Nike has been in the market for decades, and many people can recognize its brands. Besides, many people have come across the brand in various sporting events. The name is also easy to pronounce and memorize, which makes it known to many people. Typically, a unique name that is easy to pronounce is essential in business since different people can easily recognize the brand.
Huge Customer Base
Nike has many customers globally, which makes it one of the most competitive companies in the production of athletic wear. Many clubs are also using the company's products, which has helped the company to become more competitive. For instance, many football teams use different Nike products, which has led to many people recognizing the brand.
Nike has also been partnering with various players, which has led to increased sales. For instance, Nike's long-term partnership with Michael Jordan has helped the company to increase its sales and attract more customers who are a fan of Jordan. Besides, the introduction of Air Jordan shoes has increased the sales of the company.
Poor Labor Conditions in Foreign Countries
Many people have speculated that Nike Company offers horrific working conditions. Also, the company has been linked with poor wages, which oppresses its workers. Therefore, many people avoid working for the company due to these poor labor conditions, and this limits the chances of developing the company.
The company has pending debts, which affects its production. Although Nike has increased its sales for the past decades, the company still struggles with its massive obligations.
Various emerging markets can be seized by Nike. For instance, sporting activities in China have gained a lot of fans, which creates an opportunity for Nike.
Technology has also become essential in the contemporary world. Therefore, Nike can combine technology with athletic wear. For instance, products like wearable technology that monitors physical activities can be innovated.
One of the potential threats of Nike is the increased counterfeit products. Many companies are offering counterfeit Nike products at a lower price, and this can affect the revenue and reputation of Nike. The counterfeit products are made from low-quality materials, which could lead to customers feeling that Nike has started producing low-quality products.
Increased Competitive Pressure
Many new emerging brands are also a potential threat to Nike. New entrants are also focusing on ways that can attract more customers for them to fit in the market. Thus, the company has to spend more money on marketing and advertising its products.
From the above SWOT analysis, Nike should focus on its strong brand awareness to attract more customers. For instance, the company can concentrate on marketing its products in various countries to ensure that it increases its sales. Similarly, the company can ensure that it minimizes its weaknesses, such as improving its working environment and encourage employees to be innovative. Opportunities available for the company can also be seized, such as investing in the emerging markets.
Vision and Mission Statements
Vision and mission statements of a company are essential as they help a company to attract customers. The vision statement of Nike is, "To bring inspiration and innovation to every athlete in the world." The mission statement is, "Do everything possible to expand human potential" (Webb 9). Consequently, Nike has used its mission and vision statements to express its main objectives to the public. Both vision and mission statements are also essential as they educate customers about the goals of the companies and how they value their customers. Nevertheless, Nike should focus on a strategy to increase their productivity. For example, the company should focus on a marketing strategy that helps customers to differentiate counterfeits with their original products.
Furthermore, Nike's objective is to employ a range of marketing communication tactics to ensure that it reaches its target market. Therefore, various platforms can help the company to communicate with multiple customers. The strategy can be adapted by conducting campaigns that educate people on numerous ways of determining the original products of Nike. Besides, workers can be encouraged to inform the customers about the new changes in the business and their advantages. Changes in a business can be challenging. Thus, managers and leaders should educate workers on ways of adapting to the changes and ensure that they achieve organizational goals.
Competitive Rivalry or Competition (Strong Force)
Nike has a competitive advantage compared to its competitors. Firms compete for bigger marker shares and Nike has proved to be the favorite in this competition. To further ensure greater competitive advantage, Nike needs to focus more on product development.
Bargaining Power of Nike's Customers (Moderate Force)
The customers are the hinges on which Nike swings. However, a significant number of customers find alternatives in other companies due to low switching costs. Substitutes are also readily available for Nike customers and this sways their loyalty from Nike.
Bargaining Power of Nike's Suppliers (Weak Force)
Nike obtains raw materials from suppliers. There exists a large number of suppliers and this weaknes their bargaining power. Thus, in making its decisions, Nike does not concern itself with the suppliers to a great extent.
The threat of Substitutes (Moderate Force)
There are several substitutes in the market that pose risk to Nike. Customers have substitutes that they can rely on other than Nike and this affects Nike's pricing model as well as its promotional strategy. However, substitutes exert moderate force against the company.
The threat of New Entrants (Weak Force)
Nike is a large firm that has made its name in the global arena. As such, it is very difficult for another company to come and displace Nike. The high cost of setting up a company with the strength of Nike and its wide distribution network makes it difficult for other companies to try the business.
Webb, Rick. "The Vision." Agency. Palgrave Macmillan, New York, 2015. 9-14.
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