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Latest posts by Mariam Peyton (see all)

    This report examines Nike through the lens of Porters five forces to assess how the five forces affect Nike and the sports clothing retail industry.

    HARVARD
    Peyton, Mariam (2019) "Nike Porters Five Forces Analysis 2018" 123 Writing [Online] at https://www.123writing.com/free-sample/nike-porters-five-forces-analysis-2018

    APA
    Peyton, Mariam (2019) "Nike Porters Five Forces Analysis 2018" 123 Writing [Online] Retrieved from https://www.123writing.com/free-sample/nike-porters-five-forces-analysis-2018

    Nike Strategy Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:
    • Use Porters five forces model to analyse an industry on the basis of the five competitive forces.
    • Analyse the global sports apparel retailing industry and how the five forces have affected Nike and rival firms like Adidas, Reebok, Puma, Under Armour etc. and the impact on industry structure, attractiveness, and profitability.
    • Understand how Nike has managed to defend against intense competition from Adidas, Under Armour and Puma and the strategies it uses to create 'blue oceans' that are defensible, helping it capture market share and maintain competitive advantage.

     

    Analyse Nike through the lens of Porters five forces to assess how the five forces affect Nike and the sports clothing retail industry in the US.

    1.0 INTRODUCTION


    Nike is the largest apparel and footwear company that manufactures a wide range of products mainly athletic footwear, apparel and equipment. It was founded in 1964 as Blue-Ribbon Sports by Phil Knight and Bill Bowerman with its headquarters in Beaverton, Oregon (Success Story 2018). Nike currently operates over 1182 retail stores worldwide, according to Statista. In 2018, Nike had annual revenue of $36.40bn that was a 6% increase from its 2017 revenue with a $1.93bn profit, a 54% decrease from its 2017 $4.20bn revenue according to its annual report (Annual Report 2018). In the clothing and apparel industry, Nike accounts for a 2.8% market share with major competitors adidas, H&M, and Under Armor having 1.8%, 1.4%, 0.4% market shares respectively (Statista 2018a).

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