Published by MBA Skool Team, Last Updated: September 13, 2021
SWOT analysis of Nike analyses the brand by its strengths, weaknesses, opportunities & threats. In Nike SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Nike to benchmark its business & performance as compared to the competitors. Nike is one of the leading brands in the lifestyle and retail sector.
The article below lists the Nike SWOT (Strengths, Weaknesses, Opportunities, Threats), top Nike competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).
Nike shoes that are made for professional athletes across sports worldwide
Men, women and children from urban upper-middle and upper class
Nike offers high quality sports products at a high price which gives satisfaction and comfort
SWOT Analysis of Nike
For Nike, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position. Let us start the Nike SWOT Analysis:
The strengths of Nike looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Nike :
1. Nike is the world’s leading brand for sports shoes and apparel having a a global presence including USA, UK, Asia and most of the countries across the world
2. It has been recognized many times by fortune magazines on “100 best companies to work for”
3. Nike is listed among 50 most innovative corporate companies world over
4. Nike differentiates by making innovative products which has global recognition
5. Effective business relationship-building is done by the company globally which has help its brand equity
6. It has launched many other products in collaboration with companies e.g. launched music player, Nike watches etc.
7. Nike is a leading 'top of the mind' brand with excellent innovative advertising and branding
8. Exclusive shops all over the world apart from availability through multi-brand retail stores
9. It is ranked among the top companies for climate-friendly companies
10. Nike associates itself with leading international sports teams, players and events and the campaigns are often very well received world over.
11. It has been constantly been involved sponsorship of sports events and teams across various sports
12. Nike has several star celebrity brand ambassadors from various sports like football, golf, NBA, Baseball etc. including Michael Jordan, Ronaldinho, Ronaldo, Neymar, Mbappe, Sampras, Agassi etc. which consolidates its branding in various sports
13. Nike has more than 70,000 employees across the world making it one of the biggest employers globally
14. Nike's Swoosh logo is one of most recognized brand elements in the world
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Nike SWOT Analysis:
1. The Nike company faced allegations of labor and wage laws with employees, poor working conditions etc.
2. Constant competition means limited market share growth for the company
3. Nike is seen as a sports apparel and footwear brand but not a fashion giant
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Nike SWOT Analysis:
1. Product expansion in areas like more concentration in sunglasses, sportswear etc. which gives high profit
2. Nike can open their stores in tier 2 cities in emerging economies as well
3. Enhance brand visibility by opening sports academies across the world for nurturing talent
4. Nike can tap the online opportunities to reach out to as many customers as possible
5. Nike can expand into fashion segment alongside sportswear
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Nike are as mentioned:
1. Footwear market is so competitive, major competition from other brands
2. As it is an international brand currency fluctuations of countries affects the business of Nike
3. Fake imitations and replicas often cause a problem for a brand like Nike
4. Adaption of new techniques and innovation by other brands
5. During pandemic, a lot of sports and outdoor activities were affected leading to impact on sales of footwear and apparel
There are several brands in the market which are competing for the same set of customers. Below are the top 12 competitors of Nike:
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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