He graduated with a Hons. Technology has remained a key driver of change in the sports shoe and apparel industry and even more so in the last five years. In the year 2020, about 41% of Nike’s sales came from the U.S, while the rest of 59% came globally. 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. 1. Words 1144 (4 pages) Views 381. Nike has been a customer centric brand since its beginning and despite the rise in competition from other brands, it is the most trusted shoe brand. Overall, the level of competition in the shoes and apparel industry has grown very fast during recent years, which has led to a higher focus on marketing and product quality and innovation. Also Read: SWOT Analysis Weaknesses Explained with Examples. 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. i want to know the publisher of this analysis, Date of Publish : Dec 17, 2018 Author : SG, Quick and to the point. ... Puma SWOT analysis 2020: Case Study in 4 Steps. 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. Nike has an excellent supply chain management strategy whose focus is on quality as well as long term and strong relationships with the suppliers. Comments are turned off. Other sports shoes and apparel brands are also investing heavily in marketing, product design, quality, and innovation. Its market-leading position and global dominance are backed by the strong brand equity the company has built. Thanks Taku, I am glad you liked our analysis. Nike (NYSE: NKE) is the largest brand of sports shoes and apparel in the world with a global footprint. Sexual Harassment: Former female employees also pointed out that sexual harassment and misconduct was very common in the company. This SWOT analysis looks at Nike, a global retailer that specialises in sportswear, including shoes, clothing and accessories. While Nike has grown its push towards direct to consumer sales, it has depended traditionally on retailers and wholesalers to achieve sales globally. Most of the Nike brand footwear production took place in Vietnam, China, and Indonesia. According to the statistical analysis by macrotrends.com, the annual revenue of Nike has declined by approximately 6.26% in 2020 compared to the previous years. It also offers a large sum on marketing each year that it calls demand creation expenses. Phil Knight (Founder and CEO) is frequently quoted as saying that ‘Business is war without bullets.’ Nike has a healthy aversion of is competitors. Nike SWOT Analysis Presentation. Nike did not. Growth in operating expenses hurts revenue as well as gross profits. Nike air Jordan is one of the most famous and expensive basketball shoes and active clothing line. The pandemic has had a strong negative impact on the sales and revenue of businesses like Nike leading. Its focus on product design and investment in R&D have also helped it establish itself as a brand obsessed with quality. Global GOLF CLUBS Market Analysis by Regions. Counterfeit products of lower quality and priced lower than original products can affect Nike’s brand image. The company enjoys the strongest margins in the sports shoes industry. Sport Sandal Market (Impact Of Covid-19) Segmentation, Swot Analysis, Opportunities And Forecast To 2025 | Nike, Adidas, Clarks. The women were left devastated and felt unsafe while working at Nike. Nike also enjoys the best profit margins in the industry. Category Swot Analysis. who wrote this article ? Visit us and find ultimate business news and strategy resources. While the company took several significant steps to resolve the problem, it has not been able to establish a culture that fosters higher inclusion and creativity. Its sales from direct to customer channels have also experienced faster growth in recent years. The effective tax rate in FY 2018 was 55.3% which was 13.2% in the year 2017. Its net revenue grew from $36.4 billion in 2018 to $39.1 billion in 2019. NIKE annual/quarterly revenue history and growth rate from 2006 to 2020. Once the pandemic’s impact is over, these economies could generate substantial revenue for Nike if it can grow its penetration of these markets. 1 shoemaker. can i know the name? finding a solution against these environmental issues. While Nike has already benefited in this area by moving its business to the clouds earlier than its rivals, the company can gain significant leverage by sustaining its focus on technological innovation in the coming years. Apart from its core brand, Nike also owns Converse and Hurley. 112 factories located in 12 countries supplied Nike shoes in 2019. The result was that Nike’s operating expenses grew and so did its profits. It also aims to examine the opportunities the company should explore and the threats it should keep an eye on. In fiscal 2020, Nike’s gross margin reduced mainly due to the impact of Coronavirus falling to 43.4%. Nike is the most valuable brand for sports in 2018. ... Bata, Reebok, Nike, Adidas, etc. Read more about Nike in this swot analysis analyzing its key strengths and weaknesses in 2020. Nike is the world’s no. 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. Category Swot Analysis. This creates the perception that Nike is not committed to addressing climate change and its pledge is just a marketing stunt. Nike is known globally as a maker of premium shoes and apparel. All of them accounted for more than 10% of the company’s footwear production during the year. The company has achieved strong brand awareness and customer engagement through its unique marketing strategy. Still, DTC sales account for just around one-third of its net revenues in 2020. Currently, Mark Parker is the CEO of Nike. 4.3 Production, Revenue (2015-2020) 4.4 SWOT Analysis. As of 2020, Nike is one of the leading brands in the lifestyle and retail sector. Taking place in Tokyo this July, the 2020 Olympics are predicted to be the hottest on record. Press Release Zinc Battery Market SWOT Analysis by Key Players : Panasonic, PowerGenix, Primus Power Published: Dec. 16, 2020 at 12:28 p.m. It is listed on the NYSE and is headquartered in the United States. Author: S.K Gupta First published: December 17, 2018 Last updated: Oct 06, 2020. Their number was reduced to 338 in FY 2020. Luxury Swimwear Market SWOT Analysis 2020 by Players – Nike Inc, Perry Ellis International Inc, Swimwear Anywhere Inc., Adidas AG, Dick’s Sporting Goods December 9, 2020 Exltech Luxury Swimwear Market Overview: It’s a great help. However, the company has also faced legal challenges related to the treatment of its employees. While its leading rivals including Adidas are also heavily focusing on quality, Nike’s position and image are distinct from the others. However, due to the success, Nike has gotten the company now provides athleisure wear as well. “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. Thank you ! ... Adidas used to be the main apparel sponsor for the NBA, however, it lost the contract to Nike. I am guessing the presentation is for school? One of its core strengths is product quality and also one of the leading factors that differentiates Nike from the other brands. SWOT Analysis is a proven management framework which enables a brand like Nike to benchmark its business & performance as compared to the competitors and industry. Tell us what you think? It was found by, in the communities. In 2020, Nike’s revenue from direct to consumer sales improved as compared to the previous year. Nike has retained its leadership position in the shoe industry through a consistent focus on quality and in the light of changing customer preferences, it has modified its business strategy to maintain its lead. Here’s a detailed breakdown of Nike SWOT analysis. People stopped shopping for the nonessential items as the pandemic spread through various markets and regions. There’s has been a great wealth distribution gap between the upper class and lower class. Apart from that, it is relying heavily on cloud technology to manage the digital experience it offers. Your favorite Nikes might be made from forced labor. According to sources, the previous CEO Mark Parker has once accepted that Nike was facing internal challenges related to organizational behavior. Nike’s SWOT Analysis – Recommendations. However, this was more than offset by a decline of 820 basis points in the fourth quarter of fiscal 2020, primarily due to the impacts of COVID-19. Essay type Analysis . Abhijeet has been blogging on educational topics and business research since 2016. The CEO ensures that Nike will help to contribute. Check Also. For the first nine months of fiscal 2020, gross margin expanded 30 basis points compared to the first nine months of fiscal 2019. Cloud technology is driving faster growth for Nike in various areas including marketing and customer service. Players Profiles. October 13, 2020 3 . In the past too, Nike faced some serious allegations and legal scrutiny over its treatment of its supply chain labor force. Nike, Inc. is listed on NYSE with offices located all over the world. Nike, despite being the world’s biggest sports shoes and apparel. Nike’s core market is the US, which accounts for its highest sales and revenue. These expenses grew to $3.75 billion in 2019 from $3.58 billion in 2018. The product was first launched for legendary basketball player Michael Jordan in 1984. It is known as one of the best marketers in the entire industry. Legal and regulatory pressures are also slowing the growth rate of Nike. contact: email@example.com, firstname.lastname@example.org, Easy Ways Businesses Can Incorporate Sustainability, What You Need To Know About Marketing for Your New Business. Nike has brought several game changing shoe technologies for its customers and fans like NIKE Air, Lunar, Zoom, Free, Flywire, Dri-Fit, Flyknit, Flyweave, ZoomX, React, Adaptive and NIKE+ technologies which prove Nike’s dedication to the design of innovative products. Together, the three countries accounted for 49%, 23%, and 21% of Nike brand footwear, respectively. How Does Credit Karma Work and Make Money? With a growing focus on optimizing and delivering a superior customer experience, Nike is now more interested in serving its consumers directly than through retailers and wholesalers or other e-commerce channels. October 19, 2020 9 . We respect your privacy. 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