Essay On Swot Analysis Of Nike Company
Opportunities & THREATS
SWOT Analysis
This analysis is conducted in order to access the various factors affecting Nike Inc; it studies its performance and strategies in terms of all the external and internal factors that affect the working of Nike. Generally known as the SWOT analysis, it consists of strengths, Weaknesses, Opportunities and threats, the basis of its short-term and long-term strategic direction.
Below is a brief analysis done on the external factors influencing Nike, Inc.
2. OPPORTUNITIES
2.1 Taking full advantage of the emerging markets
In the 21st century, countries like China, India, South Africa and Brazil showed high economic growth when European and American economies plunged. Customers in these nations had
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Despite the fact that Nike, Inc. acquires no factories for the production of its footwear and apparels, it still makes up to 90% of its revenues. The manufacturing of these products is entirely outsourced to third parties, which requires raw materials from independent contractors. Though it helps in improving profit margins and reduces inventories but it is also a major risk factor in the whole supply chain management system. For example: This complex supply chain failed in February 2001 and Nike, Inc. suffered a loss of over 100 million US dollars.
3.4 Recession
Nike, Inc. is known for its massive advertising spending, endorsements and sponsorships. But in the last decade (2007-08), when the world was in recession, Nike had to cut its costs by reducing the advertising budget and also by decreasing the total workforce by 4% (NYTimes.com, 2009). The recession not only affected the company internally but the economic conditions of the customers also worsened as they went to buy footwear and apparel from the brands with lower prices
NIKE, INC. NET INCOME, IN MILLIONS OF
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