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Nike, formerly known as Blue Ribbon Sports, is an American multinational corporation. This is one of the world’s best sports and fitness companies. If you are a student assigned with a Nike case study and struggling with it, then don’t worry! Experts of Assignment Prime are here to help you with it. So, let’s just do it.
Nike Brand Case Study | An Insight Into the Company
First, let’s take an insight into the company. Bill Bowerman and Phil Knight founded Nike on 24th January 1964. The first Nike store was opened in 1966 in Santa Monica of California. It was in 1978 that the former name ‘Blue Ribbon Sports’ was renamed to Nike which is in use till date. Headquartered in Beaverton, Oregon, US, it has over 73,000 employees. The operating income of Nike is $4.44 billion and the net income is $1.93 billion. This is some basic information to include in your case study of Nike.
Nike hit the ground for the first time in 1962. The journey from a single store to over 1000 stores was like a roller coaster ride for the company and its employees. Let us take a look into it now!
|1964||Nike was founded as ‘Blue Ribbon Sports’.|
|1971||It was officially renamed to ‘Nike Inc’.|
|1974||Nike waffle trainer shoe got patented.|
|1980||Nike Shark was introduced.|
|1988||‘Just do it’ slogan was coined.|
|1990||First Niketown store was opened.|
|1993||Reuse-a-Shoe program was launched.|
|1996||Nike was named as the marketer of the year.|
|2002||Nike bought surf apparel company Hurley International.|
|2008||Introduced eco-friendly shoe- Air Jordan XX3|
|2012||Becomes NFL’s official on-field supplier|
|2015||Nike signed a deal to become official apparel supplier of NBA|
This was the roller coaster journey of the Nike company. Now, before moving further into this, let’s take a look into the mission, vision, values, purpose, and motto of this company to include in your Nike id case study.
Mission: “Do everything possible to expand human potential.”
Vision: “To bring inspiration and innovation to every athlete in the world.”
Values: “Inspiration, innovation, every athlete in the world, authentic, connected, and distinctive.”
Purpose: “To unite the world through sport to create a healthy planet, active communities and an equal playing field for all.”
Motto: “For the athletes by the athletes.”
These are some values that keep the company going. If you are writing a Nike marketing case study, then you need to know how to perform strategic analysis on this company.
Nike Case Study Strategic Management | SWOT & PESTLE Models
The purpose of using marketing strategies is to conduct research on the company to know the internal and external factors that are affecting it. Here, we shall emphasize SWOT & PESTLE analysis to look into the company’s strategic planning, management, leadership, innovation, etc.
Nike SWOT Analysis
SWOT analysis is a method used to study the internal and external factors that affect the company. This is used to analyze the internal strengths and weaknesses of the company and external opportunities and threats for the company. Knowing this is something really important to add value to the content in your Nike case study marketing strategy. But, for the same, you need to conduct in-depth research about the company, which is not possible for everyone. So, our experts have done quality research to find out the strengths, weaknesses, opportunities, and threats of Nike.
These are the areas where the company performs better. It can include the things that the company performs well at, the qualities of the company that make it better than its competitors, internal resources and assets that contribute to the better performance of the company. So, such strong areas of Nike are:
a) Value of the brand
There wouldn’t be a person who is not aware of the ‘swoosh’ logo with a slogan ‘Just do it’. Nike is a globally recognizable brand that very smartly played its cards when it came to promotion. In your Nike MNC case study, you can include how over the years, many leading celebrities, sports personalities and professionals have signed endorsements with this company and played a major role in its advertising and marketing, that makes this one of the top brands in the sports and apparel industry.
b) Bringing innovation in products
Nike has successfully maintained the craze on the customers for its products by constantly bringing innovation in its service. Though it has a complicated supply chain, it manages to bring innovative outcomes and better and creative supplies to keep its customers interest, and excitement sticks to it. Nike waffle trainer shoe, Nike Shark, Air Jordan XX3, Nike Vapour untouchable, Nike FlyEase, are some of its creative collections.
c) Cost-effective production process
Nike always makes sure to follow an effective approach for manufacturing and production process. If you are writing a Nike case study cost of capital, then you should know that Nike has many of its factories and production units located mainly in Asian countries. This helps them in saving money through low production costs at these economic-friendly countries.
Like a coin has two sides, every company has both strengths and weaknesses. Since we now know that the strengths are the strong areas of a company, weaknesses are its opposite. These are the places where the company lacks, the things where the competitors are better at, limitations in resources and unclear steps in the process. So, such weaknesses of Nike are:
a) Focus on only footwear
Though Nike has been into apparel, equipment and sports industry, it is majorly dependent on the footwear. If you look into the Nike case study Harvard business review created by our experts, you can know that even the major revenue of this company turns out to be from the footwear section. If by any chance, the footwear department faces any loss or erosion, then the complete company would face adverse effects of the same.
b) Highly expensive products
If you know Nike well, then you might be aware of the prices of its products. This is a company which has a high reputation around the world. This gives it a reason for the exclusive and premium products that are way more expensive than the ones from its competition. Though they justify the brand and the quality of the product yet when it comes to the sales of the product, it loses a chance to others.
c) Negative publicity of the brand
When there is a company that is working well and meeting the peaks of success, then there comes behind a harsh truth about it. Sometimes its reality while at times, it’s just a play of opponents. You can include such negative publicity of this brand in your Nike sweatshop case study. Discuss what it is, it’s importance and impact on the brand.
Opportunities are more like the chances that a company gets to increase its sales, marketing and promotion. It includes under-served market areas for specific products, less competition in the area, an increase in the demand for the product, etc. So, here are some opportunities for Nike:
a) Re-use policy of products
With a rise in the concern for the environment in recent times, Nike is making constant efforts to become eco-friendly. Add an interesting fact to your Nike case study geography that this company stands second too Canon in a survey conducted on climate-friendly companies. Also, its re-use, recycling policies and safety regulations for its workers are some of its efforts for turning to a healthier environment.
b) The rise in e-commerce sales
In today’s comfort lifestyles, people prefer sitting at home and getting their favourite products delivered right to their door without any need for going to stores. Till the previous decade, this was a major obstacle for the company to reach out to their customers only through physical stores. But, now with a rise in e-commerce sales, this has become a job in just a click away.
c) Scope of global expansion & market diversification
This 21st century, many Asian countries have experienced high economic growth. This gives the country an opportunity to popularize their products. In your Nike geography case study, you can include that countries like Brazil, China, India and South Africa exhibiting a rapid increase in the economic growth, show high interest in this brand thus providing better scope for the company.
Everything that may possess any risk to the company is considered a threat. It includes an increase in the competition, change in the environment, negative publicity of the company, change in the customer’s perspective and lifestyle. Now, the threats for Nike are:
a) Adverse competition
Nike faces a neck-to-neck competition from other popular brands in this industry, such as Puma, Adidas, etc. Do not forget to include in your Nike inc cost of capital case study that Nike stands at the top among these. But, there is still a strong competition between them which makes it important for the company to take any action at the earliest to avoid any loss.
b) Risky supply chain management
Earlier Nike followed a very risky supply chain management for its production. They don’t own even a single factory for their major revenue contributing sector footwear and apparel. They were dependent completely on the third parties who collected raw materials at better profit margins. But, this faced a failure in 2001 where a loss of 100 million US dollars cost. After this, Nike took the necessary precautions for managing a better supply chain.
c) Fluctuation in currency
Nike operates across the globe. Since it doesn’t have its own factories and deals with different people across the country, it faces the issue of fluctuation in currency. You can focus on this for your Nike cost of capital case study solution, where you can include that when a product crosses different countries, it needs to deal with variations in the currency and sometimes this issue can disrupt the business as well.
This was all about SWOT analysis on Nike. These were the strengths, weaknesses, opportunities and threats of the company that contributed to its performance over all these years. Now, we shall shed some light on the PESTLE analysis of the same.
Nike PESTLE Analysis
PESTLE is a technique used to conduct a strategic analysis of a company. This looks into the various factors that can impact the company and its growth. The name of this strategy is the acronym for the factors it addresses, which are political, economic, social, technical, environmental and legal. Conducting a PESTLE analysis for a company like Nike is not everyone’s cup of tea. It needs you to conduct in-depth research to analyze and study these factors of the company. If you struggle with this, you can seek our Nike case study help, and our experts will help you through this.
1. Political factors
Government of a country has a major role to play in the development of a company. There are many political rules that a company needs to abide by, right from the production stage to marketing and sales. This is something that should be considered highly in case of brands and companies that deal overseas. So, the political factors that affect Nike are:
a) US policies
Since Nike is headquartered in the US, the company can have more benefits of this policy. The US government have come up with policies that will lend a hand in the growth of businesses which include trade regulations, tax arrangements and more. Also, Nike experiences tax benefits from these business-friendly policies.
b) International Laws
In your Nike digital transformation case study, you can emphasize that the company works overseas and is expanding globally. Since it is operating with different countries, it needs to deal with different political factors or the rules and regulations of different countries accordingly.
Economic factors of a company have a major impact on the company. These factors can again be broken into macro and microeconomic factors which deal with government expenditure and personal expenditure respectively. It also includes economic growth, exchange rates, interests and a lot more. Now, the economic factors affecting Nike are:
a) Threats in the market
When we look into the development of a country, the economic conditions of that particular area or region play a major role in this. The recession or competition in the local area also impacts the growth of Nike. You can include these facts in your Nike write the future case study and easily impress your professor.
b) High prices of products & labour issues
We all are already aware of the fact that the products of Nike are quite expensive and not everyone can easily afford them. The customers who show interest in these products are usually the ones who are financially good. Also, the labour charges in a country contribute to the fluctuations in the prices of the products as per the production costs.
There are many social or cultural factors that affect a company. They include the different choices, beliefs, attitude and perspectives of the person who are associated with the company directly or directly. This includes growth in the population, turning to healthier lifestyles, etc. Such social factors affecting Nike are:
a) Working conditions
If you are writing about Nike in Vietnam case study, then this is something you need to emphasize on. Earlier in around 1970s, Nike was often accused of its hazardous working conditions and timings. People were believed to be made to work like at sweatshops. But, later in the 90s, the company came up with code of conduct, safe working conditions and timings keeping the health point of the workers in mind.
b) Better lifestyle of people
Nowadays, people are turning towards a better lifestyle. This includes turning towards health and fitness that gives an opportunity to work better at sports. Also, people are getting more into brand awareness. That is, they prefer more products only from recognizable brands.
Technology is developing at a rapid speed. There are many aspects of this that impact a company and its growth. Right from production to marketing, technology plays a role in all the stages of the process and includes producing and distributing goods, services and communicating with others, etc. Such technical factors which impact Nike include:
a) Presence of brand in social media
The social media presence of the brand has more to do that just for the brand image. It also includes online sales, easily reaching out to customers, updating them with the new trends and more. No wonder this point is a must include one for your Nike brand case study to score the best grades.
b) Continuous innovation
Nike never stands back when it comes to innovation. It gives its best to keep the customers excited and interested in its products. It always makes sure to come up with something that can keep the customer want more of it. And, not to miss the strong marketing strategy that it uses to promote its products.
Legal factors that impact a company include health, safety, consumer rights, advertising standards, product safety, laws related to transport, delivery and more. There are also laws that are related to trade and taxes. A company mainly an MNC need to make sure it abides by all the rules of the country in which it is operating. Some legal factors that impact Nike are:
a) Laws related to employment and consumers
If you are working on the controversial topic ‘Nike and child labour case study’, then you should remember to include these points. Nike has to follow many legal rules and laws to make sure it is out of any claims and cases. Some of which include consumer law, employment law, etc.
b) Counterfeit products
There are many fake products that are produced in the name of Nike. They are sold globally, which in turn affects the sales of the company. These also damage the brand name of the company due to some contract manufacturers who directly produce these products into the market areas.
With a rapid increase in the development of different sectors, there is also a rise in pollution in our environment. Also, the processes, approaches and techniques a company uses have a role to play on the environment and the environmental conditions also impact the company. Scarcity of raw materials, pollution targets, sustainability and other such are included in here. Environmental factors that impact Nike are:
a) Change in the environment conditions
With an increase in global warming, companies are made to look into their production and supply chain. Nike is working on these to decrease the level of carbon emission and pollution into the environment. You can discuss this topic in detail in your case study of Nike.
b) Expansion of environmental law
Recently, many countries are taking strict actions in companies that produce harmful waste and pollution. Such act of china, where the major factories of Nike are located is leading to an increase in the production costs of the products. This is also limiting the availability of raw materials and natural resources for production.
This is all about the PESTLE analysis conducted on Nike, the topmost sports and fitness apparel retailer in the world. These are the different factors that made an impact on the growth and development of this company. If you are facing any trouble with this or need experts’ assistance in this, then without any hesitation, contact us. If you are wondering why to choose our case study help over others, then find answers to your queries in the section below.
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