NIKE SWOT MATRIX 2014

STRENGHTS-S
1. Globally recognized and
number 1 sportswear brand
2. No factories
3. Strong R&D
4. Strong sense of marketing
5. Versatile product range
6. 5 distinct brands
7. Operating in 170 countries
8. Mass customization
WEAKNESSES-W
1. Heavy dependence on footwear
market
2. criticized for making products in
third world countries
3. inventory pileup in China and
Western Europe
4. Confusing product names
5. the expensive brand

OPPORTUNITIES-O
1. Nike is often considered as fashion
brand
2. Revenue maximization by focusing on
apparel and equipments
3. Investing in more wearable technology
4. Expanding business in other markets
with high disposable incomes
5. Growing segment of women athletes
6. Investments in employee development
7. Product diversification
SO STRATEGIES
1. Bring more modifications in
Nikes products to capture
more market share, since many
customers believe that Nike is
not just a sports brand but a
fashion brand as well. (S1, S4,
S7, S3, O1)
2. Nike can collaborate with more
technology companies like
Samsung, Google, Apple etc to
develop more wearable
technology like medicated
apparels with massagers and
sensors (S1, S3, S4, O3)
3. Target women by using women
celebrities in commercials. (S1,
S4, O5)
4. Nike can diversify in other
products like energy drinks for
athletes.
WO STRATEGIES
1. Nike could try training its
employees regarding products
and their characteristics and
streamline the naming of some
of their products within certain
ranges. This will allow the
company to maximize the
customers understanding of the
products on offer and the
features they represent.
(W4,O6)
2. Nike should acquire high profile
Chinese local players such as Li-
Ning, Anta Sports products and
Peak Sports Products in order to
deal with inventory pileup
problem. (W3,O1,O4)
THREATS-T
1. Increased competition
2. Increased awareness of human rights
3. Increased raw material prices
4. Consumer price sensitivity
5. Currency fluctuations

ST STRATEGIES
1. Nike can create finance
divisions specifically to manage
their currency risk, most likely
using a combination of forward
contracts, futures contracts and
call/put options.(S1,T5)
2. Nike should consider the
consumer price sensitivity in
offering their products. (S1,T4)
WT STRATEGIES
1. Since greater part of Nikes
revenue is generated from
footwear market, it should
focus more on apparel because
Adidas is giving tough
competition to Nike in apparel
market. (W1, T1)
2. Increased awareness of human
rights results in the collapse of
manufacturing units, which
impacts the productivity and
revenues negatively; in order to
prevent such issues Nike should
follow the local labor laws and
provide good working
conditions. (W2, T2)