Running Head: SWOT Analysis and Summary 1

SWOT Analysis and Summary

Ragan Roberson

University of Phoenix

BUS/475: Integrated Business Topics

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SWOT Analysis and Summary
SWOT Analysis and Summary

Organization Name: NIKE Company

SWOT Analysis for Nike

Strengths Weaknesses Opportunities Threats

Strong brand High product prices Growing fitness trend Intense competition

recognition

Global retail presence Dependence on E-commerce growth Fluctuating currency

outsourcing rates

Innovative products Controversial Emerging markets Legal regulations

marketing

Diverse product High costs associated Increasing direct-to- Supply chain

portfolio (footwear, with endorsement consumer sales disruptions from

apparel, equipment) deals and marketing through owned retail political/economic

Financial resources to Inability to quickly and e-commerce instability

invest in R&D and adapt to changing Changing consumer

marketing consumer preferences interests away from

performance products

Summary

Nike, as a prominent player in the sports clothing and footwear sector on a global scale,

possesses numerous strengths that provide it with a distinct advantage over its competitors. The

company's robust brand recognition and extensive global retail presence enable it to effectively
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SWOT Analysis and Summary
target a wide range of customers. Furthermore, Nike's dedication to innovation yields products of

superior quality that are highly sought for.

Nevertheless, Nike possesses weaknesses that may impede its expansion. The elevated

prices of its products may dissuade clients who prioritize cost considerations, while its reliance

on outsourcing can give rise to challenges within its supply chain. Moreover, several marketing

methods employed by Nike have generated controversy, which has the potential to harm its

brand reputation.

Notwithstanding these limitations, Nike possesses substantial prospects for expansion

(opportunities). The increasing popularity of exercise and the expansion of e-commerce offer

potential avenues for heightened sales. Moreover, emerging markets present novel customer

segments for the purpose of expansion.

Nike is confronted with various challenges within its operational context. The

profitability and market share of the company might be affected by fierce rivalry from other

sportswear brands, volatile currency exchange rates, and governmental regulations.

To convert weaknesses into strengths, Nike must place more focus on rigorously

monitoring and enforcing ethical labor standards across its entire supply chain. According to

Locke et al., 2006, monitoring alone did not significantly improve labor standards and working

conditions in Nike's supplier factories. However, the authors found that when monitoring was

combined with other interventions that addressed root causes of poor conditions, there were

considerable improvements. Investing in suppliers that prioritize worker rights and conditions is

crucial to protecting Nike's brand image. According to Eyada, 202O, brand activism

encompasses the endeavors of businesses to either facilitate, hinder, or guide social, political,
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SWOT Analysis and Summary
economic, or environmental transformation or stagnation, with the aim of fostering or hindering

advancements in society. Consumers have transitioned from being passive recipients of

advertising information to actively engaging and expressing their ideas and beliefs, which every

brand must take into account. In order to demonstrate their ethical responsibilities, brands must

establish connections with social causes, adhere to the principles of cause marketing and

activism, and align their actions with the company's goal, vision, and values (Eyada, 2020). In

order to align Nike's strengths with its prospects, the firm has the potential to utilize its robust

brand recognition and distinctive product offerings to exploit the expanding fitness trend and the

expansion of e-commerce. For example, Nike may introduce fitness-oriented merchandise and

improve its e-commerce platform. In order to transform Nike's shortcomings into strengths, the

organization might focus on enhancing its product offerings to cater to cost-conscious consumers

by providing more cheap options. Additionally, the company should endeavor to enhance

transparency and ethical standards in its outsourcing operations in order to address supply chain

challenges and enhance its brand reputation. In order to enhance its objectives and broaden its

competitive edge, Nike should prioritize ongoing innovation, strategic marketing initiatives, and

growth into burgeoning areas. Additionally, it should actively observe and adjust to fluctuations

in the competitive environment, currency exchange rates, and legislative frameworks. The

SWOT analysis of Nike is heavily influenced by the interrelationships between its several

functional areas, including marketing, product development, and supply chain management. For

example, the implementation of new product development strategies has the potential to augment

marketing endeavors, while the implementation of efficient supply chain management practices

can guarantee the availability of products, thus bolstering Nike's competitive standing.
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SWOT Analysis and Summary
By doubling down on its strengths, proactively addressing weaknesses, and strategically

pursuing new opportunities, Nike can reinforce its position as an innovative, sustainable, and

ethical leader in the global active-wear market.

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SWOT Analysis and Summary
References

Eyada, B. (2020). Brand activism, the relation and impact on consumer perception: A case study

on Nike advertising. International Journal of Marketing Studies, 12(4), 30-42.

Locke, R., Qin, F., & Brause, A. (2006). Does monitoring improve labor standards? Lessons

from Nike, 61.