Thanks Taku, I am glad you liked our analysis. Puma, V.F. Nike’s 2019 Income before income taxes increased 11%, as revenue growth and gross margin expansion were partially offset by higher selling and administrative expenses. Like most big companies, Nike has a number of strengths. Deloitte: Mission Statement | Vision Statement| Values | Culture, Starbucks Mission Statement, Values, Principles, & Sustainability Goals, Uber: Mission Statement | Cultural Norms | Principles | Philosophy (2020), Amazon: Mission | Leadership Principles | Philosophy (2020), Nordstrom: Mission | Vision | Core Values (2020), Your favorite Nikes might be made from forced labor. Lack of Diversification: Nike’s over-dependence on sporting apparel or lack of diversification is a major weakness. SWOT ANALYSIS: Strengths. 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. Join our newsletter today to get updates on the latest posts! Some even left their jobs. 032c returns to an old corporate strategy favorite – the SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis – to consider Nike’s position and message for 2020, and beyond. Moreover, increased competition has, to some extent, affected Nike’s growth rate negatively. Read out this article, to get an understanding of where Adidas stands. . Author: S.K Gupta First published: December 17, 2018 Last updated: Oct 06, 2020. The SWOT analysis of Adidas shows the TOWS matrix of one of the strongest sports brand in the world. Nike SWOT Analysis Presentation. 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. The company has been growing consistently over the past several years. The New York Times conducted interviews with 50 former and present Nike employees to investigate the company culture. The pandemic’s impact was especially very strong in the most advanced markets like the US, where the infection rate was the highest of all the markets. He likes to blog and share his knowledge and research in business management, marketing, literature and other areas with his readers. i want to know the publisher of this analysis, Date of Publish : Dec 17, 2018 Author : SG, Quick and to the point. One of its core strengths is product quality and also one of the leading factors that differentiates Nike from the other brands. Nike was able to manage the impact of the pandemic to a large extent successfully due to its investment in technology over the last few years. 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. It also aims to examine the opportunities the company should explore and the threats it should keep an eye on. Nike is a global brand that is synonymous with quality and excellence. The company specializes in athletic wear, providing footwear, apparel, athletic equipment, and accessories. Phil Knight (Founder and CEO) is frequently quoted as saying that ‘Business is war without bullets.’ Nike has a healthy aversion of is competitors. Growth in operating expenses hurts revenue as well as gross profits. The company has outsourced all its production but still maintains strong control over the quality of raw material used and that of the final products. Nike is the market leading brand of sports shoes and apparel. Traditionally, it depended more on external distributors and retailers for sales to customers. While its net income also slipped, the company has still performed well during the crisis. In the year 2020, about 41% of Nike’s sales came from the U.S, while the rest of 59% came globally. Apart from its website and app, it has also brought other fitness apps that engage Nike fans and customers. Counterfeit products of lower quality and priced lower than original products can affect Nike’s brand image. However, the decline can be attributed largely to the fall in sales in the fourth quarter due to the pandemic. It enjoys one of the most impressive profit margins in the entire shoe industry. Abhijeet has been blogging on educational topics and business research since 2016. He is passionate about analyzing and writing about businesses. Post author By [email protected] Post date July 9, 2020 “ Trending Sport Sandal Market 2020: COVID-19 Outbreak Impact Analysis. Nike (NYSE: NKE) is the largest brand of sports shoes and apparel in the world with a global footprint. Throughout its history, the company has introduced several market leading technologies that have helped it dominate the sports shoes market. This detailed SWOT analysis of Nike aims to examine the strengths and the weaknesses of Nike. “Income before income taxes decreased 40% for fiscal 2020, primarily due to lower revenues and gross margin resulting from the impacts of COVID-19, as well as higher selling and administrative expense. It also aims to examine the opportunities the company should explore and the threats it should keep an eye on. However, the company has also faced legal challenges related to the treatment of its employees. The Washington Post. In fiscal 2020, Nike’s gross margin reduced mainly due to the impact of Coronavirus falling to 43.4%. Just like the retail industry technology has been driving sweeping changes in the sports shoe industry as well. Their dependence on digital technology has also grown. Learn more. Nike has an excellent supply chain management strategy whose focus is on quality as well as long term and strong relationships with the suppliers. Category Swot Analysis. The SWOT and PESTEL analysis report of Nike Inc. presents the complex internal and external factors affecting Nike's brand, its operations, business model, market strategy and growth trajectory. Nike Threats in SWOT Analysis. Nike, Inc. is an American multinational corporation headquartered in Oregon, USA. While Nike has grown its push towards direct to consumer sales, it has depended traditionally on retailers and wholesalers to achieve sales globally. 1 shoemaker. Nike did not. How Does Credit Karma Work and Make Money? Nike’s core market is the US, which accounts for its highest sales and revenue. Thanks. SWOT analysis of Nike. Nike is headquartered in Beaverton, Oregon, USA. It is known as one of the best marketers in the entire industry. Apart from that, Nike’s debt is … SWOT analysis of Nike. 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. The following strengths are the most notable in the case of Nike Inc.: 1. As the pandemic’s impact has been the strongest on the US market, its impact on Nike’s revenue has been harsh since the US is Nike’s largest market. However, due to the success, Nike has gotten the company now provides athleisure wear as well. Nike is headquartered in Beaverton, Oregon, USA. I need this info for citations. 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. The entire controversy has significantly affected the company’s image. Now, Nike is a digital-first company that is using digital technology to serve and engage its customers worldwide. It is listed on the NYSE and is headquartered in the United States. Learn more. Together, the three countries accounted for 49%, 23%, and 21% of Nike brand footwear, respectively. The company has achieved strong brand awareness and customer engagement through its unique marketing strategy. In the year 2020, about 41% of Nike’s sales came from the U.S, while the rest of 59% came globally. Their number was reduced to 338 in FY 2020. Phil Knight (Founder and CEO) is frequently quoted as saying that ‘Business is war without bullets.’ Nike has a healthy aversion of is competitors. People stopped shopping for the nonessential items as the pandemic spread through various markets and regions. 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