•As Nikeis a multinational business Laws may affect its distribution of products.
••The taxsystems in other countries are very competitive therefore as Nike is aninternational business they have to follow accordingly. •Thegrowth and advancement have adverse effects on Nike due to recession.•As wellas the local economy, Nike growth also have an affect within the internationaleconomy • •Worldwide increases in healthconsciousness means that’s there is more demand in sports apparel••Due toglobal presences Nike will need to focus on the buying habits andpreferences of consumers •Interms of economic innovation and segmentation Nike applies its marketinginformation systems ••Nikecreates products that are Innovative and technically advanced which fulfils therequirement of its consumers. Strengths•Worldleading brand for sports shoes•Companylogo that enhances the recognition of the brand globally•Strongcontrol over its distribution channel•Innovativedesigns in footwearOpportunities •Eexpansionof product into sports wear and sunglasses. •environmentfriendly programmes•Productdevelopment•Newinnovation and technologyWeaknesses•Theretail sector is very price sensitive•Lack ofstable production units•Verymuch dependent upon its share of footwear market•Highprice of products due to premium brand•Threats •Competitionpressure from Adidas and Under Amour•Competitorsfocusing on niche market segments.•Expansioninto developing markets.••Thebargaining power of Nike’s buyers is low to moderate.
•Theswitching costs for customers are low.•Nikefocuses on performance and design.•Competitionin the athletic footwear industry is very strong.
•Majorcompetitors of Nike are Adidas, Under Armor and Rebook.•Thethreat of substitute products is moderate for Nike. •Thereare number of competing brands that create similar products as Nike.•Severalbrands offer lower priced substitute products for Nike. Strategy •In order to reach out to awider audience Nike’s strategy is to use celebrity athletes to endorse theirproducts . For their advertisement of products Nike uses athletes assponsorsStaff• Nike employs 74,00 employeesworldwide. •Staff have good knowledge andexperience about the company and the industries in which it operates Skills•Nikesstrongest skill is to advertise and market products above and beyondcompetition •Nikeacquire the best athletes to promote and wear certain products on commercials.
Shared valuesNike’s value is to producetop quality athletic footwear.Nike aims to buildrelationships around trust and respect Systems •Research,development and advertising campaigns are the main systems that Nike uses Style •Nike implements a lifestylewear for their employees.•Nike incorporates sports toimplement competitive spirt for employees. Structure•Acrossthe world Nike has over 47,000 branches over 100 different countries •Nikemaintain its management and organization effectively. •It iscrucial for Nike to implement these strategies within the company•It isclear from the internal and external strategy that Nike’s biggest competitor isAdidas.
•Fromthe strategies options 2 in the best out of the three strategy to implementwithin he business. Interms of traditional customer segmentation strategy the rise of e-commerce hasresulted in a transformation for online shopping. Nike’sstrategy meets the expectation however the risks are of reducing costs ofoperation requires time investment extensive research.Thestrategy is feasibility as it targets a wider audience.
It is relatively easierto sustain the strategy as it lowers on the operational costs. Thesports wear and apparel industry is vey competitive. Nike’s major competitorsare Adidas, Under Armour and Rebook. Nike provides higher quality of productand services in comparison to its competitors. Nike’sbiggest threat is Adidas as they offer the similar product with lower pricingstrategy. Therefore in terms of pricing Nike’s products are relatively higherthan its competitors.