The following are the external factors that maintain the moderate threat of substitution against Nike Inc.: We have just recently changed our collection period from 90 days to 60 days as an attempt to encourage faster payment.
Also, there are only a moderate number of firms that significantly impact Nike. These brands offer lower priced substitute products for Nike. The moderate availability of substitutes also enables customers to buy other products instead of always buying from Nike.
The locations are geographically dispersed which works well in our mission to be a truly global company. We want to be a leader and set a responsible corporate example for other businesses to follow. While establishing these policies is a step in the right direction for Nike, the difficult task at hand will be the implementation of the aforementioned goals to ensure the success of the program.
Applied research focuses on short-term initiatives such as successfully developing new product lines. Posture - Strength Our posture is primarily innovative, while at times adjusting to a protective position, and other times a catch-up stance.
The company must also collaborate with government units to address patent protection issues. While establishing these policies is a step in the right direction for Nike, the difficult task at hand will be the implementation of the aforementioned goals of the new labor initiative to ensure the success of the program.
Building a brand image and equity are also difficult. It is because of the athleisure trends and for the high demand during the Olympics. Based on these factors the threat from new entrants is low. Focus — Weakness Focusing on applied research can be a weakness as well. Products - Weakness Nike has had much success as a result of collaborating with other companies within the sports and fitness industry.
It is because a large number of competing brands make similar or matching products. While the prices are realistic given the nature of the products we offer to our consumers, at times our consumers may not agree.
Strong Force Competition determines how Nike Inc. Many new, innovative ideas come into existence as a result of basic, unspecific research.
Steps are being taken to alleviate the problem of collecting accounts receivable in a more timely fashion. Social Responsibility - Strength In response to accusations by consumer groups over unfair labor practices, Nike has developed a Corporate Responsibility Policy that discusses how we will improve working conditions for our international employees.
This element of the Five Forces Analysis identifies the force of substitution on the business and the industry environment. However, the forces and corresponding external factors enumerated in this Five Forces Analysis must remain among the strategic considerations of Nike Inc.
Management of Accounts Receivable - Weakness Nike does permit sales in cash, cash equivalents and on credit. Our ratio of Transcript of Nike Competitive Analysis. About Nike Market leader in athletic footwear, apparel and equipment Works to drive product innovation for athletes and improve performance Mission statement is “To bring inspiration and innovation to every athlete in the world.
If you have a body, you are an athlete”. Nike Inc. enjoys a top position in the global athletic shoes, equipment and apparel market. A Five Forces Analysis, based on Michael Porter’s model, points out that competition, customers and substitutes are the most important external forces in Nike’s industry environment.
Nike Inc.’s SWOT Analysis emphasizes the importance of product development to maintain a competitive edge. However, the results of this SWOT Analysis point out some possible new strategic directions to further enhance Nike’s global performance and leadership. Top 10 Nike competitors June 14, By Hitesh Bhasin Tagged With: Brand competition Nike is the leading sports footwear brands in the world and is known as one of the top 3 amongst the trio leading the sports footwear market across the world – Adidas, Reebok and Nike.
Nike Versus Adidas Case Study and Competitive Analysis - Download as Text File .txt), PDF File .pdf) or read online.5/5(1). The competitive strategy that Nike introduced at the end of the 's concentrates on honing the focus of our marketing strategies and product offerings through product differentiation.
We realize that the team-mentality that captured the spirit of athletics in the late 's and early 's has been replaced by a sense of individualism.Download