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SWOT Analysis of NIKE ( SWOT Diagram) | Creately

That’s a wrap for this PESTLE analysis of Nike.

Although Nike conducts continuous, basic research that benefits numerous facets of the sports and fitness industry, our primary focus is directed towards applied research. Applied research focuses on short-term initiatives such as successfully developing new product lines. This proves to be a strength in that this method of research is less costly than basic research, and less risky due to the short-term nature. Successful projects can realize immediate profitability while unsuccessful projects may be discontinued without enduring materially large losses.

Nike Inc SWOT Analysis | Free SWOT Analysis

Nike SWOT Analysis: Detailed report with Growth Drivers

The key threat for Nike, Inc. is market saturation. The problem is that the athletic shoe market is already full of different brands and companies. Now, there is very little room for new companies. There is also very little room for new product innovation and growth of market share for companies like Nike, Inc. Since Nike is currently holding the lead in the market as far as market share, there is little room for them to expand. In fact, we must hold onto our market share because if anything it is ours to lose. Nike, Inc. is now competing with other athletic companies as well as companies that just sell clothing or other types of shoes. If all of these other companies merely gain a small percentage of the market, Nike will be one of the main companies to start losing market share.

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Nike Inc. can utilize the complete structured approach to select a grand strategy in carrying out the above corporate objectives. The table below concludes that focusing on product development will allow Nike to continue to build upon our founding tenant that has secured us a position that borders on leverage and maintenance within the athletic footwear, apparel, and accessories markets. Because Nike has such a strong history of effective marketing in key global regions, concentration is an alternate strategy. Market development is a third strategy for consideration due to Nike's ability to geographically expand our product offerings. The three strategies are very closely linked. To determine which would prevail as our overriding strategic position, four evaluation criteria were weighted according to each strategy: distinctive competency, culture, timing, and demographics. With a total weighted score of 4.40 product development surpasses second place, concentration, and third place, market development.

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Co-founder, Philip H. Knight, has been with Nike since its inception. As a result, he has much knowledge and experience about the company and the industries in which it competes. Knight’s strategic planning managerial style serves as a strength in that his actions are planned and calculated, allowing for both risky and conservative decisions based on careful thought and analysis. His participative decision-making style can also be viewed as a strength such that Knight is willing to listen to others to generate ideas. He does not limit the company’s options to one-sided ideas and decisions.