Nike SWOT Analysis

SWOT analysis of Nike

SWOT analysis of Nike, Inc

Strengths

• Nike, Inc is listed in NYSE and positioned as a US headquartered worldwide sportswear trader and supplier that:
• Contracts with about 700 shops worldwide, runs offices in 45 countries, and manages factories in China, Indonesia, Taiwan, Thailand, India, Vietnam, Philippines, Pakistan, and Malaysia.
• Belongs to Fortune 500 companies which 2007 total revenue exceeded 16 b. USD
• Employs more than 30.000 people worldwide;
• Owns strong marketing strategy under Nike brand that assumes the involvement of world top-class athletes and sportsmen in Nike’s ‘Just do it’ advertising campaigns;
• Operates a chain of Niketown retail stores;
• Leads its international business operations through acquisitions and re-branding: Converse Inc, 2003; Starter athletic clothing, 2004; Umbro, 2008;
• Nike’s premium brand is used to manufacture and promote a wide variety of products for all types of sport-oriented and leisure activities;
• Manages the US premier training program SPARQ Training Program;
• Applies lunarlite foam and flywire materials to reduce the weight of manufactured shoes

Weaknesses

• Unwilling to disclose information concerning its partnering companies, which caused harsh criticism from CorpWatch and other companies;
• Contracts factories in Vietnam, China, Mexico, Indonesia;
• Violated overtime laws minimum wage rates and in Vietnam, 1996
• Provides poor working conditions, and tends to exploit cheap workforce overseas, especially in free trade zones where;
• Some of Nike’s ads are associated with US female empowerment;
• In 1990s, Nike was reported to apply child labour in Pakistan and Cambodia to produce soccer balls;
• Contracts overseas companies that apply non-transparent and inadequate labour regulations, involving child labour.
• Positioned as a permanent subject of criticism by anti-globalization groups;
• Forced Labour applications in partnering apparel factories in Malaysia, involving forced Labour and poor living conditions.

Opportunities

• Producing sportswear products from manufacturing waste;
• Extension of eco-friendly projects like ‘Reuse-A-Shoe Program’ aimed at further recycling;
• Emphasis on corporate marketing strategy through the promotion of corporate brand and sponsorship agreements;

Threats

• Textile industry adversely affects the environment, and therefore the company is permanently striving to maintain its eco-friendly reputation;
• Financial crisis may lead to job shortages in a number of Nike’s worldwide subsidiaries;
• The company has experienced negative publicity feedbacks due to its extensive advertising in mass media (Kasky v. Nike; Minor Threat at; Beatles song; Chinese-themed at, Horror ad etc).