Apart from that, Nike’s debt is … The biggest strength of Nike is that it is an extremely competitive organization with its approach of “Just Do It” slogan for its brand epitomizing its attitude towards business. S.K. Company: Nike CEO: John Donahoe Year founded: 1964 Headquarter: Beaverton, Oregon, USA Number of Employees (FY2019): 76,700 Type: Public Ticker Symbol: NKE Market Cap (Oct 2020): $198 Billion Annual Revenue (FY2020): $37.4 Billion Profit | Net income (FY2020): $2.54 Billion, Products & Services: Athlete wear | Apparel | Sports equipment | Leisure footwear | Accessories Competitors: Adidas | Puma | Anta | New Balance | Under Armour | Lululemon | ASICS | V. F. Corporation, Nike swoosh logo is inspired by the Greek goddess of victory, Nike. The following strengths are the most notable in the case of Nike Inc.: 1. Join mobilsocial social network mobilsocial This article source is re:Jerusalem Article is Global Basketball Uniform Market SWOT Analysis 2020 | Nike … Apart from its website and app, it has also brought other fitness apps that engage Nike fans and customers. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. It was found by Bill Bowerman and Phil Knight in the year 1964. He graduated with a Hons. It enjoys one of the most impressive profit margins in the entire shoe industry. Global GOLF CLUBS Market Analysis by Regions. However, in fiscal 2020, while Covid-19 has hurt Nike’s business, the company has managed to control the overall impact to a large extent. This creates the perception that Nike is not committed to addressing climate change and its pledge is just a marketing stunt. Lot of clarity in the format – the SWOT is explained. There’re approximately 75400 people are working for the company by the end of 2020. Here’s why. 4.1 Company Profiles. Nike SWOT Analysis Presentation. All of them accounted for more than 10% of the company’s footwear production during the year. Read more about Nike in this swot analysis analyzing its key strengths and weaknesses in 2020. Nike dropped Amazon in 2019, mainly because of the problem of counterfeits on the platform. 365 Careers 68,713 views. Thanks Taku, I am glad you liked our analysis. 2. The company specializes in athletic wear, providing footwear, apparel, athletic equipment, and accessories. As of 2020, Nike is one of the leading brands in the lifestyle and retail sector. As Nike’s focus on customer experience has grown, the company is providing its customers with an omnichannel experience. Puma SWOT analysis 2020: Case Study in 4 Steps. Due to the outstanding quality and design of Nike shoes and apparel, Nike products are the favorite of the young customers worldwide. Nike has previously courted a lot of controversies related to supply chain management and its labor force. Economic fluctuations in the global market can also hurt Nike’s sales and profitability. The result was that Nike’s operating expenses grew and so did its profits. The SWOT analysis of Adidas shows the TOWS matrix of one of the strongest sports brand in the world. Not just an excellent revenue growth rate, but the company has also maintained strong profitability. Like most big companies, Nike has a number of strengths. Nike invests heavily in all these areas, and its operating expenses have continued to grow with increased competition in the industry. While organizational culture is a critical pillar of organizational success, this is an area where Nike has been unable to achieve significant progress. Its focus on product design and investment in R&D have also helped it establish itself as a brand obsessed with quality. 112 factories located in 12 countries supplied Nike shoes in 2019. Tell us what you think? Nike’s culture is not as outstanding as several other leading brands in various industries. Nike uses AWS to serve its customers globally. Press Release Zinc Battery Market SWOT Analysis by Key Players : Panasonic, PowerGenix, Primus Power Published: Dec. 16, 2020 at 12:28 p.m. Thanks. While the situation has improved in recent years, its HR related issues are not entirely over, and the company should gain higher employee satisfaction through inclusion and diversity programs. There’re approximately 75400 people are working for the company by the end of 2020. Throughout its history, the company has introduced several market leading technologies that have helped it dominate the sports shoes market. It has been able to successfully position itself as the brand for athletes. Log In. Nike’s popularity rests on the design and quality of its products which are produced by independent suppliers and contractors. Nike air Jordan is one of the most famous and expensive basketball shoes and active clothing line. It also aims to examine the opportunities the company should explore and the threats it should keep an eye on. Check Also. The pandemic’s impact is going to last even after a vaccine has arrived, and Nike will have to consider how the pandemic has changed consumer behavior around the world to manage its sales and profitability successfully. Sexual Harassment: Former female employees also pointed out that sexual harassment and misconduct was very common in the company. Unequal Wealth Gap. SWOT Analysis is a proven management framework which enables a brand like Nike to benchmark its business & performance as compared to the competitors and industry. As the pandemic’s impact has been the strongest on the US market, its impact on Nike’s revenue has been harsh since the US is Nike’s largest market. Nike annual report fy 2020. Today, we’ll study the swot analysis of Nike that how internal factors are impacting the company. “Income before income taxes decreased 40% for fiscal 2020, primarily due to lower revenues and gross margin resulting from the impacts of COVID-19, as well as higher selling and administrative expense. Customers’ expectations and preferences have changed fast in recent years. Revenue is the top line item on an income statement from which all costs and expenses are subtracted to arrive at net income. Moreover, increased competition has, to some extent, affected Nike’s growth rate negatively. Nike is the market leading brand of sports shoes and apparel. Just like the retail industry technology has been driving sweeping changes in the sports shoe industry as well. Nike is the most valuable brand for sports in 2018. In the year 2020, about 41% of Nike’s sales came from the U.S, while the rest of 59% came globally. Other sports shoes and apparel brands are also investing heavily in marketing, product design, quality, and innovation. Category Sports; Show more Show less. While its leading rivals including Adidas are also heavily focusing on quality, Nike’s position and image are distinct from the others. Category Swot Analysis. This SWOT Analysis of Nike Inc. shows that the company has the strengths needed to support its global leadership in the sports footwear, equipment and apparel market. The brand is dependent mainly on one market for the highest portion of its sales and revenues. With a growing focus on optimizing and delivering a superior customer experience, Nike is now more interested in serving its consumers directly than through retailers and wholesalers or other e-commerce channels. It was able to manage strong sales globally with the help of cloud technology and digital sales and distribution channels during the pandemic. It is known as one of the best marketers in the entire industry. However, the decline can be attributed largely to the fall in sales in the fourth quarter due to the pandemic. The growth of Nike can also be attributed to its focus on quality and investment in technologies that have helped it consistently improve the quality of products and customer service. The abbreviation represents strengths, Weaknesses, Opportunities and Threats. Rapid innovation processes 3. The SWOT analysis of Nike discusses the strengths, weaknesses, opportunities and threats of the leading footwear brand - Nike. The company has experienced growth in its revenue from direct to customer sales channels. While the company took several significant steps to resolve the problem, it has not been able to establish a culture that fosters higher inclusion and creativity. The key theme in this article is that Nike is currently at a stage where it has to either diversify into other segments or risk placing all its eggs in one basket. In fiscal 2020, Nike’s gross margin reduced mainly due to the impact of Coronavirus falling to 43.4%. However, due to the success, Nike has gotten the company now provides athleisure wear as well. 1 shoemaker. However, considering the level of competition and how customers’ expectations have changed over the years, it is difficult for Nike to control operating expenses from growing in most areas. Its faster and robust growth is also a result of the heavy focus on marketing. Visit us and find ultimate business news and strategy resources. Often it is also cited as one of the most critical barriers to Nike’s faster growth. Adidas is known most prominently for its range of Shoes, but the brand is also a manufacturer for clothing and accessories. Nike Threats in SWOT Analysis. While its net income also slipped, the company has still performed well during the crisis. Selling and administrative expenses remained higher as a percent of revenues, reflecting investments in data and analytics capabilities, digital commerce platforms and an initial investment in a new enterprise resource planning tool to accelerate Nike’s end-to-end digital transformation. Nike’s DTC revenue increased to $12.9 billion in 2020 from $12.3 billion in 2019. The New York Times conducted interviews with 50 former and present Nike employees to investigate the company culture. Your favorite Nikes might be made from forced labor. Further, the product was introduced to common customers in late 1980 (Nike Air Jordan, 2018). He is passionate about analyzing and writing about businesses. Its focus on customer experience has also played an important role in growing the popularity of the brand. October 23, 2020 8 . The company has achieved strong brand awareness and customer engagement through its unique marketing strategy. Strong brand image 2. October 17, 2020 . ... Adidas used to be the main apparel sponsor for the NBA, however, it lost the contract to Nike. Further, the product was introduced to common customers in late 1980 (Nike Air Jordan, 2018). Table of contents. However, the company’s investment in its own digital sales and distribution channels has paid off during the coronavirus crisis. Nike, despite being the world’s biggest sports shoes and apparel. Nike has an excellent supply chain management strategy whose focus is on quality as well as long term and strong relationships with the suppliers. Growth in operating expenses hurts revenue as well as gross profits. These expenses grew to $3.75 billion in 2019 from $3.58 billion in 2018. – SG. From releasing new product lines to building new brands, to outsourcing, and establishing a global presence alone is an extraordinary achievement. Nike did not. I need this info for citations. Another major benefit for the brand is that it will help Nike reduce its dependence on retailers and distributors. Nike is the world’s no. Its gross margin in 2019 grew to 44.7% from 43.8% in 2018. Essay type Analysis . It pulled out of Amazon’s e-commerce platform in 2019. https://bstrategyhub.com/swot-analysis-of-nike-nike-swot-analysis Nike’s 2019 Income before income taxes increased 11%, as revenue growth and gross margin expansion were partially offset by higher selling and administrative expenses. Luxury Swimwear Market SWOT Analysis 2020 by Players – Nike Inc, Perry Ellis International Inc, Swimwear Anywhere Inc., Adidas AG, Dick’s Sporting Goods December 9, 2020 Exltech Luxury Swimwear Market Overview: The growing competition in the industry is an important reason Nike is spending more than ever on marketing and customer experience, driving operating expenses higher. The pandemic has had a strong negative impact on the sales and revenue of businesses like Nike leading. The net profit of the company has decreased by approximately 37.5% in 2020. Deliveroo Business Model | How Does Deliveroo Make Money? Through this SWOT analysis of Nike, you will be able to understand the business model of the brand. Its sales from direct to customer channels have also experienced faster growth in recent years. October 23, 2020 9 . It was found by, in the communities. Together, the three countries accounted for 49%, 23%, and 21% of Nike brand footwear, respectively. Did you find this article interesting? Nike has decided to become a digital-first company. According to sources, the previous CEO Mark Parker has once accepted that Nike was facing internal challenges related to organizational behavior. This would help the company improve its employees’ performance and organizational productivity. If the crisis discourages sporting events for longer, Nike’s losses can be catastrophic. This has led to superior customer experience and growth in sales from the direct to consumer channels apart from increased customer loyalty. Lack of Diversification: Nike’s over-dependence on sporting apparel or lack of diversification is a major weakness. The SWOT analysis of Adidas differentiates the brand’s strengths, weaknesses, opportunities, and threats that would be useful for the company to grow. Thanks it will help me my upcoming presentation. However, it is also the most trusted brand of sports shoes and apparel because of the premium quality of its products. A few years back, the company was hit with a lawsuit by female employees related to gender pay discrimination. However, the company must address concerns regarding competition, labor practices, imitation and patent protection. One of its core strengths is product quality and also one of the leading factors that differentiates Nike from the other brands. View Nike SWOT.pdf from ECONOMICS MISC at Bayview Secondary School. It designs and sells shoes for a variety of sports including baseball, golf, cheerleading, volleyball, tennis and football. The CEO ensures that Nike will help to contribute. However, the company has taken a very innovative approach to market its brand. Essay type Analysis . Opportunities for Thailand. 4.3 Production, Revenue (2015-2020) 4.4 SWOT Analysis. Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. 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