Nike Ppt

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By- Rimanshu patelUnder the guidance of- Mr. Amitava chowdhurySWOT ANALYSISSWOT ANALYSIS1

Company profile & background NIKE, Inc. is engaged in the design, development and worldwide marketing of footwear, apparel, equipment and accessory products. . It sells its products to around 18,000 retail accounts in the United States and through a mix of independent distributors, licensees and subsidiaries in nearly 200 countries. NIKE is the largest seller of athletic footwear and athletic apparel in the world. The Company creates designs for men, women and children. The top selling product category includes running, basketball, children's, cross-training and women's shoes.Index membership SectorIndustryEmployees

S&P 500 Consumer Cyclical footwear 23,300

NIKE sells sports attire and accessories relevant to each sport and sports-inspired lifestyle apparel, like bags, socks, sport balls, eyewear, protective equipment, basic sport equipment, etc. In addition to NIKEs footwear, apparel, and accessories businesses, the Company sells products under other brand names in particular markets. These subsidiaries combined together account for 13% of total revenues, $2.5 billion, in fiscal 2009.Products Cole Haan, Converse Inc., Hurley International LLC, Umbro Ltd., and NIKE Golf

Marketing and Advertising NIKE places a significant weight on marketing the company and its products. NIKE aggressively bonds the contracts with highly successful and influential athletes, coaches, teams, and leagues like Michael Jordan,to popularize its footwear, apparel and sports accessories. In order to sustain its dominance in the industry and stay competitive, NIKE actively responds to trends and changes in consumer preferences by adjusting the mix of existing product, developing new products, styles and categories, and influencing sports through aggressive marketing. Its primary areas of marketing remain Net TV and magazines. Competitors The rivalry in the sports wear industry is very high. NIKE competes with numerous athletic and leisure shoe companies worldwide. It faces fierce competition in product offerings, technologies, marketing expenditures, pricing, costs of production, and customer services.

The main competitors are Adidas, Reebok, Timberland, Woodland, and Puma. SWOT Analysis Strength Brand recognitionHigh product quality Effective marketing strategy Capacity of innovation Strong distribution chain Strong R&D Strong customer relationship/satisfaction SWOT Analysis WeaknessDecreasing United States market share Currency exposure High product price compared to Adidas Medium retail presenceOverseas manufacturing dependency SWOT Analysis OpportunitiesExpansion into emerging markets Growing segment of women athletes Increased demand in product innovation Increase in the number of sports events like Olympic, FIFA Product development offers NIKE a great opportunity. NIKE, being a sports brand, attracts the sports as well as non-sports population. The brand is intensely defended by its owners who truly believe that NIKE is not a fashion brand. But the consumers that wear NIKE product do not always buy it to participate in a sport event. For the younger generation i.e. youth especially, NIKE is a fashion brand. The youths spent a large amount of money in these accessories.

Biggest opportunity for NIKE 8SWOT Analysis ThreatsFierce industry competition Economic rescession Revenue relies on consumers discretionary income Fluctuation in the currency The greatest threat for NIKE is the inevitable stiff competition from other sports brand, especially Adidas. NIKE operates in the sports shoe and garment industry which is one of the most competitive marketplaces. For a company to succeed in competition there is a continuous need to develop new products with higher quality than its competitors. The dynamic needs and demands of consumers serve as a challenge to the management. Biggest threat for NIKE Micro environmentCompanyDemographicEconomicNaturalTechnologicalPoliticalCultural CompanyCustomersIntermediariesSuppliers CompetitorsPublics Customer Satisfaction -Good Customer Loyalty -Good Customer retention ratio -Good Market Share -Good Competitive Price -bad Number of Customers -Good Design own shoes optio -Good

Customer analysis (micro environment) NIKE focus has always been on the customer satisfaction. It invests a lot in its product research and development in order to offer better sports apparels to the customers. It has always striven to provide a competitive edge to foster the best possible performance in its athletes. The researchers work on the three primary area: Biomechanics (study of human movement), Physiology (study of the integration of the bodys energy systems and responses to the environmental stresses), and Sensory/Perception (subjective evaluation of product attributes, usability and durability). Financial analysis (micro environment)Profit Margin :10.03%- Good NIKE growth: 7% vs. industry growth 4.5% -Good High advertising cost -badBetter COGS% than competitors -Good NIKEs efficient internal operations are reflected through its better financial ratios. The key success factors associated with NIKEs success are its distinctive marketing capability, volume manufacturing capacity, extensive research and development effort to design premium concert athletic products for customers, product differentiation and innovation and distribution capabilities. Marketing capability through celebrity endorsement has always been the core competency of NIKE. Its efficient distribution capacity and use of IT to control inventory can be seen in better inventory turnover ratio.

Internal analysis s12Internal analysis (micro environment) Marketing Innovative Products -Good Celebrity endorsement -Good Diversity of online product -Good R&D Integrated researches -Good Product technology -Good High quality product design -Good Good supplier relation -Good IT for inventory control -Good Macro environmentMacro environmentThe Social Structure national & International EconomyTechnology The Natural Environment Demographic Structure Government & Politics Global Economy THREATSEconomic recessionConsumer purchases slowing down Fallinginternational economy;fluctuation in foreign currency & exchange rates OPPORTUNITIESInternational expansion, building upon its strong global brand recognition; strong economic conditions in other countries Technology OPPORTUNITIES Use of IT in marketing information system;Scientific research in products quality & innovation like Motion Analysis (kinematics), Foot-pressure Measurement, Ankle Range of Motion etcGovernment/Politics THREATS Increased legislationHigher price of products, Customer right OPPORTUNITIES Macroeconomic stability, low interest rates, stable currency conditions and international competitiveness of the tax systemNatural Environment THREATS Natural disasters like earthquake in Japan resulted in loss of lives, resulting in customer loss OPPORTUNITIES Cold/Rainy climatic condition creates a demand for shoes.Demographic THREATS Baby boomers pushed into late forties are less inclined for sporty activities like running; lower income of customers; ethnic mix of some countries OPPORTUNITIES Young generation inclination in sports & fitness; large population more customers; high income customer buying at premium priceSocio-Cultural OPPORTUNITIES Inclination towards fitness leading to demand for fitness products particularly exerciseapparel, shoes and equipmentsAt last, but not the least I want to thanks mr. amitava sir for there valuable guidance.THANK YOU SIR.21