Nike Swot Analysis

5.1 Strengths

• Nike has strong brand recognition. Almost everybody knows the brand Nike and its logo, and usually even without the brand name the customer can still recognize the brand by looking at the “swoosh” logo.

• The second strength could be contributed by its distribution. In the U.S. alone, there are around 18,000 retail accounts and outside the U.S. there are around 30,000 international retail outlets that sell Nike products. Nike also operates a “futures” program, wherein retailers can order up to six months in advance. They sell their products through independent distributors in 200 countries around the world.

• The next strength could be attributed to its research and development. They have a team which observes athletes in order to provide them with the latest technologies in footwear and apparel.

• Nike has a broad range of products which contribute to its success, because it gives the consumers a broad choice of products. They have Nike performance focusing on athletes, Nike active which includes “gym to street” wear, and Nike Fusion stylish clothing made of high performance fabrics.

• Nike has online stores where people can buy or browse for new designs. They market their product as high-performance products designed with high-technology features.

5.2 Weaknesses

• The organization has a diversified range of sports products. However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes.

• The retail sector is very price sensitive. Nike does have its own retailer in Nike Town. However, most of its income is derived from selling into retailers. Retailers tend to offer a very similar experience to the consumer. So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Nike.

• Use of sports stars who fail to perform, retire or become injured could adversely affect Nike image and...