20001511302000213360aSIGNMENT 2Mr Gichuhi 6900096000aSIGNMENT 2Mr Gichuhi -610870-548005ss730005518785centerOlushegun Olowe2420096000Olushegun OloweSUMMARYThe project can then build an external analysis of the Nike within global area, to spot the main environmental influencing factors and competitive forces. Following on from this, the project can then build an internal analysis that identifies the strengths and weaknesses of Nike. The project also will give corporate social responsibility problems at intervals Nike and the way the {corporate} responds to them. Finally, the project can offer recommendations and overall conclusions.Nike History.Nike Incorporation was previously called Blue Ribbon Sports, American sportswear organization headquartered in Beaverton, Oregon from 1964– 78.
Nike was established by Bill Bowerman, an Olympic style sports mentor at the University of Oregon, and his previous understudy Phil Knight in 1964 as Blue Ribbon Sports. They opened their first retail outlet in 1966 and boosted the Nike mark shoe in 1972. The organization was renamed Nike Incorporated in 1978 and opened up to the world two years after.
By the mid-21st century, Nike had retail outlets and wholesalers in more than 170 nations, and its logo—a bended check stamp called the “swoosh”— was perceived all through the world.Some portion of Nike’s success is owed to supports by famous Athletes like; Michael Jordan, Mia Hamm, Roger Federer, and Tiger Woods. The Nike Town chain stores, first opened in 1990, paying tribute to these and other organization spokespersons while offering shoppers a full scope of Nike items. In the 1990s, the organization’s picture quickly experienced disclosures about poor working conditions in its abroad processing plants.Nikes Aims and Objectives.To inspire and bring innovation to every athlete through their products.
To make people feel inspired to play their game.To produce some innovative things.To suit people’s needs by building products to the own comfort.Nikes Mission. The Nike mission is “to bring inspiration and innovation to every athlete in the world and if you have a body you are an athlete,”(Nike, 2010) and refers to the way that Nike exists to supply everybody on the planet with the shoes, hardware, or clothing that on the off chance that anybody has a body then anybody has the capability of turning into a competitor. From the begin one comprehends that Nike expects to merchandize to the universe of competitors or individuals who have a body. That is an enormous endeavour, which includes different arrangement of partner gatherings. The mission is the impetus that drives the association.
The partners have energy to impact the way toward achieving the mission, vision, qualities, and objectives. However, the partner’s bunches have shifting thoughts, objectives, targets, and desires on the best way to achieve the mission. “Therefore guarantees must be accommodated in a statement of purpose that purposes the contending, clashing, and negating cases of partners” (Pearce and Robinson, 2009, p. 51).
The mission must be clear and brief with a single reason that speaks to the company’s objective.To achieve the set vision and mission, the following strategic options are available for the management of the company.-Business expansion.-Revelry competition.-Target market expansions.The internal, external and competitive environment of Nike.Nike is the “largest seller of athletic footwear and athletic apparel in the world.
Performance and reliability of shoes, apparel, and equipment, new product development, price, product identity through marketing and promotion, and customer support and service are important aspects of competition in the athletic footwear, apparel, and equipment industryNike is the best brand. Even though they have had problems with their image related to sweatshops and other substandard working conditions, they are constantly striving to make a better product than their competitors do.PESTLE and FIVE FORCE’S will be used for scanning and analysing both external and internal environmentsNike is a worldwide brand represents considerable authority in the plan and produce of athletic attire, footwear, adornments and gear; it is headquartered in the United States, Europe, and the Asia Pacific Region. Its items are accessible through more than 20,000 retail outlets, incorporating those in its own footfall outlets, e.g. Nike Factory stores. This investigation considers the contemporary business condition of Nike utilizing a PESTLE approach, considering any HR administration (HRM) issues that may emerge under each heading. By and large, it is contended here that Nike has endeavoured to address different business and social difficulties by blending its incentive to ‘Shoppers, investors, business accomplices, workers, and the group.
In the same way as all buyer confronting associations, Nike confronted testing exchanging conditions since the monetary emergencies of 2008-9 and unforeseen financial log jam; this has connected in both Western markets, (for example, the US) and the Asia-Pacific district. On the other hand, Nike has utilized its set up mark value to exploit developing shopper request in rising economies. The product to this has been a development of Nike’s esteem chain in which it has additionally exploited the lower wage rates paid in those economies. Nike has protected the unforeseen CSR investigates by belligerence that it has given work in generally immature economies, and paid the set up neighbourhood rate for work. In HRM terms, this suggests an impressive gap between the higher-esteem key and configuration work held in the US, and those in outsourced producing.Nike, fully known as “Nike, Inc.
“, is a US-based transnational corporation which provides trendy, functional sportswear across the globe. Having been founded in 1964, Nike serves to “bring inspiration and innovation to every athlete in the world.” Despite being one of the largest sport apparel and accessory companies in existence, Nike has to keep a high guard in its extremely competitive market. In this article, we will be discussing Nike’s standings and potential future through the lens of a PESTLE analysis, which looks at the Political, Economic, Social, Technological, Legal, and Environmental factors that affect an organization.External environmentPolitical.Stable political conditions in most major markets present opportunities for Nike to grow its business in these areas.
In addition, expanding free trade policies facilitate better market penetration overseas. Moreover, improving government support for infrastructure, especially in developing countries, gives Nike more opportunities to expand its operations in these markets. Political strife can likewise be unfavourable to business execution. The most recent decade has seen a considerable measure of political strife around the different corners of world. All around the globe, the political condition isn’t as great for the US marks as their nation of origin. It isn’t without a reason that these huge brands spend such a great amount on campaigning. According to a report by ‘open insider facts’, Nike’s campaigning consumption in 2016 was $750,000.
That is a significant huge total spent on affecting arrangements and approach producers. All things considered, brands need to do this equitable to make the political condition more ideal. In this way, the political condition in a specific country can significantly affect a brand’s primary concern. All things considered, one can’t hope to work together gainfully when the assessment rates are high or if there is political strife or common agitation going ahead inside the country.Nike being number one sportswear in the USA, its benefits, turnovers, showcasing support ships and promoting surmount every single other game wear organization.
This organization isn’t just situated as a market pioneer yet in addition pioneers in the business work rehearses activities. In spite of the fact that Nike had endured terrible attention in the course of the most recent decade, for different reasons, it is best put in the political atmosphere as a moral organization. This gives it a decent open notoriety, which continues reinforcing the brand name. lack of bias of USA political temperatures and additionally Nikes sense of duty regarding industry driving straightforwardness in issues identified with social obligation made the organization to be named as the best US organization and one of the best ten organizations on the planet in the present maintainability worldwide reports program. Nike Company’s outer condition had a great deal of political weight. The organization endured section mode directions, protected innovation rights were encroached on when tiger prosecuted it. The organization did not confront any issues with tax collection laws in California.
At the point when the organization opened up to the world, numerous individuals purchased share in it helping it to develop and contend positively with Adidas and tiger brands. The significant issue which influenced the dishonour of Nike Company is worker wages and advantages.Economic. The business operations of Nike need to concentrate on the state of economies where it offers its all games items. The progress and created nations have relatively stable economy with same purchasing energy of the clients. In this manner, Nike can enter with reasonable benefits like the United States, UK, Australia and comparative. In addition, Nike can likewise make good financial approaches to focus on the creating nations.
The financial elements that could be the open door for the Nike Company is the monetary soundness of the created economy and additionally the repeatedly quick development of creating markets could likewise be viewed as the best open door for the association. In such manner USA advertise has been given a tremendous chance to Nike to extend and increment the development rate.The expanded interest for the items in the wearing dress market in USA in the course of the most recent 20 years gave an awesome chance to Nike Shoe Company. The main excellent brand, which existed in the US advertise, was Adidas shoes from Germany that were extremely costly and not accessible. This financial circumstance gave a decent domain to Nike brand to flourish rapidly because of its accessibility and reasonableness. Nike is typically making much benefit because of its expanded deals and low expenses because of economies of scale it is getting a charge out of. Nike appreciated an economy with high national pay. This supported the interest for its items.
The reasonableness of loan costs made the CEO of Nike to get stores which he used to extend the business. The solid US cash made importation of the shoes from Japan simple. This prompted the offering of the Nike shoes at bring down costs than Adidas from Germany despite the fact that the two brands had a similar quality. This condition gave Nike an upper hand over Adidas mark.In the early development of Nike Company, USA experienced very good economic stability, inflation was held in control and thus wage demands for employees remained normal. This was a great boost to Nike because it was able to maximize the profits by exploiting cheap labour, especially at the industry in Japan. Although the company enjoyed the benefits of good economic climate, it also suffered some finical challenges.
For instance, the CEO’s decision to solve BRS’s financial problems by offering 30% of the company to the public in May 1970 failed.Globalization has expedited the concentration the world market. It isn’t only the countries’ individual economies however, the execution of the world economy that chooses how well brands will perform. With declining financial execution, the clients’ acquiring power additionally falls. Brands can’t expect high benefits when clients are cutting expenses. Decreased financial movement naturally prompts a fall in business. The world economy has confronted a hard squeeze amid the current years. The retreat had grieved generally marks.
Be that as it may, Nike’s execution has enhanced since 2011 forward. From 2008 to 2009, Nike’s annual revenue had climbed 3 percent to $19.2 B. However, it again fell in 2010 by 1 percent to $19 B. Once the world economy grew more stable, Nike’s yearly revenue has also kept improving.
From 2011 to 15, the difference is that of close to 10 billion which means a remarkable improvement. It shows how important economic forces are in the context of international business. Apart from it, economic fluctuations also cause losses. A fluctuating currency is also not a very healthy sign for international brands. Most of them are not realizing sufficient profits because of a stronger dollar since the recession.Social.Nike has devised the key strategy to grow their business in the next few years by targeting the increasing number of female customers. As a part of the strategy, it has appointed Amy Montage as the head of its business in the year 2013 (Forbes, 2014).
The business in the women line grew by nearly 12% to $5 billion in the year 2013. The company envisages that the revenue from this segment will reach $7 billion by the year 2017. The enormous potentiality of this segment has encouraged the company to introduce various products exclusive for women.
Nike. projects that the female consumers would generate soon 25% of its total revenue itself.With future being in the hands of athletes, people intend to go and do fitness in their spare time, to help with both health and performance levels. As Nike being the top sports brand people would love to have gear from the company. I.
E. Shoes. This is because people are branding conscious and they have a high demand in high-class products. In this category, this is where Nike comes along and tries to impress its customers by offering them their high-class products. Indirectly, this rise helped Nike.
to boost up the sales as they turn to buy footwear and apparel for themselves to look athletic. Some of the consumers also associate Nike, with fashion and leisure (About.nike.com, 2016). They too are getting interested to buy Nike, products.
This awareness among the people would help Nike, in the end.The athleisure market might be growing crowded but still Nike holds its own valuable position in this market. Olympics season remains highly important and profitable for Nike and competing brands. The sports frenzy is at a height in this season and sports fans buy more of athletic products. Similarly, culture is an important factor and brands may be required to alter their product styles to gain popularity in the overseas markets. If Nike uses a different ad in US and another one in China, then it is because of the cultural differences. Culture also affects marketing and marketing expenses.
TechnologicalNike is regarded as the pioneer to introduce various products, which enthralled the whole world. It has always adapted the latest technology to ameliorate their products. This technological innovation not only helped them to set ahead from their competitors but also refined and augmented the production process (About.
nike.com, 2016). It is also one of the global brands, which took a revolutionary step to curb the usage of chemicals and other raw materials, which are detrimental for the environment. The latest popular product introduced by Nike. is Fly knit Racer, which received acknowledgment globally (News.nike.com, 2016).
Nike also altered their marketing strategies to reach their customers and prospective consumers. The increase in advertising concentrating on the digital medium more than the traditional channels is one such step. Nike.
uses online media and apps to reach the customers and popularize their different products. In the last few years, the market of online shopping has expanded which has given Nike. the opportunity to increase their base worldwide. Now, Nike. does not have to depend on their stores and franchises outlets to sell their popular footwear and apparel. For the year 2015, Nike, reported a 55% increase in sales through web compared to last year. The figures touched $1.19 billion crossing the billion mark for the first time through the internet sales.
It was $767 million in the fiscal year 2014 (Internetretailer.com, 2015).Nike utilizes research committees and advisory boards made up of athletes, coaches, trainers, and other experts to consult and review designs, concepts and materials for the improvement of the products. Employee athletes and other athletes’ wear-test sport wear and evaluate the design of the products and development.
Technical innovations in the design of footwear, apparel and athletic equipment is stressed so much so that product are produced that reduce injury, enhance athletic performance and improve comfort. This is the major goal of Nike sport Wear Company that the CEO continually emphasized and achieved.LegalNike have been accused of child labour in the different parts of the warehouses in other countries, I.
E Employment labour. The children were asked to create soccer balls. Even though Nike, tried to cover up this move, it was rebuked globally and many cases were faced legally worldwide. Nike has the opportunity to improve its brand image by highlighting customer satisfaction in marketing its sports shoes, apparel and equipment. Similarly, the company has opportunities to improve its health and safety measures to address expanding health and safety regulations.Nike have some of the counterfeit products around the world. This is a major problem as it affects the annual revenue drastically. It is also known to be the “violation to intellectual rights”.
There are also some contract manufacturers, which produce these products and sell them into the markets, which directly affects the sales in that country. In a step to tackle the menace of counterfeit products, Nike, Inc. can monitor and ensure that their products are not sold widespread as these fake products can ruin the reputation of the company.
Although Nike enjoy being the undisputed dominance globally, they still have legal cases against their rivals (Adidas). These are advantages as they determine Nikes future strategies. However, he feuds between Nike, Inc. and Adidas is not new.
In the year 2014, Nike, Inc. filed a $10 million lawsuit on Adidas accusing the later for taking proprietary secrets, marketing plans and product designs when they recruited few former employees of Nike.EnvironmentalNike shoes are greener and more ethical as compared with other products in the USA market. Nike shoes are easier to recycle, and the solvent use of reduced by over 85% when compared with other brands like tiger and Adidas.With the rising concern about global warming, it has become extremely important for the global companies to reduce waste, which are harmful for the environment.
In various countries, the new environmental laws also restrict their production if they do not follow the specific laws. Through the usage of innovative manufacturing methods like Nike Fly knit technology, it strives to reduce the manufacturing waste in the supply chain and reduce carbon emission and elimination of waste. Nike plays its role; however, still a lot needs to be done.
in 2010, the company pledged to stop buying carbon offsets. Instead, Nike said it would work towards reducing its own emissions, including the eventual goal of a “closed loop,” eliminating all waste products from its manufacturing process.FIVE FORCES: THE ATTRACTIVNESS OF NIKE INDUSTRYWe are going to explore the environment of the industry by using the Porter’s five forces; we will look at competitors of NIKE and will identify potential entrants and significant barriers to entry. The relation with suppliers.An overall change in any of the forces in the in industry information requires a business unit to re-assess the given marketplace. The overall industry attractiveness does not indicate that every firm in the industry will return the same profitability.
As an industry profitability is low and yet individual companies, by applying exclusive business models, have been known to make a return in the industry average. Porter’s five forces include threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces which are the bargaining power of suppliers and the bargaining power of customers. For this assignment, Nike are chosen to be the subject company as our group will analysis this company and discuss about the impact of Porter’s Five Competitive Forces model on Nike company.For the first force of Nike company- the internal rivalry is high.
The meaning of internal rivalry is the measures the degree of competition between existing firms. The higher the degree of rivalry the more difficult it is for existing firms to generate high profits. Rivalry are told to be higher if there are a humongous amount of similar sized firms rather than a few dominant firms are all contending with each other for customers, and also the market is shrinking so firms are struggling for their share of the deteriorating sales.
Based on the above factor, competition is targeted towards attaining more market share. Therefore, Nike introduced products at abundant price levels in order to compete and reach all areas of the market because if they fail to do so, their market share will be easily taken over by their competitors.Haggling power to a great extent depends over the client’s utilization limit and it assumes crucial part in improving organization’s position in the market. Nike has a few brands and product offerings to pull in a considerable measure of clients having moderateness and unwavering quality in their items. Nike at one time began delivering superb costly items for its clients however around then clients conflicted with them and media additionally depicted a wrong picture. Around then Nike picture was seriously influenced.
A few customers sent their reused Nike shoes to the CEO of the organization to show their disappointment towards Nike’s exercises in Asia. The biggest threat business had been that its items were energizing at exceptionally incredible value which could have enacted the clients have to modify to the low value brands. So when purchasers convey such colossal bartering power organization needs to adjust its operations and items as indicated by the requirements of the clients.However, all of these can’t be used to substitute sports products or any sporty events. For example, a footballer will not wear a slipper in a match. Therefore, there are no real substitutes for athletic shoes and this also applies to the athletic outfits. Since the threat of substitute product is low for Nike, it does not have any major impact on the company.
However, in order to reduce the possibility of losing any potential customers, Nike come out with new innovated products to keep its market leadership up. Since everyone is chasing for new trends nowadays, an obsolete product is incompetent to increase the sales. Therefore, coming out new innovated products will assist in retaining and attracting customers. Moreover, Nike also adopted differentiation strategy by producing striking and unique goods to assist consumers in distinguishing Nike’s product from substitute product. Nike Company is trying their best to offering goods where competitors unable to compete with to reduce the threat.The company has many brands and substitutes to compete with any other substitute but in 2000 when the company faces criticism by media the company engaged in marketing activities to overcome the negative impact on consumers but it gives palace to sale of some substitutes in market. But it was for the limited time because NIKE is the name of Victory. Nike has several competitors who produce substitutes for their products:Direct competitors of NIKE are:Adidas, Fila, Puma, Reebok, New Balance, and One, UmbroIndirect competitors of NIKE are:Non-athletic footwear brands, Crocs, K-Swiss, Converse, Sketchers, Timberland.
Company had made very strategic change and it enters into the partnership with President Clintons Apparel Industry Partnership (AIP). The Company also introduced its Corporate Social Relationship Strategy to give strength to itself. It also participated in the Fair Labour Association which has aim to monitor the working conditions of all companies. Several steps are taken by this company regarding environment and need of time.Rivalry is the time when different company uses its strategies to pace up and to step forward and compete. It contains:AdvertisementPrice ReductionBrands IntroductionAlthough Nike Is best in all but in 2000 when it was the tough time for the Nike.
Competition of Nike with its instant competitors like Adidas, Puma, and Fila was very intense. All of the competitors were busy in creating differentiation in their products for the customers. In comparison to the competitors Nike carries a very strong position in the market and thus has very strong brand identity and brand loyalty as well. Celebrity endorsements initiative of Nike was one of the leading things happening to attract ore clients, while it made cutting edge for its customers. But rivalry goes on and healthy rivalry causes Nike to improve day by day.The higher the mark the better for businesses already in this market. Internal environmentCorporate culture: Nike’s corporate culture is focused on inventiveness and advancement to give items that suit current customer inclinations. The organization is known for bleeding edge sports shoes, clothing and gear.
The accompanying primary attributes of Nike’s corporate culture maintain business and market ability:TalentedDiverseInclusiveTalented: Nike comprehends that ability and advancement go as one. This component of the hierarchical culture accentuates the need to give human asset support to item improvement and interior administrations in the enterprise. In that capacity, Nike utilizes preparing projects to keep up representative ability. The organization likewise has instructing and tutoring programs. These methodologies depend on the technique that creates and empowers pioneers inside the association for Nike’s worldwide development.
The reason for this normal for Nike’s corporate culture is to maintain ability and foundation fundamental for delivering a portion of the world’s most prominent athletic shoes, gear and clothing.Diverse: Diversity is ceaselessly created in Nike’s hierarchical culture. The organization trusts that this component of the corporate culture prompts a dynamic workforce. Assorted variety advances Nike’s innovativeness, development, mark picture and, thusly, upper hand.
The organization keeps up assorted variety through HR programs, for example, the Speak Up! program, which encourages sharing of thoughts among specialists. This component of the corporate culture augments Nike’s item improvement cycles, particularly in making new plans for its games shoes, clothing and gear.Inclusive: Nike accentuates comprehensiveness in its hierarchical culture. The reason for this social trademark is to limit hindrances to representative execution. Nike’s system utilizes comprehensiveness as an instrument for ideal execution, assorted variety and ability improvement. The organization underpins this element of the corporate culture through a group based way to deal with administration. What’s more, Nike utilizes various projects, for example, Bias to Breakthrough (a program for evacuating hindrances to innovativeness) and Courage (an arrangement of worker systems for social mindfulness and group building).
This component of the hierarchical culture limits issues in Nike’s workforce and backings streamlining athletic shoes, attire and hardware outline and creation forms.Corporate Social Responsibility:The main stakeholders of the business are employees, customers, environment, investors and communities who have diverse interests and demands to the company. The employees demand job security, fair employment practices and career development. NIKE CSR strategies provide satisfactory salary as well as wages for the employees plus a career development opportunity. The customers’ interests are quality clothes, trainers and services with reasonable prices. NIKE produces quality clothes, trainers with impeccable services. Investors are interested in the profitability of the business and the company provides the same by emphasizing on the business resilience rather than the rapid expansion. Further, NIKE has strategies targeting, environmental conservation and sustainability.
Besides, NIKE fulfill the communities’ interests of socioeconomic development by providing various community development and support programs. The company’s CSR strategy addresses all the stakeholder groups and thus it has a high corporate responsibility performance.Competitors propel themselves toward ever more elevated levels of execution. They need to accomplish that leap forward minute, their own best.
Nike approaches corporate obligation by that means. It’s not just about showing signs of improvement at what they do – tending to impacts all through their store network – it’s tied in with taking a stab at the best, making an incentive for the business and advancing for a superior world. As natural, social and monetary difficulties on the planet multiply, they request best execution. Nike is utilizing the energy of their image, the vitality and enthusiasm of the general population and the size of business to make a significant change. The open door is more noteworthy than at any other time for maintainability methodology to drive business development, fabricate further purchaser and group associations, and make positive social and natural change. Nike is centring corporate obligation endeavours in the territories in which they can have the best effect and make the most esteem: Through the materials, they outline into items, through the way toward making those materials and items are utilised. Through an assortment of procedures, including partner meeting and lifecycle evaluation, Nike has recognized their most critical effect zones that incorporate Energy and Climate, Labour, Chemistry, Water, Waste, and Community. As the brand assesses and oversees key effects, they build up a superior comprehension of how interrelated they are and how an incorporated way to deal with item plan and process development can yield benefits over different effect regions.
Competitive environmentWith Nike we would see that their competition would be on every single level being local, national and international as they have many competitors around the country being as one of their main competitors being Adidas. Differentiation: How Nike would differentiate itself from other competitors being to create new opportunities for millions of young people around the world. To improve health and through this help tackle the global obesity crisis.
Pricing policies: There pricing policy would be to create a new strategy called the big price drop meaning to pursue the strategy of market penetration. This means increasing the sales of its current Sports products to existing customers and attracting new customers from its competitors in the market.Market leadership: Nike has increased its shares of the UK grocery market as we can see sales grew 1.
3% year-on-year in the 12 weeks to 9 October and now. We can see that their competitors Adidas also did well, with their sales jumping 9.4% and 8.4% respectively. Reputation: With Nike’s reputation It’s been an extraordinarily tough few years for Nike’s as back in 2010 it was at the top of its game as it was growing fast and leaving the rest of Britain’s sports retailers in its wake. But due to fierce competition, a series of over-ambitious acquisitions and it’s devastating accounting scandal knocked one of Britain’s most successful business off its perch. It’s still the largest retailer in the UK but Nike’s reputation took a massive knock but arguably even bigger than the one to its finances.
Market share: The price of everyday groceries fell by 0.8% compared with a year ago and in contrast to the -1.1% reported last month, Nike had attracted an additional 228,000 shoppers to achieve its first year-on-year market shareCost control: The stores were part of a joint venture between Nike and charitable giving which involved the market chain paying rent which increased in line with the retail price index every year but its rents will be charged a market rates as part of the deal Adidas will also receive £34 from charitable giving.SWOT ANALYSIS:Strengths:Firstly, Nike was leader of sports equipment industry, which also top suppliers of sports equipment around the world. Secondly, Nike had huge amount of loyal customers of Nike products that because Nike was one of the world top well-known brand. Thirdly, Nike getting cheap price of material from suppliers and Nike provide the products with high quality by selling reasonable price to attract customers.
Weaknesses:Firstly, most of the Nike sales income was came from Nike footwear and Nike was focusing on footwear sales but lack of other sports equipment, which is risky for Nike Inc. Secondly, Nike was lacking of categories of female sports equipment and nowadays a lot of female would love sports, Nike lost a lot of income from female customers. Thirdly, Nike Town had lost a lot of profit because most of the customers purchase Nike products at other retailers.Opportunities: Firstly, opportunities of Nike nowadays the younger generation would like to purchase sports equipment products there are the opportunities to targeting younger generation. Secondly, targeting female was another opportunities for Nike because in this century male or female would love sports and now Nike lacking targeting female customers, if success the profit income will be higher. Threats: the threats of Nike were Nike had foreign direct investment at other country therefore Nike had to pay the interest tax to the foreign country even the profit earn high or low. Secondly, another threats for Nike was the competitors, nowadays the competitors wanted to replace Nike to become world largest sports equipment industry by provide lower price sports equipment than Nike to attract the customers.Target market expansionThe suitable option for the NIKE Company would be to expand into the online market.
The national and international marketing will ensure that the company remains the best in the industry. Profit maximization and Product development would be the appropriate strategies to solve the current problems faced by the Company. This can be realized through going into the online for products advertisement. It will also ensure that the company does not lose its shares to all stakeholders and indirect competitors.
Expanding the online market will enable NIKE to improve its customer relations and its services by gaining customer data and personalizing their services. The move will give the company a competitive advantage while at the same time creating core competencies. The option will indirectly help the company to set themselves apart from their competitors as well as reach additional customers globally. Conclusion In conclusion, through the use of tools of strategic management NIKE Company has two primary options for the development of the company. The target market expansion option has proven to be the most suitable option for the growth of the Company as compared to the other options. With the availability of resources at their disposal, the company is capable of entering into the online market without barriers and target niche markets. NIKE Company is also able to differentiate itself from its competitors and react to environmental changes.
The company is in a position to compete with larger company such has ADIDAS because of its financial capabilities and the strong portfolio. The possible challenges to the company would be competition, and implementation issuesAppendix: http://help-en-us.nike.com/app/answers/detail/a_id/113/~/nike-mission-statement https://en.wikipedia.org/wiki/Nike_sweatshopshttp://www.marketwatch.com/story/heres-how-apple-nike-and-others-avoided-620-billion-in-taxes-2015-10-06http://koin.com/2016/04/19/nike-faces-5-million-class-action-lawsuit/http://phys.org/news/2011-07-nike-adidas-suppliers-polluting-china.htmlhttps://www.cheshnotes.com/2017/01/pestelpestle-analysis-of-nike/http://news.nike.com/news/through-the-years-nike-s-history-of-sustainable-innovation—2
