1. STRATEGIC MANAGEMENT
(SMG 605)
PREPARED BY:
MOHD ELYIAS BIN HAMDAN
MUHAMMAD HANIS NAQIUDDIN BIN MOHD PAUZI
MOHAMMAD IQRAM BIN ZULKORNAIN
MUHAMMAD HARRIS BIN SHARUDDIN

2. The become world’s leading innovator in athletic
footwear, apparel, equipment and accessories.
2

3. "To bring inspiration and innovation to every
athlete* in the world"
*If you have a body, you are an athlete.
3

4. •
As the largest seller of athletic footwear and athletic apparel in the world (2,
3),we create products for consumers and athletics (1) who enjoy having quality
products that are high performance and reliable such as shoes, apparel, and
technologically
advanced
equipment
(4).
Our
dedicated
employees
(9)continuously work on developing new products, price, and product identity
through marketing and promotion (7). The company aims to lead in corporate
citizenship (8) through proactive programs that reflect caring for the world
family of Nike (6) and by ensuring continuous growth and profitability to our
investors and stakeholders (5).
1. Customers
2. Products or services
3. Markets
4. Technology.
5. Concern for survival, growth,
and profitability
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees
4

5. 5

6. 1.
Growing segment of the female athletes. (The New York
Times, 2010)
2.
International expansion into emerging markets – e.g. India
(Business Standard, 2013)
3.
Additional marketing of existing products to appeal to new
demographic groups.
4.
Develop new alliances with companies that are respected
regarding social responsibility. (Bloomberg BusinessWeek
Technology, 2006)
5.
Brand reorganization by market regions
6

7. 1.
High competitive industry
2.
Production of counterfeit goods, and generic products. (The
Economic Times, 2002)
3.
Negative public perception created by environmental, child
labor, contracted manufacturing issues, and sponsored
athletes. (The Boca Raton Tribune, 2012)
4.
International currency changes could decrease profits.
5.
Federal
Trade
regulations
in
dealing
with
foreign
manufactures. (Global Issues, 2006)
7

8. External Opportunities
3.
Growing segment of the female athletes.
4.
Weight Rating
Weight Score
0.12
4
0.48
International expansion into emerging markets – e.g. India
0.12
4
0.48
5.
Additional marketing of existing products to appeal to new demographic groups.
0.07
2
0.14
6.
Develop new alliances with companies that are respected regarding social
0.08
2
0.16
0.08
2
0.16
0.14
4
0.56
0.10
3
0.30
0.10
3
0.30
0.12
3
0.36
0.07
2
0.14
responsibility.
7.
Brand reorganization by market regions
External Threats
1.
High competitive industry
3.
Production of counterfeit goods, and generic products.
4.
Negative public perception created by environmental, child labor, contracted
manufacturing issues, and sponsored athletes.
5.
International currency changes could decrease profits.
6.
Federal Trade regulations in dealing with foreign manufactures.
Totals
1.00
3.08
8

9. 9

10. 1.
Recognized brand name – ‘Swoosh’ is ubiquitous
2.
Strong in research and development – innovative product
development (Wikinvest, 2013)
3.
Strong marketing campaign - sponsors top athletes and
teams. (The New York Times, 2013)
4.
Diverse portfolio
5.
Customer loyalty. (Reuters, 2013)
6.
Strong financial position. (The Associated Press, 2013)
10

11. 1.
Production costs are highly priced based on manufacturing
countries. (Bloomberg News, 2011)
2.
Revenues are still mostly dependent upon footwear sales.
3.
History for violations of minimum wages, child labor and over
times in its manufacturing countries. (Reuters, 2013)
4.
Little control over quality of products from 3rd party
contractors.
5.
Price sensitivity of products. (Trefis, 2010)
11

12. Internal Strengths
Weight
Rating
Weight Score
0.14
4
0.56
development
0.10
3
0.30
Strong marketing campaign - sponsors top athletes and teams.
0.09
4
0.36
Diverse portfolio
0.08
3
0.24
Customer loyalty
0.10
3
0.30
Strong financial position
0.10
4
0.40
countries.
0.09
2
0.18
Revenues are still mostly dependent upon footwear sales
0.07
2
0.14
times in its manufacturing countries.
0.08
2
0.16
Little control over quality of products from 3rd party contractors
0.09
1
0.09
Price sensitivity of products
0.06
2
0.12
Recognized brand name – Swoosh is ubiquitous
Strong in research and development – innovative product
Internal Weaknesses
Production costs are highly priced based on manufacturing
History for violations of minimum wages, child labor and over
Totals
1.00
2.85
12

13. 13

14. STRENGTHS
OPPORTUNITIES
WEAKNESSES
THREATS
14

15. SWOT Matrix.docx
15

16. Financial Position
rating is 1 (worst) to 6 (best)
1 Liquidity
2 Leverage
3 Working capital
4 Return on assets
5 Return on equity
6 Price per earnings
7 Earnings per share
Industry Position
rating is 1 (worst) to 6 (best)
1 Profit potential
2 Extent Leveraged
3 Economies of scale
4 Growth potential
5 Financial stability
6 Resource utilization
7 Diverse Portfolio
Stability Position
rating is -1 (best) to -6 (worst)
1 Price range of competing products
2 Competitive pressure
3 Ease of exit from market
4 Successful and recognized advertising
5 Endorsement agreements
6 Price elasticity of demand
7 Risk involved in business
Competitive Position
rating is -1 (best) to -6 (worst)
1 Market share
2 Global presence
3 Strong investor reputation
4 Technological innovation
5 Product life cycle
6 Customer loyalty
7 Control over suppliers and distributors
FP Total
IP Total
SP Total
CP total
Ratings
6.0
6.0
6.0
4.0
4.0
6.0
5.0
37.0
6.0
5.0
5.0
5.0
6.0
5.0
5.0
37.0
-2.0
-2.0
-1.0
-1.0
-1.0
-1.0
-1.0
-9.0
-1.0
-1.0
-1.0
-1.0
-2.0
-1.0
-3.0
-10.0
16

17. SP average
CP average
IP average
FP average
-1.29
-1.43
5.29
5.29
X Coordinate
Y Coordinate
3.86
4.00
Strategy ->>>>
Aggressive
FP
(3.86, 4.00)
CP
IP
SP
17

18. Rapid Market
Growth
Quadrant II
Quadrant I
Weak
Competitive
Market
Strong
Competitive
Market
Quadrant III
o
o
o
o
o
o
o
Market Development
Market Penetration
Product Development
Forward Integration
Backward Integration
Horizontal Integration
Related Diversification
Quadrant IV
Slow Market Growth
18

19. 19

20. 20