Strategic Analysis of Nike

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Nike is a multinational corporation established in the United States specializing in the design, development, manufacture, and global marketing of sportswear, apparel, equipment, and services. With a worldwide market share of 37 percent, the firm is the world’s largest sportswear and sports shoes provider. The firm focuses on well-known brands like Nike and Jordan, which cater to a wide range of customers, including runners, basketball players, football players, and gym-goers. The firm also produces sporting equipment such as luggage, glasses, gloves, and golf clubs, among other things.

When writing an assignment based on Nike it’s advisable to go through this blog or simply ask our experts & avail my assignment help in Australia. As a result, the company’s principal business strategy is manufacturing outsourcing to cut costs. However, this technique poses several business and ethical concerns. Nike, for example, has been accused of cooperating with manufacturing companies in low-wage countries to make their items using child labour and exploitation of individuals.

Analysis of the Nike Four Forces:

Supplier bargaining power:

Nike’s suppliers have little negotiation leverage. While they’re modest in comparison to Nike, they’re also dispersed over the globe and lack considerable financial resources. Apart from the availability of raw materials, labour is inexpensive in Asia. Thus a substantial portion of Nike’s supply chain is based there. Furthermore, Nike exclusively collaborates with companies that meet its high-quality criteria. It has established norms and regulations for labour, product quality, and other factors that suppliers must adhere to, such as environmental effects. These considerations imply that suppliers have less negotiation leverage against the brand.

Customers’ bargaining power:

Customers’ negotiating power has risen rapidly in the twenty-first century, and Nike is no exception. Customers have substantial bargaining power as well. In the twenty-first century, control has passed to the customers. Nike, for example, is focused not just on product innovation and quality. To keep these consumers, they’re also creating better customer experiences. The development in intense competition in the sports shoe sector is another significant element that has increased customer bargaining power. Customers have a lot of negotiating power, which is only reduced to a degree by the brand’s strong image, marketing capabilities, and level of trust and loyalty.

Substitute products pose a threat:

The threat of alternative items is posed mainly by brands that sell identical goods. Sports shoes and gear are sold by many brands operating locally and globally in the global market. Because of Nike’s brand image, trust, and consumer loyalty, the overall danger from replacement items is minimal.

New arrivals pose a threat:

New entrants pose a modest danger because, while brands can enter at a lower, local level, building a significant market-leading brand from a bit of investment is often very difficult. Making a massive brand like Nike needs a substantial investment in infrastructure, technology, human resources, and marketing. There are also legal impediments that prevent new brands from gaining market share. The threat of new entrants remains minimal as a result of these reasons.

Conclusion

Strategic analysis is the process of studying a company and its environment, which can encompass both the external and internal environments, to establish various strategies. Determine and evaluate facts on the firm’s strategy as part of the strategic analysis. When writing an assignment either on Nike or other brands just make sure to always get as much information as possible. Otherwise, My Assignments Pro is always available when you search for my assignment help in Australia.

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