Nike SWOT Analysis

Strengths

•Nike is a globally recognized for being the number one sportswear brand in the World.

•Nike being a competitive organization has a healthy aversion towards its competitors i-eduring Atlanta Olympics, Reebok expensed on sponsoring the games; Nike however sponsored the top athletes and due to this step, it gained valuable coverage.

•Nike has no factories; rather it uses contract factories to get the work done which makes it quite a lean organization. It has contracts with above 700 shops globally in about 45 different countries.

•Nike is quite strong regarding its research and development;quite evident regarding its evolving and innovative product range.

•They manufacture high quality at the lowest possible price,if prices rise due to price hike then the production process is made cheaper by changing the place of production.

•It belongs to the Fortune 500 companies.[sky]

•Nike employs about more than 30.000 people worldwide.

•It has a strong sense of marketing campaign by sponsoring top athletes.

•It uses lunarlite foam and flywire materials in order to make the manufactured shoes lighter and more controllable.

Weaknesses

•Even though the organization has a diversified range for sportswear, the income of the business, however, is still heavily dependent upon its share of the footwear market which leaves it at a quite vulnerable spot if for any reason its market share erodes.

•The retail sector is price sensitive;retailers usually tend to offer a very similar experience to the consumers with another cheaper product, which in return tends to get squeezed as retailers try to pass some of the low price competition pressure onto Nike.

•Nike was for quite some time unwilling to disclose any type of information concerning its partnering companies.