Analysis of nike inc essay
Occupational Safety and Health Administration OSHA indoor air quality standards for all footwear factories; Funding university research and open forums to explore issues related to global manufacturing and responsible business practices such as independent monitoring and air quality standards.
The internal strengths that match up with the external threats in Nike is the face that Nike outsources all of its production to overseas facilities to save money on the cost of production. Due to our ability to quickly turnover inventory, Nike benefits from greater cash flows, reduced storage costs, and less spoilage.
Nike situation analysis
For most products, Nike is using simple raw materials. The pressure of other companies such as Adidas and Puma could become an opportunity for Nike to continuously grow and slow down in a very competitive market. The fact that we are not leaders is ultimately a weakness. In Nike Inc. Products - Weakness Nike has had much success as a result of collaborating with other companies within the sports and fitness industry. The Company started out manufacturing running shoes with cushioned mid soles and expanded into a wide range of products including sporting goods and T shirts. Also, the company should not be afraid to shift to other markets. Its consistently superior product has made it the preferred brand and made the Nike family expand internationally as well, with a European, Asian and Australian division. However, at times we expanded into markets for which we were not strategically suited.
The first weakness of Nike that matches up with external opportunities is that Nike is viewed as a premium brand that is too expensive for some consumers to purchase.
Because of such research, we have decided to revamp our apparel division, an area in which we can still greatly improve.
Therefore the company decided in to include independently owned retail stores. While Nike remains to have positive numbers, the industry growth is hard to predict.
Neither the current or quick ratio exceeds the industry average substantially enough to be considered a true strength. Whether true or not, the company still suffers from this unethical image and must sway the minds of the consumer and give them a renewed faith in the responsibility of Nike.
Nike industry life cycle
Human Resources Human Capital - Weakness No successful company can exist and succeed without utilizing its human capital. Though more risky and expensive, Nike would benefit from increasing the amount of basic research we conduct with hopes of uncovering potential opportunities of which Nike could take advantage. Premium priced branded athlete footwear market, which exhibited resilience at the start of the recession, has witnessed quick deterioration in business opportunities, with the number of sports participants and enthusiasts declining. This mainly because of the brand image. In this case study, Nike has been accused of subjecting employees in their subcontracted factories overseas to work in inhumane conditions for low wages. The industry average of Exit barriers are quite high, therefore the same players are already for a long time competing in the market.
Especially the shoe market, has a lot of competition. Thus Nike has to adapt to the fact that Nike can also be seen as a fashion object. Essay about Analysis of Nike Inc.
Nike company analysis
The growth in the casual market takes place in the non-performance segment. She also conducted a sensitivity analysis that showed that Nike Inc. In the ever changing markets, Nike is facing multiple challenges to remain market leader. Nike should stay focused in analyzing the changing demands of consumers in order to maintain the market share. The opportunity that this matches up to is the chance Nike has to lower its prices and attract new customers. The quick ratio of 1. Human Resources Human Capital - Weakness No successful company can exist and succeed without utilizing its human capital. According to Charlie Denson, the President of Nike, the success of Nike has a great deal to do with the power of the human spirit and through the establishment of an emotional connection with the customer. Though more risky and expensive, Nike would benefit from increasing the amount of basic research we conduct with hopes of uncovering potential opportunities of which Nike could take advantage. The main reason why Nike products are manufactured in these countries is because of the low wages. This is a weakness as a lot of people are migrating to lower prices athletic wear which is primarily focused on quality. In these instances, Nike may choose a defensive strategy to remedy the current situation. The Nike brand was launched at the U. Olympic trials in and Steve Prefontaine became the first athlete to wear Nike shoes and advertise them www.
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