Nike Market SWOT Analysis

Strengths

Nike is a global brand with strong brand recognition. Its famous logo ‘SWOOSH’ can be recognized instantly by anyone.
Nike has extensive distribution lines. They sell their products through independent distributors and retailers all around the world. Consumers also have a choice to design their own shoes on the official Nike website where they can choose the design, color, features, etc. for their shoe.
Research and Development has always been Nike’s strong point as can be seen from its ever evolving and innovative product range.

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Weakness
Although Nike has a large product portfolio, its income is still profoundly dependent on its share of footwear market. This may leave it susceptible if the market share for footwear erodes.
Due to the diversified product range, Nike is unable to focus on one main product. This results in divided attention on each product line & the amount of time and resources in maintaining each of its product line is very high.

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Opportunities
One of the opportunities for Nike is the emerging markets. Currently Nike is focusing more on Generation Y market and women. Nike has started aggressive marketing towards women by introducing women’s yoga shoes in an attempt to appeal health conscious women.
Although owners may deny that Nike is a fashion brand but many people think otherwise. This creates opportunities as people may think the product could become unfashionable before it wears out, i.e., they need to replace it.

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Threats
Nike outsources its manufacturing to different countries. Nike does not have any control over the political and legal environment in that country.
High level of competition in the market is also a threat to Nike as the companies have almost the same product range and target markets.
Changing Exchange Rates also pose a threat to Nike as it deals internationally, i.e., it buys and sells in different currencies. Due to this cost and profit margins are not stable over long periods.