Hence, most companies look at acquisitions to diversify as well as grow their addressable market and improve sales. KR - NYSE (11/1/2007): The “Just-do-it” campaign of Nike has been since nearly 3 decades and has got them worldwide fame. Free resources to assist you with your university studies! ROA: Retrieved on 26th September’08from < www.samples-help.org.uk/mission-statements/nike-mission-statement.htm>. Consumers are well informed and are demanding more value for their products at all price points. Corporate Responsibility Report: According to the Nike Web site, in October Nike released its first Corporate Responsibility Report. 81% Extensive global production and di… And another opportunity for Nike is that to develop its own sportswear, sunglasses, jewellery and other accessories. Nike has been designing world class shoes for over 5 decades. Revenues, declined 1% compared to the first quarter of fiscal 2020. 60 263. Nike`s grip on the market comes down to a simple supply and demand formula, Josh Luber, CEO of sneaker reselling site StockX previously told Jefferies. Consumers will pay more money for a product they think is manufactured well. The marketing plan of the company is that it is making sure that the consumers and the sportswear market are aware of the existence of Nike and to do that Nike has adopted marketing mix. Retrieved on 26th September’08 from , Cravens, D.W (2000), Strategic Marketing. Globally, if Nike is in an emerging market, or a new market, it distributes its product through a third party. But is mostly famous for their athlete shoes and apparel and Nike is also one of the major manufacturers of sport equipment as well. In the industry, Nike’s has maximum or main competition; direct competitors of the company include Adidas AG, Puma AG, and New Balance etc. A threat that is faced by Nike is the environmental damage that is done to the society by air and water pollution, noises and change in the climate due to the pollution etc. With its Forward Dividend at 1.1 and a yield of 0.79%, the … Improve its inventory management, days sales outstanding, days payables outstanding and working capital management further, Provide innovative and technical products that cater to the consumer expectations at all price points – Connect to the consumer, Counter the increased marketing strength of Adidas/Reebok by spending more on marketing spend and creating demand while maintaining margins, Improve relations with all retailers & innovatively use multi channels to market and sell its multiple brands to different customer segments, Focus on design, development and marketing of products and reducing time to market, Expand its own retail chain as a viable and profitable option to contend with retail consolidation, as retailers may substitute Nike’s products with private labels products or decrease Nike’s shelf space, Stabilize the leadership team and have a common strategy and plan for the future. Nike is known as the market leader in the athletic footwear market because competitive advantage is there and dominant strategic plan when compared to competitors. The beta of 0.51 implies lower volatility of the stock with respect to the S&P 500. The SWOT analysis of Nike discusses the strengths, weaknesses, opportunities and threats of the leading footwear brand - Nike. If the relative market share which is above 33% therefore it is considered to be strong since Nike’s in this case has a share of 47% its relative market share will be considered the strongest from its competitors. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. It is important for companies like Nike to segment their markets. However, U.S. still remains the largest market for Nike accounting for around 46% of its total revenue (Nike & Converse sales) in 2017. NIKE SWOT Analysis Strengths Nike has the strength in the Nike Target Market Men, women and children from urban upper-middle and upper class. Nike also advertises by using various celebs in their advertisements to increase brand loyalty while utilizing the brand image of such celebs.Nike has also gone to the extent of sponsoring a stadium called “the Alliance Arena”, which is by far the biggest football ground in the whole world. At 31-Jan-2006 the Group acquired Reebok International Ltd & remaining interest of Taylor Made Golf Company. Nike Inc (NYSE:NKE) stock analysis shows how Nike is definitely a great business – we share 6 key fundamental factors that show how Nike stock represents a great business, from a dividend growth stock to improving margins across low capital necessities. Yet it has a tendency of changing the designs and patterns after a particular period or quantity. NIKE is engaged in design, development and marketing of footwear, apparel, equipment and accessory products. -1.30% And in the end large companies like Nike eventually seek full market coverage, they want to be the General Motors of their industry. In 2006, Nike developed the ‘Nike+iPod’, an activity $20.16 B Nike will focus on growing its brands in underdeveloped countries such as China, India, Thailand, Indonesia, Mexico, and Brazil. (Kotler, 1997), As we know that companies do not reveal how that company is doing regarding its major competitors. It is distributed in over 160 countries around the world. Nike uses advertising, sales promotion, advertisement campaigns, public relations and publicity and sales offers to build awareness and brand image and loyalty. The Group markets its products under the brand names: Adidas, Salomon TaylorMade-Adidas, Mavic and Bonfire. 1.05 But mostly the Nike … Nike takes into consideration various aspects of its products as it is in a product or consumer market. The Swoosh. Unfortunately, Nike is very much dependent on the US market and is little diversified beyond the footwear and sports apparel markets. It sells its products to retail accounts, through NIKE-owned retail, including stores and Internet sales, and through a mix of independent distributors and licensees, in over 170 countries around the world. The SWOT analysis is used by the company so that the management of the company can see the impact it has on each possible strategic opportunity. (Marketing Mix). 4. The market share of any company is based on four measures, they are as follows:-. Nike has shown a 3 year CAGR of 11.8% since 2003. Nike Inc. (NYSE: NKE) is one of the world's largest apparel and footwear suppliers.As of April 2016, the company had a trailing 12-month revenue of $31.9 billion and a market … Majority of Nike’s footwear and apparel products are manufactured by independent contractors outside the U.S., while equipment products are produced both in the U.S. and abroad. 52 Week Range: Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. The stock is now flat on the session but keep in mind it was down over 3% in the pre-market. Nike’s strengths are that the company is extremely competitive; the CEO of the company is often heard saying that business is a war without any bullets. $66,111 M UPDATE 3-Adidas plans to sell ailing … 1. Kd(BT): Price: price includes list price, discounts, allowances, payment period and as well as credit terms for its customers. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Marketing mix can be defined as a set of tools for marketing purpose that the company uses, so that it can achieve its marketing goals and objectives in their targeted market. Industry has transitioned from capital-intensive manufacturing and distribution activities (which are outsourced) to a more capital-efficient design and marketing business model. The company was originally known as Blue Ribbon Sports but it officially changed its name to ‘Nike’ in 1978. 2001: Nike opens its first Nike Goddess store, a unit targeting women, in Newport Beach, CA. The following strengths are the most notable in the case of Nike Inc.: 1. 1964: William Bowerman becomes a partner by matching Knight’s investment of $500. On December 3rd, 1990, Nike stock price closed at $1.10. Adidas and Reebok will now have a larger arsenal of athlete endorsers, more influence on the supply chain, and a chance to secure more shelf space. Study for free with our range of university lectures! Nike also has about 400 factories around the world that manufacture apparel, with the largest percentage of apparel manufacturing coming out of Asia, the Middle East, Turkey, Israel, and Mexico. Nike markets its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, Team Starter, and subsidiaries including Cole Haan, Hurley International, Umbro and Converse. Analyst Confidence in Stock: According to press releases issued by Bloomberg, analysts from Bank of America, CSFB, and Wells Fargo recently called Nike a “buy.” After a lackluster financial year, this news could potentially affect stock price in a positive way. Marketing Mix of Nike analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Nike marketing strategy. Nike totals roughly 218.39 Billion in market capitalization … Designed to make a connection to the consumer, Seldom pitch the product directly or talk about product attributes, Sometimes don’t even mention the company’s name, featuring instead only the swoosh logo, Collaboration ads with another strong branded product, such as Apple iPod. The company has taken the name of Nike from the Greek goddess of victory. 5.26% The first show that ever carried the design of swoosh was a football shoe called ‘Nike’. Disclaimer: This work has been submitted by a university student. However, new entrants required the huge amount for the capital; therefore, Nike has the maximum market share in the footwear industry (Reuters, 2016). Emerging markets account for $0.15 of every $1 in revenue that Nike earns. prices. As the company approaches this objective they should increase and add new served markets as well. For global analysis, the Footwear Market is examined by considering the different regions such as North America, Latin America, Japan, China, and India. Weaknesses of the company are considered those areas, when the business of the company is compared to others in their own industry or market segments. $28.20 Nike branded footwear is the largest component of overall Nike sales. The company has a market cap of $215.5 billion. Broadening its brand portfolio – Leverage multiple brands to pursue opportunities in all markets, distribution channels and at broader price points, Focusing on financial discipline – Making supply chain a competitive advantage, through operational discipline and excellence, Europe – UK and France need further work in the difficult athletic footwear and apparel industry. Thus it needs to develop a wide range of distribution channel which can support its retail business. -0.17% Nike Market Cap Nike Inc is regarded fourth in market capitalization category among related companies. Nike also sponsors various events such as tour de France, FIFA World Cup, Delhi Marathon and various others. Factory outlets: Nike also sells its merchandise through factory outlets that sell some of its products at a discounted rate. Nike Positioning Nike offers high quality sports products at a high price which gives satisfaction and comfort. In addition to manufacturing sportswear and equipment, the company operates retail stores under the name Niketown. 5-Year Thus their pricing strategy is to provide value at high cost with … During the year the Group disposed Salomon business segment. Real time Nike (NKE) stock price quote, stock graph, news & analysis. Adidas AG – The Group’s principal activities are producing and marketing of sports goods. Nike Market Capitalization is currently at 218.39 B. Branded vendors have traditionally operated factory outlets as a means to manage excess inventory. https://phdessay.com/marketing-analysis-of-nike/. 5.2} ECONOMICAL: – As far as the figures are concerned; Nike has been impressive having a market share of 30.4% in 1998, compared to 15.5% and 11.2% of Adidas and Reebok respectively. Promotion: promotion includes sales promotion, advertising, sales force, public relations, direct marketing and the company also uses its catalog for promoting of their products worldwide. Book Value Per Share: -0.7051 Revenues for the company in 2005 were $7.8 billion and net income of $503 million, Puma – The Group’s principal activity is to design, manufacture and market sporting goods. Market Share. Footwear and apparel industries are relatively mature and investors perceive few pure growth plays, and expectations for margins tend to drive stock valuations more than sales growth. 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