Zara Case Study Swot Analysis And Pestle Analysis

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  An American multinational corporation, Nike, Inc. is one of the most leading brands which designs, develops and sells footwear, apparel, accessories, equipment and other services worldwide. For more details:- https://myassignmenthelp.com/case-study/nike-swot-pest-analysis-case-study.html
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  • 1. SWOT and PESTLE Analysis of Nike
  • 2. Introduction • An American multinational corporation, Nike, Inc. is one of the most leading brands which designs, develops and sells footwear, apparel, accessories, equipment and other services worldwide. • It concentrates and focuses primarily on producing sportswear and athletics products (About.nike.com, 2016). • But it also holds substantial popularity in the leisure and casual products. • Founded as Blue Ribbon Sports in the year 1964, it was officially named as Nike, Inc on 30th May, 1970. • This company takes its name from the Greek goddess of victory named Nike (About.nike.com, 2016). • It has its operating segments throughout the world which in the year 2014 was recognized as the most valuable brand among all sports business. • The brand, its Swoosh (also referred as Nike tick) logo and universal slogan ‘Just do it!’ are highly recognized throughout the world.
  • 3. Introduction The brand, its Swoosh (also referred as Nike tick) logo and universal slogan ‘Just do it!’ are highly recognized throughout the world. Industry Served Apparels, Accessories, Footwear Headquarters Washington County, Oregon, USA Area Served Worldwide Annual Revenue US $30.601 billion (2015) Key People Phil Knight, Chairman Mark Parker, President and CEO Products Athletic footwear, apparel, sport equipment and other recreational products with separate lining for men, women and kids Number of Employees 62,600 (2015 data) Website http://www.nike.com/
  • 4. SWOT ANALYSIS OF NIKE • This study is conducted to assess Nike, Inc. reviewing the four major aspects of concern. • Nike, Inc. is listed on NYSE with offices located all over the world. • It reviews the strategy and its performance against all the external and internal factors. • Commonly known as the SWOT analysis, it includes Strengths, Weaknesses, Opportunities and Threats. • They are known as the basis of its short-term and long-term strategic direction. For more : https://myassignmenthelp.com/case-study/nike-swot-pest-analysis- case-study.html
  • 5. STRENGTHS • Product Innovation - The below chart provides how Nike, Inc. took various initiatives which reciprocate their strategy of product innovation. Year Product Milestones 1995 Shift from petroleum-derived solvents to water- based adhesives 2000 Nike endorsed Principles of the UN Global Impact and phased out completely SF6 and PVC 2002 Introduced environmentally preferred rubber 2008 Nike, Inc. released Jordan XX3, Trash Talk shoes 2010 Introduced environmental-friendly and technologically advanced jerseys 2012 Introduced high-performance Nike fly knit racer SWOT ANALYSIS OF NIKE
  • 6. SWOT ANALYSIS OF NIKE STRENGTHS • Strong Global Brand - The brand is promoted by the leading celebrities and sports professionals which creates significant brand equity in terms of recognition and image (Businesstoday.in, 2016). • Low Cost Manufacturing with Strong Cash Flow - Nike, Inc. has always followed an effective marketing strategy which helps it to reduce the cost of manufacturing. For more : https://myassignmenthelp.com/case-study/nike-swot-pest-analysis- case-study.html
  • 7. SWOT ANALYSIS OF NIKE STRENGTHS • Global Presence and Influence - In a recent data, the number of retail stores of Nike located worldwide is more than 931 through which it reaches its consumers located globally. 0 100 200 300 400 500 600 700 800 900 1000 2012 2013 2014 2015 No. of Retail Stores of Nike No of Stores
  • 8. SWOT ANALYSIS OF NIKE STRENGTHS • Proficient Leadership WEAKNESSES • Excessive Dependence on Footwear 0 2000 4000 6000 8000 10000 12000 14000 16000 2012 2013 2014 2015 Equipment Apparel Footwear
  • 9. SWOT ANALYSIS OF NIKE WEAKNESSES • High Prices of its Products • High Advertising Spending The above chart explains how in USA itself the advertising spending has increased in the last few years for Nike, Inc. Year Advertisement Spending in billion USD 2009 0.56 2010 0.89 2012 1 2013 1.15 2014 1.31
  • 10. SWOT ANALYSIS OF NIKE WEAKNESSES • Nike Sweatshop Problem OPPORTUNITIES • Explore Emerging Markets • The Rise of e-Commerce Trade - The marketing strategists projects that by 2020, e-commerce sales will be responsible for one-third of overall growth (Internetretailer.com, 2016). They also project that the total sales in the fiscal 2020 will reach $7 billion.
  • 11. SWOT ANALYSIS OF NIKE WEAKNESSES • The Rise of e-Commerce Trade $0 $100 $200 $300 $400 $500 $600 $700 $800 2011 2012 2013 2014 Growing e-Commerce Sales of Nike Sales
  • 12. SWOT ANALYSIS OF NIKE WEAKNESSES • Product Expansion • Initiatives Towards Better Environment THREATS • Intense Competition - Nike, Inc. functions in such an industry that is highly competitive. Nike, Inc. enjoys a better position in terms of market share when compared with competitors. But it faces stiff completion from Adidas, Puma and other reputed brands. All these brands produce the similar athletic footwear, apparel and other equipment which makes the competition much more intense (Statista.com, 2016). For more : https://myassignmenthelp.com/case-study/nike-swot-pest-analysis- case-study.html
  • 13. SWOT ANALYSIS OF NIKE THREATS • Intense Competition 0 2 4 6 8 10 12 14 16 18 2010 2011 2012 2013 2014 Nike Adidas Puma
  • 14. SWOT ANALYSIS OF NIKE THREATS • Fluctuating International Markets • The Rising Counterfeit Cases • Perilous Supply Chain Management • Recession For more : https://myassignmenthelp.com/case-study/nike-swot-pest-analysis- case-study.html
  • 15. PESTLE ANALYSIS OF NIKE • PESTLE analysis refers to all the macro-environmental factors that are necessary for strategic management. It is an acronym which when expanded includes six factors when the company is contemplating to launch or upgrade a service or a product. • The factors are: - Political - Economic - Social - Technological - Legal - Environmental • The importance of all these factors is different for different companies or industries but comprehensively they play a crucial role in deciding the future action of every organization.
  • 16. PESTLE ANALYSIS OF NIKE • PESTLE analysis refers to all the macro-environmental factors that are necessary for strategic management. It is an acronym which when expanded includes six factors when the company is contemplating to launch or upgrade a service or a product. • The factors are: - Political - Economic - Social - Technological - Legal - Environmental • The importance of all these factors is different for different companies or industries but comprehensively they play a crucial role in deciding the future action of every organization.
  • 17. PESTLE ANALYSIS OF NIKE Political Factors • Favorable US Government Policies • Political Unrest in Some Asian countries • Changes in International Law Country Number of Factories (2014) China 195 Indonesia 40 Vietnam 65 Thailand 35
  • 18. PESTLE ANALYSIS OF NIKE Economic Factors • Rise in Production Cost and Labor Issues • The Threat of Recession and Competition • Fluctuating Profit Margin • Acquisitions and Subsidiaries Technological Factors • Innovation • Marketing Techniques For more : https://myassignmenthelp.com/case-study/nike-swot-pest-analysis- case-study.html
  • 19. PESTLE ANALYSIS OF NIKE Environmental factors • Global Warming and Environmental Concern • Pollution Concern in China • Decrease Greenhouse Emission
  • 20. PESTLE ANALYSIS OF NIKE Social Factors • Consumers Becoming More Brand Conscious • Consumers Becoming Health and Fashion Conscious • Increase in Female Consumers • Working Conditions at Factories Legal Factors • Legal Battles with Adidas and Other Companies • Child Labor and Minimum Wage Allegations • Counterfeit Products
  • 21. Conclusion • The organization needs to work on their weaknesses and threats to strengthen their position. • The footwear and apparel industry is very competitive, but Nike, Inc. has successfully dealt with every challenge through the years. • Their impressive ability to alter their strategy and introducing new products from time to time has helped its revenue to grow every year. • Lastly, Nike, Inc. will continue to rule the apparel and footwear industry in the years to come. For more : https://myassignmenthelp.com/case-study/nike-swot-pest-analysis- case-study.html
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