Nike SWOT and PESTLE Analysis

ID : 5286353| Feb 2023| 21 pages

COMPANY PROFILE -Nike

Business Sector :Sports Goods

Operating Geography :North America, United States, Global

About Nike :

Nike, Inc. is an American multinational corporation that was founded in the year 1964 as blue-ribbon sports by Bill Bowerman and Phil Knight, went on to become the world’s largest manufacturer of sport shoes, apparels and accessories. It is headquartered in Washington County, Oregon, U.S and the retail stores are named as Niketown. Nike's core business model is the design, development, production, and global marketing and sales of footwear, apparel, equipment, accessories, and services. Nike is the largest seller of athletic footwear and apparel in the world. NIKE Brand offers its products mainly in six categories viz., Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Training and Sportswear. The company sells its goods through NIKE-owned retail stores and digital platforms. The company also markets products designed for recreational uses such as American football, baseball, cricket, lacrosse, skateboarding, tennis, volleyball, wrestling, walking, and outdoor activities. Nike's key success factors are its impeccable efforts in research, design, technical innovation, and development. As of early 2023, the company has 79,100 employees worldwide.

Nike's unique selling proposition or USP lies in being the world's largest manufacturer and seller of athletic shoes and apparels. Nike Inc.’s mission statement on its official website reads “Our mission is what drives us to do everything possible to expand human potential. We do that by creating groundbreaking sport innovations, by making our products more sustainably, by building a creative and diverse global team and by making a positive impact in communities where we live and work.” The Company strives “To bring inspiration and innovation to every athlete in the world.”

Nike Revenue :

$46,710 million – FY ending 31st May 2022
$44,538 million – FY ending 31st May 2021

Competitive Analysis of Nike

SWOT

PESTLE

Titled after the Greek goddess of victory, Nike's foremost purpose is to provide athletes with outstanding commodities that boost their sports performance. Nike is the largest sports footwear, apparels, and equipment company in the world which endeavors to design products that help to improve athletic performance, lessen injury and maximize comfort. Following is the analysis of all the pertinent internal and external strategic factors of Nike that contribute to the trajectory growth of the company. The SWOT Analysis of Nike Inc. illustrates the company's key strengths and opportunities from its external environment that can be consolidated to further strengthen the company. The report also manifests intelligence on Nike's internal weaknesses and external threats that can cripple its growth.
World's No.1 and largest shoemaker, innovative and diversified product portfolio, strong core and side brands, loyal and large customer base, global presence, strong R&D and technical innovations, low manufacturing cost, influencing marketing strategies, etc., are just a handful of the several strengths of Nike.
These factors also serve as core competencies to Nike and lend it a competitive advantage. Despite all the quintessential strengths of Nike, the company faces trouble from some of its inherent weakness. Nike has always been targeted for labor issues like child labor, low wages, in-equal pay on a gender basis, toxic work environment, sexual harassment, etc. These internal weaknesses have damaged the brand reputation. Though Nike's merchandises are mainly designed for an athletic use a considerable percentage of the products are worn for informal or leisure purposes. This grants the company a great opportunity to target audiences who utilize Nike's products not only for sports purpose but also as a fashion trend. The athletic footwear, apparel, and equipment industry, as a whole, is extremely competitive on a worldwide basis; therefore, Nike faces stringent competition threat from its top rivals like Adidas, Under Armour, Puma, etc. Another major threat Nike encounters from the counterfeit products that extensively affect the revenue and reliability of the brand.
The SWOT analysis for Nike is presented below in a nutshell followed by the detailed analysis:

Strengths	Weaknesses
1. Presence in wide geographical area 2. Follows a “Make to stock” model focusing on fast-track availability of product for customers from available stocks 3. Highly innovative products and strong research and development base 4. Recognized three times as “top 100 companies to work for” 5. Branding product through top athletes of the world. 6. Increase learnings and speed of developing innovative products through NSRL 7. Relentlessly focusing on recycling material and increasing sustainability	1. Price sensitivity of the retail market 2. SNKRS app pushing away customers 3. Dependence on concentrated source base of contract manufacturers to supply footwear products
Opportunities	Threats
1. Rise in Health and Fitness Trend 2. Growth Opportunities in Asia 3. E-commerce to be a major growth driver 4. Expansion scope as a fashion brand and other products 5. Digital initiative to push deeper connection 6. Partnership with D Sports and Pokemon Go’s maker Niantic will increase customer base	1. Highly dependent on sports segment 2. Intense competition from global top players impacting profit margins 3. Foreign exchange and market risk 4. Inventory availability issues due to lockdowns in Vietnam and Indonesia

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Detailed SWOT Analysis of Nike

Strength

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Weakness

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Opportunity

1. Rise in health and fitness trend: As health trends increase all over the world, a huge new market is opening up for sports apparel and footwear. From yoga moms to athletes, everyone is trying to keep fit. According to the Global Industry Analyst, global sports and fitness clothing market is expected to reach $221.3 billion by 2026. Prospects for growth are stronger, as sports participation for youths and health and fitness trends for adults and is going global.

2. Growth opportunities in Asia: Markets in Latin America and Asia, where athletic-wear penetration is low compared to the US, have room to grow and could deliver high gains. China will be a key market to monitor. The Chinese government emphasized support for youth athletic participation, development of sports infrastructure and business. It plans to build 60% more sports facilities by 2025 and encourage 500 million citizens to exercise and play sports regularly. The government wants to integrate soccer or football into school curriculums to develop talent. Sports pastimes, like hiking and skiing, which were unheard of a generation earlier, have become common and easily accessible. Consumers who enjoy such activities, usually have the means to buy the gear and clothes that go with them.

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Threat

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The Sports apparel industry caters the necessary apparel, footwear, and accessories required during sports and workout sessions. Apart from this basic objective, the industry is further designing apparel and footwear suitable for the athleisure purpose. The most trending athleisure apparel and footwear includes sneakers, tights, shorts, yoga pants, leggings, etc. Besides athletes, sportswear is becoming a more considerable part of people's everyday wardrobes. Due to these trends, the industry has observed extensive growth surges in the past few years and is anticipated to grow exponentially even in the future.
The PESTLE / STEEPL / PEST analysis report is a structure to explore the impact of external factors on the macro-environment that influences business of The Nike company. The PESTLE analysis is a useful technique to study the impact of influencers on Nike's business model and business case study. The PESTLE analysis addresses all the pertinent external factors particularly political, economic, social, technological, legal and environmental, their consequence on the sports apparel and footwear industry and extensively on Nike.
The unpredictable global and local, economic and political conditions have perpetually affected the international trade of many manufacturing and service sectors, and the sports footwear and apparel industries, as a whole, are not immune. Nike's international operations are subjected to various political and economic risks like foreign and domestic trade policies, accessions in import duties, anti-dumping measures, safety measures, political instability and terrorism. Nike also faced legal issues when lawsuits were filled by female employees on the company for: violating equal pay act, sexual harassment and misconduct in work environment.
Athletic wear and athleisure clothing are gaining popularity due to increasing health consciousness, the importance given to physical well being, and various other social and demographic factors.
Technical innovation through intensive research and development have added to the success of Nike. Its footwear and apparels are designed to provide maximum comfort and safety to the athletes and improve their performance.
To minimize environmental impact, Nike is focused on reducing its carbon footprints, recycling, reducing water consumption, etc. Nike Grind is a 25 year old and successful initiative of Nike to recycle its surplus production materials and athletic footwear which are further incorporated into new Nike footwear, apparels and even outdoor play surfaces.
The PESTLE / STEEPL / PEST analysis for Nike is presented below in a nutshell followed by the detailed analysis:

Political	Economic
1. Potential trade war due to political differences 2. Closure of business in Russia due to the war	1. Impact of currency fluctuations 2. Rising inflation is impacting the demand of sneakers
Social	Technological
1. Tapping into swimwear to expand the modest wear market 2. Increase in trends such as body fitness and yoga amongst millennials 3. Growing trend of customisation in footwear industry	1. Popularity of digital devices such as smartwatches and wearables 2. Digital innovation and automated solutions to redefine customer experience 3. Leveraging robotics to extend the life of products
Legal	Environmental
1. Strong compliance standards for suppliers 2. Avoiding paying any federal income tax for past three years	1. Managing environmental impact of operations 2. Developing sustainable products

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Detailed Pestle Analysis of Nike

Political

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Economic

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Social

1. Tapping into swimwear to expand the modest-wear market: The modest swimwear market is predicted to contribute to the expansion of the worldwide swimwear market, which GlobeNewswire estimates will reach $24.6 billion by 2030. Nike and Adidas, two of the biggest names in sportswear, are attempting to get into the modest swimwear industry as demand for modest swimwear remains high. According to Euromonitor, Nike has the largest sportswear market share in the Middle East and Africa. Nike's primary markets for modestwear include the United Arab Emirates, South East Asia, and Canada (which has a growing modestwear market). In 2019, Nike produced a swimsuit line with a hijab aimed towards Muslim women who wear the headscarf. The Nike Victory Swim Collection includes a full-coverage sun-protective swimsuit, a swim hijab, a tunic top, leggings, and a swim skirt. The swim hijab is constructed of a lightweight, breathable material that dries fast and protects against UV rays. The Nike Victory Swim Collection was introduced as part of the company's efforts to promote diversity and inclusiveness in sportswear. Several people applauded the decision for breaking down boundaries and making sportswear more inclusive.

The remaining section under "Social" is available only in the 'Complete Report' on purchase.

Technological

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Legal

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Environmental

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Major Competitors :

Major Brands :

Nike
Air Jordan
Converse

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This report contains the table contents only. In case you need the complete report please purchase using the buy options displayed.

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SWOT & PESTLE (combined)
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WHY BUY THIS REPORT?

DELIVERY AND FORMAT

WHY CHOOSE US?

1. The SWOT and PESTEL analysis report of Nike Inc. presents the complex internal and external factors affecting Nike's brand, its operations, business model, market strategy and growth trajectory.
2. The SWOT analysis evaluates the strengths and opportunities that Nike holds and how it strategizes itself to succeed its weaknesses and threats in its operating external environment
3. The report confers intelligence on the external analysis, comprising the opportunities - low hanging fruits which can be harvested to achieve further growth and expansion and some pertinent threats that threaten to hinder the growth of the company
4. The Report covers compelling initiatives that were taken by Nike, to stay ahead of its competitors and adversaries and attain a competitive edge in the industry.
5. The PESTLE analysis of the Sports Apparel and Accessories Industry helps to distinguish the factors that compel and restrain the retail market.
6. The PESTLE/ PESTEL/ STEEPL Analysis for in-depth analysis of all external factors specifically, political, economic, social, technological, legal and environmental, highlighting their consequence on Nike's business model, marketing and growth strategy
7. Abstract information on Nike's business diversification, deriving its key business segments and highlighting its major competitors
8. A concise window into of Nike’s headquarters, turnover, revenue, and subsidiaries. This is followed by a comprehensive company analysis to obtain perspicacity into company information, company profile, business model, business plans and marketing strategy
9. Analysis of Nike's market position, mergers and acquisitions, strategic partnerships and alliances, that the company endorsed, and the business aims or synergies that were achieved with them
10. Interpretation of Nikes USP or unique selling proposition, mission statement, and vision statement. With a peek into Nike's key success factors, performance indicators, core values, value propositions, and core competencies.
11. Discussion on Nike's business model, extending to the analysis of key business segments and business case study

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Nike SWOT and PESTLE Analysis

COMPANY PROFILE -Nike

Business Sector :Sports Goods

Operating Geography :North America, United States, Global

About Nike :

Nike Revenue :

Competitive Analysis of Nike

Detailed SWOT Analysis of Nike

Strength

Weakness

Opportunity

Threat

Detailed Pestle Analysis of Nike

Political

Economic

Social

Technological

Legal

Environmental

Major Competitors :

Major Brands :

WHY BUY THIS REPORT?

TABLE OF CONTENTS

DELIVERY AND FORMAT

WHY CHOOSE US?

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