Wednesday, November 24, 2010

Chapter: SWOT Analysis

8. SWOT ANALYSIS

8.1 Strength

  • Customer loyalty
  • Product Range
  • Capacity for innovation
  • v Distribution expertise
  • v Single Brand
  • Stars endorsement
  • Contract manufacturing
  • Large portfolio of products
  • Strong brand awareness

  • Plenty of exposure
  • Experienced team
  • Proper funding
  • Quality products

8.2 Weakness

  • High prices
  • Too many stars endorsement
  • Contract manufacturing
  • Spread portfolio of products
  • Reliant on retailers
  • Reduction of target market
  • Controversial marketing schemes
  • Exploitation of the less fortunate
  • Appeals to one group of people (rich athletes)

8.3 Opportunities

  • Growth in sporting activities
  • Increased fashion sense from people
  • New Markets
  • E commerce
  • Research and development
  • Increase product line
  • Product diversification
  • Change target market
  • New manufacturing countries
  • Increased health consciousness which results in people exercising more so buying nike products

8.4 Threats

  • Strong competitors such as adidas
  • Often draw negative publicity due to controversial advertisements
  • Competition
  • Fashion Trends
  • Contract manufacturing and copying of product (intellectual property)
  • Consumer lifestyle changes
  • Bad press associated with Nike
  • Outlets cancelling orders

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