Nike is the world's largest athletic brand. Its innovative and broad product line helps drive sales; however, a large majority of those sales are in the footwear business. Most of Nike's goods are produced overseas in low-cost factories and then imported to the final market. Nike currently has many of the top U.S. athletes under contract (Michael Jordan, Tiger Woods, Dwyane Wade) but international sales are still small in emerging markets. However, many competitors have attempted to copy Nike's business model (high-value branded products manufactured at low-cost), including Adidas and Reebok, while many retailers have attempted to pass on the low-cost pressure of retail consumers. Perform a SWOT analysis for Nike.

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johannes drijvers · Accepted Answer

Final Answer :

Strengths: Innovative products, athletes under contract.
Weaknesses: Much of revenue is from footwear; eroding market share could cost Nike its profitability.
Opportunities: Sales can be increased in emerging markets using well-known athletes; broad product line can be expanded into high profit sectors (jewelry, sunglasses, golf, etc.).
Threats: International business makes Nike vulnerable to currency changes; low-cost pressure from retailers can decrease profit per item; competition could erode existing market share. Athletes' personal lives could weaken Nike's reputation.

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