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Latest posts by Mariam Peyton (see all)

    Nike is an American company that is engaged in the design, manufacture and marketing of apparel, footwear, equipment, services and accessories. The global clothing apparel market is oligopolistic with for players Nike, adidas, H&M and Zara having a combined market share of 7.0%.  Considering the US footwear market, Nike accounts for 21.1% market share with major competitor adidas having 4.7% according to Statista (Statista 2018d). Various external factors have affected the growth of Nike, by using a pestle we analyze how political factors such as the US-China trade war and president Trump’s order to pull the US out of the Trans-pacific partnership trade deal has affected its growth, economic factors like low employment rate in the US can boost growth and social trends affect Nike’s growth while realizing major threats and opportunities. Using a porters five forces analysis, we identify points at which competitions has severely affected Nike’s growth.  
     

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    Nike Strategy Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:
    • Understand the broad macro-environment of Volkswagen and the automobile industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
    • Use our swot analysis example to gain an overall understanding of Volkswagen's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on it's business environment.
    • To apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot etc to real company cases.

     

    Analyse the internal and external environment of Nike using SWOT & PESTLE.

    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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