One of its core strengths is product quality and also one of the leading factors that differentiates Nike from the other brands. Xu, V. (2020, March 17). ET The pandemic’s impact was especially very strong in the most advanced markets like the US, where the infection rate was the highest of all the markets. Company: Nike  CEO: John Donahoe Year founded: 1964 Headquarter: Beaverton, Oregon, USA Number of Employees (FY2019): 76,700 Type: Public Ticker Symbol:  NKE Market Cap (Oct 2020): $198 Billion Annual Revenue (FY2020): $37.4 Billion  Profit | Net income (FY2020): $2.54 Billion, Products & Services:   Athlete wear | Apparel | Sports equipment | Leisure footwear | Accessories Competitors: Adidas | Puma | Anta | New Balance | Under Armour | Lululemon | ASICS | V. F. Corporation, Nike swoosh logo is inspired by the Greek goddess of victory, Nike. Author: S.K Gupta First published: December 17, 2018 Last updated: Oct 06, 2020. Over the next several years, technology can also help Nike widen the gap between itself and its rivals. Although the brand is still in debt, the next few years look promising. SWOT analysis of Nike. 3.3 Porter’s & Five Forces Analysis and SWOT Analysis. The New York Times conducted interviews with 50 former and present Nike employees to investigate the company culture. Apart from bringing products that fit into their customers’ lifestyles, Nike has also altered its sales and marketing strategy to suit its customers’ tastes. Its focus on product design and investment in R&D have also helped it establish itself as a brand obsessed with quality. The effective tax rate in FY 2018 was 55.3% which was 13.2% in the year 2017. Through the interviews, it was established that Nike did have a toxic working environment, where sexual misconduct was rampant. Nike is the world’s no. It also offers a large sum on marketing each year that it calls demand creation expenses. The company enjoys the strongest margins in the sports shoes industry. Nike SWOT Analysis Presentation. The pandemic has had a strong negative impact on the sales and revenue of businesses like Nike leading. October 23, 2020 9 . Nike uses AWS to serve its customers globally. The SWOT analysis of Nike discusses the strengths, weaknesses, opportunities and threats of the leading footwear brand - Nike. Nike SWOT analysis paper. Here’s a detailed breakdown of Nike SWOT analysis. The SWOT analysis of Adidas differentiates the brand’s strengths, weaknesses, opportunities, and threats that would be useful for the company to grow. The SWOT analysis of Adidas shows the TOWS matrix of one of the strongest sports brand in the world. Its focus on customer experience has only increased with time resulting in growth in brand equity and profitability for the brand. Remember me . Opportunities are some of the prospects that the government of a country must take some advantage of, some of those prospects are as follows. Log In. Luxury Swimwear Market SWOT Analysis 2020 by Players – Nike Inc, Perry Ellis International Inc, Swimwear Anywhere Inc., Adidas AG, Dick’s Sporting Goods December 9, 2020 Exltech Luxury Swimwear Market Overview: Most of the Nike brand footwear production took place in Vietnam, China, and Indonesia. Thank you Gargi, I have been through business school not so long ago, so I can totally relate to you. However, this was more than offset by a decline of 820 basis points in the fourth quarter of fiscal 2020, primarily due to the impacts of COVID-19. Technology has remained a key driver of change in the sports shoe and apparel industry and even more so in the last five years. Nike has previously courted a lot of controversies related to supply chain management and its labor force. Puma SWOT analysis 2020: Case Study in 4 Steps. These expenses grew to $3.75 billion in 2019 from $3.58 billion in 2018. I need this info for citations. Category Sports; Show more Show less. Nike is a very competitive organization. The company must focus on building an organizational culture that brings higher creativity and fosters innovation. Thank you ! However, based on the increased focus of the company on DTC sales, it may not take Nike very long to be there. The company has outsourced all its production but still maintains strong control over the quality of raw material used and that of the final products. However, the company has taken a very innovative approach to market its brand. Nike has decided to become a digital-first company. Nike’s approach to marketing is considered highly authentic. Nike is a global brand that is synonymous with quality and excellence. SWOT Analysis is a proven management framework which enables a brand like Nike to benchmark its business & performance as compared to the competitors and industry. Rapid innovation processes 3. 2. Nike SWOT Introduction A SWOT Analysis is probably the simplest ways for administrators and corporate authorities to envision every one of the variables that could assume a job in the achievement or defeat of their organization. Customers’ expectations and preferences have changed fast in recent years. Another major threat before Nike is that of counterfeits. Nike is known globally as a maker of premium shoes and apparel. Overall, the level of competition in the shoes and apparel industry has grown very fast during recent years, which has led to a higher focus on marketing and product quality and innovation. Its gross margin grew 90 basis points mainly due to higher full-price average selling price (ASP), on a wholesale equivalent basis, favorable changes in foreign currency exchange rates and growth in NIKE Direct. It is a well-recognized brand in most corners of the world. In 2020, Nike’s revenue from direct to consumer sales improved as compared to the previous year. Your information is safe and will never be shared. How Does Credit Karma Work and Make Money? can i know the name? A few years back, the company was hit with a lawsuit by female employees related to gender pay discrimination. Another area where investment can be highly profitable for Nike is its HRM strategy and organizational culture. very grateful analysis. Category Swot Analysis. Apart from the growing competition in the industry, it also shows the company’s increased focus on marketing. The company is enjoying strong financial performance over the last several years driven by its focus on product quality, innovation, sustainability and customer experience. The company has been growing consistently over the past several years. Coronavirus has brought new challenges before Nike and the company has experienced a decline in its sales and profitability. The company has achieved strong brand awareness and customer engagement through its unique marketing strategy. Nike’s SWOT Analysis – Recommendations. However, the company is also reaping the benefits of being an early mover in the industry. The US is the largest market for Nike and in 2019, it accounted for around 41% of the net revenue of the company. Puma, V.F. Apart from that, it is relying heavily on cloud technology to manage the digital experience it offers. SWOT Analysis of Nike in 2020 | Nike SWOT Nike is an American multinational company that involves itself in the plan, expansion, creation, and marketing and sales at the global level of various products like footwear, apparel, equipment, accessories, and services. Phil Knight (Founder and CEO) is frequently quoted as saying that ‘Business is war without bullets.’ Nike has a healthy aversion of is competitors. The SWOT and PESTEL analysis report of Nike Inc. presents the complex internal and external factors affecting Nike's brand, its operations, business model, market strategy and growth trajectory. While the company took several significant steps to resolve the problem, it has not been able to establish a culture that fosters higher inclusion and creativity. Some even left their jobs. For the first nine months of fiscal 2020, gross margin expanded 30 basis points compared to the first nine months of fiscal 2019. The entire controversy has significantly affected the company’s image. 4.3 Production, Revenue (2015-2020) 4.4 SWOT Analysis. Throughout its history, the company has introduced several market leading technologies that have helped it dominate the sports shoes market. Deliveroo Business Model | How Does Deliveroo Make Money? The dependence of customers on digital sales channels has grown but the company might take some years till it has achieved an equal proportion of sales from both channels. 032c returns to an old corporate strategy favorite – the SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis – to consider Nike’s position and message for 2020, and beyond. Nike SWOT Analysis Presentation. Thanks Taku, I am glad you liked our analysis. However, in fiscal 2020, while Covid-19 has hurt Nike’s business, the company has managed to control the overall impact to a large extent. Learn about Adidas' strengths, weaknesses, opportunities and threats in 2020. Nike invests heavily in all these areas, and its operating expenses have continued to grow with increased competition in the industry. The stock price of Nike is $72.63 on NYSE in 2018. Its revenue in 2018 is $36 Billion with net income of $1,973M and having a workforce of nearly 73,000. Growth in operating expenses hurts revenue as well as gross profits. 334 factories in 36 countries produced Nike brand apparel in 2019. Phil Knight (Founder and CEO) is frequently quoted as saying that ‘Business is war without bullets.’ Nike has a healthy aversion of is competitors. Dorrene, Thanks for your positive feedback, I am glad you liked it. While Nike has grown its push towards direct to consumer sales, it has depended traditionally on retailers and wholesalers to achieve sales globally. It enjoys one of the most impressive profit margins in the entire shoe industry. However, the company must address concerns regarding competition, labor practices, imitation and patent protection. Check Also. Words 1144 (4 pages) Views 381. Still, DTC sales account for just around one-third of its net revenues in 2020. Needless to say, the most important strengths are Nike’s powerful brand and low product cost. Lot of clarity in the format – the SWOT is explained. SWOT ANALYSIS: Strengths. All rights reserved | contact@bstrategyhub.com | Logo designed by Looka. The pandemic has discouraged physical interaction and gathering with sporting events canceled or postponed. The CEO ensures that Nike will help to contribute. Through this SWOT analysis of Nike, you will be able to understand the business model of the brand. The SWOT analysis of Nike discusses the strengths, weaknesses, opportunities and threats of the leading footwear brand - Nike. Chapter 4. Good read. It is also using digital technology heavily to manage suppliers throughout the world which are located mainly in the Asian nations. From 2016 to 2020, Nike’s net revenue has grown by around $5 billion. It also aims to examine the opportunities the company should explore and the threats it should keep an eye on. The growth of Nike can also be attributed to its focus on quality and investment in technologies that have helped it consistently improve the quality of products and customer service. Since Nike is an early entrant in this area, it will reap the benefits of its investment in cloud technology and digitalization faster than its rivals. Like most big companies, Nike has a number of strengths. Nike’s culture is not as outstanding as several other leading brands in various industries. Nike has its headquarters in Beaverton, Oregon, United States. Contradicting Strategies: Nike pledged to shift all its facilities to 100% renewable energy with net-zero carbon emissions under the “Move to Zero” scheme. A lot of this push has come from the pandemic. From 2016 to 2020, Nike’s net revenue has grown by around $5 billion. While organizational culture is a critical pillar of organizational success, this is an area where Nike has been unable to achieve significant progress. All of them accounted for more than 10% of the company’s footwear production during the year. Technological innovation is an area Nike must take very seriously. However, the role of technology in Nike’s ecosystem has grown exponentially in the latest years as the company has moved to offer an omnichannel shopping experience to its customers. while on the one had, it helps the company deliver superior customer experience, on the other it helps the company grow its profit margins. Thanks it will help me my upcoming presentation. Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. Nike is a brand of premium sports shoes and apparel that has been enjoying strong sales and profitability over the past several years. Nike Threats in SWOT Analysis. Hi Divya, Most of the information is from Nike’s annual report and few points have embedded hyperlinks for references. The pandemic’s impact is going to last even after a vaccine has arrived, and Nike will have to consider how the pandemic has changed consumer behavior around the world to manage its sales and profitability successfully. This detailed SWOT analysis of Nike aims to examine the strengths and the weaknesses of Nike. Its net revenue grew from $36.4 billion in 2018 to $39.1 billion in 2019. Its market-leading position and global dominance are backed by the strong brand equity the company has built. NIKE annual/quarterly revenue history and growth rate from 2006 to 2020. By growing its direct to consumer sales channels’ penetration, the company will be able to offer better customer experience and win higher customer loyalty. The company is mainly using digital channels for marketing and mixing it with traditional channels and in-store marketing. 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