Strengths And Weaknesses Of Nike

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Price Strengths 1. Low Cost Manufacturing Nike has a company who use the low cost manufacturing for production footwear. All of the Nike’s footwear virtually is manufactured outside of the United States by independent contract manufacturers such as Vietnam, China and Indonesia. Nike was operate multiple factories around the worlds. In 2014, Vietnam, China, and Indonesia manufactured roughly about 43%, 28%, and 25% of total Nike branded footwear and it has also operations in other country such as Argentina, Brazil, India, and Mexico. The low cost of producing products in these countries continues to boost the bottom line. 2. Price stability The price of the Nike’s product is high, but the quality is high and the market price stability. Although Nike have more than 44,000 employees worldwide and thousands of retail in the world but the price is stability. It will be easily giving the consumer make the decision in short time when buy the Nike’s product without compare with other Nike retail. Weakness 1. High Prices Nike is a strong brand at the global market and it normally sells the product in the market with high price to get higher margins and profit value. However, many competitors cost of the footwear is lower than Nike in the market, particularly in emerging markets, this can give consumers get many choice about the footwear. When an economy falls into recession, this will give Nike take risk of declining demand, as a consumer they will choose lower discretionary
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