BUSINESS ANALYSIS

Business Analysis



Business Analysis

Introduction

This paper is an account of Nike's current situation in the personal fitness shoes. We will be discussing Nike pest, and porter 5 forces analysis. No doubt, Nike has been successful in retaining brand equity, but the competition is getting intensive day by day. There are many reasons for which Nike needs to come up with innovative and customer winning marketing campaigns. Firstly, Nike needs to retain its brand equity. This can be made possible through frequent effective communication strategies. Secondly, Nike can capitalize on its manufacturing cost benefits and invest the profits in expanding into the new developing markets. These developing markets are in the growth phase. A thorough marketing and research efforts will be required. Besides this, the company needs to continue with the same positioning strategy it already has, since this is what the customers relate themselves with. Moreover,the main issue that Nike is going through is competition. Reebok and Puma are also catering the global markets. In this situation, the price becomes sensitive for the customers. Retaining long-term customers today is a herculean task, but an effective marketing strategy can very easily achieve it.

Marketing Strategy: Nike

Nike is the world's leading manufacturer, marketer and distributor of the athletic footwear and sports wear accessories. It primarily operates in Asia Pacific, Middle East, Africa, Americas and Europe. In the past decade, the brand has become widely recognized and financially strong. Brand management is one of its greatest strengths. Consumers relate themselves with the brands they find to be of superior quality. A strong brand allows expansion in the market share and prolonged consumer satisfaction. The same has been the case with Nike. No doubt, the brand came across hard times in the forms of social allegations but, their marketing campaigns specially “just do it” helped it revive its brand image. Eventually, Nike keeps on improving its product lines which helps keeping the target segment engaged with the brand. The swoosh sign is recognizable in almost the entire world. This alone accounts for Nike's worldwide success (Hollister 2011, pp. 320).

Discussion

SWOT Analysis

Nike has a strong brand equity. It is the only sport goods company to be featured in the 2007 list of Best Global Brands. It has been ranked 29th on the list whereas, Nike's competitor Adidas, a German based company, was ranked 69th on the same list. The advantage of Nike against the competitors is the strong brand equity; this equity has remained intact although the competition in the trainers industry became aggressive. Nike makes the most of this equity through easy launch and acceptance of its products worldwide. However, Nike faces aggressive competition from Adidas and Puma. This competition arises in the form of price wars, and product line innovation. A brief account of Nike's SWOT analysis is given below (Frisch 2008, pp.30).

Strengths

Innovation Capabilities- One of Nike's key strategies are that it keeps on bringing innovation in the product line. The purpose is to provide an upright athletic ...