Nike is one of the biggest brands of active sportswear that is loved by sports personalities, fitness enthusiasts and celebrities alike. Founded in 1984, the brand has created a standard for itself, so people gravitate towards it a lot.
However, despite being one of the largest brands out there, it can be off guard at some areas, leading to major losses.
So, if you are willing to understand the whole business aspect of Nike, then this SWOT and PESTLE analysis is all you need.
So, let’s begin with the SWOT analysis
The Strengths of Nike
- Brand awareness
Nike has already created a name for itself among students or working employees. For some, it is a luxury purchase while for others it is a necessity. The image it has created for it is one of the major reasons why Nike will always be popular and have people looking forward to getting it.
- Incredible partnership
Nike has partnerships with some of the best sports people in the industry, including Michael Jordan. Having iconic partnerships like this help them gain the trust of people. It also has a partnership with famous basketball players, which helps lure customers from different sports interests.
- Sustainable interest
Nike has recently announced that it will look into more sustainable ways of production. It has also contributed to finding measures against common environmental problems. And it promises to put in more investment in the future.
- Marketing policies
Nike is an advanced group that has always been aware of the changing marketing pokies. With the upsurge in digital marketing, they have set their use to have excellent customer attraction. It also organizes many Nike events, why helps them get customer feedback and get undivided attention from its loved customers.
- Side brands
Nike has also started many of its side brands, contributing to its growing wealth and popularity. Some of its know side brands include Jordan, converse, Nike pro and more. Its upgradation and investment in multiplying its assets will definitely serve them long-term success.
Since most people gravitate towards environmental welfare today, they come in to support Nike.
The Weaknesses of Nike
- High cost
Nike has some of the most incredible designs, which makes its cost understandable. Yet some of the prices are too high for commoners to buy. Most middle-class people cannot afford these products. They resort to cheaper yet good-looking sportswear rather than relying on Nike.
Its failure to not have the common people on its side leads to huge financial losses.
- Cheap duplicates available
Nike is a popular brand that has led many duplicate marketers to make cheap copies. And some people do buy these products. Considering that people can get its cheap version, most do not want to invest in the high-priced original Nike.
The Opportunities for Nike
- Health-oriented people
After the year of the pandemic, more people have become serious about their health. This has been one of the biggest benefits ofNike. Some people are willing to buy nice shoes and get into sports activities.
Hence more health-oriented and sustainable lovers are jumping in to get trusted, productive Nike products.
The Threats for Nike
- Competitors
Nike is not the only sportswear company out there. There are also other brands which are like big threats. Little differences in prices and designs can divert one client to the other. With so many competitors out there, it gets tough for Nike to ensure that it gets maximum support.
- High taxes
Recently it was observed that the taxes involved with Nike were way more than the profits it was making. Tax involvement is high, due to which it has fluctuating revenues. Such high taxes can lead to the stunted growth of a business.
If you ask us, Nike still has way more advantages as people love it. They also have trusted loyal customers who put more faith in this than any other brand out there.
Now,let’s look at the pestle analysis of Nike to understand its business situation better.
- Political – US is the home of Nike production, where most of its product sare produced. Hence it does not have a strong influence over other countries. However, political conflicts do affect its taxes agreement and customer duties import and export related work.
- Economic -Nike products are produced in far eastward countries at low cost. But since this is changing,it means its price should further escalate. Also, customers are more inclined towards thrifting in present times. They are going for cheaper and sustainable products.
- Social – Nike has impressed people with its incredible image. Since more people are more socially active right now, they buy nice sportswear and adopt a healthy lifestyle.
- Technological – Technological advancement has also helped Nike in boosting its performance and sales. Social media is giving it more hype than ever. Good brand deals and collaborations are also great means to grow.
Also, with the help of analytics, Nike has been able to target better clients and maximize its reach and revenue.
- Legal – There is not much legal inspection regarding Nike. In-pestle analysis, the legal and political factors are considered to be the same.
High tax payment and its shady production of goods can be some matter of interest here. However, these speculations cannot be thoroughly justified.
- Environmental – Nike has many factories around the world leading to its mass production. It creates a lot of air pollution along with polluting rivers too. But it has promised to be more aware towards environment and also get involved with better environmental practices.
Final thoughts
And that’s a wrap for SWOT and PESTLE analysis of Nike. Nike is a big brand, and it has long served the industry. Few threats and disadvantages are something which every brand in this industry would go through. They are considered a healthy and strong brand, and if they look into regulating its prices and safe production practice, then it can outpass any other brand out there.
Author bio
Riley James is a lecturer at the University of Colorado. She is a marketing major and MBA student. Over the years, she has helped many businesses improve their sales through her strategies. She is also actively involved with advertisement and digital marketing. Currently, she is working at MyAssignmenthelp.com to help students in need.
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