Is your company “global”? Nike designs manufacture and sell products in nine main categories. Nike also faces fierce competition as Germany’s Adidas-Salomon prepares to buy Reebok International in a move to boost its U.S. position. In the Nike PESTLE Analysis, the environmental elements affecting its business are as below: Nike has always focused on having extremely environmentally friendly business processes, whether it is ecofriendly manufacturing products, conducting R&D or reusing waste material for creating footwear. (2005).” Nike stock soars as sales jump: quarterly profits up 32%; “running on all cylinders”. Just Do It : An Analysis of Nike Inc. January 22, ... Due to the sheer size of the company, Nike works under a hierarchal system, with the CEO at the top, and then filtering down to all other employees from there. The Analysis of Nike Inc. a complete and comprehensive analysis of Nike Inc, includes an overview of the industry the company operates in, a PEST Framework Analysis of the industry, and then moves on to analyzing the company itself. Nike stock soars as sales jump; Quarterly profit up 32%; ”Running on all cylinders”. Nike is headquartered in Beaverton, Oregon, USA. the company. Shares are currently being traded at about $80 per share. The information and recommendations on this site are for educational purposes only and should not be used to replace the advice of financial advisors and other professionals. Because of Nike’s marketing research, the company has decided to revamp its apparel division to be more fashion savvy. As of August 31, 2019, a total of 23.5 million shares had been repurchased under this program for approximately $2.0 billion. All of papers you get at Grademiners.com are meant for research purposes only. U.S. consumer confidence dropped to a 13-year low in early September, battered by record gas prices and Hurricane Katrina. With its extremely powerful brand and low costs, Nike has been able to net several billions of dollars on an annual basis. University students advice. The SWOT Analysis of Nike Inc. illustrates the company's key strengths and opportunities from its external environment that can be consolidated to further strengthen the company. However, the company must address concerns regarding competition, labor practices, imitation and patent protection. The papers are not supposed to be submitted for academic credit. In this SWOT analysis tutorial, we will discuss Nike Swot Analysis Strengths, Weaknesses, Opportunities and threats. Environmental Analysis. Between January and November this year, the Nike Run Club app was downloaded 15.4 million times around the world, up 45.3% versus the same period in 2019, according to data firm Sensor Tower. In the U.S. markets, Nike has remained the industry leader in the athletic shoe market. LOS ANGELES — Nike posted a bigger-than-expected 32 percent jump in quarterly profit yesterday on strong sales in the key U.S. market. Nike competes with numerous athletic and leisure shoe and apparel companies all over the world. Writing Service UK, Essay Moreover, Nike’s market share in U.S. athletic shoes had fallen from 48% since 1997 to 42% in 2000. The company was founded on the principle that it would make shoes for anyone who could walk or run and this has been the guiding philosophy behind Nike. Apparel sales also rebounded thanks to demand for its namesake brand as well as Michael Jordan merchandise, which made up for lost business when Nike’s contract with the NBA expired last year. (2005). Is your company “global”? However, the merger of Adidas and Reebok poses a potent competitive threat for Nike’s future profitability, as also rising gas prices which could impact upon consumer spending. Nike currently employs about 24,667 employees worldwide and its annual sales as of May 2005 were $13,739.70 M. Total assets as of May 2005 were 8793.5 million dollars and total liabilities 3149.3 million dollars and revenue rise was slow during the last quarter. Another strength is the excellent brand awareness and a high quality image of Nike’s … *     Carr, Bob. … This has been the keynote of the Company’s growth strategy. Nike has been enjoying a steady consistent profitability due to its superior sports shoes, diversification of its products and its good relationship with its suppliers and distributors. The company is Nike, Could you write this following instructions Globalization Why do companies engage in international trade? Nike’s product … Headquarter of the company are located in Oregon, which is near Beaverton, the USA. Company analysis includes a history of Nike Inc, a business segment analysis of the segments Nike Inc operates through, a look at the organization structure of the company, a geographical operating segments analysis, an analysis of the company’s … Analysis of Short-term (Operating) Activity Ratios. Nike’s primary goal is to supply athletes with exceptional products and wearable that aids them in better sports performance. The biggest strength of Nike is that it is an extremely competitive organization with its approach of “Just Do It” slogan for its brand epitomizing its attitude towards business. Nike is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. We do not guarantee that our services, information, data and/or recommendations are complete, accurate, current, reliable or appropriate for your needs. However, in terms of social sustainability reports, Nike was unable to qualify in terms of its social index, because since 2001, there were concerns expressed about the labor practices of its sub contractors, such as low wages, forced overtime, using military to suppress protests and unsafe working conditions. “Adidas wins bid for 2008 Olympic Games.” Australian Business. Nike Inc. is one of the biggest sports footwear, apparels and equipment company in the world. Revenues for Converse were $555 million (+8%), mainly driven by double-digit growth in Asia and through digital globally, which was partially offset by declines in the U.S. “ADIDAS And Reebok join forces: neither company alone could. Nike, Inc. (NKE) financial analysis and rating Comparison analysis based on SEC data. The company primarily operates in the Americas, Europe, the Middle East, Africa and Asia Pacific. This SWOT Analysis of Nike Inc. shows that the company has the strengths needed to support its global leadership in the sports footwear, equipment and apparel market. Research project: Thecase of Tesco, Sainsbury’s and Morrison’s. Some analysts questioned whether the market for pricey shoes can withstand an economic downturn if rising fuel prices continue to pinch consumer spending. Thus, it is recommended that Nike Inc. must reform its strategies in these areas. Nike Company Analysis Nike is known as the renowned supplier of the athletic shoes as well as the apparels. The Company Objectives are (a) to provide a supportive work environment to help employees maximize their contribution to Nike (b)provide quality and innovative services internally and externally (c) identify focused customer segment opportunities and (d) establish ties with those customer segments to (e) maximize profits.(www.trizera.com). In the Uk, ethical businesses are not as successful as less ethical businesses, Of Strategy, Decisions and Competitive Advantage: My SAE Experience, Critiquing Course Content (Procurement Management), Criticаl аnаlаsys аnd evаluаtion of operаtions within Reed Elsevier, Global Depository Receipts (GDR) and convertible bonds– Law of Int’l Finance. The Company’s strategic alliance with NBA and its celebrity promotions through the NBA star Michael Jordan have also reaped rich rewards for the company in the marketplace. The news pushed its stock up $4.99, or 6.4 percent, to $83.45. 1. Some of our information is provided by third party services and we cannot guarantee that is complete, accurate, current, reliable or appropriate for your needs. All our services, information, data and/or recommendations are provided on an "as is" basis and without warranties of any kind, either express or implied. The company specializes in athletic wear, providing footwear, apparel, athletic equipment, and accessories. According to Charlie Denson, the President of Nike, the success of Nike has a great deal to do with the power of the human spirit and through the establishment of an emotional connection with the customer. Annual | Quarterly. Nike’s management analyzes its internal environment and makes decisions based on that analysis. The Swoosh. Celebrity endorsements have helped boost the sales of the Company, and the volume of its business has expanded through its alliances with various subsidiary sports goods manufacturers such as Hurley International Exeter Brands group(www.nike.com). Thankfully, Nike has several opportunities for growin… Understanding Concepts of Strategy in Business and War, Essay Nike Company Analysis . (Sage 2005: C1). This company is sure that women will be the better customers as compared both to men and children. Nike Joyride joins Nike Air and Nike React as the latest proprietary innovation within the company's diverse array of cushioning platforms. Nike offers different categories of products and accessories like sports shoes and apparel for men, women and children. (2005) “Utah State University: Nike President gives Utah State. The Nike brand was launched at the U.S. Olympic trials in 1972 and Steve Prefontaine became the first athlete to wear Nike shoes and advertise them(www.trizera.com). Its main focus is to produce quality and … We aim to help investors learn more about the companies in which they invest. Read more. The idea of an athletic shoe was taken by Bill Bowerman whom was a respected track and field coach at the University of Oregon in the nineteen fifties. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. Strengths of NIKE in SWOT Analysis. Operating overhead expense increased 10% to $2.3 billion driven by continued investments in transformational capabilities, particularly in NIKE Direct and global operations. Revenues for the NIKE Brand were $10.1 billion (+10%), driven by growth across NIKE Direct and wholesale, key categories including Sportswear and the Jordan Brand, and continued growth across footwear and apparel. Nike is the leading corporation in the world, which deals in equipment supply & sportswear. “We’re enjoying the strongest brand position we’ve seen in over five years, and as the marketplace becomes more challenging, we see more of the buying decisions falling our way,” Nike President Charlie Denson said on a conference call with analysts. Top company news, earnings report, analysis and more. Nike’s strengths are that the company is extremely competitive; the CEO of the company is often heard saying that business is a war without any bullets. “Nike: Free to hit global screens.” Australian Business Intelligence. Nike corporate culture remains close knit, as if it is a small company although it operate on a global scale in association with its partners. The effective tax rate was 12.4%, compared to 14% for the same period last year, primarily due to discrete items which favorably impacted the quarter. Before discussing Nike competitors, let us know the company background and information. It is also the biggest and best sports shoe and apparel brand of the world. Industry Analysis Nike primarily competes in the footwear industry, a subset of the consumer cyclical sector. The report also manifests intelligence on Nike's internal weaknesses and external threats that can cripple its growth. Demand creation expense was $1.0 billion, up 6% primarily driven by higher advertising expenses and sports marketing investments. Full Text: COPYRIGHT 2005 The Seattle Times The Nike Company has women as its major customer base, as it has a belief that an addition of women to the company’s sales and operations will add more financial stability. Factors … It is popular for its best and largest sports and apparel brands on the international level. CEO and President Philip Knight runs Nike, Inc. Mr. Knight co-founded Blue Ribbon Sports in 1962, which officially became Nike in 1978. 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