Nike (Swot) Analysis

Strengths:

 Wide Client Base - Nike has millions of customers worldwide who

follow the company's trends, attend Nike occasions, and even give
comments. Nike's market capitalization has risen to $224 billion as of
February 2021, thanks to its large client base.
 Superior Marketing Abilities - Nike's marketing efforts are
outstanding. The brand spends a lot of money on demand
generation. Nike spent $3.7 billion and $3.5 billion in fiscal years
2019 and 2020, respectively. To reach out to several customers, the
company has effectively used social media and marketing efforts.

Weaknesses:

 Outstanding Debts - While Nike's revenue statements appear to be

healthy, a quick look at their balance sheet may reveal a different
storey. Nike's finances are still in jeopardy. Nike's total long-term debt
was $9.54 billion as of August 2020.
 Nike's reliance on the US market - Despite having established itself
internationally, Nike continues to rely on the US market for sales and
profits. In fiscal year 2020, the United States accounted for roughly
41% of Nike's sales, with the remaining 59 percent coming from
across the world. Despite its popularity, Nike relies on the United
States for significant sales and growth.

Opportunities:

 Developing Markets - Despite Nike's presence in a number of

international nations, there are still plenty of chances for the
company. This is due to the progressive growth of emerging
economies such as India, China, and Brazil.
 Innovative Products - Despite the fact that Nike has a large product
line, there is still a lot of room for improvement. Nike has expanded its
technological reach in the realms of fitness and wellness. The first
 stage in developing new technology goods is to create wearable
technology that detects physical activity. Combining technology with
sports clothing can be advantageous because it is an element of the
fashion business which still needs to be fully explored.

Threats:

 Greater competitive pressure - Despite Nike's dominance in the

athletic market, fresh developing companies and competitors remain
possible concerns. Nike must spend a greater sum of money on
marketing and advertising due to the increased competition ratio. In
fiscal year 2020, Nike spent $3.5 billion on marketing and demand
generating. Nike's best hope for beating the competition is to create
creative goods that are customized to the demands of athletes.
 Trade Tensions - Nike relies on a variety of markets throughout the
world, as demonstrated by its recent stock rally, which was driven by
a rise in sales in China. As China and the United States are its two
largest markets, a significant portion of Nike's sales might be
impacted if economic tensions between the two countries worsen.