SWOT Business Analysis of Nike

Table of Content


A trade name consist non merely of the logo or the ocular individuality. It is more than the merchandise, the advertisement run or the motto. It is neither merely controlled by the company behind it nor merely a aggregation of perceptual experiences that reside in the head of clients. A trade name is a aggregation of things and it identifies everything that sets into the head of the client ; it is the thought and experiencing a client has about the company and merchandise. In this paper, an analysis of the trade name Nike will be conducted.

The trade name analysis for Nike will assist to understand Nike as a trade name and the context environing it. While Nike may non ever have the direct control over its trade name, it needs to place every interaction the client has which influences its perceptual experiences. This paper tries to place how Nike should keep his strong trade name place – which would take to loyal clients and an addition in client penchant and net income.

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The balance of this paper will continue as follows. First, a short debut to Nike. The following subdivision will discourse the public sentiment on Nike. Later there will be a competition analysis and with that information a trade name perceptual theoretical account will be conducted. At last this paper will place a SWOT analysis and it will reason with recommendations and deductions for Nike.

About Nike

Nike was established in 1962. It all started with a cooperation between Bill Bowerman and Phil Knight, who started to sell places under the name “Blue Ribbon Sports” . In 1978 the name of the company was officially changed into the, now widely known, “Nike” , which is a contemplation of a Grecian goddess who personifies triumph. Nike was established to carry through a mission. This mission is to convey inspiration and invention to every jock in the universe. In add-on, Nike’s focal point is to continually seek to introduce, design and develop merchandises to better athletic public presentation. Its desire is to plan merchandises with true public presentation invention and engineering benefits which help the jock perform better.

Important is that Nike beliefs that if you have a organic structure, you are an jock and that implies that Nike is a trade name for everyone. With its headquarter in the USA, shops all over the universe and more than 40.000 employees, Nike is at the minute one of the taking athletic footwear, dress and equipment company in the universe. Nike is celebrated for its “woosh” logo, which is recognized by people all over the universe. For a batch of consumers, have oning Nike is a statement and it is a trade name that can be worn with honor. The success of Nike is reflected in there continuously gross growing, which was 8 % in 2013 ( Nike, INC. , 2013 ) .

In add-on to its mission, Nike wants the company to accomplish profitable and sustainable growing. Therefore, Nike pays a batch of attending to minimise any potentially negative impact on communities or nature. They province that there purpose is to dispute, push and research ways that change the game wholly for stuffs, design and fabrication. Nike does non turn merely to acquire bigger. They grow to be better and make better.

Public Opinion

Since Nike is a trade name that has an of import place in the society, the media is describing a batch about Nike. Harmonizing to The Wall Street Journal, Nike’s net incomes still raise because the demand for places and apparels grows even among people who have no purpose of have oning them to the gym ( Germano & A ; Stynes, 2014 ) . This claim is confirmed by the widely available exposures on the cyberspace of manner bloggers who are have oning Nike. It is a contemplation of the fact that there is a current tendency where manner meets clean. In add-on, an interview done by Bloomberg with Mark Parker, the CEO of Nike, shows that Nike needs to travel into the way of a lifestyle trade name because of the cultural displacement that has put athleticss and fittingness in a place that permeates many facets of mundane life ( Bloomberg Television, 2014 ) . Furthermore, Seeking Alpha called Nike the “Goddess of Victory, with an unstoppable growing business” ( Seeking alpha, 2014 ) . Since one of Nike’s mission is to keep sustainable growing, the public sentiment keeps a close oculus on it.

Business Insider studies that Nike was able to work out its sweatshops job which was considered as an tremendous job of Nike in the beginning of the 21th century. Nike was being shamed in public for its labor patterns to the point where it severely tarnished the company?s image and ache gross revenues. However, harmonizing to Business Insider, Nike was able to turn this image about by demoing transparence. Furthermore, harmonizing to Business Insider other companies who outsource could utilize Nike’s turnover as an illustration ( Nisen, 2013 ) . In today’s universe, where the sentiment of the digital media and particularly bloggers are about going more of import than the selling runs of the trade name itself, it is of import to cast a visible radiation on them. A station from Emily Schuman, blogger from cupcakesandcashmere.com with more than 6 million page positions a month can be more influential than an advertizement of Nike itself. Fortunately for Nike, the general sentiment of manner bloggers on Nike is really positive ( Schuman, 2014 ) .

Rival analysis

Nike is runing in the dress, footwear and accoutrements industry which is a extremely competitory market, with presence of a big figure of participants such as Puma, Adidas, New Balance and Asics. The dress, footwear and accoutrements industry is exposed to uninterrupted alterations in consumer penchants and engineering. As a consequence, if Nike is unable to accommodate to alterations rapidly, it will instantly lose its market portion. Comparing the consequences to its rivals, Nike reported entire gross addition in the 3rd one-fourth of 2014 by 14.5 % twelvemonth on twelvemonth ( CSImarket, 2014 ).

However, Nike feels the lifting competition from emerging participants and local participants in emerging markets, which focus on niche market sections and are progressively bettering their merchandise quality. The major menace for Nike comes from Adidas because they’re best positioned to vie and hold the 2nd largest market portion, which was 17 % for Nike and 12 % for Adidas in 2013 ( Kondej, 2013 ) . Adidas is a German trade name established in 1949 that designs and industries athleticss places, vesture and accoutrements. The chief selling scheme motto for Adidas is: “Adidas is all in” , which aims to show a incorporate image to consumers interested in athleticss, manner, street, music and pop civilization. Puma is another German multinational company which is a dainty to Nike, it was formed in 1924. Its mission is to be the fastest athleticss trade name in the universe. Another rival of Nike is New Balance is an American company found in 1906. Its mission is constructing a planetary trade name that jocks are proud to have on, associates are proud to make and communities are proud to host. The last rival that will be analysed in this article is Asics, a Nipponese trade name found in 1949. Its mission is to go the figure one trade name for the athleticss enthusiastic.

Brand Perceptual Map

In order to compare Nike with its rivals it is utile to develop a trade name perceptual map. Using a trade name perceptual map gives the chance to diagrammatically expose and explicate the perceptual experiences of clients with relation to the merchandise features. For building the trade name perceptual experience map the trade names are compared by two opposite facets braces, stylish and non-fashionable and low comfort with high comfort. A stylish trade name is a trade name that is conforming to the latest manner tendencies or sets the tendencies by itself. Comfortable is head and organic structure being at easiness or do a individual feel secure, happy or relaxed.

In order to place what the tonss for the different trade names are for the 2 dimensions, it is of import to find consumers’ perceptual experiences and ratings of the merchandise or service in relation to its rivals. Normally, sellers determine it by inquiring consumers a series of inquiries, but for this paper it is based on my ain cognition. On the stylish versus non-fashionable graduated table, Nike scores the highest since it is recognized by a batch of people for supplying apparels and places that could besides be worn outside the gym. On the other manus, Asics is a trade name which focal point on the practical usage. Adidas and New Balance are both trade names that are extremely stylish but are valued less stylish so Nike. Puma, with its mission to be the fastest athleticss trade name in the universe, already implies that it does non truly concentrate on the stylish facet.

Asics scores highest on the comfy facet since it is good known for its high quality and comfy sporting apparels. On the other manus New Balance is called a athleticss trade name but its places are chiefly sold for day-to-day use so it scores low on the comfy facet. Nike and Adidas are both recognized for their comfort, while Puma is non truly perceived as extremely comfy.

Figure 1. Brand Perceptual Map

SWOT analysis

A SWOT analysis is really utile to place the external and internal factors that influence Nike.

One of Nike?s strength is its logo, the so called “woosh” . When people see the logo without the trade name name, they will instantly be able to place it as Nike, which shows the power of the trade name. Furthermore, Nike is remaining in front of the engineering curve, with an tremendous capacity of invention and a good R & A ; D section. On the other manus, Nike is demoing some failings since it is still largely reliant on its footwear gross revenues, although its broad scope for athletic wear. Furthermore, Nike is confronting tremendous high advertizement costs. Nike is puting a batch of money into its selling scheme and although its scheme works it comes at a high monetary value ticket. Nike is holding chances since it is non merely seen as a sporting trade name but more and more clients put on Nike merchandises merely because their manner manner.

Furthermore, Nike can easy spread out to emerging markets because of their strong trade name name. For illustration Brazil, where the passion for athleticss is high, is one of the easy mark market in the hereafter. The chief dainty for Nike is, as discussed before, the extremely competitory market. If Nike is unable to accommodate to consumer penchants rapidly, it will instantly lose some of its market portion to one of its rivals. Furthermore, economic downswings affect consumer goods industries. The more of a population that is enduring financially, the smaller the market for Nike?s goods.

Deductions and recommendations

This paper identifies that Nike is a trade name with a really good place. It is extremely valued by its consumers and other critics and is the leader in its industry. Nike is both hiting high with its merchandise on the comfy and stylish graduated table. Although, Nike has a really good trade name placement there are still some challenges in front. First of all, Nike needs to do certain to respond fast to consumer penchants alterations. It needs to do certain that it stays introducing to be able to maintain in front of its competition. Furthermore, with the current tendency where manner meets clean, Nike needs to do certain that its merchandises are both comfy and stylish to aim both the consumers that want the best sporting wear and the consumers that want Nike merchandises to have on during day-to-day life.

Furthermore, Nike should admit the power of Bloggers and should believe to include this more in its selling and advertizement scheme. However, after carefully analyzing the assorted facets of the Nike trade name and its rivals, I can reason that the trade name is confronting a bright hereafter. Still this trade name analysis is merely a really little measure into analyzing the forces that are act uponing Nike. Particularly, to carry on a more utile analysis, deeper market research is needed, where consumers are replying inquiries.


Bloomberg Television. ( 2014, Oct. 22 ) .Nike CEO Parker: I ‘m Bullish on Relationship With Apple. Retrieved Nov. 20, 2014, from Bloomberg Television: hypertext transfer protocol: //www.bloomberg.com/video/nike-ceo-our-connection-to-athletes-drives-company-HTGswG72R9C6dt24shLU6w.html

CSImarket. ( 2014 ) .Nike gross revenues versus its rivals. Retrieved Nov. 21, 2014, from CSImarket: hypertext transfer protocol: //csimarket.com/stocks/compet_glance.php? code=NKE

Germano, S. , & A ; Stynes, T. ( 2014, Sept. 25 ) .Nike Profits Rise on Higher Footwear, Apparel Gross saless. Retrieved Nov. 20, 2014, from The Wall Street Journal: hypertext transfer protocol: //online.wsj.com/articles/nike-earnings-rise-on-higher-footwear-apparel-sales-1411677987? KEYWORDS=Nike

Kondej, M. ( 2013 ) .The sportswear revolution: planetary market.Euromonitor International.

Nike, INC. . ( 2013 ) .ANNUAL REPORT ON FORM 10-K.Nike.

Nisen, M. ( 2013, Sep. 09 ) .How Nike Solved Its Sweatshop Problem. Retrieved Nov. 20, 2014, from Business Insider: hypertext transfer protocol: //www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5

Schuman, E. ( 2014, Feb. ) .New Kicks. Retrieved Nov. 20, 2014, from Cupcakes and Cashmere: hypertext transfer protocol: //cupcakesandcashmere.com/fashion/new-kicks

Seeking alpha. ( 2014, Nov. 15 ) .Nike: Goddess Of Victory, Unstoppable Growth Business. Retrieved Nov. 20, 2014, from Seeking Alpha: hypertext transfer protocol: //seekingalpha.com/article/2685425-nike-goddess-of-victory-unstoppable-growth-business

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SWOT Business Analysis of Nike. (2017, Jul 15). Retrieved from


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