Nike Swot Analysis Essay

High Prices: Nike has the upper hand when it comes to the product it is selling; a strong brand allows Nike to be very profitable. However, Nike sets prices at higher rates than its competitors who make their products out of reach for many customers in emerging markets. There is also the risk of declining demand when an economy falls into recession, as consumers have lower tolerance on spending on items that are not a necessity.
Opportunities
Emerging Markets: While Nike already has a presence in many emerging markets, we believe that there is still significant growth potential there. China, Brazil, and India are a few of the fast growing markets that can lead to a potential increase in earnings. While China made up 9% of 2014 revenues, the company believes this figure will rise as it continues to enhance its brand image there. Recently, Nike has been able to better appeal to its Chinese customers by marketing what they would prefer. We believe that Nike would be able to increase its share of the global market by continuing to grow its base in these regions. These regions have been reporting higher
There are several significant athletic and leisure footwear companies and sports equipment firms that produce similar products. Some of the primary ones are Puma and Adidas are some of the big competitors with Nike. Other large companies have diversified their product lines to include athletic and leisure apparel including Under Armour and lululemon. This type of quick change in technology and customer preferences can result in a risk for Nike. Demand for Nike’s products relies on what the norm in many sports and fitness related activites are, as well as the ever-changing trends, these generally control the financial results of Nike. If competitors have more success attracting customers with more appealing footwear or apparel, this would also hurt business