concerning its partnering companies. •It was charged with the violation of overtime and minimum wage rates in Vietnam, 1996, that was seen as having poor working conditions, and that it was also charged for exploiting cheap workforce overseas. •Nike was also reported to have applied child labor in Pakistan and Cambodia to produce soccer balls. •It was positioned as a subject of criticism by anti-globalization groups due to its unruly and exploited manner that was quite a disaster for its reputation. Opportunities •The brand is sternly defended by its owners who believe that Nike is not a fashion brand, however, a large number of consumers wear Nike product because they derive a fashion trend rather than to

More about Nike Swot Analysis

Open Document