NIK EXTERNAL FACTOR EVALUATION 2014

(EFE MATRIX)
OPPORTUNITIES WEIGHTAGE RATING WEIGHTED
AVERAGE
1. Nike is often considered as fashion brand 0.10 4 0.4
2. Revenue maximization by focusing on
apparel and equipments
0.10 4 0.6
3. Investing in more wearable technology 0.10 4 0.6
4. Expanding business in other markets with
high disposable incomes
0.10 4 0.4
5. Product diversification 0.05 4 0.2
6. Investment in employee development 0.05 4 0.2
7. Growing segment of women athletes 0.10 4 0.4
THREATS

1. Increased competition 0.10 1 0.1
2. Increased awareness of human rights 0.05 2 0.1
3. Increased raw material prices 0.05 1 0.05
4. Consumer price sensitivity 0.10 1 0.1
5. Currency fluctuations 0.10 1 0.1
TOTAL
1 3.25

ANALYSIS:
The weighted average score of 3.25 reflects that NIKE Inc. enjoys a strong position with respect
to its external environment.