Large apparel companies, because of their size find it difficult to grow at high digit rates. (Nike Mission Statement), The mission statement of the company remains essentially the same over the long-term it basically emphasizes the fact that to become the dominant market leader in the donuts and beverages retailing business one has to intercept the customer’s needs and preferences and to change with time. Footwear and apparel industries are relatively mature and investors perceive few pure growth plays, and expectations for margins tend to drive stock valuations more than sales growth. According to Zacks Investment Research, based on 13 … CONCLUSION/RECOMMENDATIONS • Nike has shown good growth momentum & increase in stock prices • Nike should move forward with the changing trend of the market • Company … At this stage of planning, decisions are made in order to indicate the direction of the marketing mix not to mention the way products are going to be perceived in the market 4. Market Capitalization: -0.6980 Once the company has performed it SWOT analysis, it can then proceed to develop specific goals for planning period. It is the world's leading supplier of. 48 Vitosha Boulevard, ground floor, 1000, Sofia, Bulgaria Bulgarian reg. 56 49. Looking for a flexible role? If the mission statement of the company is broken down in such a way that it would clearly show the strategy Nike has applied in the recent years. However, due to harsh criticism from some organizations like Barbie.com, Nike has disclosed information about its contract factories in its Corporate Governance Report. Estimated: Nike has shown a 3 year CAGR of 11.8% since 2003. (The manufacturing practices of Nike and its competitors). This leaves the company very vulnerable to market share erodes. The most recent additions to their line are the Nike 6.0 and Nike SB shoes, designed for skateboarding. (Cravens, 2000), The mission statement of Nike is to bring inspiration and innovation to all the athletes all over the world. Thus Nike has soughed out the mix that will best help it achieve its goals of maximum profitability. To cut expenses & improve margins there is a trend towards moving production facilities to lower-cost regions outside the U.S. Therefore the management of the company needs to track down its market share within the industry. The overall services and look of the company is targeted in such a way that would match the changing tastes and preferences of the customers of Nike worldwide. Nike has been developing its marketing mix consisting of the four P’s i.e. 1980: Nike goes public, offering 2 million shares of stock. The Swoosh. The company gained top spot in the global athletic apparel market & European footwear market with the merger, which was formerly held by Nike. (Brand Extension). If you need assistance with writing your essay, our professional essay writing service is here to help! The company has taken the name of Nike from the Greek goddess of victory. VAT Registration No: 842417633. 60 263. Nike needs to watch out for threats associated with these weaknesses, and others such as tax clampdowns or counterfeiting. Nike PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. In 2006, revenues grew by 9% led by strong growth in Americas and U.S., while Europe and Japan have shown flattish growth. Since these are two areas that cause protests against Nike, it is important for Nike to label them as areas to focus on and for Nike to give the public this information. Served market share: served market share of a company can be defined as the sales of the company’s product, which is expressed in terms of percentage of the total sales. The first Nike product sold with the new symbol is a soccer shoe. 2. It is due to the mission statement that the employees, customers, suppliers and stockholders known about the stated goals and objectives and the aim of the company. The average price target is $ 0.00 with a high estimate of $ 0.00 and a low estimate of $ 0.00. The footwear industry is very price sensitive. In the U.S., Nike operates 3 distribution centers for footwear. Market Capitalization is the total market value of Nike's equity. Market Analysis Nike Nike Inc. is a globally leading organisation involve in the development, design and global marketing and selling of apparel, athletic footwear, equipment and accessories. Home — Essay Samples — Business — Nike — An Analysis of the Market of Nike and Adidas This essay has been submitted by a student. Nike also advertises by using various celebs in their advertisements to increase brand loyalty while utilizing the brand image of such celebs.Nike has also gone to the extent of sponsoring a stadium called “the Alliance Arena”, which is by far the biggest football ground in the whole world. Nike has to hire, train and motivate salespeople; it has to set up communication and a promotion program, which includes advertising, sales promotion, public relations, direct marketing, institutional selling and online marketing. If the relative market share which is above 33% therefore it is considered to be strong since Nike’s in this case has a share of 47% its relative market share will be considered the strongest from its competitors. Profitability gains, through gross margins expansion irrespective of FX movements, augmented by a new focus on SG&A leverage. The company is headquartered in the Portland metropolitan area of Oregon, near Beaverton. The majority of Nike's revenue is derived from North America. 1st Jan 1970 Nike Weaknesses in SWOT Analysis. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008. A threat that is faced by Nike is the environmental damage that is done to the society by air and water pollution, noises and change in the climate due to the pollution etc. Retrieved on 26th September’08 from < www.sneakerhead.com>. (Nike Inc, SWOT), Market share is defined as the company sales that are divided by the total sales of all the companies for specified product market. 3-Month For global analysis, the Footwear Market is examined by considering the different regions such as North America, Latin America, Japan, China, and India. Eg. Internationally, Nike operates 21 distribution centers in Europe, Asia, Australia, Latin America, Africa and Canada. Online shopping: Nike also provides with online shopping facility for its various products and services. 81% The Group sold Tretorn Sports Sales Ltd on 1 July, 2005. You can view samples of our professional work here. Nike endorses various celebrities such as athletes, football players, cricketers, tennis etc .It places its products in various movies and shows using product placement. all over the world. Requires stronger brand profiling and more investment in product characteristics by companies. Nike branded footwear is the largest component of overall Nike sales. Market capitalization of Footwear & Accessories industry is now estimated at about 664.86 Billion. These investments will be used to give excluded youth around the world the chance to play because as access to sport can enhance their lives. Even broader opportunities exist globally. However, U.S. still remains the largest market for Nike accounting for around 46% of its total revenue (Nike & Converse sales) in 2017. Nike also endorses various teams as well as clubs such as Barcelona Football Club. Promotion: promotion includes sales promotion, advertising, sales force, public relations, direct marketing and the company also uses its catalog for promoting of their products worldwide. No plagiarism, guaranteed! Adidas and Nike are two giants in the apparel market with a large market cap and market … Retrieved from https://phdessay.com/marketing-analysis-of-nike/. Nike’s strengths are the primary drivers of the company’s growth and global leadership in the sports shoes, apparel and equipment market. 1.05 Nike has a high-end consumer market with high disposable income asking for better service and satisfaction as their target market. Reebok now has merchandising contracts with the National Football League and the National Hockey League in the United States, and was purchased in 2006 by adidas. Why companies feel the need to increase their market share within the industry. Nike promotes its products by sponsorship agreements with celebrity athletes, professional teams and college athletic teams. Nike Market Share in 2019: World’s Largest Shoe Company Blog > Consumer and Retail > Apparel and Textile Nike’s market share stands at about 27.4% in 2019, ahead of its industry rivals Adidas and ASICS, making Nike … They have achieved this through superior brand management. If the relative market share is greater than 100% it indicates that the company as the leader in the market. Exchange rates too affected the International sales growth negatively. This component of the SWOT Analysis deals with the internal strategic factors that support business development and competitiveness. All work is written to order. Unfortunately, Nike is very much dependent on the US market and is little diversified beyond the footwear and sports apparel markets. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Registered Data Controller No: Z1821391. in 1993 to, as the Nike Web site maintains, “Reduce Nike’s impact on the planet.”, Philanthropy: Nike is committed to philanthropic endeavors such as “Reuse a Shoe,” “Project Dreams” and “Habitat for Humanity.” These efforts, along with other programs such as the “Shadow” program and the. With its extremely powerful brand and low costs, Nike has been able to net several billions of dollars on an annual basis. We’ll have to see if the market can hang onto that momentum through today’s close. Sells under the NIKE brand, wholly owned subsidiaries Converse, Cole Haan, Hurley International , BAUER NIKE Hockey, and Exeter brands. (2018, Apr 01). Nike Target Market Men, women and children from urban upper-middle and upper class. Nike have sponsored many renowned sports teams and athletes with its top trademark “Just Do it” and Swoosh logo. Investment Recommendation: Overvalued; Sell 11/01/07 2. But is mostly famous for their athlete shoes and apparel and Nike is also one of the major manufacturers of sport equipment as well. Our academic experts are ready and waiting to assist with any writing project you may have. Currency had a negative effect of 1% on the total growth. Discover new investment ideas by accessing unbiased, in-depth investment research Nike and Precision Castparts are the only Fortune 500 companies headquartered in the state of Oregon. The first one is based on the use of unit sales that help to express the market share of the company. Gauging through Scope: Global Sports Clothing Market, 2020-2025Augmented by various supportive market forces and elements, the global Sports Clothing market is anticipated to demonstrate a lingering growth stride in the coming years through the forecast span, … The elimination of quotas/safeguards over the next couple of years is expected to drive input costs lower, and the powerful apparel brands sourcing from the Far East will capture a significant share of these savings. Retrieved on 26th September’08from < www.samples-help.org.uk/mission-statements/nike-mission-statement.htm>. Relative market share: the company’s relative market share to its top competitor expresses the sales as a percentage of the three largest competitor sales combined. Rapid innovation processes 3. Yet it has a tendency of changing the designs and patterns after a particular period or quantity. NIKE SWOT Analysis NIKE Inc. is a company that designs, markets and distributes athletic footwear, apparel, and equipment for sports, and they have grown to become one of the largest is their business. While retail consolidation and the end of quotas have created some uncertainty, powerful global brands will more than held their own in the changing environment, as they have done in the past. Kd(BT): 5.2} ECONOMICAL: – As far as the figures are concerned; Nike has been impressive having a market share of 30.4% in 1998, compared to 15.5% and 11.2% of Adidas and Reebok respectively. Theory behind the merger-to utilize Reebok’s marketing power and understanding of the U.S. consumer to build Adidas’s presence in the United States and, conversely, to draw on Adidas’s heritage in Europe to develop the Reebok brand overseas. Roger Federer, Tiger Woods, Ronaldinho, Ronaldo. 0.0230 NIKE Marketing analysis 1. can use them for free to gain inspiration and new creative ideas for their writing assignments. 52 Week Range: Beta Branded vendors have traditionally operated factory outlets as a means to manage excess inventory. brand names that extend to new product categories. Apparel division includes track suits, football strips and similar sportswear. Nike uses advertising, sales promotion, advertisement campaigns, public relations and publicity and sales offers to build awareness and brand image and loyalty. After surpassing adidas in the 1970s, Nike had no direct competitors because there was no single brand which could compete directly with Nike’s range of sports and non-sports oriented gear until Reebok came along in the 1980s. St. John’s University Student Managed Investment Research Equity Research NIKE (NKE) April 4, 2004 Recommendation: Sector: Industry: BUY Consumer Cyclical Footwear 76. Percent Institutional -1.30% Adidas and Reebok will now have a larger arsenal of athlete endorsers, more influence on the supply chain, and a chance to secure more shelf space. NIKE is engaged in design, development and marketing of footwear, apparel, equipment and accessory products. In our case the major competitors of Nike are Adidas and Reebok. The mission statements suggests that with their sportswear all the athletes all over the world would be inspired with the company’s product and would play and enjoy their particular sport. And lastly another threat to Nike is the international nature of the trade. Actual Price (11/1/2007): $28.20 $20.16 B 7-Year The Group has operations in Europe, North America, Asia and Latin America. Nike is one of the famous franchises in the world that sells sportswear for all ages. Nike`s grip on the market comes down to a simple supply and demand formula, Josh Luber, CEO of sneaker reselling site StockX previously told Jefferies. 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