Nike is extensively involved in Promotion and advertising. The SWOT analysis of Nike discusses the strengths, weaknesses, opportunities and threats of the leading footwear brand - Nike. $66,111 M 1 shoemaker. Improve gross margins & operating margins through supply chain initiatives – lean manufacturing, better sourcing, product costs, etc.. Retrieved on 26th September’08from < www.samples-help.org.uk/mission-statements/nike-mission-statement.htm>. Market Share. This component of the SWOT Analysis deals with the internal strategic factors that support business development and competitiveness. Edison, NJ -- -- 12/17/2020 -- A new business intelligence report released by HTF MI with title "COVID-19 Outbreak-Global Athleisure Industry Market Report-Development Trends, Threats, Opportunities and Competitive Landscape in 2020" is designed covering micro level of analysis by manufacturers and key business segments.The COVID-19 Outbreak-Global Athleisure Market survey analysis … These investments will be used to give excluded youth around the world the chance to play because as access to sport can enhance their lives. It also may vary depending on the unit sales to price differences across competitors. Consumers like Nike’s innovative new products and are willing to pay a higher price than its competitors. Therefore the management of the company needs to track down its market share within the industry. Nike also held the largest market share of the global apparel market. Nike is a multi-national organization. In the last two years, Nike has invested $100 million worldwide in community-based sports initiatives. Nike needs to watch out for threats associated with these weaknesses, and others such as tax clampdowns or counterfeiting. Apparel and footwear companies rely on marketing to drive demand for their products. Nike endorses various celebrities such as athletes, football players, cricketers, tennis etc .It places its products in various movies and shows using product placement. If the relative market share is greater than 100% it indicates that the company as the leader in the market. Sells under the NIKE brand, wholly owned subsidiaries Converse, Cole Haan, Hurley International , BAUER NIKE Hockey, and Exeter brands. CONCLUSION/RECOMMENDATIONS • Nike has shown good growth momentum & increase in stock prices • Nike should move forward with the changing trend of the market • Company … ROA: Registered Data Controller No: Z1821391. Footwear and apparel industries are relatively mature and investors perceive few pure growth plays, and expectations for margins tend to drive stock valuations more than sales growth. • Branding provides consumer information about products and where to find them. Increase market share in all the markets to counter the threat from the recent Adidas/Reebok merger, Expand further into international markets such as Emerging markets and spur growth in the European and Japanese markets. Also they offer customized designs of their products wherein customer designs their product as per their requirements. There are two decisions that are considered important in this measure. (The manufacturing practices of Nike and its competitors). Based on analysts offering 12 month price targets for NKE in the last 3 months. In September, a Reuters analysis of a varied basket of goods, including Nike Air Maxes, showed that the company was able to discount less this year. And the brand of Nike itself creates a great deal of opportunities for the company like more sales of the company’s products since people consider it as a fashion brand. One such merger – the Adidas- Reebok merger between two transatlantic companies has not only doubled Adidas’s market share in the U.S. but has also made it a close competitor to Nike. Theory behind the merger-to utilize Reebok’s marketing power and understanding of the U.S. consumer to build Adidas’s presence in the United States and, conversely, to draw on Adidas’s heritage in Europe to develop the Reebok brand overseas. Hansen Valuation Estimates Prentice Hall. Market Capitalization: Reebok Realflex| By The Breezers: Mannan Wu Abbey Barnes Chase Carraro Mohammed Baamer Deborah Dani Dylan By The Breezers: Mannan Wu Abbey Barnes Chase Carraro Mohammed Baamer Deborah Dani Dylan. Overall market share: the company’s overall market share is actually the sales that are expresses as a percentage of the whole market sales. According to Zacks Investment Research, based on 13 analysts’ forecasts, the consensus EPS Trade Tensions – Nike depends on different markets across the world evidenced by the recent increase in its stocks rallied by an increase in sales in China. The Group has operations in Europe, North America, Asia and Latin America. SWOT analysis is the evaluation of the of a company’s strengths, weaknesses, opportunities and threats. It also has a range of classic Nike shoes which are available all the time. 3.26 Revenue: 7-Year On finalizing the market segments that the company wants to target, the marketer’s next step is to design a marketing program that will resonate with the target market or markets. A SWOT Framework … Nike has more than 500 locations around the world and offices located in 45 countries outside the United States. WACC(AT): 7.75% The overall services and look of the company is targeted in such a way that would match the changing tastes and preferences of the customers of Nike worldwide. Eg. There are some statements which describe the company’s characteristics such as the corporate value of the company, the quality of the product, location of the company’s outlets and facilities and sometimes the statement also identifies the company’s attitude towards its employees and workers. 22.65% The first one is based on the use of unit sales that help to express the market share of the company. It designs and sells shoes for a variety of sports including baseball, golf, cheerleading, volleyball, tennis and football. Online shopping: Nike also provides with online shopping facility for its various products and services. in 1993 to, as the Nike Web site maintains, “Reduce Nike’s impact on the planet.”, Philanthropy: Nike is committed to philanthropic endeavors such as “Reuse a Shoe,” “Project Dreams” and “Habitat for Humanity.” These efforts, along with other programs such as the “Shadow” program and the. It also markets apparel with licensed college and professional team, and league logos. Study for free with our range of university lectures! As a result, there is a lot of collaboration and consensus decision-making. 1.05 Designed to make a connection to the consumer, Seldom pitch the product directly or talk about product attributes, Sometimes don’t even mention the company’s name, featuring instead only the swoosh logo, Collaboration ads with another strong branded product, such as Apple iPod. Rapid innovation processes 3. To cut expenses & improve margins there is a trend towards moving production facilities to lower-cost regions outside the U.S. Nike’s target markets Nike (NKE) is the world’s leading sports footwear and apparel company. Nike has been designing world class shoes for over 5 decades. 3.17 (Increasing market share), The marketing plan of the company is that it is making sure that the consumers and the sportswear market are aware of the existence of Nike and to do that Nike has adopted marketing mix. Relative market share (to leading competitor): there are some companies that track their shares as a percentage of their leading competitor’s sales. Roger Federer, Tiger Woods, Ronaldinho, Ronaldo. These forces can have a direct impact on their sales and profits. The market share can be calculated on the company’s actual sales or even the sales that have been forecasted by the management of the company. 1. 3. Save time and let our verified experts help you. The company first worked as a shoe distributor for the Japanese shoemaker Onitsuka Tiger. In 1980 the company had a 50% market share only in the United States shoe market and then the company decided to go public and it did by the end of that 1980’s December. Nike markets its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, Team Starter, and subsidiaries including Cole Haan, Hurley International, Umbro and Converse. Despite all of these emphasis points, Nike is still only ranked #5 as a brand with consumers in the core 18-24 age … KR - NYSE (11/1/2007): Nike, Inc. is expected* to report earnings on 12/18/2020 after market close. The company is headquartered in the Portland metropolitan area of Oregon, near Beaverton. Nike Air Citius+ 2 running shoes. Published Beta: Promotion: promotion includes sales promotion, advertising, sales force, public relations, direct marketing and the company also uses its catalog for promoting of their products worldwide. This all aspects can be included in the product analysis. -1.30% 4. Percent Institutional product, price, place and promotion. NIKE SWOT Analysis Strengths Nike has the strength in the St. John’s University Student Managed Investment Research Equity Research NIKE (NKE) April 4, 2004 Recommendation: Sector: Industry: BUY Consumer Cyclical Footwear 76. Nike (NKE) faces some challenges in its target markets. The price flexibility of Nike is high due to the large number of spare parts on the market, such as Reebok- Adidas , Puma and so on. Nike`s grip on the market comes down to a simple supply and demand formula, Josh Luber, CEO of sneaker reselling site StockX previously told Jefferies. Nike and Precision Castparts are the only Fortune 500 companies headquartered in the state of Oregon. Despite its size, Nike operates with a minimum of hierarchy. Performance and reliability of shoes, apparel, and equipment, new product development, price, product identity through marketing and promotion, and customer support and service are important aspects of competition in the athletic footwear, apparel, and equipment industry. 3. Marketing Analysis of Nike. 5.2} ECONOMICAL: – As far as the figures are concerned; Nike has been impressive having a market share of 30.4% in 1998, compared to 15.5% and 11.2% of Adidas and Reebok respectively. Nike provides features, designs, various brands, packaging along with some extra features like warranties and after sales service. Footwear Market – Detailed analysis of current Industry figures with forecasts growth by 2025 | Nike, Adidas, Skechers, New Balance, Asics Ventilation Fans – Global Market Outlook (2019-2027) Rising demand for Food and Beverage Processing Enzyme Market 2020– 2025 | DuPont, Associated British Foods, Koninklijke, Novozymes, Chr. Adidas AG – The Group’s principal activities are producing and marketing of sports goods. Nike provides customization of their shoe range on their site Nike.com.Nike also offers a one year warranty for their products. Strong brand image 2. Market segmentation means dividing the market into distinctive groups of customers and buyers. Nike provides various products like shoes, sportswear and accessories and sports equipment. -1.29% The Group markets its products under the brand names: Adidas, Salomon TaylorMade-Adidas, Mavic and Bonfire. Nike lures customers with a marketing strategy centering on a brand image which is attained by distinctive logo and the advertising slogan: “Just do it”. Book Value Per Share: It is positioned as a premium performance brand. Home — Essay Samples — Business — Nike — An Analysis of the Market of Nike and Adidas This essay has been submitted by a student. It is due to the mission statement that the employees, customers, suppliers and stockholders known about the stated goals and objectives and the aim of the company. The following strengths are the most notable in the case of Nike Inc.: 1. And in the end large companies like Nike eventually seek full market coverage, they want to be the General Motors of their industry. The elimination of quotas/safeguards over the next couple of years is expected to drive input costs lower, and the powerful apparel brands sourcing from the Far East will capture a significant share of these savings. Nike’s factories are mostly located in Asian countries like Pakistan, India, Malaysia, China, Indonesia, Philippines, Taiwan, Vietnam and Thailand. 3-Month Financially, Nike’s overall results have improved over the years through both organic (core brands) and inorganic growth (acquisitions), supply chain initiatives and increased penetration in Europe and Asia. We use cookies to give you the best experience possible. Companies like Nike are much focused on their efforts to meet the distinct needs of individual market segments. Nike totals roughly 218.39 Billion in market capitalization … VAT Registration No: 842417633. Because Nike creates goods for a wide range of sports, they have competition from every sports and sports fashion brand. The report will be for the fiscal Quarter ending Nov 2020. It is the world’s leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of $16 billion USD in 2007. Nike is known as the market leader in the athletic footwear market because competitive advantage is there and dominant strategic plan when compared to competitors. You can view samples of our professional work here. Nike is the world’s no. … The company has a market cap of $215.5 billion. These buyers have distinctive requirements such as different needs, characteristics or even have different buying behaviors and they might or might-not need require different kinds of products or marketing strategies. 4. 5-Year 2003: Nike purchases Converse Inc. for $ 305 million, “To bring inspiration and innovation to every athlete in the world”, (* “If you have a body, you are an athlete” Bill Bowerman, co-founder), Nike is the “largest seller of athletic footwear and athletic apparel in the world. The Group’s activities are carried out through three divisions: Footwear, Apparel and Accessories. 1984-1985 Nike saw a decrease in their earnings for the first time ever, Influenced them to make their first specialty basketball shoe, Since then, Michael and Nike together have generated billions of dollars in revenue, Jump man logo is one of the most easily recognized symbols throughout the world, More attention than Michael Jordan and Bo Jackson. Increasing market share (n.d.), Retrieved on 26th September’08from < www.juststartups.com/growth-development/48/increasing-market-share.html>, Kotler, P (1997), Marketing Management: analysis, planning, implementation and control. Place: place would include channels, coverage, assortments, locations, inventory and transport. (Nike Shoes), The company can introduce brand extensions i.e. Looking for a flexible role? 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