Question

in your own words give the following information of Nike:
- Global Financing and Governing
- Overview
- Mission Statement
- Target Market
- Specific Measurable Attainable Relevant Time-Bound (SMART) goals
- Political Economic Socio-cultural Technological (PEST) analysis
- Competitive Analysis
- Strengths Weakness Opportunities Threats (SWOT) analysis
- The 4P’s of marketing

Answer 1

answer-

Overview-

Nike is a big multinational sportgear company which sells footwear, apparel, equipment, accessories, and services.this company was incorporated on September 8, 1969. It is very reputed company which has athletic footwear products are designed primarily for specific athletic use. This company operates in more than 170 countries of the globe. The company takes its name from Nike, the Greek goddess of victory. It sells a line of performance equipment under the NIKE brand name, including bags, socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves and protective equipment.

Mission statement-

The mission of Nike is “to bring inspiration and innovation to every athlete in the world.”

Target market-

The target market the Nike uses to segment its market is based on the Demographic factor which includes factors like age, gender,occupation,etc.Nike targets customers from age between 14- 40 years of age primarily. Its customers includes Both Men and Women.

It also targets based on psychographic factor in which company targets customers who lives healthy lifestyle, has teh habit to go to gym and look fit .

SWOT analysis of Nike-

Nike is big brand which has good brand recognition and reputation in the world. Nike remained the world most valuable brand of 2018 in sports, apparel equipment industry. According to statista.com the brand value of Nike is 28.03 billion USD.

NIke has good financial strengths to run its business operations. In the FY2018 Nike strengths include its strong financials. It the FY2018 the Nike brand generated $36.36 billion revenue and showed 6% increase in the revenue.

Nike global presence is another key strength. The total number of worldwide Nike stores and factories are 1182. Its US-based stored and factories are 392. Non-US based store and factors are 790. Nike is trying to increase the Non-US stores, as a result, the International Converse stores reach to 45. In 2016 the total number of the worldwide stores were 1045 and in 2017 it number was 1142.

Weaknesses-

Nike is over-dependent on US market for its revenue and sales. In 2018 42% of revenue is generated by the US market and the remaining revenue from the Non-US market.

The footwear industry is very price sensitive. Nike does have some of its retailers. But mostly the Nike is generating most of its revenue selling into retailers. Retailers pass the pressure onto Nike when they offer low prices due to competition footwear and apparel industry.

Opportunities-

People are getting more health conscious and try to adopt a healthier lifestyle. It means that sport will become an integral part of everyone life. People are more fashionable when activities participate in sports. In the upcoming year, the global sports and lifestyle market is expected to grow. This is a good opportunity for Nike to expand its presence in the international market.

More focus on product development, innovation and digitalization is another opportunity for this footwear, apparel and equipment brand. Both digital marketing and commence have a positive impact of revenue generation. If Nike competitors like Adidas, Under Armour and Puma, are investing in e-commerce and digital marketing, it means that they do not only increase brand awareness but affecting the consumers’ mind and decision-making process.

Threats-

The effective tax rate in FY 2018 was 55.3% which was 13.2% in the year 2017. This is a great threat Nike is facing and it also affects its net income by 54% which is a great offset for the revenue growth.

Sports apparels and equipment have a very competitive market. Every competitor is trying to adopt new ways to adopt advanced technologies like “Manufacturing revolution” and develop alternative brand. This can adversely affect Nike market share.

Legal issues is another area which needs a lot of compliance. For example, if any company “Nike” is unable to comply with industry regulations and strands can harm the company based on financials and reputation. Compliance can increase costs.

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