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Nike SWOT Analysis We can use SWOT analysis to summarise the condition of NIKE and to come up with the

strategy to improve the NIKE share in the market. Strengths 1.Strong Brand NIKE gained brand equity as a result of its efforts to create strong brands over the years, which helps in generating high sales and profits. The company is one of the largest sellers of athletic footwear and athletic apparel globally. The company's brand, NIKE and its symbol - swoosh are widely recognized across the world. The global exposure helped Nike up its brand value by up 10% in 2011, supported by widen awareness in China, India and other fast-growing markets. According to BRANDZ Top 100 Most valuable global brands 2011, Nikes brand value stood at $13,917m. In 2011, Corporate Responsibility Magazine (CRO Magazine) featured Nike on 12th annual 100 Best Corporate Citizens List. Also, recently the Ethisphere Institute named Nike as one of the Worlds Most Ethical Companies for 2011 2.No factories Nike has no factories; rather it uses contract factories to get the work done which makes it quite a lean organization. It has contracts with above 705 shops globally in about 46 different countries. Nike has a strong manufacturing base worldwide, which helps in meeting its customers' needs effectively and efficiently. The company holds manufacturing agreements with factories in Argentina, Brazil, India, and Mexico to manufacture and sell footwear primarily within those countries. The companys NIKE brand apparel is also manufactured in 33 countries by independent contract manufacturers. Its apparel manufacturing takes place in the countries including China, Thailand, Indonesia, Malaysia, Vietnam, Turkey, Sri Lanka, Cambodia, Taiwan, El Salvador, Mexico, India and Israel. The company incurs low operational costs as all of its footwear is manufactured in countries such as Vietnam, China, Indonesia, Thailand and India. 3.Strong Research and development Nike is quite strong regarding its research and development; quite evident regarding its evolving and innovative product range. Nikes sturdy R&D activities help it in cost reduction and process improvement, quality assurance, and process control. The company focuses on technical innovation in the design of footwear, apparel, and athletic equipment, which help to decrease injury rate, maximize comfort and enhance performance. The R&D activities have been helping it to offer customized products, which have been a major growth driver for the company. Weaknesses 1.Lack of product differentiation There is lack of product differentiation is the eyes of consumers. Therefore though NIKE has large product range at times consumers are not able to differentiate between the products.

2.Low operating margins The retail sector is price sensitive; retailers usually tend to offer a very similar experience to the consumers with another cheaper product, which in return tends to get squeezed as retailers try to pass some of the low price competition pressure onto Nike.This reduces operating margins of NIKE. 3. Accounted for child emplyment This company was also accounted to have practical child employment in Pakistan and Cambodia to produce footballs. Anti-globalization groups due to its unruly and exploited manner that was quite a disaster for its reputation positioned. Opportunities 1.Positive Outlook for Sportswear Market Being a retailer of athletic footwear and apparel, Nike has a huge potential to cash in on the favorable consumer trend. With the rising popularity of athletic footwear, the global footwear market has been witnessing an upward trend over the past few years. According to industry estimates, the global market for sports footwear is expected to grow at a CAGR of 3.6% to reach $153.52 billion in 2012. In particular, the active sportswear market is expected to grow to $57.78 billion in 2012 from $53.87 billion in 2009 and the athletic footwear sales are expected to reach $95.74 billion in 2012. With Nikes strong market presence and brand equity, the company could expect good future growth. 2.Double-Digit Growth for Online Shopping The growing trend of online shopping could promote Nikes business as it promotes ecommerce with its online facilities. The key factors that transformed the retail industry include growing Internet penetration and rising familiarity of online shopping. Now, more customers prefer to shop online to save the time consumed in journey and long queues for billing. The company could take advantage of its NIKEiD, which allows its customers to choose their own footwear from wide range of models. 3.Emerging Markets Providing Ladder for Growth Nike focuses on organic growth in its existing markets while exploring opportunities for expansion in new global markets. Asia leads the global recovery and the company could benefit from the increasing consumer spending in the emerging countries such as China and India. According to IMF, emerging markets even in the turbulent global environment are estimated to grow, while most of the advanced economies are estimated to show a sluggish growth. The GDP of China is expected to grow at 9.5% in 2012, primarily due to the increase in the domestic demand. China's retail market size is $2.1 trillion in 2010 and the retail growth in the country remains strong at 15% during 20092010. The Indian economy is expected to reach 8.8 % in 2012, contributed by positive macroeconomic indicators. Organized retail accounts for 75% of the countrys estimated $435 billion retail market, which is expected to reach 20% by 2020. In Asia, another emerging market is Indonesia, the world's fourth largest population with strong underlying economic growth. The retail sales in the country are expected to grow to $223 billion by 2015 from $134 billion in 2011. Factors such as growing affluence, increasing brand-consciousness and low penetration of organized retailers in

these countries make them attractive destinations for global retailers. According to A.T. Kearneys Global Retail Development Index, India is the most attractive emerging market followed by Russia, China and United Arab Emirates. South America has also made a big jump in the economic recovery, with an expected GDP growth of 5% in Brazil over the next few years. With their growing inclination towards branded products, retailers such as Nike could employ strategies to cash in on these markets. Threats Volatile Macro Environment Nike could face tough times due to global economic slowdown as it strongly hits consumer spending. The Eurozone crisis and US debt crisis with overall slowdown in the world economy can affect the sales of NIKE. The current uncertainties in economic conditions influence international capital market and make it difficult for the company to plan budgets and forecasting. Intense Competitive Landscape Nikes business could be impacted by the growing competition in the marketplace. With rising competition, the industry has been realizing consolidation wherein the smaller entities are being acquired by or merged with major players. The influx of private labels in the industry is also on the rise. To survive and succeed in a stiff competitive environment, it becomes very important for the company to distinguish its product and service offerings through a clear and unique value proposition. The company faces firm competition from players such as Adidas Group, PUMA AG Rudolf Dassler Sport, Polo Ralph Lauren, Fila USA, Inc., Reebok International Ltd. and Callaway Golf Company. Some of these players enjoy a strong financial and marketing arm than the company. Rising competition may also force the company to reduce its prices, which could affect its profit margins adversely. Counterfeit Goods Market Nikes performance will be affected by the rising influx of counterfeited products in the market, especially in the emerging countries. The growing market for counterfeit goods has been on rise across industries and is affecting the sales as well as the image of the established brands. The US Chamber of Commerce estimates a cost of $500-600 billion a year on the global economy due to counterfeiting and piracy activities. It accounts for about 5-7% of the world trade. In US alone, these activities result in a yearly sales loss of about $200-250 billion. The consumers who are not brand loyal and are price sensitive are attracted to counterfeit goods market to a great extent.

What can NIKE do? Start Sports Training Academies in Association with State Govt. Like the Mumbai School Sports Association. Sponsor National Level Events like Ranji Trophy

Associate with IPL, Hockey League to Increase Brand Visibility Promote Athletics in Tier 2 and 3 Cities. Promote your Products through School Coaches Promote Competitive Spirit in School Going Kids Bring SPARQ to India

SPARQ SPARQ stands for Speed, Power, Agility, Reaction and Quickness Nike SPARQ is the name used under a marketing relationship between Nike and SPARQ, under which Nike sells a line of cross training footwear, apparel and equipment in the USA.[1] SPARQ was started in 2004 to create a standardized test for athleticism called the SPARQ Rating and to sell training equipment and methods to help improve athleticism focused on the high schoolathlete (an "SAT" for athletes). SPARQ's business is focused on the rating system and selling advanced functional fitness training equipment. SPARQ does not own any training facilities or have any one specific training method. They provide training videos and tips from a number of top speed, strength and conditioning coaches on the SPARQ website. SPARQ developed a SPARQ Training Network that is made up of over 750 SPARQ Certified Trainers located throughout the country who are both independent coaches and trainers at chain performance centers. Some of the more well-known independent facilities include TopSpeed Strength & Conditioning in Kansas City, the Michael Johnson Performance Center in Dallas and Athletic Evolution in Massachusetts. National training companies include CATZ (the Competitive Athlete Training Zone) and Velocity Sports Performance. SPARQ has formed a broad, nonexclusive partnership with Velocity Sports Performance to provide certified SPARQ Testing at all of their centers.