Strategic Analysis of Nike

Nike is one of the most renown suppliers of athletic footwear and apparels. The company was started in 1964 by Phil Knight and Bill Bowerman, an athlete and his coach respectively. This brand is well-known throughout the world and is found not only in America but also in the Asia Pacific and Europe. The company has made a significant effort in marketing its products, thus receiving up to $3.27 billion of revenue just in 2015 alone (Raheem, 7). The hope of the company has always been to produce sportswear and apparel that are comfortable and convenient for athletes.

Strategic Objectives

Nike’s mission has been to “bring inspiration and innovation to every athlete in the world,” and they seem to achieve every single day (Willigan). It has focused on providing shoes, clothes and other sporting equipment. Demand for sporting products has been on the increase because more people start to appreciate sports. As such, the company’s receives a growing market. Some of Nike’s marketing strategies had been using professional athletes to advertise their products. It also changed its target market to teenagers as a way of expanding its market. The company has focused on making quality products that attract customers who are loyal to the brand despite the price (Willigan).

SWOT Analysis

Some of Nike’s strengths is that it already established itself as a number one brand shoemaker in the whole world. Secondly, the company has sufficient distribution channels, and third, it has an innovative design of shoes that enables consumers to create their personalized shoe lines. However, the company could improve the conditions of their workplaces. Also, their prices usually are higher when compared to its competitors (Miles Media). The company, too, heavily depends on the segment of shoes and has not put much effort in other sectors. The brand’s opportunities include the growth in women’s division, increased demand for the brand in the fashion market, and global market events such as the Olympics which it can support. The threats that the brand faces include recessions and fluctuations in the economy which incurs loses, high competition from other brands, and maintaining a good reputation (Team Trefis).

STP Analysis

Nike’s consumer base is mostly men athletes who play football, golf, basketball, and runners. These consumers seek comfortable shoes that assist them in their sporting activities, and Nike delivers their wants (Lutz). A good target market would be male teenage athletes who are training to start their careers. This brand could promise them confidence in their athletic journey.

Marketing Mix

Nike produces athletic footwear which suits all types of customers. Their prices vary depending on the season, and they compete with the costs of competitor companies such as Reebok and Adidas. The brand has department stores and stores in malls, and they have retailers in more than 200 countries. The brand has used social and mass media to promote the men’s footwear and their logo plays an essential role in their advertising (Bohatala).

Performance Evaluation Metrics

The marketing metric to be used will stick to social media since we live in a digital world. Nike will realize its objectives when it holds to be the leader among its competitors.

References

Bohatala. “Nike Running Shoes Marketing and Inventory Management Project.” Web 3 May 2018 https://bohatala.com/nike-running-shoes-marketing-and-inventory-management-project

Lutz, Ashley. “Nike is Going After 3 Kinds of Customers.” Business Insider, 7 Apr 2015. Web. 3 May 2018 http://www.businessinsider.com/nike-is-going-after-3-kinds-of-customers-2015-4?IR=T

Miles Media. “A Marketing Case Study on Nike.” 10 Apr 2016. Web. 3 May 2018, http://milesonmedia.com/a-marketing-case-study-on-nike/

Raheem, Rizwan. “Strategic Marketing Plan of Nike” Web 3 May 2018 https://poseidon01.ssrn.com/delivery.php?ID

Team Trefis, “Nike Faces Tough Competition in Europe and China.” Forbes, 4 Mar 2016. Web 3 May 2018 https://www.forbes.com/sites/greatspeculations/2014/03/04/nike-faces-tough-competition-in-europe-and-china/#1f5b9d06e79c

Willigan, Geraldine. “High-Performance Marketing: An Interview with Nike’s Phil Knight” Hbr, July 1992. Web 3 May 2018.