They manufacture wherever they can produce high quality product at the lowest possible price. 1.1Background Barclays group PLC is a big global financial provider operating in Europe, America, Australia, Asia, Middle East and Africa, which is engaged in retail banking, credit cards,. Extensive global production and di… Academia.edu is a platform for academics to share research papers. There are also global marketing events that can be utilized to support the brand such as the World Cup (soccer) and The Olympics. Strategic Analysis (SWOT, Porter, PESTEL) of Barclays Group PLC, Personal Marketing Plan Personal SWOT Analysis. Besides the shoes, K-swiss has its own clothing line up and apparels. That’s how much people love wearing their converse shoes. As a parent company, Nike is still gaining revenue from these labels. Cons would be they would spend more money on advertising and on coming up with the ideal recyclable product. Started at 5:00 p.m. arrived home at 8:30 p.m. Just me and my NIKE! Nike, Inc. Nike is very vulnerable in … Nike has become one of most recognizable companies in the entire world Nike is now the most popular brand in… “Outfitting the next generation of entrepreneurs” It’s on their social media handles and writing on their shoes. To know more about Adidas, read marketing mix of Adidas and SWOT of Adidas. Retailers tend to offer a very similar experience to the consumer. Kate Moran along with. NIKE is it for me. Adidas has the marketing power to expand its brand and positive brand standing within the industry: the company will sponsor the 2012 Olympics in London (London 2012 Olympic Partners). This is a company which has made footwear beautiful. By expanding companies it makes it easier to observe the companies and prevent the abuse. Benchmark and track your performance relative to your competitors. The top 10 competitors average 6.4B. Nike is a global brand and is the number one sports brand in the World. In accordance with Porter’s 5 Forces, Nike has faced competition by using different and distinct capabilities in marketing. (The manufacturing practices of Nike and its competitors) 4. Conditions for these workers have allegedly been made by campaigns of oor conditions, with commonplace harassment and abuse. It lacks for an equal level of sports sponsorships which Adidas and Nike have. The business could also be developed internationally, building upon its strong global brand recognition. NB is made all over the world, you have to look for the made in America tag. The major issue is the outsourcing of the company and all the problems that come from outsourcing. It has sponsored cricket and football teams, hockey, tennis, Rugby, Netball, swimming and many others. We have conducted a comparative analysis of the balance sheet and the income statement of Nike, Inc. (hereafter – the "Company") for the year 2019 submitted to the U.S. Securities and Exchange Commission (SEC). However, most of its income is gained from selling into retailers. Nike has been able to outshine so many brands in the athletic wear industry because of the competitive advantage that it has over its rivals. Many of the top sports footwear companies have concentrated on other products besides shoes such as apparels, deodarants and perfumes, sports accessories etc. Nike does not make some efforts to save environment. One of the main problems the Nike Company has is human rights issues. This competition in the market results in the company to strive to have to best products and on the market. The market for sports shoes and garments is very competitive. Li Ning is known to be amongst the top Nike competitors because not only does it manufacture sports shoes, it also manufactures sporting goods – majorly Badminton racquets, ping pong equipment as well as scarves and gloves for various sporting events. Asics has a plethora of sponsorships up its sleeve majority of it being in the US, UK or Australia where it is concentrated. This may leave it vulnerable if for some reason its market shares erode. In Nike’s case, these five forces point to competition as one of the most significant external factors. However, like it or not, consumers that wear Nike product do not always buy it to participate in sport. It’s all about the company wanting to do more and to be better. Scholars A solution for this problem is to use different material, look into the materials that do not harm humans. Everyone loves how a converse shoe looks on their jeans or in casual clothing. Some of the really cool shoes from Reebok were the Reebok Reezig, Reebok Pump and others. Such consumer price sensitivity is a potential external threat to Nike. The combination of both gives a strong valuation to Adidas as a top competitor of Nike. It can also be an easy solution by using different types of recyclable material such as the plastic and the boxes they put their products in. Michael Porter developed the Five Forces Analysis model to understand the effects of external factors on businesses. As discussed above in weaknesses, the retail sector is becoming price competitive. Analyzing organization’s competitors helps an organization to discover its weaknesses, to identify opportunities for and threats to the organization from the industrial environment. In the industry, Nike’s has maximum or main competition; direct competitors of the company include Adidas AG, Puma AG, and New Balance etc. I am a serial entrepreneur & I created Marketing91 because I wanted my readers to stay ahead in this hectic business world. The pros to this solution are that in the long run it can prevent a law suit and it can profit the company more. One of the reasons for Nike’s popularity is its deep roots in western countries, where it gets its major margins from. 1. Nike Threats in SWOT Analysis. Retrieved from https://phdessay.com/nike-swot-analysis/. Its revenue in 2018 is $36 Billion with net income of $1,973M and having a workforce of nearly 73,000. Nearly half of these workers have completed senior high school. SWOT & PEST analysis Strengths •UK’s largest full service scheduled airline – this makes it a popular company with customers which brings in more business which will then bring in. In addition, sexual trade practices in recruitment and promotion were reported by at least two workers in each of two different factories, although a subsequent investigation was unable to confirm this. This creates its own opportunities, since product could become unfashionable before it wears out i. e. consumers need to replace shoes. The company manufactures in China, Taiwan, Korea, Mexico, US and in Italy. There are many markets that have the disposable income to spend on high value sports goods. Nike is a very competitive organization. From back office to boardroom, warehouse to storefront, desktop to mobile device, SAP. However, Fila is not as premium as Nike and its products are known be cheaper then the top three brands. However, they had falling out long back in 1948, which gave rise to two major footwear brands – Adidas and Puma. Shawnee Moreland, Matthew Pastrano, Alex Jouganatos, and Mami Yamamoto. Group 4: Josh Fernino Brent Hare Victor Hemmati Lance Hollister Chris Kerschen Ty Parasiliti Vincent Ukwu 2. Besides this, it has a wide product portfolio comprising or Athletic shoes, Apparels like T-shirts, hoodies, pants and even protective gear for sports. So there shouldn’t be any competition? However, the customers of the Nike’s have the brand awareness and this is the reason that the company put more effort in the products. The wages can also be put up according to the minimum wage stated by each company. (2018, Apr 01). With all the strong competitors, Nike has managed to hold the position as the leading brand however this does not mean that Nike does not have constant competitive pressures to face and other businesses to look out for. The following strengths are the most notable in the case of Nike Inc.: 1. Puma is the third Nike competitor which is known for its running shoes as well as apparels and Clothing. 1) Adidas; 2) Reebok; 3) Puma; 4) Fila; 5) Converse; 6) New balance; 7) Under armour; 8) K-swiss; 9) Asics; 10) Li Ning. Threats. New Balance is known to take part in sponsorships of Olympic sports, cricket, basketball, cycling and many others. This is where Nike’s competition comes in, creating a healthy free-market environment. 1 shoemaker. It has launched its clothing line up as well It has a whopping revenue of $2 billion from across the world. They do not exist in vacuum. It has major concentration on the Asian markets and on Australis. Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved. However, new entrants required the huge amount for the capital; therefore, Nike has the maximum market share in the footwear industry (Reuters, 2016). So if one store charges a price for a pair of sports shoes, the consumer could go to the store along the street to compare prices for the exactly the same item, and buy the cheaper of the two. In Nike SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. Like most big companies, Nike has a number of strengths. Adidas is one of the topmost Nike Competitors. A solution can be to close down some of the factories and expand other factories. Reebok is a part of Adidas. However, it also makes athletic apparel and gear. Reebok is considered the 2nd biggest Nike competitor across the world. Nike’s strengths are the primary drivers of the company’s growth and global leadership in the sports shoes, apparel and equipment market. The company wants itself to be recognized as the go to brand for Tennis players and Tennis lovers. The cons to this solution are that the research that the company has to do in order to find the materials will be expensive; it will also be time consuming. Hire a subject expert to help you with Nike Competitors Analysis. It has brilliant strategic tie ups with football, cricket and other sports teams. Not only will I realize a life long dream but also. Few have work-related skills when they arrive at the factory. Weaknesses The organization does have a diversified range of sports products like other companies. Above are all the top Nike Competitors. Converse shoes are known more for their unique style and looks rather than their sporting abilities. can use them for free to gain inspiration and new creative ideas for their writing assignments. Market Share of Nike's Largest Competitors A competitive analysis shows these companies are in the same general field as Nike, even though they may not compete head-to-head. Strong brand image 2. PhDessay is an educational resource where over 1,000,000 free essays are collected. Under armour is also known for its product placements across many television serials and movies. The effective tax rate in FY 2018 was 55.3% which was 13.2% in the year 2017. The recent years have been quite profitable for the brand. Some type of funding can be started on recycling; just showing people some type of interest on the company caring for the environment can solve this issue. The brand is fiercely defended by its owners whom truly believe that Nike is not a fashion brand. Organizations must operate within a competitive industry environment. There is also confirmation of workers that are satisfied with their relationship with direct line supervisors, and are satisfied with management. It can be fixed in many ways, one way is to close down some factories and expand the others. We use cookies to give you the best experience possible. Let us have a look at top Nike Competitors and conduct a competition analysis of Nike. Competitive Analysis The chief competitors to Nike are Adidas, Reebok, Under Armor and Puma and the minor competitors are ASICS and VANS. Sagacity Tea is a successful company which built premium quality of New England brand of organic, sugar free, ready to drink tea. Competitors are developing alternative brands to take away Nike's market share. Company Overview. But globally, Puma is still one of the strongest Nike competitors. Manchester united Manchester United (ManU) is one of the leading football clubs in the world. For example, emerging markets such as China and India have a new richer generation of consumers. SWOT analysis of Nike analyses the brand/company with its strengths, weaknesses, opportunities & threats. The stock price of Nike is $72.63 on NYSE in 2018. Very good Leadership is one of Nike’s strengths. How can Converse be a competitor of Nike when they are Owned by NIKE? NIKE FIVE FORCES ANALYSIS. Li Ning originates from China has a major focus on its home ground. Reebok is known mainly to sponsor kits of various Football, cricket or other events. I walk for miles and miles daily and when I am in my Nikes I feel comfortable and super bubbly! Another problem they have is that the company has issues recycling. If prices rise, and products can be made cheaper elsewhere Nike will then move production. It is more into penetrative pricing and promotes products which are good in quality at lower prices. The pros to these solutions are that it opens up the opportunity to others, in the long run it can benefit the company more and it’ll become easier to manage the factories and prevent abuse. Such high value items do tend to have associated with them, high profits. Not only does Adidas compete with Nike on the basis of footwear, it also competes on the basis of clothing and accessories. In conclusion, every major has issues they have to solve. The model developed by Phil Knight in his Stamford Business School days (high value branded product manufactured at a low cost) is now commonly used and to an extent is no longer a basis for sustainable competitive advantage. Nike Inc had done a lot of analysis to understanding the strengths and weaknesses of own corporation and also competitors. Nike is generally considered as one of the big three in sports apparel, with the other members Adidas and Reebok being its primary competitors. NIKE has a few clear-cut competitors in the market for athletic shoes.Adidas stands as NIKE’s top competitor. ManU has won many titles in the football competition making the club to be the. A lot of the Nike Company factories are experiencing serious problems leading to labor disputes. Haven’t found the relevant content? The retail sector is very price sensitive. Fila is also one of the largest manufacturing companies of Sports footwear and is one of the top competitors of Nike. Fila originated from Italy but in 2007, it was taken over by Fila Korea, resulting in the complete Fila group operating from South Korea. Nike has no factories. The materials they use are allegedly harmful to humans. NKE Sales vs. its Competitors Q4 2020 Comparing the results to its competitors, Nike Inc … Save time and let our verified experts help you. On the other hand, the company uses materials that are bad for human bodies. New balance shoes are costlier because it carries out all its manufacturing within the US or UK, and does not export the manufacturing like Nike or Adidas group. If that fact is wrong, then how many other facts in this article are wrong? Can you think of any other examples of Nike competitors? Nike is the world’s no. The niche market that Nike is part of is incredibly competitive. Analysis that using had improve the corporation in a lot situation such processing products, cut down the finance costs, targeting potential customers, purchases raw material in low prices, increase sales and income. These are some ways the company can solve their issues. This is a great threat Nike is facing and it also affects its net income by 54% which is a great offset for the revenue growth. They have been focusing on an entrepreneur type of rebrand. Some would argue that in youth culture especially, Nike is a fashion brand. Over the last four quarters, Nike's revenue has grown by 64.1%. Cheap labor, long working hours and forced labor. Your email address will not be published. The Global Alliance report on the factories in Indonesia gave the following workforce profile: 58% of them are young adults between 20 and 24 years old, and 83% are women. SWOT analysis for Sagacity Tea Just a thought. So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Nike. One solution can be is promoting “going green” on their websites and in stores. To know more about reebok, read the marketing mix of Reebok. Introduction One of the biggest competitive pressures that Nike faces is the placement of their stores. Reebok is a subsidiary company of Adidas which operates independently. New Balance is also involved in the sale of Apparels but the sale of footwear is far more then apparels. Do a google query on “how to wear converse sneakers” and you will find many article. I live on the beautiful island of Barbados in the Caribbean. Adidas and Reebok are the top two Nike competitors but there are many others in the sports footwear market as well. K-swiss is again an American footwear brand but one which is concentrated towards tennis shoes and Sneakers. Really cool shoes from Reebok were the Reebok Reezig, Reebok Pump and others the Olympics a at! 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