This document provides a strategic analysis of Nike. It begins with an external environmental analysis, noting Nike's strong brand and emerging growth opportunities in markets like China, Brazil, and home fitness. An internal analysis identifies strengths in innovation and brand recognition, and weaknesses in competition. A SWOT analysis further examines strengths, weaknesses, opportunities, and threats. The document then discusses Nike's current strategy, and strategic options for success, including market penetration, diversification, and adapting to local markets. It concludes that Nike has strong global presence but needs strategies to establish itself in emerging markets.

1. Strategic Analysis of Nike
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2. Contents
Introduction...................................................................................................................................................4
External Environmental Analysis .................................................................................................................4
Key Internal Environment Analysis..............................................................................................................6
SWOT Analysis of Nike ...............................................................................................................................6
Present Strategy ............................................................................................................................................8
Strategic Success Options.............................................................................................................................8
Conclusion ....................................................................................................................................................9
References...................................................................................................................................................10

4. Introduction
Nike has been the most successful organizations which has excelled in the development of the sports
good. Over the years it has been consistently maintained its brand and is regarded as the most innovative
organization. Over the years, Nike has been producing new and advanced sports accessories and has
consistently been the top choice of the sportspersons. Some of its latest products such includes a wide
range of sports related equipment such as the cleats, base layers, lacrosse, shoes, air Jordan. In the recent
times Nike has also played an essential role in linking the sports and the games with the electronic devices
such as IPod nano and the other RIFD devices which can be used for the wire sensor technologies.
Another electronic product developed by nike in the recent time is the electronic bracelet named as
FuelBand. This account uses the Flyknit technology which fetches the details related to the overall
movement of the person, thereby helping him or her to know the activities throughout their daily lives. In
this report we are going to conduct the situational analysis of Nike by using the portfolio strategic tools in
order to analyze the present strategic performance of Nike over the last few years
(Balasubramanian,1998). In addition to this, the discussion has been done on the strategies which can
be implemented by nike over the past years. We will be doing the analysis of the extent to which the
resources which have been existing and the competencies available in Nike which helps it to run the
organization in a successful manner.
External Environmental Analysis
The analysis of Nike can be done by considering a large number of factors. In order to analyze the same
we did a PEST analysis and five different factors were considered for the same. If we consider the
external environment, Nike had a very strong base (Chiang et al,2003). There was a number of times
when the external environment was not favorable for the market. Even in those unfavorable
circumstances, Nike earned a good profit of around 6997 pounds in the year 2012-13.

5. In the present environment, the important of the brands such as Nike and others have increased by a great
factor and in spite of economic problems, there has been a continuous rise in the popularity of the
products of Nike, leading to additional profit. In the present, the sales of the footwear of nike, under the
brand name of ‘Max’ have continued to evolve and earn an overall profit of around 19 % (Austin et al,
2002).
If we look into the emerging markets of South America and Asia and other economies such as Brazil,
Argentina, India, Indonesia and China are the economies which have been rising largely in the present
times (Sudhir et al, 2011). The consumers who are situated in these countries. In the present times, these
countries has a huge scope with an over 0.50 million people as potential customers. The sports good have
been recently popular in these countries and have accounted for the sale of the good at a good pace.
China is another vast market where Nike has shown efficient growth. Though, at present Adidas has been
more popular in China but Nike is also coming up as an emerging organization. Brazil is a yet another
target segment for Nike (Siegel, 2007). They have been sponsoring the official team of Brazil and have
provided the football kits to the national teams.
Home fitness items
In the recent times the people have been avoiding their visits to gyms and have been showing interest in
the home fitness items which may be in the form of fitness items, DVD’s and exercise video games. The
sports brand have been giving more and more efforts for the creation of new and unique home fitness
equipment (Yoo & le,,2011). By creating such products, Nike certainly has a better opportunity and
added advantage to have a strong customer base. The company already has a strong customer base and

6. they can easily tackle the customers through a strong customer base and can easily meet the needs and
demands of the customer.
Key Internal Environment Analysis
In order to access the present internal environmental factors for nike it is necessary to find the strengths,
weakness of Nike (Aaker,2008). With this, we will be able to do the overall analysis of the product and
we can find the potential areas in which Nike is facing the threats which are needed to be addressed
considering the environment of the product. They key analysis involves the understanding of the overall
features of Nike.
SWOT Analysis of Nike
Key Strengths
Nike is one of the most popular sports brands of all times. It has been the official sponsors of a number of
teams around the world and among the customers it has developed its trust. A large number of high
profile athletes and sport persons have been the brand ambassadors of Nike.
Thus they have been getting a lot of exposure in the world market and they have continued to be the
leaders of the innovations in sportswear. The invention of Fluknit and FuelBand is one such innovation.
Thus, the excellence in innovation is one of the key areas of success for Nike and it is something which
has provided a massive success for them (Rao,2006). The development of the different ideas and the
implementation of the same at a wider level has been the prime reasons for the success of their innovation
and success.
Key Weakness
The key weakness for the organization has been its competitors who have been posing some serious
challenges for them. There are many nations such as China in which Nike has not been able to establish

7. itself as their products are still not very popular in those markets. They haven’t been able to dwell the
interests of the Chinese people towards themselves. In spite of being the brand ambassadors of the largest
event in the world i.e. the Olympic Games, they have suffered a decrease in the sales in China. Millions
of Nike products have been piling up in China which have not been sold and there hasn’t been enough
demand of the Nike products in China (Hill & Jones,2007).
Key Opportunities
The key opportunities for Nike to expand their market is by hosting or sponsoring the major sporting
events and by making the famous sportspersons as their brand ambassadors.
In the present times, Nike has to look into the fact that how can they create more opportunities for
themselves and earn large success in the nations where they haven’t been able to capitalize on the market
(Boje, 1999). As per the analysis, the people in the nations such as China, prefer to buy the products
which may help the people to have an enhancement of their individualism. Thus, Nike needs to be
innovative not only in the product functionalities but they will have to launch the product with more
better designs so as to capture and capitalize the Chinese Market.
Key threats
The key threats to Nike in the present times is its competitors. The two prime competitors of Nike in the
entire world includes Adidas and Puma. In addition to this, on considering about the nations such as
China, Nike has to face stiff competition from the brands such as the Hennes and Mauritz.
In certain regions of the world, the overall market share of Nike has been falling and it has been observed
that after the years 2010m there has been a constant shift in the market share by a good factor
(Enderle,2000).

8. Present Strategy
In order to achieve wider success in the market, Nike has to implement the strategy which includes the
launch of different kinds of products and to create a better future of its brand name. The primary focus of
Nike, until the years 2010-11 was only limited to foot wears and sports wears, but, in the recent times,
they have shown a concurrent improvement in the different range of products and have diversified their
products to a larger extent (Stonehouse & Minocha, 2008). They are also doing a lot of innovation and
are constantly researching on the market of different nations so as to create more and more products and
to stay ahead of their competitors.
The system of buying the resources have also been changed by Nike in the present times and they have
recently introduced a new system which automatically rate the suppliers which is bases on the
sustainability of the process (Grant, 2010). In case the organization finds that the products are less
sustainable in comparison to other brands. They have utilized a number of strategies in order to stay a
good and a successful brand in the market and to maintain their name.
An organization such as Nike needs to ensure that they create a large number of diverse products. It is
also necessary to ensure that Nike continues to be the most promising sportswear brand in the world.
Strategic Success Options
In order to ensure that Nike has a good position in the world market, it is necessary to access and analyze
the strategies which can lead to a success for Nike. There are a number of areas which are important and
on whom the company needs to consider upon.
One of the most important strategies is by penetrating themselves in the market. In order to do the same,
Nike has to understand the ways by which it can attract more and more customers. From the recent

9. observations it is clear that the number of female sports persons have been increasing. Thus, the Nike,
needs to concentrate on the number of ways by which they can have a potential market share among the
females. In order to win the hearts of female participants Nike has to ensure that the females should be
provided with a number of options in terms of design or the configurations.
Diversification is another important variable for the success of Nike. In the recent trend, any organization
which gives a strong hand to the diversification of their products can be successful in the market. They
have to adapt themselves as per the needs and the requirements of the people who live in that specific
country. They have to find ways by which they can propel themselves into more and more new and
unique markets and have to spread themselves in a large number of countries (Arsenault &
Fawzy,2010). If we talk especially about China, they need to consider the ways by which they can
expand themselves in more and more markets in China. Also, it is necessary that they adapt their products
according to the lifestyle of the specific country. This can be done by a number of ways, one of which
includes entering into collaboration with a local organization by which they can learn about the choices
and the interests of the people of that specific country in a better manner. Thus, diversification can surely
play a major role in the success of Nike in China.
Conclusion
Nike is one of the most successful sports brands of all times. In some regions in the world, they have been
thriving as the most successful sports good selling organization in the world. Thus, it bears a strong
position in the world market both in terms of the share in the market and the other financial aspects. But,
inspite of being one of the most successful brands in a number of countries, Nike has not been a very
successful brand in the nations such as China, India and the other nations of South America and has been
struggling to find good market share in these countries. This is because of a large number of reasons.
Their performance in these regions have been slower then what is expected to be. A discussion has been
done on the ways by which the organization can establish themselves in these countries and various

10. methods have been suggested for the success in these countries. The ideas which have been mentioned in
the strategic analysis for Nike, can surely give a boost in the emerging markets and will surely assist the
organization to have a better share of the market among different demographics.
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