Nike SWOT Analysis

SWOT analysis of Nike, Inc

Strengths

  • Nike, Inc is listed in NYSE and positioned as a US headquartered worldwide sportswear trader and supplier that:
  • Contracts with about 700 shops worldwide, runs offices in 45 countries, and manages factories in China, Indonesia, Taiwan, Thailand, India, Vietnam, Philippines, Pakistan, and Malaysia.
  • Belongs to Fortune 500 companies which 2007 total revenue exceeded 16 b. USD
  • Employs more than 30.000 people worldwide;
  • Owns strong marketing strategy under Nike brand that assumes the involvement of world top-class athletes and sportsmen in Nike’s ‘Just do it’ advertising campaigns;
  • Operates a chain of Niketown retail stores;
  • Leads its international business operations through acquisitions and re-branding: Converse Inc, 2003; Starter athletic clothing, 2004; Umbro, 2008;
  • Nike’s premium brand is used to manufacture and promote a wide variety of products for all types of sport-oriented and leisure activities;
  • Manages the US premier training program SPARQ Training Program;
  • Applies lunarlite foam and flywire materials to reduce the weight of manufactured shoes

Weaknesses

  • Unwilling to disclose information concerning its partnering companies, which caused harsh criticism from CorpWatch and other companies;
  • Contracts factories in Vietnam, China, Mexico, Indonesia;
  • Violated overtime laws minimum wage rates and in Vietnam, 1996
  • Provides poor working conditions, and tends to exploit cheap workforce overseas, especially in free trade zones where;
  • Some of Nike’s ads are associated with US female empowerment;
  • In 1990s, Nike was reported to apply child labour in Pakistan and Cambodia to produce soccer balls;
  • Contracts overseas companies that apply non-transparent and inadequate labour regulations, involving child labour.
  • Positioned as a permanent subject of criticism by anti-globalization groups;
  • Forced Labour applications in partnering apparel factories in Malaysia, involving forced Labour and poor living conditions.

Opportunities

  • Producing sportswear products from manufacturing waste;
  • Extension of eco-friendly projects like ‘Reuse-A-Shoe Program’ aimed at further recycling;
  • Emphasis on corporate marketing strategy through the promotion of corporate brand and sponsorship agreements;

Threats

  • Textile industry adversely affects the environment, and therefore the company is permanently striving to maintain its eco-friendly reputation;
  • Financial crisis may lead to job shortages in a number of Nike’s worldwide subsidiaries;
  • The company has experienced negative publicity feedbacks due to its extensive advertising in mass media (Kasky v. Nike; Minor Threat at; Beatles song; Chinese-themed at, Horror ad etc).

Source: Essay UK - http://ntechno.pro/guides/swot-analyses/nike-swot-analysis.php


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