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Nike Case Study

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Nike Case Study

Nike is one of the American multinational companies or corporations which is engaged in the process of design, development, marketing, manufacturing as well as sale of the footwear, equipment, accessories, apparel as well as provides other services. The headquarters of the company is located in Beaverton in Oregon in the metropolitan area of Portland. Nike is considered to be one of the largest producers of athletic shoes worldwide together with the apparel. It is one of the major suppliers of athletic shoes as well as other accessories in the global platform.  The company was founded by Bill Bowerman and Phil Knight in 1964 on 25th January. When the company was started, the name of the company was blue ribbon sports. The official name of the company was changed to Nike in the year 1971 on 30th May. The name of the company has been given after the name of the Greek goddess who signifies victory. The product of Nike is marketed under its original name as well as other brand names such as Nike Golf, Air Jordan, Nike+, Air Force 1, Nike Blazers, Nike Drunk and many others. In the history of the company, it has acquired several other companies as well as sold some of them as well if the profit was not up to the mark. All the companies were of footwear and the first acquisition of the company was one of the footwear companies which were known as Cole Haan in the year 1988. After the said company, the next company which was acquired by Nike was Bauer Hockey in the year 1994. In the year 2002, Nike was found to acquire the surf company which used to sell come apparel. It acquired some other companies as well and to run the business smoothly, Nike started distributing the different business lines to other subsidiaries in the 2000s which proved to be very useful for the company. Nike was one of the members of the Dow Jones Industrial Average in the year 2013 by replacing Alcoa. Nike’s entrance in the world so hugely impacted many other businesses and the market hold of China was also devastated by the increasing demand and hold of Nike. By the end of the year 2020, China was found to lose its sale by 5% together with the association of COVID-19 pandemic. The company in concern with the discussion of the essay has established itself with a lot of effort and is known all over the world. The company has some really good reputation with respect to its goods which it sells and is famous for sportswear. The sports enthusiasts consider Nike as their first choice for the sportswear and the apparel as well. The details of the company can be better understood by the SWOT analysis together with PESTLE analysis as well with the sole objective of understanding the company in a better way. 

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SWOT Analysis 

Strengths 

The company in concern is a very competitive one and its founder as well as CEO is found to be frequently quoting the line “Business is war without bullets”. It is considered to be one of the healthy versions of its competitors out in the world. At the Olympic held in Atlanta, many other companies such as Reebok sponsored the games but Nike did not do that but instead took the strategy of sponsoring the top players and in return got valuable reporting for its company. Nike does not necessarily have any factories and does not store money on a large scale which makes the company a very lean type of organization. They are found to do the research right as per the demands of the customers and produce high quality products with the aim of selling it at a reasonable price. The marketing strategies are also up to the point and innovative. 

Weaknesses 

The organization is found to deal with a lot more and different types of the products but the income of the company is found to be dependent largely on the profit gained by the sale of the footwear. The price in which the company sells its product to the retailer is the same kind of experience which is provided by the customers because the company does not have its own retailer. It did not disclose its partnership with other companies and was found to be charged with the poor conditions of the workers in Vietnam in the year 1996 and exploiting them which can ruin the reputation of the company anytime. It was also reported that the company employed child labor in the countries like Pakistan as well as Cambodia. You can use plagiarism checker tool to check the plagiarism.

Opportunities 

The process concerned with the product development is found to be offering a great deal of opportunities to the company. The owners of the company are found to be defending their company on their own  and they believe that Nike is not just one of the top footwear brands which is just there for fashion but it seriously promotes healthy living. The strategies to take some dive in the lane of the production of the accessories has been found to be very much opportunistic for the company and because of the good prior reputation, it started selling in a huge way. The global opportunities helped the company as well in the flourish of the sale. You can get study help.

Threats 

The company is found to be very much exposed to the nature of the trade. It buys as well as sells the product all over the world and in different currencies so it actually hampers the cost as well as the margins of the trade and it is found to be very much unstable. The market is concerned with sportswear and the garments are very competitive and the consumers are always in the demand of something new and attractive. This compels the company to change its design over a short period of time which is exhausting and costs a lot from the company. 

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PESTLE Analysis

Political 

In the light of some events it has been highlighted that the company has been benefited on a large scale with respect to the growth-oriented policies implemented by the government of the United States which helped the company to sustain the low rates of the interest, it has been found to stable the currency stable as well as the tax arrangements in the international. The benefit has also come from the cooperation from the initiatives of the government with respect to the transparency for the value in global platform in the chain of the companies. 

Economic 

The financial crisis of 2008-2009 made the company suffer from different aspects economically and it made the company slow as well. This affected the western markets as well as the Asian-Pacific region. It took advantage of the established brand equity in the spear of the emerging economies. The value chain of the company also took the advantage of paying low wages to the company laborers which defended the contingent nature of the CSR critiques. 

Social 

In the environment of the macro-economic criteria, the companies in concern as well as the competitors of the company are found to become the beneficiaries of the growing aspects of societal preoccupation with respect to health as well as fitness. The drive gained a lot of importance but it also faced some threats from certain segments of the society who were against modernity as well as the age of advancements. It is still facing problems from the corporate social responsibility or CSR which has been majorly associated with the global value chain. Get case study help.

Technology 

The company is found to be engaged in high levels of the technology to assist in the process of the operations of the company and their smooth drive. They are engaged in the use of the digital metrics to analyze the new demands from the customer and act accordingly. It helps the company to revise the segmentation of the new demands from the customers. Payments have been made smooth due to the digitization of the platform globally which has contributed to the speeding-up of the procedure as well. The management has opted for different criteria such as SOAP which is Simple Object Access protocol. 

Legal 

The strategy employed by the company relies on internationalization and their policies. The stringent actions have made it easier for the company to comply with the legal framework in an easy way. The countries which are entitled to be working in a common legislative framework structure are found to be favoring less interventionist support but Nike has evolved during all. 

Environmental 

Nike is a firm believer of maintaining greenery with respect to the environmental issues and maintains the hygienic condition with the compliance of Iso-14000 which has been incorporated in the part of the policy presented by the company. they appointed more than 100 sustainability champions so as to oversee the project so as to maintain the environment properly. 

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Conclusion

As you can see, when you avail our Nike case study assignment help service, you get all-round assistance. Thus, if you want to stand out from the rest of the class, you can contact us.

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