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SWOT Nike

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Alexandra O'Connor

on 19 November 2012

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Transcript of SWOT Nike

NIKE FOUNDED January 25, 1964
officially became NIKE May 30, 1978
The company takes its name from Nike, the Greek goddess of victory
University of Oregon
Track athlete Philip Knight and his coach Bill Bowerman Revenue/Profit Revenue rose 23 percent in North America, Nike’s largest market, to $2.7 billion. In Western Europe, revenue fell 5 percent to $1.17 billion. In China, revenue rose 8 percent to $572 million. Revenue in emerging markets rose 8 percent to $867 million
Nike, one of the world’s largest athletic shoe and clothing companies, said its net income for the three months that ended Aug. 31 fell to $567 million, or $1.23 a share, from $645 million, or $1.36 a share, in the year-earlier period. Analysts on average expected the company to earn $1.12 a share NIKE MOTTO The Nike motto is commonly known as "Just Do It" Old Nike Shoe Style New Nike Shoe Style STRENGTHS Nike is a very competitive organization. Phil Knight (Founder and CEO) is often quoted as saying that 'Business is war without bullets.' Nike has a healthy dislike of is competitors. At the Atlanta Olympics, Reebok went to the expense of sponsoring the games. Nike did not. However Nike sponsored the top athletes and gained valuable coverage
Nike is a global brand. It is the number one sports brand in the World. Its famous 'Swoosh' is instantly recognizable, and Phil Knight even has it tattooed on his ankle. WEAKNESSES The organization does have 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. OPPORTUNITIES Product development offers Nike many opportunities. The brand is fiercely defended by its owners whom truly believe that Nike is not a fashion brand. However, like it or not, consumers that wear Nike product do not always buy it to participate in sport.
There is also the opportunity to develop products such as sport wear, sunglasses and jewellery. Such high value items do tend to have associated with them, high profits. THREATS Nike is exposed to the international nature of trade. It buys and sells in different currencies and so costs and margins are not stable over long periods of time.Such an exposure could mean that Nike may be manufacturing and/or selling at a loss. This is an issue that faces all global brands.
The market for sports shoes and garments is very competitive.
Competitors are developing alternative brands to take away Nike's market share.
NIKE MISSION STATEMENT To bring inspiration and innovation to every athlete* in the world
"If you have a body, you are an athlete."
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