SWOT Analysis of Nike

Nike is a leading manufacturer of athletic shoes and apparel in the United States. Nike running shoes and clothes became the subject of many people's daily wardrobe. It all started with the sports sneakers for professional runners.

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Bill Bowerman, a co-founder of Nike, in the years 1947-1972 was a coach in athletics in the University of Oregon. In 1972, he became a coach of the U.S. Olympic track and field team. He already knew that for a good result, excellent physical preparation is necessary, as well as good equipment; in athletics this refers to sneakers. Bowerman tried to make the best of every athlete. They were like children for him, and all he wanted was to win. He did all this for the sake of sport. Even then, Bowerman began to make home-made shoes, which was much more professional, better and cheaper that shoes manufactured by the leading firms in the market.

Phil Knight is the second co-founder of Nike. He was a student at the University of Oregon when he met coach Bowerman. Their relationship developed into a longstanding friendship. After graduation, Knight arrives at Stanford Business School, and conducts a study of whether it is possible to end German monopoly in American sports shoe industry, with the help of Japanese high-tech and low-priced athletic shoes. In 1962, after graduating from Stanford University, Knight goes to Japans most famous sports company Onitsuka Tiger. He pretends to be a representative of the Blue Ribbon Sports Company, and, in the end, his visit results in a distributorship in the U.S. market. On his return to the States, he brings a pair of Tiger running shoes to his former coach, who appreciated the quality and potential of running shoes. Bowerman agreed that with a few alterations, sneakers can become a very good and beneficial business to do.

Ironically, success in business - is the result of planning. So before you open the case, you must have a well-written detailed plan that specifies the goal, the path to the goal, and each milestone on the way to the goal. On the basis of this, a business plan must be developed, which allows to link the market requirements with the production process at the plant. A good business plan should allow the investor or the management company to comprehensively assess the project and to demonstrate its profitability.

Strategic planning is one of the management functions; it is the process of selecting the organization's set of actions and decisions, which lead to the development of specific strategies. Management develops detailed, comprehensive and integrated plan in order to make sure the organization's mission is expressed in its long-term goals. The task of strategic planning is to ensure that there is innovation and sufficient change in the organization.

Nikes marketing strategy made its brand name recognizable worldwide. A proven strategy is to advertize its high-quality products by famous athletes. It has changed the face of sports marketing forever. Each year, Nike spends hundreds of millions of dollars on support from celebrities, on large-scale activities to promote their brand, on a never-ending stream of catchy advertising. Over the years, Nike became associated with the names of sports stars. No matter what sport you prefer, chances are high that your favorite athlete wears Nike.

In order to get a clear assessment of the forces of the Nike enterprise and the market situation, there is a SWOT analysis conducted.

Strengths - the benefits of the organization;

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Weaknesses - shortcomings in the organization;

Opportunities - environmental factors, the use of which will create value to the organization in the market;

Threats - factors that can potentially worsen the situation of the organization in the market.

SWOT analysis of Nike

(Strengths): Brand awareness; High art competition; High quality of products.

(Opportunities): The development of an online retailer; Expansion of the range of goods; Conquering new market segments; Reducing the costs of manufacture.

(Weaknesses): The goods are not always available; Dependence on the material; High cost.

(Threats): High level of competition in the market; Increasing demands for state institutions; The appearance of counterfeit goods on the market.

SWOT Analysis of Nike


The Nike Company is one of the leading manufacturers of sports products. Since it was formed over 40 years ago, it is now faced with competition in this segment and could thus become one of the leaders in it, therefore, it only confirms its art competition.


These products are not always available due to a lack of strong distribution system.


The emergence of new technologies in production reduces the cost and time of production. Just when a new generation model that meets technical characteristics the latest requirements of athletes is out on the market, the demand immediately grows, providing an opportunity to expand the product line.


The increase in the number of competitors in the market may deprive the company of the consumers. There is increased demands for state institutions (increasing import quotas, as well as greater control over business activities, such as an increase in income taxes). In addition, the company may incur large losses due to the huge number of fakes that many consumers are buying because of the lower prices at the cost of quality.

In such a way, Nike takes a leading position in the market and continues to promote an active lifestyle, while developing a line of accessories designed for sports.

Nikes Mission: awaken the want of all who are interested in sports. The organizational structure of the company is functional and has the following departments: Meeting of Shareholders, Board of Directors, Supervisory Board, Executive Director and Board, the Department of Finance, Department of Production, Marketing Department, the Department of Personnel, and Department of Planning. The advantages of this structure are expressed in the promotion of business and professional specialization, reducing duplication of effort and consumption of material resources in the functional areas, and the improvement of the coordination of functional areas.

Characterized by high activity, and avoiding high risks, its success is measured by perseverance. At the moment, the company's position is stable, it continues to grow and conquer new market segments.

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