UNIVERSITI TEKNOLOGI MARA

PERLIS BRANCH

STRATEGIC MANAGEMENT IN SPORT ORGANIZATION

(SMG605)

CASE STUDY 1

EXTERNAL FACTOR EVALUATION (EFE) AND

COMPETITIVE PROFILE MATRIX (CPM)

PREPARED BY:

NAME: ABDUL HAFIZ BIN ABDUL LATIF

NUMBER MATRIC:2020983711

CLASS: RSR2415A

PREPARED FOR:

DR. MUHAMMAD AIMAN ARIFIN

CASE STUDY 1A: EFE MATRIX NIKE

OPPORTUNITIES Weight Rating Weight

Score

1 Using e-commerce websites 0.1 3 0.3

2 Diversify sports equipment 0.08 2 0.16

3 Technological 0.13 3 0.39

4 Demand for Premium Sports Products 0.1 4 0.4

5 Customer use as fashion 0.15 4 0.6

THREAT

1 Competition 0.13 3 0.39

2 National Currency Instability 0.1 2 0.2

3 Counterfeit Products Releases 0.07 3 0.21

4 Consumer shifting 0.06 2 0.12

5 Increase in consumer debt level 0.08 3 0.24

TOTAL SCORE 1 - 3.01

The External Factor Evaluation (EFE) Matrix is a strategy that is used to assess a company's
external process and identify its strong and weak points. Fred R. David established the externally
and internally factor analysis in his book Strategic Management. Both methods are also used to
organize the data gathered from the corporation's external and internal environment evaluations,

For those unfamiliar with Nike, it is an American company that manufactures, develops,
manufactures, and markets shoes, clothes, technology, consumables, and products around the
world. The company is located in the Portland metropolitan area, near Beaverton, Oregon. Bill
Bowerman and Phil Knight launched the corporation as "Blue Ribbon Sports" on January 25, 1964,
and it became Nike, Inc. on May 30, 1971. Nike, the Greek goddess of triumph, is the company's
moniker.
 Table EFE MATRIX shows the highest opportunities on Nike products is Customer use as
fashion that is 0.15 weight score because since the 1930s, sportswear has been a component of
design. Its demand has risen dramatically ever since. Sportswear became a component of day and
evening fashions for a various social event since the beginning of the century, representing a more
casual attitude to designing. Since that day, sportswear has conquered the fashion world.

After that, we can see the technological which is 0.13 weight and 0.39 of weight score
which is second higher. This is due to the good technology utilized by adidas, which has allowed
the establishment of innovative synthetic fibers that are superior and more helpful than older
materials. Because of its advanced technology, it can make high-quality goods and a variety of
attributes.

Then, demand for premium sports products get 0.1 weight and 0.4 weight score. This is
because one of the key growth accelerators for the market is a greater consciousness of overall
healthy living. In addition, continuous advances in the material in the production of sportswear are
working to support product quality, due to greater market penetration.

Next, using e-commerce websites is 0.1 weight and 0.3 weight score. The importance of
having a company own webpage in your online approach cannot be overstated. It's a fantastic
opportunity to build your business, attract loyal customers, learn new things, and be more creative
with your marketing. Using a single system for the whole of company sales, on the other hand, can
be difficult. Last but not least, for the opportunities is diversify sports equipment that get weight
0.08 and 0.16 weight score. Diversification often fails since companies just don't need the correct
plan in place according to Shipilov.

For the threat, the very high is competition it is 0.13 weight and 0.39 weight score Because
the biggest challenge to Nike is growing competitor as a result of globalisation and technical
improvement, which enables small and medium businesses to emerge and penetrate the market.
This demonstrates that Nike should battle with large competitors like Adidas, Under Armour, and
Puma while also fending off new companies.
 Next, national currency instability get 0.1 weight and 0.2 weight score. The severe
depreciation of a domestic economy triggers a currency crisis. This loss of value has a detrimental
impact on an economy because it causes exchange rate instability, which means that one unit of
one currency no longer purchases the same amount of some other currencies.

Then, increase in consumer debt level get 0.08 weight and 0.24 weight score. Fortunately,
rises in reasonably good (mortgage) debt, which has significant tax and social benefits in the shape
of housing, have fueled consumer debt growth over the last year.

Other than that, counterfeit products releases have 0.07 weight and 0.21 weight score.
Counterfeiting exists due to production and usage just as in other market: counterfeiters who will
manufacture and customers who will buy. Counterfeiting thrives from many parts for the same
reason: fraudulent products appear to be genuine.

Lastly, Consumer shifting 0.06 weight and 0.12 weight score. Customer satisfaction related
to staff concerns, financial considerations, atmospheric considerations, and accessibility, thus
stated Manrai et al. (2007), that influence switching behavior. Price, reputation, customer
satisfaction, effective promotion, unplanned changes, and change management is a structured all
influencing switching behavior.
CASE STUDY 1B: COMPETITIVE PROFILE MATRICS (CPM)

PUMA ADIDAS UNDER ARMOUR

Weight Rating Score Weight Rating Score Weight Rating Score

Price 22 3 66 25 4 100 25 3 75

Strong sporting 21 2 42 20 3 60 21 2 42
goods brand

Various 15 2 30 14 1 14 13 1 13
products

Successful 13 3 39 20 4 80 18 3 54
promotions

Strong online 29 3 87 21 3 63 23 2 46
presence

Total 264 317 230

The Competitive Profile Matrix (CPM) is a tool that compares a company's successes and
failures to those of its competitors. Firms frequently utilize CPM to effectively understand the
external environment and global competitiveness in a specific industry. The profile matrix analyses
and analyses a company's major competitor based on the industry's crucial success determinants.
In addition, the research highlights the company's relative strengths and shortcomings in
comparison to its opponents. As a conclusion, a business can quickly determine which areas it
should enhance and which parts it should safeguard.
 Table CPM show that there are several competitive profiles matric (CPM) which is Adidas,
Puma and Under Armour. As we can see, the 3 in this competitive profile matric is the strong
brands and organization in this world. So, it will be the 3 most competitive to the Nike in the
market. For Puma background, Puma was established in 1945 in Herzogenaurach, Germany, which
is brand of the nation's main producers of sport leisure shoes, clothing, and equipment. PUMA,
Cobra Golf, and Tretorn are all owned by the PUMA Group. The corporation employs over 9,000
staff globally and markets its services in over 120 countries. It is dedicated to working in strategies
that benefit the world by promoting Creativity, Sustainability, and Peace, as well as adhering to
the ideals of becoming Fairly, Honesty, Positive, and Innovative in all of its behavior and choices.

Next, background of Under Armour, in 1996, Kevin Plank started Under Armour. He was
a 23-year-old University of Maryland football special teams captain at the time. After noting how
much dryer his tight pants were than that of the shirt he wore while playing football, Plank came
up with the idea for the Under Armour brand. Plank set out to create a synthetic cloth, jersey that
would drain away moisture, and he started, give it a try sell everything out of the trunk of his car
and his grandmother's basement. Plank made his first flash sales at the end of 1996, selling $17,000
worth of gear to a squad.

Then, background of Adidas, in full Adidas AG, Athletic sneaker, sportswear, and sports
products producer based in Germany. It was Europe's and the world's biggest apparel producer
(behind Nike) in the early twenty-first century. Adidas products have long been identified by a
three-stripe logo, which is still included in the company's modern "trefoil" and "mountain"
emblems. Herzogenaurach, Germany, is the company's base.

From the table, we can see that Adidas has the higher total which is 317. The higher factors
are price that score more than others competitors. Price is significant to marketers because it
symbolizes their evaluation of the value customers see from a good and services and their
willingness to spend for it. It shows that price for Adidas more acceptable and it will give
competition to Nike. Nowadays, price is the thing that consumers will consider before proceeding
to other factors. In addition, Adidas also has good score in strong sporting goods brand and
successful promotions.
 Next, the second highest for the total is Puma which is 264. The higher factors are Strong
online presence. By having this strong online presence, it will help to get noticed, build
relationships, stay up to date, make it easy for customers to find the organization and it’s free
Marketing. It also has good score in price and strong sporting goods brand. So, for this sport
company which is Puma it will not give much pressure to Nike compare to Adidas company.

Lastly, the total for Under Armour is 230 that is at number 3 for the total. The higher factors
are Price. Price is significant to marketers because it symbolizes their evaluation of the value
customers see from a good and services and their willingness to spend for it. It shows that price
for Under Armour will not give much pressure to Nike because of the total at the table below Nike.
It also has good score in successful promotions and strong online presence.