CH5 • Describe your target market in detail, including information on the geographic, demographic, psychographic and behavioral factors used to choose your market segment.
CH5 • Identify the needs that cause your target market to buy.
CH6 • Create a written positioning statement that identifies:
- Your organization’s product/service
- Your target market – Needs that cause your target market to buy including emotional and
logical drivers – How your product solves the target market’s needs
- What makes your organization different from its competition
CH4 • Include sources of secondary research that support your analysis
MRKG 1331 Sections: 86001 and 86002
February 6, 2022
Nike SWOT Analysis
Nike, Inc. is an American multinational corporation specializing in creating, producing, worldwide retailing, and selling shoes, clothing, garments, gears, accessories, and services. Its headquarters are in Portland, Oregon, near Beaverton. Phil Knight and Bill Bowerman launched the corporation on January 25, 1964. The business has developed considerably from its humble beginnings in a little town in Oregon. It has grown to become the biggest sports footwear manufacturer in the world. They began with only a pair of shoes and a t-shirt, but they have grown their range of services and goods over time.
Nike has been a leading producer of sportswear. Sports have been overly accepted across so many nations and are being used to bring people together. Nike has been producing shoes that have been reliable to athletes for too long now. Other than shoes, Nike can produce apparel not only aimed at sports but for casual and official use. The apparels can be for children, adults, women and men. As an existing brand, Nike will have the attention of the people and will not have to spend a lot on advertising and marketing.
In the 4Ps, the product will be clothes ware. They will official and casual ware for both men and women. They will also include kids. The quality of the clothes will match the name of the brand. Subsiding the price for the new products will make it easier for sales to be achieved. The cost should be favorable as the target customers vary from rich to humble members of the society. The place for production and sell will be Nike’s headquarters for a start. Beaverton, Oregon, in the United States has a higher chance of being supportive of Nikes products. Afterwards, the commodities will be available in all Nikes’ shops across the world. Promotion of the products will be done by celebrities who have a good reputation and great following.
Nike SWOT Analysis
This section provides a detailed analysis of some of the strengths, weaknesses, opportunities, and threats that Nike has or faces.
● Nike has very strong brand awareness and recognition in apparel due to the uniqueness and the quality of products they make.
● They have a huge customer base across the world; no wonder they are available in over 170 countries worldwide.
● Nike has low manufacturing costs, which helps them maximize the output, hence generating more revenue.
● The company has in-house professionals whose work is to develop unique shoe designs.
● Nike has a wide brand portfolio such as Shox, Converse, Nike Blazers, among others, enabling them to have massive dominance in the cloth industry.
● Nike has a high market share (Brohi et al., 2016).
● Poor Working Conditions in Other Countries – Nike has been singled out for criticism over the previous two decades because of its terrible working conditions.
● Because of its price sensitivity, Nike’s retail business renders the company vulnerable as it sells 65 percent of its goods straight to wholesalers or retailers.
● Nike has huge pending debts.
● Dependence on the United States Market – Even after establishing a worldwide presence, Nike continues to rely on the United States for sales and earnings. Nike is embroiled in a never-ending legal battle:
● Nike’s over-reliance on sportswear or lack of diversity proves to be another major undoing for Nike (Brohi et al. 6).
● Emerging markets such as India, China, and Brazil quickly adopt fashionable apparel and footwear.
● Innovation such as the combination of technology and sports clothes might be beneficial.
● Nike depends on various suppliers and manufacturers for supply and production. For a more efficient supply chain, the brand might purchase or make some of them.
● Nike opts to part ways with some of its biggest multi-brand retailers and wholesalers.
● Incorporation of Artificial Intelligence acquired (Brohi et al. 9).
● Tax clampdowns – Nike’s net income has drastically reduced due to the huge sums it pays through taxes
● Nike faces stiff competition from their rivals such as Adidas, Under the Armor, PUMS, Kappa, among others
● Nike has recently been faced with counterfeiting issues, with the company coming up with nearly the same resemblance but of low quality, which becomes hard for buyers to distinguish (Brohi et al. 12).
Brohi, Hina, et al. “Strategic Marketing Plan of Nike.” (2016).
Polderman, Mickey. Responsiveness, Cost-Efficiency and Sustainability in The Global Apparel Supply Chain: Towards an Integral Approach on Manufacturing Location Decisions A Nike Inc. Case study. Diss. University of Groningen. Faculty of Economics and Business, 2020.