The business environment both the external and internal can be measured through marketing
auditing tools. In this assignment, we have discussed the footwear industry in UK. Forces of
Porter are being applied in this particular industry to judge the competitiveness of the external
environment.
The document is a research paper that examines the footwear industry in Connaught Place, New Delhi to determine if it operates as a monopolistic market. The author conducts primary research through interviews, surveys, and collecting data on prices and market shares of various footwear stores. The analysis finds there are many sellers producing differentiated products with low barriers to entry. Most stores have roughly equal market shares, though a few larger brands have higher shares. The variety of shoe types and styles sold indicates product differentiation. Based on these characteristics, the conclusion is that the footwear industry has attributes of a monopolistically competitive market.
Lululemon vs under armour business strategy analysisSophie Michelot
This document provides an analysis of Under Armour and lululemon athletica, two companies in the performance apparel industry. It discusses the industry information, key issues, trends, companies' goals, challenges, performance, business strategies, differences in business models, and competitive advantages. Recommendations are made for each company, including intensifying geographic expansion for lululemon and boosting sales/gaining market share through innovative products for Under Armour. Financial data and exhibits are provided in the appendices.
This document provides an overview of key concepts in international marketing and pricing strategies. It discusses how companies must adapt their marketing mix to different international markets. Specifically, it covers international market segmentation, how product attributes vary across cultures and economic development levels, and different international pricing approaches like price discrimination, strategic pricing, and experience curve pricing. It notes that aggressive pricing strategies can violate antidumping regulations.
This document provides an analysis of the marketing strategy for international expansion of Next Plc, a British multinational retailer. It begins with an introduction to Next Plc and its competitive landscape. It then performs an external analysis using PESTLE and Porter's Five Forces models. An internal analysis using the value chain model is also provided. Key issues are summarized in a SWOT analysis. The document then discusses market selection, entry methods, and marketing mix strategies for international expansion.
The document summarizes Porter's Five Forces model for analyzing competition within an industry. It describes the five competitive forces as the threat of new competition, the threat of substitute products, the bargaining power of suppliers, the bargaining power of customers, and the intensity of competitive rivalry. It then provides steps to analyze each competitive force for a sample dry cleaning business, examining competitors, substitutes, customer power, supplier power, and barriers to entry. Finally, it provides an example analysis of these five forces for the UK grocery retail industry using Tesco as a case study.
External analysis identifies opportunities and threats in an organization's industry environment. It analyzes industry dynamics to understand competitive forces like new entrants, substitute products, and supplier and buyer bargaining power. Opportunities arise when favorable conditions allow more profitability, while threats endanger profits. Industries are groups of similar substitutable products, and sectors contain related industries. Porter's five forces model is used to assess competition. The strength of these forces changes over an industry's life cycle from embryonic to decline. Macro trends like technology and regulation can also impact industry attractiveness and company strengths.
The document is a research paper that examines the footwear industry in Connaught Place, New Delhi to determine if it operates as a monopolistic market. The author conducts primary research through interviews, surveys, and collecting data on prices and market shares of various footwear stores. The analysis finds there are many sellers producing differentiated products with low barriers to entry. Most stores have roughly equal market shares, though a few larger brands have higher shares. The variety of shoe types and styles sold indicates product differentiation. Based on these characteristics, the conclusion is that the footwear industry has attributes of a monopolistically competitive market.
Lululemon vs under armour business strategy analysisSophie Michelot
This document provides an analysis of Under Armour and lululemon athletica, two companies in the performance apparel industry. It discusses the industry information, key issues, trends, companies' goals, challenges, performance, business strategies, differences in business models, and competitive advantages. Recommendations are made for each company, including intensifying geographic expansion for lululemon and boosting sales/gaining market share through innovative products for Under Armour. Financial data and exhibits are provided in the appendices.
This document provides an overview of key concepts in international marketing and pricing strategies. It discusses how companies must adapt their marketing mix to different international markets. Specifically, it covers international market segmentation, how product attributes vary across cultures and economic development levels, and different international pricing approaches like price discrimination, strategic pricing, and experience curve pricing. It notes that aggressive pricing strategies can violate antidumping regulations.
This document provides an analysis of the marketing strategy for international expansion of Next Plc, a British multinational retailer. It begins with an introduction to Next Plc and its competitive landscape. It then performs an external analysis using PESTLE and Porter's Five Forces models. An internal analysis using the value chain model is also provided. Key issues are summarized in a SWOT analysis. The document then discusses market selection, entry methods, and marketing mix strategies for international expansion.
The document summarizes Porter's Five Forces model for analyzing competition within an industry. It describes the five competitive forces as the threat of new competition, the threat of substitute products, the bargaining power of suppliers, the bargaining power of customers, and the intensity of competitive rivalry. It then provides steps to analyze each competitive force for a sample dry cleaning business, examining competitors, substitutes, customer power, supplier power, and barriers to entry. Finally, it provides an example analysis of these five forces for the UK grocery retail industry using Tesco as a case study.
External analysis identifies opportunities and threats in an organization's industry environment. It analyzes industry dynamics to understand competitive forces like new entrants, substitute products, and supplier and buyer bargaining power. Opportunities arise when favorable conditions allow more profitability, while threats endanger profits. Industries are groups of similar substitutable products, and sectors contain related industries. Porter's five forces model is used to assess competition. The strength of these forces changes over an industry's life cycle from embryonic to decline. Macro trends like technology and regulation can also impact industry attractiveness and company strengths.
The document discusses product market analysis and defines different levels of product markets including generic, product type, and product variant markets. It provides guidelines for defining a product market, such as identifying customer needs and the products that meet those needs. The document also discusses forming product market boundaries based on the purpose of analysis and market complexity. It emphasizes the importance of analyzing customers, competition, and forecasting market size and trends.
What are the major trends with marketing intermediariesSameer Mathur
Major trends in marketing intermediaries include the growth of new retail forms combining traditional stores with other services, increased competition between different types of retailers for customers, and competition between store-based and non-store retailers like online stores. Retailers are investing heavily in technology like GPS, sensors, and smart shopping carts. Global retailers are growing in size and influence over manufacturers. Wholesalers face pressure from new sources and are seen as just order takers rather than promoters of products. Logistics is facilitated by factors like integration, technology, legislation, and globalization, requiring third party logistics companies to understand market trends.
Strategy: Fitness Apparel Industry Analysis & RecommendationLorraine Xi Chen
This document provides an overview and analysis of the fitness apparel industry and two firms within it - Lululemon and Columbia Sportswear. It analyzes the industry using Porter's 5 Forces model and finds moderate rivalry and high buyer power. It then analyzes each firm's financial performance, products, brand image and management team. It identifies issues such as weather constraints and weak brand image for Columbia and recommends strategies like developing new product lines and implementing a new marketing strategy focused on an adventurous lifestyle.
The document discusses different types of markets:
- Consumer markets involve individuals purchasing goods and services for personal use. Business markets involve companies purchasing goods and services to produce other products or for business operations.
- Types of business markets include producer markets of goods transformed for resale, reseller markets of goods resold untransformed, government markets, and institutional markets.
- A global market has worldwide exchange of goods, services, and labor unrestricted by geographic location. Companies must navigate differences in countries, cultures, laws, and currencies when operating in global markets.
- Nonprofit and government markets have limited budgets, requiring priced tailored to their needs with emphasis on practical solutions and cost-effectiveness
This document provides an overview of Michael Porter's Five Forces industry analysis framework. It describes the objective of the framework as identifying the profit potential and competitive forces in an industry. The five forces are: the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products, and the degree of rivalry among existing competitors. The document explains each of these forces and provides examples. It also outlines how to conduct a Five Forces analysis through collecting information, assessing each force, and developing strategy.
Retail trends include stores expanding their offerings to better meet consumer needs, like bookstores adding coffee shops and gas stations including food. There is also increased competition between different store types selling similar goods. Major retailers are investing heavily in technology to improve ordering, forecasting, and cost control, allowing them to offer lower prices globally. Marketing directly to shoppers at the point of purchase is growing in importance, as is adopting advanced materials handling technology to reduce operating costs. Wholesalers are focusing on improved product selection, value-added services, information sharing with suppliers, and using IT to enhance logistics and inventory management.
Lululemon is one of the leading brands in the performance fitnesswear industry. However, due to PR gaffe involving a recall of one of their product lines, their fast growth almost halted to a standstill in 2014.
This case presentation examines the scenario and suggests directions Lululemon can pursue in the wake of this event to restart its momentum and fend off the increasing competition in its industry.
The document analyzes the casual dining industry. It finds the industry is currently not attractive due to rising costs and economic challenges. There are low barriers to entry for new competitors. Both suppliers and buyers have high power in the industry. Rivalry is intense as many new restaurants continually enter the market. Opportunities exist through new concepts, but threats include increasing costs and competition. The document recommends casual dining restaurants expand offerings, explore international markets, and increase take-out options.
Internal Analysis and Strategy Report - LululemonKailey Cornett
The document is an internal case analysis report for lululemon athletica inc. prepared by Kailey Schaneberg for CEO Laurent Potdevin. It provides background on lululemon's success and challenges, including a product recall and leadership transitions that hurt growth. An analysis of lululemon's strengths, weaknesses, opportunities, and threats is presented. The memo recommends that lululemon create an exclusive multi-site fitness membership program, acquire the company that manufactures its Luon fabric to improve quality control and lower costs, expand its men's product line to include traditional sports apparel, and expand its brand ambassador program to professional athletes. Further details supporting these recommendations are attached.
Major trends with marketing intermediariesSameer Mathur
This document discusses several major trends in marketing intermediaries. It outlines trends in retailing like new combinations of retail types, increased competition between store-based and non-store retailers, and growing investment in technology. It also discusses trends in wholesaling like mounting pressure from new competition, demanding customers, and direct buying programs. Finally, it notes that third-party logistics providers must consider factors like integration, technology, legislation, and globalization to effectively plan for trends in the logistics industry.
This document provides a summary and analysis of competition in the farming, restaurant, and car industries. It begins by outlining the key characteristics of perfect competition, monopolistic competition, and oligopoly. It then analyzes the farming industry as an example of perfect competition, noting that farmers produce identical products and it is easy for new farmers to enter the market. The restaurant industry exemplifies monopolistic competition, as restaurants differentiate their products and it is still relatively easy for new restaurants to open. Finally, the car industry demonstrates oligopoly characteristics, as only a few major brands exist and high barriers to entry make it difficult for new automakers to emerge. The document compares the competitive variables and profit maximization approaches across these three market structures.
This document discusses Michael Porter's Five Forces model and its application to the retail industry in India. It analyzes the five competitive forces: rivalry among competitors, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and threat of substitute products. In the retail sector, barriers to entry are high. Rivalry is intense among major retailers competing for market share. While suppliers have little bargaining power against large retailers, buyers have moderate power due to retail consolidation.
The presentation outlines a marketing plan for Nutriment Box, a nutritional supplement product. It introduces the product and its features, then reviews competitors and distribution channels. A SWOT analysis identifies strengths like a strong distribution network, but also weaknesses like lack of brand awareness. The marketing strategy will use product, price, and quality differentiation to target lower-income individuals. Pricing strategies include penetration and skimming. The plan outlines product lines, distribution approaches, and an advertising campaign. It establishes a marketing organization and projects first year sales, costs, and break-even point. Controls are also discussed to monitor performance.
This document discusses retailer own brands. It defines own brands and charts their evolution from basic generic products to premium quality brands that compete directly with national brands. Own brands now account for 35-47% of grocery sales across European countries. There are advantages for retailers like higher margins and competitive differentiation. Factors influencing consumer purchase include price, quality perceptions, demographics and risk. Current issues include own brands displacing national brands from shelves and an increased focus on value. Future challenges involve using own brands to build loyalty while understanding the role of brands in consumers' lives.
There are four main types of market structures: perfect competition, monopolistic competition, oligopoly, and pure monopoly. Perfect competition is characterized by many small businesses, identical products, no barriers to entry or exit, and complete information. Monopolistic competition involves many businesses and differentiated products. Oligopoly describes a market with a small number of large competitors and potential for non-price competition. Pure monopoly is controlled by a single seller offering an unique product without substitutes.
Chapter-5 Industry and competitor analysisAfzaal Ali
Industry and competitor analysis is important for new ventures to determine if a niche market is favorable and to assess the attractiveness of an industry. The five forces model examines threat of new entrants, rivalry among existing firms, bargaining power of suppliers and buyers, and threat of substitutes. A competitor analysis identifies competitors and collects intelligence through ethical means like trade shows. This information is organized in a competitive analysis grid to evaluate competitive positions.
consist of buygrid model, sheth model, GE matrix, pestle analysis, 4ps of marketing systems marketing, targeting, positioning, buyer seller dyad, selling process
The athletic apparel industry is worth approximately $168 billion worldwide in 2017 and is estimated to reach $231.7 billion by 2024. Major players like Nike and Adidas dominate the market but new entrants are expected to join. The industry is facing trends like activewear lines from fashion retailers only accounting for 10% of the market. The North American sports apparel market is expected to grow at a compound annual growth rate of 5.9% from 2016-2022.
This document discusses key concepts related to physical distribution and marketing channels. It defines physical distribution as the movement and storage of goods from production to consumption via distribution channels. It describes different decisions involved in physical distribution like order processing, transportation, inventory planning and control, and warehousing. The document also discusses types of marketing channels like direct, indirect, and multiple-level channels. It explains factors that determine the choice of distribution channel for a product. Finally, it covers concepts of vertical marketing systems, horizontal marketing systems, channel power, and channel conflicts.
This document provides an overview of key concepts in market segmentation. It defines markets and different types of markets. The main task of marketing is satisfying wants and needs, with a focus on wants. Needs are things necessary for well-being, while wants are desirable but not necessary things. Market segmentation involves breaking a large heterogeneous market into smaller homogeneous segments. The benefits of segmentation include better matching products to consumer wants and higher marketing costs. Good market segments are identifiable, reachable, significant, responsive, and stable. Common bases for segmentation include demographic, behavioral, and psychographic variables. Positioning communicates a distinct place for a product in consumers' minds.
EXPODESIGN, Inc. specializes in 3D marketing strategy of branded environments, coporate events, tradeshows and mobile marketing from concept to completion on a nationwide and global basis.
Nike is considering reentering the Pakistani market. A SWOT analysis reveals strengths in Nike's strong brand value but weaknesses in potential manipulation of factory employees. Opportunities exist in Pakistan's growing economy and health-conscious population. Threats include economic recession and increased competition. The analysis recommends franchising as an entry strategy to leverage Nike's brand while limiting capital requirements. Overall, Pakistan presents opportunities for growth if Nike can overcome threats around its supply chain and changing economic conditions.
The document discusses product market analysis and defines different levels of product markets including generic, product type, and product variant markets. It provides guidelines for defining a product market, such as identifying customer needs and the products that meet those needs. The document also discusses forming product market boundaries based on the purpose of analysis and market complexity. It emphasizes the importance of analyzing customers, competition, and forecasting market size and trends.
What are the major trends with marketing intermediariesSameer Mathur
Major trends in marketing intermediaries include the growth of new retail forms combining traditional stores with other services, increased competition between different types of retailers for customers, and competition between store-based and non-store retailers like online stores. Retailers are investing heavily in technology like GPS, sensors, and smart shopping carts. Global retailers are growing in size and influence over manufacturers. Wholesalers face pressure from new sources and are seen as just order takers rather than promoters of products. Logistics is facilitated by factors like integration, technology, legislation, and globalization, requiring third party logistics companies to understand market trends.
Strategy: Fitness Apparel Industry Analysis & RecommendationLorraine Xi Chen
This document provides an overview and analysis of the fitness apparel industry and two firms within it - Lululemon and Columbia Sportswear. It analyzes the industry using Porter's 5 Forces model and finds moderate rivalry and high buyer power. It then analyzes each firm's financial performance, products, brand image and management team. It identifies issues such as weather constraints and weak brand image for Columbia and recommends strategies like developing new product lines and implementing a new marketing strategy focused on an adventurous lifestyle.
The document discusses different types of markets:
- Consumer markets involve individuals purchasing goods and services for personal use. Business markets involve companies purchasing goods and services to produce other products or for business operations.
- Types of business markets include producer markets of goods transformed for resale, reseller markets of goods resold untransformed, government markets, and institutional markets.
- A global market has worldwide exchange of goods, services, and labor unrestricted by geographic location. Companies must navigate differences in countries, cultures, laws, and currencies when operating in global markets.
- Nonprofit and government markets have limited budgets, requiring priced tailored to their needs with emphasis on practical solutions and cost-effectiveness
This document provides an overview of Michael Porter's Five Forces industry analysis framework. It describes the objective of the framework as identifying the profit potential and competitive forces in an industry. The five forces are: the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products, and the degree of rivalry among existing competitors. The document explains each of these forces and provides examples. It also outlines how to conduct a Five Forces analysis through collecting information, assessing each force, and developing strategy.
Retail trends include stores expanding their offerings to better meet consumer needs, like bookstores adding coffee shops and gas stations including food. There is also increased competition between different store types selling similar goods. Major retailers are investing heavily in technology to improve ordering, forecasting, and cost control, allowing them to offer lower prices globally. Marketing directly to shoppers at the point of purchase is growing in importance, as is adopting advanced materials handling technology to reduce operating costs. Wholesalers are focusing on improved product selection, value-added services, information sharing with suppliers, and using IT to enhance logistics and inventory management.
Lululemon is one of the leading brands in the performance fitnesswear industry. However, due to PR gaffe involving a recall of one of their product lines, their fast growth almost halted to a standstill in 2014.
This case presentation examines the scenario and suggests directions Lululemon can pursue in the wake of this event to restart its momentum and fend off the increasing competition in its industry.
The document analyzes the casual dining industry. It finds the industry is currently not attractive due to rising costs and economic challenges. There are low barriers to entry for new competitors. Both suppliers and buyers have high power in the industry. Rivalry is intense as many new restaurants continually enter the market. Opportunities exist through new concepts, but threats include increasing costs and competition. The document recommends casual dining restaurants expand offerings, explore international markets, and increase take-out options.
Internal Analysis and Strategy Report - LululemonKailey Cornett
The document is an internal case analysis report for lululemon athletica inc. prepared by Kailey Schaneberg for CEO Laurent Potdevin. It provides background on lululemon's success and challenges, including a product recall and leadership transitions that hurt growth. An analysis of lululemon's strengths, weaknesses, opportunities, and threats is presented. The memo recommends that lululemon create an exclusive multi-site fitness membership program, acquire the company that manufactures its Luon fabric to improve quality control and lower costs, expand its men's product line to include traditional sports apparel, and expand its brand ambassador program to professional athletes. Further details supporting these recommendations are attached.
Major trends with marketing intermediariesSameer Mathur
This document discusses several major trends in marketing intermediaries. It outlines trends in retailing like new combinations of retail types, increased competition between store-based and non-store retailers, and growing investment in technology. It also discusses trends in wholesaling like mounting pressure from new competition, demanding customers, and direct buying programs. Finally, it notes that third-party logistics providers must consider factors like integration, technology, legislation, and globalization to effectively plan for trends in the logistics industry.
This document provides a summary and analysis of competition in the farming, restaurant, and car industries. It begins by outlining the key characteristics of perfect competition, monopolistic competition, and oligopoly. It then analyzes the farming industry as an example of perfect competition, noting that farmers produce identical products and it is easy for new farmers to enter the market. The restaurant industry exemplifies monopolistic competition, as restaurants differentiate their products and it is still relatively easy for new restaurants to open. Finally, the car industry demonstrates oligopoly characteristics, as only a few major brands exist and high barriers to entry make it difficult for new automakers to emerge. The document compares the competitive variables and profit maximization approaches across these three market structures.
This document discusses Michael Porter's Five Forces model and its application to the retail industry in India. It analyzes the five competitive forces: rivalry among competitors, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and threat of substitute products. In the retail sector, barriers to entry are high. Rivalry is intense among major retailers competing for market share. While suppliers have little bargaining power against large retailers, buyers have moderate power due to retail consolidation.
The presentation outlines a marketing plan for Nutriment Box, a nutritional supplement product. It introduces the product and its features, then reviews competitors and distribution channels. A SWOT analysis identifies strengths like a strong distribution network, but also weaknesses like lack of brand awareness. The marketing strategy will use product, price, and quality differentiation to target lower-income individuals. Pricing strategies include penetration and skimming. The plan outlines product lines, distribution approaches, and an advertising campaign. It establishes a marketing organization and projects first year sales, costs, and break-even point. Controls are also discussed to monitor performance.
This document discusses retailer own brands. It defines own brands and charts their evolution from basic generic products to premium quality brands that compete directly with national brands. Own brands now account for 35-47% of grocery sales across European countries. There are advantages for retailers like higher margins and competitive differentiation. Factors influencing consumer purchase include price, quality perceptions, demographics and risk. Current issues include own brands displacing national brands from shelves and an increased focus on value. Future challenges involve using own brands to build loyalty while understanding the role of brands in consumers' lives.
There are four main types of market structures: perfect competition, monopolistic competition, oligopoly, and pure monopoly. Perfect competition is characterized by many small businesses, identical products, no barriers to entry or exit, and complete information. Monopolistic competition involves many businesses and differentiated products. Oligopoly describes a market with a small number of large competitors and potential for non-price competition. Pure monopoly is controlled by a single seller offering an unique product without substitutes.
Chapter-5 Industry and competitor analysisAfzaal Ali
Industry and competitor analysis is important for new ventures to determine if a niche market is favorable and to assess the attractiveness of an industry. The five forces model examines threat of new entrants, rivalry among existing firms, bargaining power of suppliers and buyers, and threat of substitutes. A competitor analysis identifies competitors and collects intelligence through ethical means like trade shows. This information is organized in a competitive analysis grid to evaluate competitive positions.
consist of buygrid model, sheth model, GE matrix, pestle analysis, 4ps of marketing systems marketing, targeting, positioning, buyer seller dyad, selling process
The athletic apparel industry is worth approximately $168 billion worldwide in 2017 and is estimated to reach $231.7 billion by 2024. Major players like Nike and Adidas dominate the market but new entrants are expected to join. The industry is facing trends like activewear lines from fashion retailers only accounting for 10% of the market. The North American sports apparel market is expected to grow at a compound annual growth rate of 5.9% from 2016-2022.
This document discusses key concepts related to physical distribution and marketing channels. It defines physical distribution as the movement and storage of goods from production to consumption via distribution channels. It describes different decisions involved in physical distribution like order processing, transportation, inventory planning and control, and warehousing. The document also discusses types of marketing channels like direct, indirect, and multiple-level channels. It explains factors that determine the choice of distribution channel for a product. Finally, it covers concepts of vertical marketing systems, horizontal marketing systems, channel power, and channel conflicts.
This document provides an overview of key concepts in market segmentation. It defines markets and different types of markets. The main task of marketing is satisfying wants and needs, with a focus on wants. Needs are things necessary for well-being, while wants are desirable but not necessary things. Market segmentation involves breaking a large heterogeneous market into smaller homogeneous segments. The benefits of segmentation include better matching products to consumer wants and higher marketing costs. Good market segments are identifiable, reachable, significant, responsive, and stable. Common bases for segmentation include demographic, behavioral, and psychographic variables. Positioning communicates a distinct place for a product in consumers' minds.
EXPODESIGN, Inc. specializes in 3D marketing strategy of branded environments, coporate events, tradeshows and mobile marketing from concept to completion on a nationwide and global basis.
Nike is considering reentering the Pakistani market. A SWOT analysis reveals strengths in Nike's strong brand value but weaknesses in potential manipulation of factory employees. Opportunities exist in Pakistan's growing economy and health-conscious population. Threats include economic recession and increased competition. The analysis recommends franchising as an entry strategy to leverage Nike's brand while limiting capital requirements. Overall, Pakistan presents opportunities for growth if Nike can overcome threats around its supply chain and changing economic conditions.
This document is a case study prepared by Stephany Yong, Jessica Dodson, and Professor Jennifer Aaker for class discussion about Nike. It discusses Nike's emphasis on storytelling in its branding and marketing. Nike sees itself as being in the business of stories and uses stories about athletes and their experiences to humanize its products and brand. The case study examines how Nike defines its brand identity around innovation, inspiration, determination and achievement to serve athletes. It also explores Nike's focus on human-centered design and creating products that meet the needs of both professional and amateur athletes.
This document provides a case write-up for Nike that includes:
1. A short history of Nike's founding by Bill Bowerman and Phil Knight.
2. Analysis of Nike's mission statement, objectives, strategies, and competitive positioning using tools like Porter's 5 Forces, SWOT analysis, and strategic frameworks.
3. Recommendations that Nike should continue its focus on innovation, brand strength, and staying ahead of trends to maintain success in the athletic footwear industry.
Nike established itself in 1962 and became known for its athletic shoes. In the 1990s, rising competition forced Nike to make strategic changes to its supply chain. It implemented the Nike Supply Chain project using various software systems like SAP, Siebel and Rentrak. This provided visibility across the entire supply chain and helped Nike better manage inventory, customer relationships and product flow. While implementation challenges existed due to the complexity of Nike's global operations, the project helped Nike improve profits and stay competitive through a more efficient virtual supply chain.
Assess the digital efforts of Champion across multiple marketing channels, benchmarked against competitors namely; Nike, Adidas and Puma. Propose improvements to strengthen brand reputation.
This document provides an overview of Nike's innovation process and history. It discusses Nike's transition from solely distributing shoes to developing its own, including innovative products like the Fuelband smartwatch and Flyknit shoes. Nike focuses on continuous innovation through R&D and engaging customers. It has a vertically integrated supply chain and uses star athletes to promote its brand. The document also notes Nike's marketing strategies of advertisements, sponsorships, and developing brand identity to establish itself as the leader in athletic footwear and apparel.
How have Nike used innovation in both their products and their use of endorse...William Risso-Gill
This document discusses how Nike gained dominance in the NBA shoe market through innovation in products and endorsements. It explains that Nike developed high-top basketball shoes with better ankle support in the 1980s in response to the high ankle injury rates in the NBA at the time. This innovation helped Nike capture market share from Converse. The document also describes how Nike's endorsement of Michael Jordan and creation of the iconic Air Jordan shoe line in the 1980s was hugely successful and helped Nike gain over 90% of the NBA shoe market. While other brands like Adidas have tried to compete, Nike's patent protections of shoe designs and stronger endorsement deals have allowed it to maintain its large market share.
This document provides an overview of Nike's retail strategy for its company-owned stores. It discusses Nike's portfolio of brands, describes the steps in its value chain from planning to reuse, and outlines its marketing mix including products, pricing, placement, and promotion strategies. The document also covers Nike's market segmentation targeting athletes, its use of celebrity endorsements, and its pricing strategy of focusing on brand loyalty over low costs.
Nike is an American multinational corporation that designs, develops and sells athletic footwear, apparel, equipment and accessories. It is headquartered in Oregon and employs over 44,000 people worldwide. Nike differentiates itself through innovative product design, aggressive marketing featuring celebrity athletes, and a focus on quality. Key to Nike's success are its core competencies in marketing, technology, product customization and building its distinctive brand image. While Nike dominates the industry, it faces threats from competition, criticism of its labor practices, and changing consumer and social priorities.
The document is Colony Capital's 2015 Corporate Responsibility Annual Report. It provides an overview of Colony Capital's corporate responsibility efforts in 2015, which included developing sustainability goals and targets, registering over 250 buildings in the EPA's ENERGY STAR program, and establishing a formal Corporate Responsibility Committee. It also outlines Colony Capital's vision, mission, and commitments to sustainability, including reducing energy and carbon emissions by 20% by 2026 and increasing waste diversion to 75% by 2026.
Our team conducted research and analysis to calculate the intrinsic enterprise value of Nike, Inc. This was done using a variety of methods, including: dividend discount model, discounted cash flow model, industry comparables, and basic economic research.
Nike is the largest seller of athletic footwear and apparel globally, with over $19 billion in annual revenue. It employs over 33,000 people worldwide and sells products in over 180 countries. While about half of its sales were in the US historically, international sales now account for over half of total sales. Nike contracts with over 600 factories across 46 countries to manufacture its products, which collectively employ over 1 million people.
Nike has a long history dating back to 1962 and is now a dominant player in the athletic shoe and apparel market, controlling around 40% of the market. The document outlines Nike's target market as those aged 25 on average but focusing more on teens, and discusses Nike's various pricing strategies. It also summarizes Nike's extensive global supply chain and $1 billion annual marketing budget focused on unique online promotions.
The document analyzes the key success factors of Nike's growth, including its history starting in the 1950s as Blue Ribbon Sports, products for men and women like the Air Force 1 and Air Max shoes, and factors influencing its success such as strong brand awareness, manufacturing efficiency, product innovation, endorsement deals, and marketing campaigns featuring slogans like "Just Do It". It also examines Nike's board of directors, external analysis using Porter's Five Forces model, internal analysis, SWOT analysis, and current strategies and goals.
This study analyzed the strategies used by Nike between 1990-2000 to deal with rising criticism. It used Porter's strategic forces analysis and five forces framework to understand Nike's opportunities and threats. The findings showed Nike tried to gain cost leadership by moving production to Asia while also positioning itself as offering differentiated products. Nike employed environmental strategies to address criticism and Whittington's systematic school aligned with its strategic moves.
A case study focusing on world’s two biggest names in the sports brands today - Nike and Adidas. Gives a good viewpoint to the marketing strategy of both.
Nike is updating its supply chain policies and standards to better protect worker rights and ensure more responsible transitions for factory workers. This includes clarifying protections for freedom of association and collective bargaining. Nike is also working to develop sustainable and efficient supply chains, partnering with governments and organizations on initiatives like the UK Sustainable Clothing Action Plan to improve environmental and social impacts. Nike aims to create sustainable models of production and consumption through partnerships and engagement on policy issues.
This document analyzes Nike's competitiveness using various models and frameworks. It provides an overview of Nike as the leading sportswear company. Porter's Five Forces and Generic Strategies are used to analyze Nike's competitiveness. External factors like social, technological and environmental that may impact Nike over five years are also examined. Specifically, changing consumer trends towards certain sports and the activewear fashion trend are identified as social factors that will affect Nike's competitiveness by requiring innovative products that catch emerging trends.
Nike has successfully implemented lean management principles throughout its global supply chain operations. It requires lean practices from its 785 contract manufacturers and uses a sustainability index to assess factories on lean implementation. Nike provides training to factories on lean tools and human resources practices to empower workers. This has resulted in improved productivity, quality, and worker satisfaction while reducing waste. Nike's lean approach and sustainability initiatives such as Flyknit technology have increased profits while decreasing environmental impact.
The document analyzes the athletic shoe industry using Porter's Five Forces model. It finds the threat of new entrants is minimized by high entry barriers like large capital requirements and brand differentiation. Rivalry among existing firms is high due to aggressive competition and retaliation. Buyers have some bargaining power from large retailers, but suppliers have little. Substitute products pose a moderate threat. The overall profit potential of the industry is moderate to low.
Foot Locker operates over 3,300 stores globally and has major competitors like Finish Line and Sports Authority. It targets consumers aged 12-30 with a variety of athletic shoe and apparel brands like Nike, Adidas, and Under Armour. While Foot Locker benefits from economies of scale, it is heavily dependent on malls for sales and faces high competition from substitutes sold at lower prices. The document analyzes Foot Locker's strengths like its brand recognition and relationships with suppliers. It also examines weaknesses such as poor research and overreliance on Nike. Financial ratios show Foot Locker has maintained healthy liquidity and profitability compared to industry averages. The document recommends Foot Locker improve its research and development to
Boardroom Eco Apparel is a clothing manufacturing company that wants to launch a new online business casual line for men. Currently, Boardroom produces promotional clothing but lacks understanding of the business casual market and e-commerce. The marketing plan aims to launch the new line in January 2015 and generate $1 million in sales within a year through strategies targeting website visits, sales conversions, and customer satisfaction.
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The Business Environment
1. Table of Contents
Introduction ................................................................................................................................1
Task: 1........................................................................................................................................1
1.1 Describing Porter’s five forces analysis on Athletic Footwear market in UK with key
factors. ....................................................................................................................................1
1.2 Overall Competition State of the UK’s Athletic Footwear market .................................7
Task: 2........................................................................................................................................7
2.1 Analyze and Discuss the assets of Nike’s internal environment with an auditing tool.........7
2.2 Analyze the competencies of Nike’s internal environment with an auditing tool. ...............8
Task: 3......................................................................................................................................10
3.1 SWOT analysis of Nike ...................................................................................................10
3.2 A future strategy that can achieve sustainability in Competitive Advantage Sector ..........13
Conclusion................................................................................................................................14
References ................................................................................................................................14
Introduction
The business environment both the external and internal can be measured through marketing
auditing tools. In this assignment, we have discussed the footwear industry in UK. Forces of
Porter are being applied in this particular industry to judge the competitiveness of the external
environment.
Task: 1
1.1 Describing Porter’s five forces analysis on Athletic Footwear market in
UK with key factors.
UK is one of the biggest athletic footwear retailers in the world with 90 billion USD and also 5
billion unit of Global shipments around the world in 2016. The main elemental product of this
market is as following:
2. Figure: Main elements of Athletic Footwear Market in UK
Now, here’s the Porter’s five forces analysis on Athletic Footwear Market in UK to judge the
competitive power which are illustrated as following:
Figure: Five Forces with Their intensity
I. Supplier’s Bargaining Power:
Supplier’s bargaining power refers how much strength an average supplier has to manipulate the
price in the market to change supple-demand curves and equilibrium point. The less the supplier
the more monopolistic the market become by which they can have a perpetual position in the
3. market. Supplier’s bargaining power in accordance with UK’s Athletic Footwear Market are as
following:
Low Concentration of Suppliers: UK’s Athletic Footwear Market has multifarious suppliers
but with less concentration which makes them having less bargaining strength with the
customers. Though it effects positive in the Athletic market of customer’s perspective but have
inverse effect from supplier’s perspective. High individual suppliers decline the effect on the
demand curve on footwear market.
Diverse Distribution Cycles and Channels: UK’s Athletic Footwear Market has more
Distribution Cycles which make one average supplier having less bargaining power. Though it’s
also positive on the context of overall footwear Market aspect.
Producer’s Volume is Critical to Suppliers: If suppliers try to raise price in order to
manipulate the market, producers may give threat to cut volumes unit which can lead to
supplier’s profitability into a complete disaster.
Figure: Portrait of Supplier’s bargaining power (Source: Pinterest)
II. Bargaining Power of Buyers
Bargaining powers of Buyers refers the strength and capability of buyers to manipulate the
demand of the market. Here the contribution and the importance of the buyer in demand cycle is
being measured. Bargaining powers of Buyers in accordance with UK’s Athletic Footwear
Market are as following:
Large Number of Buyers: UK’s this particular sector has a huge number of buyers. As UK is
the fifth most playing sports including football, cricket, rugby, badminton, tennis, so sports shoes
are requisite elements for most of the sport lovers. As there are multifarious buyers, no
4. individual average consumer holds the power to bargain. Eventually, it’s a positive sight for the
supplier’s perspective.
Product is priority to the customers: Athletic Footwear are such products which will always
attract majority sports lover, regardless of their prices or supply rate. For an example, A football
lover may always want to buy NIKE shoes regardless of their increasing prices. So, this directly
influence Athletic Footwear market.
III. Competitive Rivalry or Competition:
Competitive rivalry refers the current number of competitor’s presence in the market and their
capacity to manipulate the demand-supply curve. In footwear market, if products are too
homogeneous and there are multifarious competitors then, it will result up being difficult to
survive in the market. Here the Competitive rivalry in accordance with UK’s Athletic Footwear
Market are as following:
One of the Largest Industry: Foot wear industry is treated as the top five industries in UK. As
the industry size and market share is very large, so competition is very strong. If products are
homogeneous then it need penetrate niche or too differentiated marketing strategy. If products
are little heterogeneous, brand can have absolute or higher competitive advantage in footwear
market in UK. Eventually this quality criteria decrease the cost of most product and allowed
firms to grow in profit or market shares.
Lowest Exit Barriers: As mentioned earlier, because of huge competition small firms find it
very difficult to sustain in the market which ends up leaving the mass market. Eventually it’s a
positive sign for Athletic Footwear Industry in UK.
Higher Industry Growth rate: As there are more competitor firms in footwear industry in UK,
the growth rate is increasing enormously. On the other side, Market share and GDP is growing
fast which has a huge contribution in UK’s overall economy in general and Footwear industry in
particular.
5. Figure: Portrait of Competitive rivalry (Source: Pinterest)
IV. Threat of Substitution
Threat of substitution refers the capability and potential availability of customer’s finding
different but similar regarded product in the market. It’s a sign of huge potentiality of switching
current product to competitor’s product by customers. The treat of customer can be avoided
through efficient marketing strategy or switching cost to an optimal level. Threat of substitution
in accordance with UK’s Athletic Footwear Market are as following:
Very limited number of Substitutes: UK’s footwear industry has very limited number of
substitutes. As here majority footwear products are not too homogeneous so that customers find
it difficult to search for other similar footwear products. Eventually limited substitutes have a
positive effect for producers and suppliers.
Figure: Portrait of Threat of substitution (Source: Pinterest)
6. V. Threat of new Competitors or Entry
The threat of new entry refers the possibility of new competitors with similar homogeneous traits
come to the market. If regarded brand has strong durable position with strong customer
engagement, the new threat of entries won’t consider a barrier after all. The threat of new entry
in accordance with UK’s Athletic Footwear Market are as following:
Improved and Established Brands: UK’s footwear market has multifarious well established
footwear brands. So, there is limited scope of rising threat for new entry unless the new brand
got something heterogeneous product with higher competitive advantages. Greyson, Church,
Ticker, Loke, Adidas, Nike are some of the established footwear brands.
Strong and Dedicated Distribution Network: UK’s footwear industry has strong and dedicated
distribution network with premium and penetrated pricing strategy. New entry with similar
products may need to choose niche or differentiated marketing strategy to enter the market rather
mass marketing.
High Resources and Capital required: To enter a big industry like Athlete footwear requires
high resources and capital support. New firms find it very difficult to survive in the market and
compete with others.
Current Buyers loyal to Existing Brands: Another big barrier for the new entries is that
current customers are likely to buy from the established brands rather the new one. Either the
new footwear brand got absolute advantage over the design of the shoes or it will find very
difficult to sustain in the athlete footwear market, where established brands have very strong
customer engagement and brand loyalty.
Figure: Portrait of the threat of new entry (Source: Pinterest)
7. 1.2 Overall Competition State of the UK’s Athletic Footwear market
UK’s Athletic Footwear market has more Heterogeneous products and well established brands
got higher competitive advantages. Buyers hold less decision making power as footwear
products are not homogeneous in function and Suppliers got more convenience to make the
market more elastic in nature. It has overall 21.8% Man’s sneakers, boots, outdoor boots, 15.2%
Women’s outdoors boots, 14.6% includes Men’s casual footwear, 7.7% includes children’s
hiking boots and the last 5.5 % includes children’s toddlers.
Figure: Study conducted by Neilson on UK’s Athletic Footwear market
Task: 2
2.1 Analyze and Discuss the assets of Nike’s internal environment
The current assets (cash and cash equivalents, short term investments, net receivable, inventory
and others) of Nike are illustrated as following:
8. Figure: Assets of Nike’s Balance sheet:2016 (Source: Nasdaq)
2.2 Analyze the competencies of Nike’s internal environment with an auditing
tool.
The Value Chain: Nike always try do manufacture he most efficient product as possible while
eliminating potential errors. The value chain of Nike’s is efficient and cost effective.
9. Figure: Nike’s Global Value Chain
Nike currently has more 900 contract factories around the world with 1M factory workers. From
the upstream contract suppliers, Nike distribute products directly to the dealers and retailers.
Production Operation: The production team of Nike is reinforced by cost effective, innovative
unique designs and ingredients to make the best product line on their field. They have efficient
machine operators, modern technological mechanisms, brand loyalty, brand customer
engagement for each of the sector. With their regardless cross national outlook, Nike is
outsourcing the best employees in their industry to make the best fruitful effort.
Figure: Average Athletic Footwear Inventory Days 2011-2016
Human Relation Management: With Nike’s strong corporate environment HR tends to excel
faster in regarded specialized sides. Nike has established ideology which makes the internal
heritage more deep and reinforced. Here Nike’s employees sees their work not as a separated
entity but as an integral part of their regular lifestyle.
10. Strong Brand Loyalty: Nike has world recognized brand loyalty. This is the biggest strength of
Nike. Strong customer engagement can increase brand value and gain sustainability in long run.
Task: 3
3.1 SWOT analysis of Nike
SWOT matrix is used to measured and spot the main four crucial internal business elements
namely Strength, Weakness, Opportunities and Threats. SWOT analysis of Nike can be
illustrated as following:
Strength of Nike:
Extreme Competitive Organization: Literally, from their motto “just do it”, we can get how
aggressive they are in terms of competition in the footwear market. With their slogan and their
unique brand logo, they founded philosophies as well as ideologies on footwear industry.
Whether its niche market, differentiated or mass marketing, Nike always proved who is the
player here.
Outsourced Production: Nike individually don’t have any producing outlet whereas its
manufacture products from outsourced production. This particular absolute advantage has
motivated the brand to focus on the sales volume and promotional activities as well.
Transnational HR with best outsourcing, Nike’s HR can be one of the moving factor for its
today’s brand development.
Globally Recognized Brand: Nike is a globally accepted and recognized manufacturer brand.
People across the world, when they hear best footwear, the first top three name that come to the
mind, one of them is Nike. With strong customer engagement and Brand loyalty Nike is the
globally recognized footwear brand.
USP Effect: Eventually Nike’s USP (Unique selling Proposition) is very unique then its
competitors. This alone can drag Nike to become the Globally standing footwear manufacturer
company.
11. Figure: Portrait of Strength of Nike (Source: Pinterest)
Weakness of Nike
Most Concentration on Footwear business: Nike got more recognition for footwear
manufactural company then clothing, gear or bags. The majority of Nike’s shares are in
Footwear industry. Eventually, it’s not paragon for a business to lean on the one particular
segment all the time. So, diversification and innovation is needed in other segments as well.
Labor Unfriendly Condition: When Nike have, the biggest absolute advantage called “All
Outsourced Production”, it got some demerits too which is having labor unfriendly conditions.
Most of the workers across the globe can’t adopt themselves with others. Such condition greatly
hamper company’s internal environment and brand image in so far.
Main Supply Chain element is “Retailers”: This footwear manufactural company does its
most of the supply chain through the retailers for majority product segment. Here retailers got
other competitor’s products too. Here, Nike unintentionally reducing their overall appeal from
the market through their bound supply chain.
Wrong Perception of being too Luxury: Sometimes, Nike is being perceived as one of the
most premium and luxurious footwear products in the world. While, this is a bad image because
Nike has segmentation for the middle class, upper middle class sector as well. Such image only
question Nike’s brand loyalty and undertaken promotional activities.
12. Figure: Portrait of Weakness of Nike (Source: Pinterest)
Opportunities of Nike
Emerging Market of China and India: Here comes the current big opportunity for Nike which
is grab the emerging footwear market in India and China. Nike can easily penetrate the market
with their brand insights in such populated country where Buyers are at a boom. In addition,
there billion of people are following western culture which leads them to buy Nike products.
With efficient value chain process and enhanced BTL and ATL promotional activities Nike can
grab the footwear market of both countries.
Diversification: Nike has other products regardless shoes. Nike have huge opportunity to use
their established brand images and networks to mobilize other products as well. Diversification is
needed for this brand. They can run a test run in congested countries like India or China for
better improvising or innovation.
Figure: Portrait of opportunity for Nike (Source: Pinterest)
13. Threats of Nike
International Trade Barriers: As Nike is a Global footwear manufactural company it has to
deal with other countries international trade barriers like strikes, showdown, sudden policy
changing and so on. Because of international trade barriers Nike has to suffer lot in recent times.
International trade barriers are from the external environment, which Nike can’t have control
over. So, because of not having unpredictability and strategy, Nike have to play the role of silent
audience on such obstacles.
Recession Effect: Current ongoing recession has a very inverse effect on Nike’s business. Nike
may find it difficult to find the expansion door to the positive inflation.
Competitors: Though Nike is a team player, but the threats of competitors still a big question. As
business’s external environment is more than unpredicted so it’s shouldn’t good for Nike to
choose the market or select segment without considering competitors.
Figure: Portrait of Threats for Nike (Source: Pinterest)
3.2 A future strategy that can achieve sustainability in Competitive Advantage
Sector
Nike had a bad image for being too much expensive or luxurious. Literally Nike follows
premium pricing but that doesn’t refer such too much term where Nike has its own segmented
group of audience. So, to eliminate this bad image and gain unique higher comparative
advantage, Nike can undertake following strategy which it hadn’t done before:
Manufacturing Footwear products for Middle and Upper middle class especially in India
and China: This time Nike may manufacture products for the middle and upper middle class
people of the society with penetration pricing. They can test run such initiative in India and
China, where people are mostly from middle and upper middle class and want recognized brand
footwear products. This initiative will eliminate the bad image of Nike as well as set the
benchmark high.
14. Conclusion
UK’s foot wear industry is one of the biggest footwear industries in the world. On the other side,
with limited supplier power, less threat of substitute, more buyers bargaining power and more
less barriers to entry the market, has made the market very durable and enhanced. Eventually,
UK’s recognized Footwear industries are going across the border in order to make the field
enhanced, efficient and outsourced.
References