nike swot analysis 2020

Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. However, while the company is trying to get rid of the counterfeit problem by expanding its reach through direct to consumer channels, counterfeits still remain a difficulty for the brand. Nike is headquartered in Beaverton, Oregon, USA. Also Read: SWOT Analysis Weaknesses Explained with Examples. Coronavirus severely hurt economic activity across several markets and various industries, including travel and fashion. ... Adidas used to be the main apparel sponsor for the NBA, however, it lost the contract to Nike. Superior product quality has led to higher demand and improved sales and profitability. SWOT Analysis of Nike in 2020 | Nike SWOT Nike is an American multinational company that involves itself in the plan, expansion, creation, and marketing and sales at the global level of various products like footwear, apparel, equipment, accessories, and services. Other sports shoes and apparel brands are also investing heavily in marketing, product design, quality, and innovation. Nike SWOT Introduction A SWOT Analysis is probably the simplest ways for administrators and corporate authorities to envision every one of the variables that could assume a job in the achievement or defeat of their organization. Often it is also cited as one of the most critical barriers to Nike’s faster growth. It also aims to examine the opportunities the company should explore and the threats it should keep an eye on. The effective tax rate in FY 2018 was 55.3% which was 13.2% in the year 2017. Nike is a very competitive organization. Its market-leading position and global dominance are backed by the strong brand equity the company has built. Gupta understands how to create and implement business strategies. 365 Careers 68,713 views. Nike has been a customer centric brand since its beginning and despite the rise in competition from other brands, it is the most trusted shoe brand. Together, the three countries accounted for 27%, 22%, and 10% of Nike’s apparel production during the year. Sport Sandal Market (Impact Of Covid-19) Segmentation, Swot Analysis, Opportunities And Forecast To 2025 | Nike, Adidas, Clarks. Roughly every four years, Nike throws a World’s Fair for sport tech, showcasing the brand’s latest innovations in gear ahead of the summer Olympic Games. Most of Nike’s apparel production took place in China, Vietnam, and Thailand. SWOT analysis of Nike. I am glad you liked our analysis. I am guessing the presentation is for school? Apart from its great quality products, Nike is known for its excellent marketing strategy and techniques that have helped the brand gain a distinct position and identity in the global market. The company enjoys the strongest margins in the sports shoes industry. Nike has leveraged the power of marketing quite well. Words 1144 (4 pages) Views 381. The abbreviation represents strengths, Weaknesses, Opportunities and Threats. Technological innovation is an area Nike must take very seriously. The company generates most of its revenue from the United States. Nike’s DTC revenue increased to $12.9 billion in 2020 from $12.3 billion in 2019. Last Updated 10 Aug 2020. The gross profit of the company grew to $17.5 billion in 2019 from $15.95 billion in 2018. Adidas is known most prominently for its range of Shoes, but the brand is also a manufacturer for clothing and accessories. Technology has remained a key driver of change in the sports shoe and apparel industry and even more so in the last five years. 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. Its net revenue grew from $36.4 billion in 2018 to $39.1 billion in 2019. https://bstrategyhub.com/swot-analysis-of-nike-nike-swot-analysis 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. He is passionate about analyzing and writing about businesses. Opportunities for Thailand. Nike is headquartered in Beaverton, Oregon, USA. This would help the company improve its employees’ performance and organizational productivity. Thanks Taku, I am glad you liked our analysis. Its gross margin grew 90 basis points mainly due to higher full-price average selling price (ASP), on a wholesale equivalent basis, favorable changes in foreign currency exchange rates and growth in NIKE Direct. Now, Nike is a digital-first company that is using digital technology to serve and engage its customers worldwide. At the Atlanta Olympics, Reebok went to the outlay of sponsoring the games. Most of the Nike brand footwear production took place in Vietnam, China, and Indonesia. The result was that Nike’s operating expenses grew and so did its profits. However, the decline can be attributed largely to the fall in sales in the fourth quarter due to the pandemic. The company’s supplier management practices have also played an important role in helping it manage product quality better than its rivals. Nike’s sales from direct to consumer channels have increased in 2020. Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. As Nike’s focus on customer experience has grown, the company is providing its customers with an omnichannel experience. Nike, Inc. is an American multinational corporation headquartered in Oregon, USA. Growth in operating expenses hurts revenue as well as gross profits. Their dependence on digital technology has also grown. Nike has an excellent supply chain management strategy whose focus is on quality as well as long term and strong relationships with the suppliers. Samsung SWOT Analysis 2020 | SWOT Analysis of Samsung, Disney SWOT analysis 2019 | SWOT Analysis of Disney, Amazon SWOT 2020 | SWOT analysis of Amazon, Nestle SWOT Analysis 2019 | SWOT Analysis of Nestle. The interest payments on its debt are also well covered by EBIT. It is also using digital technology heavily to manage suppliers throughout the world which are located mainly in the Asian nations. It is why the company needs to invest in managing its female staff better and managing diversity in its workforce well. Table of contents. The company generated $16.1 billion in FY 2019 from the United States market and in 2020, $14.6 billion. The entire controversy has significantly affected the company’s image. 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. We respect your privacy. Nike is a very competitive organization. Save my name, email, and website in this browser for the next time I comment. Nike’s strengths are the primary drivers of the company’s growth and global leadership in the sports shoes, apparel and equipment market. The pandemic has brought a major and long lasting impact in terms of consumer behavior and digital technology will become the primary driver of growth for Nike and its rivals. Apart from that, Nike should also place a higher focus on employee satisfaction. The company is enjoying strong financial performance over the last several years driven by its focus on product quality, innovation, sustainability and customer experience. Lack of Diversification: Nike’s over-dependence on sporting apparel or lack of diversification is a major weakness. Join mobilsocial social network mobilsocial This article source is re:Jerusalem Article is Global Basketball Uniform Market SWOT Analysis 2020 | Nike … Thanks. While the strategy is great and welcomed, it contradicts Nike’s strategy that favors innovation over sustainability. The company is providing its customers with an omnichannel experience and investing more in technology. The CEO ensures that Nike will help to contribute. This component of the SWOT Analysis deals with the internal strategic factors that support business development and competitiveness. The SWOT analysis of Nike discusses the strengths, weaknesses, opportunities and threats of the leading footwear brand - Nike. It designs and sells shoes for a variety of sports including baseball, golf, cheerleading, volleyball, tennis and football. 3.3 Porter’s & Five Forces Analysis and SWOT Analysis. However, the role of technology in Nike’s ecosystem has grown exponentially in the latest years as the company has moved to offer an omnichannel shopping experience to its customers. Nike is the world’s no. Nike’s core market is the US, which accounts for its highest sales and revenue. Did you find this article interesting? 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. Economic fluctuations in the global market can also hurt Nike’s sales and profitability. Nike SWOT analysis paper. Legal and regulatory pressures are also slowing the growth rate of Nike. Roughly every four years, Nike throws a World’s Fair for sport tech, showcasing the brand’s latest innovations in gear ahead of the summer Olympic Games. It has been able to successfully position itself as the brand for athletes. Nike SWOT Analysis Presentation. Last Updated 10 Aug 2020. The article was enlightening. The company specializes in athletic wear, providing footwear, apparel, athletic equipment, and accessories. Coronavirus has brought new challenges before Nike and the company has experienced a decline in its sales and profitability. Share your thoughts and experiences in the comments section below. Once the pandemic’s impact is over, these economies could generate substantial revenue for Nike if it can grow its penetration of these markets. According to the statistical analysis by macrotrends.com, the annual revenue of Nike has declined by approximately 6.26% in 2020 compared to the previous years. V arious exa mples, for the impressive work of Nike on R&D. Nike’s primary goal is to supply athletes with exceptional products and wearable that aids them in better sports performance. Weakness of NIKE in SWOT Analysis. Nike’s culture is not as outstanding as several other leading brands in various industries. All rights reserved | contact@bstrategyhub.com | Logo designed by Looka. It also aims to examine the opportunities the company should explore and the threats it should keep an eye on. Good read. From 2016 to 2020, Nike’s net revenue has grown by around $5 billion. 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 fiscal 2020 proved to be successful for Nike. Based on its performance over the last five years, it is not difficult to infer that shaking Nike from its leadership position is very difficult for the rivals. contact: support@notesmatic.com, admin@notesmatic.com, Easy Ways Businesses Can Incorporate Sustainability, What You Need To Know About Marketing for Your New Business. The US market accounted for 39% of its total revenues in 2020 compared to 41% in 2019. Nike SWOT Analysis Presentation. As a sports shoes and apparel brand, Nike enjoys the strongest popularity of all the brands in the industry. I need this info for citations. Customers’ expectations and preferences have changed fast in recent years. Sexual Harassment: Former female employees also pointed out that sexual harassment and misconduct was very common in the company. Learn more about Amazon in this SWOT analysis: SWOT ANALYSIS OF AMAZON 2020 STRENGTHS: Strong brand equity: Amazon is the undisputed leader in the e-commerce sector. 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. Read more about Nike in this swot analysis analyzing its key strengths and  weaknesses in 2020. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. October 23, 2020 9 . Apart from its website and app, it has also brought other fitness apps that engage Nike fans and customers. Its sales from direct to customer channels have also experienced faster growth in recent years. Before we begin in-depth on the SWOT analysis of Adidas, let us understand a bit of the background of the company Adidas. Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. The company has experienced growth in its revenue from direct to customer sales channels. Apart from bringing products that fit into their customers’ lifestyles, Nike has also altered its sales and marketing strategy to suit its customers’ tastes. The entire. Nike is the market leading brand of sports shoes and apparel. In 2020, Nike’s revenue from direct to consumer sales improved as compared to the previous year. Still, DTC sales account for just around one-third of its net revenues in 2020. Corporation, Adidas, ASICS, Lululemon, Anta, Under Armour, and New Balance are some of the major competitors of Nike. These benefits were partially offset by higher production costs. Its faster and robust growth is also a result of the heavy focus on marketing. The Washington Post. Contradicting Strategies: Nike pledged to shift all its facilities to 100% renewable energy with net-zero carbon emissions under the “Move to Zero” scheme. October 23, 2020 8 . Its focus on customer experience has only increased with time resulting in growth in brand equity and profitability for the brand. Nike is a highly competitive brand just as it is highly customer centric. Through this SWOT analysis of Nike, you will be able to understand the business model of the brand. He graduated with a Hons. It is known as one of the best marketers in the entire industry. SWOT ANALYSIS: Strengths. Global GOLF CLUBS Market Analysis by Regions. The global growth and popularity of the company is also driven by its focus on product quality. The abbreviation represents strengths, Weaknesses, Opportunities and Threats. Nike in 2020: Strengths, Weaknesses, Opportunities, Threats February 13, 2020 Roughly every four years, Nike throws a World’s Fair for sport tech, showcasing the brand’s latest innovations in gear ahead of the summer Olympic Games. Category Swot Analysis. Another major threat before Nike is that of counterfeits. Press Release Zinc Battery Market SWOT Analysis by Key Players : Panasonic, PowerGenix, Primus Power Published: Dec. 16, 2020 at 12:28 p.m. Another area where investment can be highly profitable for Nike is its HRM strategy and organizational culture. Unequal Wealth Gap. The product was first launched for legendary basketball player Michael Jordan in 1984. The following strengths are the most notable in the case of Nike Inc.: 1. Further, the product was introduced to common customers in late 1980 (Nike Air Jordan, 2018). October 13, 2020 3 . There are several types of legal threats and compliance in all areas including labor and product quality is essential for Nike to avoid hefty fines. 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. However, the company has also faced legal challenges related to the treatment of its employees. Nike has grown exponentially in the last decade. While Nike has grown its push towards direct to consumer sales, it has depended traditionally on retailers and wholesalers to achieve sales globally. The SWOT analysis of Adidas differentiates the brand’s strengths, weaknesses, opportunities, and threats that would be useful for the company to grow. ... Bata, Reebok, Nike, Adidas, etc. October 19, 2020 9 . Business Strategy Hub is your complete guide to business strategies. Nike’s marketing expenses in 2020 remained $3.6 billion. Phil Knight (Founder and CEO) is frequently quoted as saying that ‘Business is war without bullets.’ Nike has a healthy aversion of is competitors. 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. While organizational culture is a critical pillar of organizational success, this is an area where Nike has been unable to achieve significant progress. 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