Swot Analysis Template Page 6

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Workforce Planning Tool Kit
SWOT Analysis Examples
Nike SWOT Analysis
Strengths
Weaknesses
The organization does have a diversified
range of sports products. However, the
Nike is a very competitive organization.
income of the business is still heavily
Nike has no factories. It does not tie up cash in
dependent upon its share of the footwear
buildings and manufacturing workers. This
market. This may leave it vulnerable if for
makes a very lean organization.
any reason its market share erodes.
Nike is strong at research and development.
The retail sector is very price sensitive.
Nike does have its own retailer in Nike
Nike is a global brand.
Town. However, most of its income is
derived from selling into retailers.
Opportunities
Threats
Product development offers Nike many
opportunities. The brand is fiercely defended by
its owners whom truly believe that Nike is not a
Nike is exposed to the international
fashion brand. However, like it or not,
nature of trade. It buys and sells in
consumers that wear Nike product do not
different currencies and so costs and
always buy it to participate in sport. This creates
margins are not stable over long periods
its own opportunities, since product could
of time. Such an exposure could mean
become unfashionable before it wears out i.e.
that Nike may be manufacturing and/or
consumers need to replace shoes.
selling at a loss. This is an issue that
There is also the opportunity to develop
faces all global brands.
products such as sport wear, sunglasses and
The market for sports shoes and
jewellery. Such high value items do tend to have
garments is very competitive.
associated with them, high profits.
As discussed above in weaknesses, the
The business could also be developed
retail sector is becoming price
internationally, building upon its strong global
competitive. This ultimately means that
brand recognition. There are many markets that
consumers are shopping around for a
have the disposable income to spend on high
better deal.
value sports goods. For example, emerging
markets such as China and India have a new
richer generation of consumers.
Disclaimer: This case study has been compiled from information freely available from public
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sources. It is intended to be used as an example for educational purposes only.
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