STRATEGIC ANALYSIS

Strategic Analysis of the NIKE



Strategic Analysis of the NIKE

Introduction

The sports goods manufacturing industry is one of the most developed and profitable industries in the world. Sports and recreation industry is rich in material and is on the verge of growth as many people are now focusing on their fitness. The gradual increase in leisure of people has made them inclined themselves towards better physique. In some developed countries, sports and leisure has not just become a fashion but considered a lifestyle. The sports and leisure industry is facing vigorous development because of various benefits including health concerns, fitness and entertainment. Business proposition is a multi sports complex (Cooper, 2004, 330). The sports industry in UK market is large, visible, growing, and it has a huge impact on society. That is obvious to die-hard followers, who not only watch sporting events but purchase everything from balls to binds to paperweights with their very popular team's logo. However, even sports haters can not get the attack of professional sports away: They are asked to the portion in as taxpayers to build public stadiums, and their young kids are, like it or not, revealed to events sponsored by the alcoholic beverage and tobacco companies, not to mention the juvenile antics of celebrity athletes. Businesses, of course, take a strike in productivity when the Olympics—or World sequence or Super basin or World Cup—rolls around. Yet most of us love to watch, and play. The enterprise of Sports takes on this endlessly fascinating behemoth of commerce to make sense of it all (Lomax, 2006, 383).

This paper is aimed at presenting a strategic analysis of the Sport Goods Manufacturing Industry, taking into consideration the various aspects that surround its participants. The paper provides a description of the Callaway Golf Company, which is one of the leading manufacturers in the world industry dealing in gold gear and accessories.

Industry Definition

Following the design of sample products, operators in the Sport Goods Manufacturing Industry buy raw materials and transform them into a range of sporting and athletic goods (except apparel and footwear). Examples include balls for sports (baseball, football, basketball) and outdoor equipment (fishing, hunting, and camping). The finished products are then marketed to wholesalers and retailers (Russo & Walker, 2006, 110).

Current Performance

The Sporting Goods Manufacturing industry has been hurt by the recession and adverse retail environment. Over the five years to 2011, revenue is expected to decline 2.8% annually to $8.7 billion. Domestic, sporting goods manufacturers have tightened their budgets to stay competitive. Falling consumer spending on sporting and athletic goods caused retail stores to decrease inventories, forcing manufacturers to produce few products (Grant, 2003, 1). UK's shift to a service-based economy is hurting the industry further, meaning that manufacturing companies and jobs are increasingly being sent overseas. The writing on the wall should be clear to sporting and athletic goods manufacturers: shape up or risk being shipped out.

NIKE

Nike is the world's leading manufacturer, marketer and distributor of the athletic footwear and sportswear ...