Today, nike is one of the largest shoe and athletic apparel company that is known all around the world. Nike targets on these customers by agreements between nike and athletic teams, colleges athletic teams for products sponsorship and eventual promotion to the members of these teams. Jan 22, 2016 nike is an international corporation focused on designing, creating, and promoting high quality athletic wear. Dec 18, 20 nike uses customers feedback in order to bond with their loyal consumers larson, 2011. Highlight specific issues towards labor situation and csr practice of nike. What could a swot analysis for the company nike look. Nike to donate 30,000 pairs of air zoom pulse sneakers to medical personnel. The support accorded to nike by the us government, particularly in the general macroeconomic stability, low interest rates, stable currency conditions and the international competitiveness of the tax system, form the foundation critical to nikes growth. The income statement statement of earnings reports on the performance of nike inc. Each group will turn in one report sounds obvious, but might as well make it explicit.
The heel mimics the shape of your foot, rolling with the ground to promote a more natural footstrike. Initially it was called blue ribbon sports and specialized in the order of athletic footwear in. Renamed nike, after the winged goddess of victory, the company went public in 1980, by then representing 50% of the us running shoe market. How can nike be a globally recognized ethical brand.
Nike swot 2020 swot analysis of nike business strategy hub. In addition to the information garnered through the sales website, one can access a new tool used by nike to rate the sustainability of materials used. Cuizon, 2009 technology analysis political analysis according to pest analysis the technological enviourment can be taken as strength. Industry analysisrecent performance industry analysissubstitute products common size balance sheet, 19951996 income statement information, 19941996 common size income statements, 19941996 nike is one of the most successful manufacturers.
Covid19 has forced companies to realize customer loyalty is a twoway street. Nike competitive analysis free download as powerpoint presentation. Nike utilized design patents and trademarks to protect the core value of the brands. The strongest of these three sbus is the footwear category where nike has a hold of 35% of the market, the largest share by %. Nike swot analysis elaborates nikes internal strengths, weaknesses, opportunities, and potential threats. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. A financial analysis of nike inc is presented in the report which includes a ratio analysis, basic profit and loss analysis, presentation of the company balance sheet, and much more. Founded by two visionary men who pioneered a revolution in athletic footwear, nike has redefined the sportswear industry. Nike and global labour practices 3 company and industry background the nike story began when athlete phil knight met track coach, bill bowerman, at the university of oregon in 1957. Decomposition of nikes return on equity ratio roe, return on assets ratio roa, and net profit margin ratio as the product of other financial ratios. The nike standard, at a minimum, is to comply with all environmental, safety and health laws and regulations. Pest analysis measure market potential as well as the industrys situation.
In order for nike to maintain there brand strength is to keep on doing these customer relationship to have the consumers loyalty and having a strong relationship. Nike uses it in its marketing information systems very effectively. An in depth analysis of the nike company uk essays. A comparative analysis of strategies and business models of nike. Nike is at the front position of this surge in demand as people are looking for sports shoes, apparel and equipment. Pdf the financial performance analysis of nike inc. Nike primarily does its business in three main strategic business units. Industry analysis recent performance industry analysis substitute products common size balance sheet, 19951996 income statement information, 19941996 common size income statements, 19941996 nike is one of the most successful manufacturers. Pestel analysis of the macroenvironment there are many factors in the macroenvironment that will effect the decisions of the managers of any organisation. Inside the lines the nike code of ethics defining the nike, inc. Integration, incentives and innovation nikes strategy to improve social and environmental conditions in its global supply chain angharad porteous and sonali rammohan 19th november 20 nikes approach to managing supplier responsibility has greatly evolved since the 1990s, when the. Pest analysis pest analysis pest is the best technique for scanning of macro level environment which include political, economic, social and technological factors. Nike grind, a rubber made from recycled shoes, an airbag made of 83% recycled polyurethane, and an upper mesh of 2025% recycled pet nike inc. Strategic analysis of nike by simon beckett on prezi.
Brand, design, trademark and patent analysis of nike. As the industry leader, nike was targeted by fair labor. Business analysis nike the company was founded in 1964 by a student of phil knight, middledistance runner at the university of oregon team, and his coach bill bowerman. Aug, 2011 nike fanancial and corporation analysis for 2010.
This is because adidas accuses nike of violating the patent reform concerning eleven shoes with flexible soles. It is headquartered in washington county, oregon and the retail stores are named as niketown. Remote work advice from the largest allremote company. In existence for over 40 years, today, nike is the largest seller of apparel, athletic footwear, and equipment in the world. Retail stores number nike brand factory stores 176 nike brand inline stores, including niketowns and employeeonly stores 33 converse stores including factory stores 84. Even though others are likely to buy the products, nike focuses on the athlete more than any group of individuals even though it also target on the youth.
And the athletes helped nike design and market the products and. Integration, incentives and innovation nikes strategy to. We play hard, we play to win, and we play by the rules of the game. Listing nikes strengths is the easiest component of a swot analysis. Nike uses customers feedback in order to bond with their loyal consumers larson, 2011. Since the project is in a new business, the current beta levered or unlevered for nike is not relevant and neither is a blended beta of any sort effective versus marginal tax rates. Over the last three decades, nike had thousands of u. Adidas states that with this violation nike is knowingly developing shoes that are based on the technology of reebok, a subsidiary of adidas. A companys marketing mix refers to the strategies and tactics applied to execute the marketing plan, with focus on products, place, promotion, and price the 4ps. Economic analysis in economy, the biggest threat for nike would be economic recession.
Initially it was called blue ribbon sports and specialized in the order of athletic footwear in asian countries and resell them in the u. Nike is one of the most widelyknown companies in the world, yet was formed as recently as 1971. Forbes magazine has named nike the worlds most admired. This research is something about that explains how a nike shoe brand will make itself strong enough to face the challenges in the business environment in which it. Largest seller of athletic apparel and footwear worldwide international performance for 2008. Scribd is the worlds largest social reading and publishing site. Chevron, nike share gains lead dows nearly 300point rally. Nike this case is a group project that is due on march 28 just before class begins at 10. Phil knight, a dedicated long distance runner, developed a plan to make lowcost running shoes in japan and sell them in the united states as part of his work toward an mba degree at stanford. Each report should have a cover page that contains the following the names of.
In this article, well be discussing nikes standings and potential future through the lens of a pestle analysis, which looks at the political, economic, social. Looking into nike inc growth rates, revenue grew by 5. Oct 19, 2017 jordan brand has fallen from the resell market and it is hurting nike. Muleka kikwebati strayer university financial management march 10, 2012 table of contents abstract 3 history 4 scope of international operations. Nikes apparel holds only 7% of the industry share and is struggling to compete with other companies. To maintain its position in the athletic shoes market, nike inc.
It was a tool to measure the distance and speed of a run or a walk and was built on a virtually flawless partnership strategy. After graduation, he teamed up with bill bowerman, his track coach at the university of oregon, to realize his. The findings of the study highlight nikes strategies which. Swot analysis of nike shoes international journal of advanced. Due to the high rivalry and brand loyalty between under armour and nike inc. The aftertax cost of debt is a function of the marginal tax rate, not the effective tax rate.
Pest analysis on nike society analysis people are more health conscious nowadays. A swot framework analysis of nike inc completes this indepth company analysis. By measuring these factors it becomes easier to determine market attractiveness as well as the potential of the business and ability to access the industry. Sustainability past, present and future 12 april 2014. By ellie boggs, alexis chan, lauren mclean and lauren van neste. After graduation, he teamed up with bill bowerman, his track coach. Download as pptx, pdf, txt or read online from scribd. Like many companies of that era, nike had a humble beginning. Nike fosters a culture of invention creating products, services, and experiences for todays athlete while solving problems for continue reading just do it. Nike is committed to providing safe and healthy work environments and to being an environmentally responsible corporate citizen. They formed blue ribbon sports nikes forerunner in 1962 to import hightech sports shoes from the japanese company onitsuka tiger. Nike also seeks the limits of the law and for that nike has been indicted by adidas.
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