STRENGHTS WEAKNESSES

 Strong Brand Awareness and  Poor Labor Conditions in Foreign

Brand Value. Countries. Ni
ke  Low Manufacturing Cost.  Sexual Harassment. is
 Superior Marketing Capabilities.
 Iconic Relationships.
OPPORTUNITIES THREATS
 Emerging Markets.  Increased competitive pressure.
 Innovative Products.  Currency Foreign Exchange Risks.
 Acquired Artificial Intelligence  Economic Uncertainty.
Start-up.  Trade Tensions.
 Exiting from Wholesale
Distribution.
one of the world's most recognizable brands because its name is memorable, easy to pronounce, and
one-of-a-kind. Everyone is familiar with the swoosh symbol. Nike has a brand value of $42.5 billion,
according to Interbrand. The majority of Nike's footwear is made in other countries. Vietnam
produced 51% of total Nike footwear in fiscal year 2021, China produced 24%, and Indonesia
produced 21%. Argentina, Brazil, India, Italy, and Mexico also have operations. Nike runs effective
marketing initiatives. Advertising, promotion, endorsement deals, media print, and complimentary
products are all major demand creation expenses for the brand. Nike spent $3.7 billion, $3.6 billion,
and $3.1 billion during the fiscal years 2019, 2020, and 2021, respectively. Social media and
marketing initiatives have been used effectively by the brand to reach more consumers . Michael
Jordan and Nike have a long-standing relationship that has been beneficial for Nike in terms of sales.
"Air Jordan 1 Shoes" are the result of their collaboration. In addition, Nike collaborated with the well-
known basketball player to create the "Air Jordan 1 Shoes".

Despite the fact that Nike already has a presence in many foreign countries, there are still numerous
opportunities for Nike. This is due to the gradual growth of emerging markets such as India, China,
and Brazil. Despite the fact that Nike has produced numerous products, there is still much room for
innovation. Nike has expanded its technological reach in association with fitness and health. Wearable
technology, which monitors physical activity, is the first step in developing innovative technology
products. Combining technology and athletic wear can be advantageous because it is a relatively
unexplored area of the fashion industry. Nike, with its vast financial resources, can acquire small or
medium-sized businesses or startups. It recently acquired Celest, a predictive analytics platform, to
enhance its online sales capabilities and predict customer purchasing behavior. Nike recently
announced its intention to exit the wholesale distribution market in the United States. The company
intends to only market its products through Nike stores, apps, and websites. Nike claims that moving
away from distributors will help them double their profit margins. Furthermore, Nike will have the
ability to direct the customer shopping experience as well as control prices.

Nike has been consistently targeted for its poor labor conditions over the last 20 years. Forcible labor,
child labor, low wages, and horrific working conditions deemed "unsafe" are among the issues. Nike's
retail sector makes Nike vulnerable due to its pricing sensitivity. I would like to recommend that they
recognize the need for the independent monitoring of the manufacturing facilities. Former female
employees also stated that sexual harassment and misconduct were prevalent in the workplace. The
New York Times interviewed 50 former and current Nike employees to learn more about the
company culture. The interviews revealed that Nike had a toxic working environment with a high rate
of sexual harassment. To overcome this, Nike should take their employee’s complaints seriously.

Even though Nike is the undisputed leader in the athletic sector, the company still faces threats from
rival brands and new, emerging ones. Nike has to spend more money on marketing and advertising
due to the increased level of competition. I would lie to recommend that to setting competitive
pricing. In its fiscal year 2020, Nike spent $3.5 billion specifically on demand generation and
marketing. Nike's best chance of dominating the competition is to create novel products that are
specifically catered to the requirements of athletes. The brand is impacted by shifting exchange rates
because it is a global entity. I would like to suggest that use the method of purchasing power parity. In
terms of financial results, Nike uses US dollars. Due to the U.S. dollar's exposure to volatility when
compared to other financial currencies, this has an impact on its revenue. All businesses are
vulnerable to the negative effects of a global recession, regardless of industry. Nike's sales have
already decreased by 38% in Q2 2020, and if the recession is as severe as experts predict, they may
decline even more in the future. Nike is dependent on various markets around the world, as evidenced
by the recent increase in its stock price, which was fueled by an increase in sales in China. With China
and the United States as its two largest markets, Nike's sales will be jeopardized if trade tensions
between the two giants worsen. I would like to give solution is by talking the countries negotiate rules
that are acceptable to all.

Bush, T. (2019, April 16). Nike SWOT 2022| SWOT analysis of nike. Retrieved from Pestle Analysis:
https://pestleanalysis.com/swot-analysis-of-nike/