Nike SWOT Analysis Essay Example | Topics and Well Written Essays - 3000 words

Nike SWOT Analysis - Essay Example Introduction and Market Overview The global financial meltdown of 2008 has negatively affected retail business because it reduced the purchasing power of consumers and destroyed consumer confidence (Finch & Wood, 2009). Businesses have shrunk drastically all over the world due to the integration of global financial markets. Firms are finding it difficult to sell their products to consumers in these tough times. Even big names like Nike are worried about their sales and purchasing power of their clientele, although it did well as compared to others in the recession. The company was founded back in 1964 and since then it has grown tremendously. The company is the leading seller of athletic shoes and apparel in the world (Sage, 2008). In 2010 the company reported a profit of $1.9 billion and an operating income of $2.5 billion, but revenues have fallen to $19 billion (Nike Annual Report, 2010). This is a point of concern for the company because it means that sales are declining due to some reasons. Fall in sales can be because of the tough economic conditions of European and American markets. This downward trend can cause many problems for the company in future because competitors can take market share from the company. The main competitors of the company are Rebook, Puma, and Addidas. Nike sells sports equipment, apparel and footwear. The company alongside with its competitors uses celebrity endorsement and other marketing strategies to attract customers. The client base of Nike and all its competitors are more or less similar. Nike targets young people who are interested in sports. Competitors of Nike are also targeting the same population set. This is why marketing is used as a tool for differentiation by companies in the industry. The vision of the company is to produce equipment for athletes therefore aims of the marketing plan will compliment the overall strategy of the company. The aim of Nike should be to improve its sales in the next year by attracting more and more customers. Improvement of sales by 20 percent is the objective of the firm. The focus of the company will also be on the developing countries as it will attempt to position itself as a premium brand in the developing world. In t his report we will design a marketing plan for Nike so that the above mentioned aims and objectives can be achieved. We will conduct a SWOT analysis for the company and will also include marketing objectives and market segment in the plan. We will also elaborate how the plan will complement the overall strategic objectives of the company. Risk issues within the marketing plan will also be discussed alongside with the mitigations strategies. SWOT Analysis Strengths Nike is the number one footwear brand of the world therefore it enjoys a strong position in the market. The company use marketing constantly to remain the market leader