NIKE

NIKE
The reason for our existence is to provide a service
to athletes, so we dare to design the future of sport.
For us, innovation is about enhancing human
potential. We constantly think about the needs of the
world's best athletes, so we use their ideas to create
products that are both beautiful and useful. To make
big leaps, we take big risks. Progressive change
won't get us where we want to go fast enough. So we
aim for big feats, like developing the first self-fitting
shoe, running the first two-hour marathon, and
committing to fully renewable energy in our
facilities.
Pestel analysis
 P Nike is especially at high performance
athletes or people who perform some
physicalactivity and are classified as follows:

• Teenagers (high performance or not who buy the

products for comfort or fashion).
• Young adults (high performance or not who buy
the products for comfort and always have a good
performance to do the sport they like). Both can
be of either gender
 E Some economic factors that have affected the
company are mainly the economic recession, since its products
are mid- and high-end, so customers may opt for lower-end
products at a lower price. Another fundamental factor is the
company's entry into markets with high barriers to entry, such
as the European Union and the Chinese market. This directly
affects the company's image because of the increase in the price
of labor and raw materials, which are fundamental factors for
the company's stability and development.
• Another factor that has had a strong impact on the
company's economy is the stock markets, since due to
differences in currency values, Nike could be generating
losses in some markets.
 S Nike is present in the general population all over
the world regardless of religion, race, gender, culture...
Nike takes into account the fashion demands of each country,
thus satisfying tastes and needs all over the world.It is also a
philanthropic company that cares about society as a whole by
implementing healthy lifestyle awareness and promoting the
use of sporting goods for consumer comfort and satisfaction
while being physically active.
It also supports sporting events such as the World Cup (soccer)
and the Olympic Games, sponsoring some high-performance
athletes to demonstrate its product quality and the diversity of
products and athletes who use them.
 T It is no secret the potential that social networks have represented
for brands, from being able to provide sales methods without the need for logistics
related to physical stores, to the fact of being able to create a strong community around
your brand. This can be a double-edged sword, since a bad communication strategy
could be fatal for the brand image due to the fast flow of information on social
networks. Nike with its great economic power can obtain advanced methods for the
evaluation of metrics that allow them to optimize targeting, production and further
expansion of the brand in different markets.

Nike, by not having factories, does not immobilize cash, which directly affects the
company's monetary security by avoiding possible fraud or theft. This in turn allows the
company to focus its efforts on research and development of new products and
processes. With this in mind, Nike will always look for a place where it can make the
highest quality products at the lowest possible price, even moving its production to
those locations.
E According to the New England-based environmental organization
Clean Air-Cool Planet, Nike is among the top three companies (out of 56) in a
survey of climate-friendly companies. Nike has also been praised for its Nike
Grind program (which closes the product life cycle) by groups such as Climate
Counts. One campaign Nike started for Earth Day 2008 was a commercial that
featured basketball star Steve Nash wearing recycled Nike shoes, which had
been constructed in February 2008 from pieces of leather and faux fur from
factory floor waste. The recycled shoe also featured a ground-up rubber
compound sole from a shoe recycling program. Nike claims this is the first
performance basketball shoe to be created from manufacturing waste, but only
produced 5000 pairs for sale.

Another project Nike has started is the Nike Reuse-A-Shoe program. This
program, started in 1993, is Nike's longest running program that benefits both
the environment and the community by collecting old shoes of any kind for
processing and recycling. The material that is then produced is used to help
create sports surfaces, such as basketball courts, running tracks and
playground equipment.
 L Nike sneakers are manufactured in 36 U.S.
factories with 5151 workers. To expand to other markets and for other
business reasons, Nike has 517 manufacturing facilities in 41 countries.
As an international company, Nike has to take into account the tariffs to
which its shoes and other products are subject. In the United States, for
example, footwear companies pay up to 25% tariffs, one of the highest
compared to other industries.
In 2019, trade tensions between the U.S. and China had begun to escalate
when Trump threatened to raise tariffs on Chinese goods-including all types
of footwear, from sneakers to sandals-by 10%. It was estimated that the
tariffs would cost U.S. customers an additional $7 billion a year.
The United States, Nike's "home country," so to speak, has fantastic growth
policies that are especially valuable to this company. These include low
interest rates and well-arranged international tax agreements.
As a company that produces and sells physical goods, Nike is, however,
always subject to changes in tax and manufacturing laws.
Various political conflicts can always hinder customs-related processes or
impede imports and exports.
 Conclusión
Nike is a company that is respected worldwide for its
competitiveness, since its products are based on the quality and
economy that the consumer expects to find, in addition to this it
bets to excel with its marketing strategies, since its public is
diverse, from high performance athletes, where it makes
various campaigns to support them, to young or adult people
who want to have their articles for comfort or simply fashion,
selling experiences is important as well as generating
profitability through sports collections, to be recognized and
remembered is one of its main projects. However, the company
presents great risks due to the volatility of the economy and
currencies, since one of its main objectives is to find the most
economical way to develop its products with the highest
possible quality.
SWOT
STRENGTHS
• -I created a positioning based on their knowledge to obtain an optimal and
effective marketing.
• - by the acceptance of its customers managed to obtain a brand leadership,
before the rest for its high quality.
• - Nike focuses on an excellent production taking into account the affections
of the environment, this is why it has an environmental friendly pact with
the environment, doing work with the environment how to make shoes with
some waste.
WEAKNESSES
- Devaluation of the Swoosh (logo of the brand, as it has many
imitations which makes these imitations lower quality and other
important aspects which gives a bad image).
-The lawsuits and comments of its employees for labor exploitation that
they have received on multiple occasions makes the brand lose prestige.
-High prices for its products
- It does not have a fixed place of production which causes volatility in
the market and makes costs and margins are not stable for long periods
of time.
OPPORTUNITIES
-per capita GDP growth
-Concern for healthy living.
-product customization and exclusivity
-Improvement of technologies
-Internet sales, increasing wholesaling
-Good suppliers, providing quality certification.
-Ease of attracting people to your market.
-You can persuade through sales people or professional
teams
-Ability to innovate without changing the essence of
the product.
THREATS The main threats affecting the company are
initially the image of the brand, due to two main
factors: rumors of the exploration of personnel,
even more delicate when it comes to child
exploitation, and a large amount of counterfeiting
of its products. On the other hand, the competition,
with a strong growth in its production and image,
in addition to great market volatility due to factors
such as the recent pandemic
INNOVATIVE IDEAS
-Have a fixed point of manufacture in the main capitals of the countries in which they sell more of their
products, this in order that their exchange rates do not vary so much and thus achieve greater
economic and social stability which will also contribute to provide permanent and lasting employment
to all its workers to have better quality of life.
Nike should continue to set an example as an innovative
company that evolves at the same pace as technology and adapts to the tastes and needs of consumers.
tastes and needs of consumers.
INNOVATIVE IDEAS
-Nike is strong in its support of environmentally friendly practices in manufacturing and in its products. Therefore, to carry out
a campaign where athletes in major events such as the Olympics or World Cups, Nike provides hydration that comes from pure
sources and its container is not plastic, but PLA corn starch, as this is a biodegradable container, and through the teams or
outstanding competitors, a discount can be given on the product for the purchase value of water in these containers.
Adopt this measure in agreement with water marketing companies so that it is maintained over time and is an environmentally
sustainable and profitable campaign for both companies, thus increasing green marketing and future generations will not be
affected by pollution of the present.
Product analysis
Nike air force 1 crater
Nike air force 1 crater
• It's a redesign of a classic AF- 1 with at least 20% recycled material by weight, making the
Air Force 1 Crater a shoe for the modern era.The translucent toe reveals the vibrant mix of
materials underneath to deliver a bold and unique style. Nike Grind rubber on the outsole
maintains the iconic star pattern on the toe, and the unique Crater foam midsole stains take
this original shoe into the future.
• This comes in three colorways for people's tastes, which are : orange, Green and white.
 PRODUCT TYPOLOGY

CONVENIENCIE PRODUCT:
Consumers are looking for
CONSUMER quality and comfort in tennis
shoes, the nike air force 1

PRODUCT crater meets these two

characteristics, in addition to
its ecological intention
PRODUCT LEVELS
1-CORE BENEFIT:
Why does a consumer buy a tennis ? Because they want comfort when
walking and doing his physical activities, he also wants quality to last
for a long time and also to contribute to the environment due to its
materials
 2-BASIC PRODUCT:

Characteristics of the product: The product has the same design as a classic AF 1 in terms of its shape, this product has 20% less
material contamienente throughout the product, has different textures in its Swoosh, rubber shoe and the rest of the tennis as such.
The product is sold in three different colors, which are light green, white and orange.Tennis when delivered comes in a box that
allows the product does not suffer damage, retains its shape and quality.
 3- EXPECTED
PRODUCT:
consumers expect durability and
q u a l i t y, g o o d d e s i g n a n d p a c k a g i n g ,
product availability in different sizes,
a good experience whether the
purchase is made online or in person,
a n d l a s t l y, f a s t s e r v i c e a n d d e l i v e r y
of the product
 4-Productio increased:
• In this case the increased product that nike offers us, are the following; it is
characterized by its excellent service when arriving at the store, people working in
this company are characterized by being warm, honest, helpful and friendly people.

• The people who work in this company are characterized by being warm, honest,
helpful and friendly people, in order to ensure that each customer achieves what
would be a unique experience with the brand.

• customers to achieve what would be a unique experience with the brand. In addition
to this, Nike offers us what would be excellent ways to motivate their customers to
buy as they are

• Nike also offers an above-market compensation package, attractive benefits that

consolidate your future, and a great way to motivate customers to buy.

• Nike wanting to stand out comes with a plus for its buyers and for people who are
not part of this population, as they can make use of what would be to track their
health, training, access personalized programs, get priority access to sporting events
and more through the application. And with more valuable customer data and
insights through Nike Plus.
5-POTENTIAL PRODUCT:
Nike has its own experiences in terms of footwear, such as the
nike f1, for example, since every year the brand releases an
improvement of these, a collaboration with an artist or a
recognized person.
nike f1 shoes, for example, because every year the brand
makes an improvement of these shoes, a collaboration with an
artist or a recognized person to create original and
representative designs.
the creation of original and representative designs, in addition
to this more and more is the percentage of its ecological
materials.