Nike Company Analysis
Nike Inc.
International Strategic Marketing 8
Prepared for:
22-03-2009
Prepared by:
Table of contents
Case summary 3
Analysis
Growth strategy 4
Competitor Analysis 6
SWOT analysis 8
Five forces model 9
Nike Case Summary
Nike is a major publicly traded sportswear and equipment supplier based in the United States. It is the world 's leading supplier of athletic shoes and apparel, and a major manufacturer of sports equipment.
They have a market share in the United States exceeding 40%. Nike also distributes its products outside the US. In 140 countries, Nike sells products through independent retailers , distributors etc.
In the ever changing markets, Nike is facing multiple challenges to remain market leader.
Foot Locker was always a great partner for Nike. Foot Locker, as the world’s largest footwear retailer, was an perfect way for Nike to distribute and introduce their new products. But Foot Locker wants to meet consumer demands. So Foot Locker said that they would reduce the more expensive Nike shoes, and focus on more midpriced shoes. This caused a break in the close relationship between Nike and Foot Locker.
Nike is basically a distributor. They do not produce their products by themselves. Nike’s products are manufactured by third parties. So the main focus at Nike is on R&D and marketing. Innovation, and making the consumer actually want the product is key for Nike.
Nike products are manufactured in Southeast Asia. The producer of Nike products are independent contractors where Nike does not own any of. The main reason why Nike products are manufactured in these countries is because of the low wages. Low cost labor significantly increases the gross margin on their products.
These low wage countries had some significant downsides, thought . When the working conditions, as well as allegations of abuse and harassment became public (done by activists) Nike
International Strategic Marketing 8
Prepared for:
22-03-2009
Prepared by:
Table of contents
Case summary 3
Analysis
Growth strategy 4
Competitor Analysis 6
SWOT analysis 8
Five forces model 9
Nike Case Summary
Nike is a major publicly traded sportswear and equipment supplier based in the United States. It is the world 's leading supplier of athletic shoes and apparel, and a major manufacturer of sports equipment.
They have a market share in the United States exceeding 40%. Nike also distributes its products outside the US. In 140 countries, Nike sells products through independent retailers , distributors etc.
In the ever changing markets, Nike is facing multiple challenges to remain market leader.
Foot Locker was always a great partner for Nike. Foot Locker, as the world’s largest footwear retailer, was an perfect way for Nike to distribute and introduce their new products. But Foot Locker wants to meet consumer demands. So Foot Locker said that they would reduce the more expensive Nike shoes, and focus on more midpriced shoes. This caused a break in the close relationship between Nike and Foot Locker.
Nike is basically a distributor. They do not produce their products by themselves. Nike’s products are manufactured by third parties. So the main focus at Nike is on R&D and marketing. Innovation, and making the consumer actually want the product is key for Nike.
Nike products are manufactured in Southeast Asia. The producer of Nike products are independent contractors where Nike does not own any of. The main reason why Nike products are manufactured in these countries is because of the low wages. Low cost labor significantly increases the gross margin on their products.
These low wage countries had some significant downsides, thought . When the working conditions, as well as allegations of abuse and harassment became public (done by activists) Nike