Marketing Research Project

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Executive summary

Nike has a sizable customer base, and a solid reputation, along with a science and technology team constantly working to update its products with fresh features. Nike offers a variety of goods. Upwards of forty experts from several scientific fields, including kinematics, metabolism, mathematics, arithmetic, exercise physiology, medical technology, as well as applied physics, make up the laboratory workforce. As per the PESTLE analysis, Nike must likewise deal with the sale of its goods on online stores including eBay. Additionally, this examination of the athletic equipment industry is relevant to how consumers use communications devices. Moreover, digital shopping generated 38.7 percent of something like its Nike brand’s income for the financial period 2021. Additionally, Nike periodically faces legal consequences as a result of its dubious promotional strategies, which comprise deceptive promotions. VRIO analysis reveals that in order to assist its consumers in becoming knowledgeable of goods and technology as well as for consumer assistance as well as maintenance, Nike has created a number of applications and platforms. Competitive analysis indicates that Nike is having a tough time in terms of competition as the company’s major rivals like Adidas and Puma are also producing innovative products with highly effective strategies. As per the marketing mix, this footwear firm’s usage of commercials with prominent endorsements within that 4P parameter is suggestive of such a concentration on premium pricing. Additionally, Nike offers clothing items including shirts, pants, and associated goods.

SWOT analysis is more like providing glimpses of potential and a hopeful future. Opportunities seem to be the complete antithesis of threats. The analysis reveals that numerous female workers additionally noted that sexual misbehavior and discrimination were widespread issues at the business. Threats are also linked as the company is impacted by shifting currency fluctuations as it represents a worldwide entity. Nike discloses its accounting information in USD. This same U.S. dollar’s exposure to turbulence against many commercial commodities has an impact on its earnings. But the process of developing inventive electronics begins with devices that monitor human activity, such as wellness trackers. It may be profitable to produce in conjunction with athletic equipment as it is still a somewhat untapped market within the garment business. This can help the company to grow more as a marketing audit of this company can make some suitable outcomes if the decision-making process goes properly.

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1.0 Introduction to the audit

An evaluation that is carried out to examine a company’s present strategic plan from the highest point to the lower section is known as a marketing audit. As explained by Hakimovna and Muhammedrisaevna(2022), a marketing audit tries to pinpoint the merits and shortcomings of businesses’ brand awareness as well as to assist businesses in creating a strategy to increase efficiency and profitability. Moreover, in this regard, as opined by Chen and Yang (2019), the term “marketing audit” corresponds to a thorough, rigorous assessment, estimation, as well as understanding of something like the institutional and extrinsic corporate competitive landscape, along with the system’s aspirations, desired outcomes, methodologies, and related guidelines, to determine trouble spots as well as opportunity aspects and recommend a course of measures taken to strengthen the brand’s promotional output.

As the entire research report is separated into numerous portions in accordance with the Kotler Structure of Audit, a well-known corporation, Nike, has been chosen to fulfill the evaluation requirements. A crucial step throughout the marketing framework has been the promotional inspection. This research report foremost will provide a brief overview of the company. Going forward it will analyze the macro environment of the company using the PESTLE analysis tool. Conducting a PESTLE analysis will give provide a comprehensive external environment view of the company. Conducting PESTLE analysis will also help the researchers identify the recent trends for the company and the industry. Similarly, the research report will also analyze the internal environment of the company. It will focus on the company’s marketing, product range, product quality, customer experience, and other valuable insightful areas. It will provide an overall view of Nike’s microenvironment.  Along with these analyses, the research will analyze the competitors of the company, discuss the marketing mix of the 4Ps and conduct a SWOT analysis. It is focused on both the original procedure and the business’s execution strategy. This study ends with a meaningful conclusion after having various conversations.

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2.0 Company background

Nike is among the foremost dominant brands throughout the games and athletic footwear industries. “Bill Bowerman and Phil Knight, two people who worked together to construct Nike, were responsible for its creation” (, 2023). They look at the issues with athleticism and athletics attractiveness, and they wish to develop unique standards for sporting events presentation. It engages upwards of 44,000 people globally. “Nike (Nίκη), the Greek goddess of triumph, inspired the company’s name” (, 2015). Well over the span of its existence, this sportswear giant has purchased several fashion and equipment businesses, a few of which subsequently become purchased.

For greater than the last three decades, Nike Lab has provided dependable scientific knowledge that has fuelled improved results throughout Athletic footwear. By implementing steps to support individuals in realizing their capabilities, the firm promotes ongoing advancement for both individuals and sporting events. “Every position at NIKE, Inc. has been built on a team-first mentality, encouraging an innovative atmosphere as well as a common goal to make a lasting impression” (, 2023). The corporation’s revenue increased to $46.30 billion in 2021 from $38.25 billion in 2020. The entire profit that a business makes through the selling of products or operations is known as earnings. “For something like the full year ending November 30, 2022, Nike’s revenue was $49.107B, an increase of 6.05 percent over the previous year” (, 2023). The yearly profit of Nike in 2022 amounted to $46.71B, an improvement of 4.88 percent over 2021.

Marketing Research Project

Figure 1: “Last 10 years revenue of the company

(Source:, 2023)

Marketing Research Project

Figure 2: “Revenue for Nike globally during accounting periods 2005 through 2022

(Source:, 2022)

2.1 Mission statement

Nike aims to promote innovative activities for athletics worldwide. In order to improve athletic effectiveness, lower the likelihood of accidents, improve awareness and sensation, as well as provide professionals with cutting-edge merchandise, innumerable concepts are tried.

2.2 Objective

The firm’s existing objective strives to provide its clients with cutting-edge apparel as well as accessories, which might help them reach a breakthrough standard of accomplishment.

3.0 Macro analysis

Nike must maintain a significant level of caution in its hypercompetitive business even though it is among the biggest athletic clothing and accessories firms in operation. The PESTLE study, which examines the “Political, Economic, Social, Technological, Legal, and Environmental” variables that impact an organization, is used to examine Nike’s current position and prospective development. PESTLE analysis is highly beneficial as it provides a huge amount of information regarding the company’s overall situation where things are getting exposed directly or indirectly.

3.1 Political

A large majority of today’s governmental adjustments, for instance, simply have a marginal impact on whether a business can create its commodities or what amount of money it makes (Eyada, 2020). Undoubtedly, this can seem minor, but whether an enterprise will continue depends on legislative considerations. Among the following are, for Nike:

  • The United States, Nike’s “national side“, has excellent economic expansion guidelines that seem to be particularly beneficial for this type of corporation. These include advantageous tax policies for giant enterprises and low loan rates.
  • Alternatively, Herbert (2020) asserts that since Nike produces and transmits physical commodities, changes in finance and business law have a continuous influence on the company.

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3.2 Economical

Nike manufactures a moderately valuable product, which makes it less vulnerable to marketing challenges than comparable businesses, however, these are some of the external forces:

  • A market meltdown could result in a devastating tragedy for Nike and many other well-known companies like it. Consumers may choose to switch to reduced, less costly products if this occurs, or they may just do so when it becomes easier to produce things that meet appropriate performance guidelines (Ansari et al., 2019).
  • Nike’s profitability is largely contingent on the low cost of labor in Asian countries. But things are changing, though it’s feasible that eventually, more costly Nike items will be offered worldwide.
  • Due to having a “big wallet,” Nike appears to have the resources to investigate small-scale new areas in which they may be capable of selling their products.

3.3 social

Personal selling has seldom been more crucial than it is right presently (Munsch, 2021). Because economic standing is highly valued by modern corporations, it is crucial to consider the accompanying:

  • Globally increasing “nutrition awareness” has led to a rise in the number of individuals embracing healthy behaviors. These customers will buy a tonne of athletic items, which could make Nike exceedingly happy.
  • On the other hand, Nike is harshly lambasted because of its dubious production methods, according to Waymer and Logan (2021). In simple terms, this corporation’s sweatshop practices are such a serious issue that a full Journal feature has really been devoted to them.
  • People’s growing demand for locally or regionally created goods becomes a cultural trend that offers an opportunity for these same textile, manufacturing, and technologies businesses to grow. In contrast, certain American customers prefer sportswear that is made fully or primarily within the nation.

3.4 Technological

According to developments, businesses may grow in a broad range of ways. Corporations like Nike profit from automated processes in many dimensions, from customer experience to architectural practice. Numerous technical impacts on it have been mentioned following:

  • Because of online interconnectivity, stuff might blow up or vanish more quickly than before. Nike is doing an excellent job using social media to build its brand, but misusing it could lead to unforeseen repercussions.
  • Technology advancements also provide Nike with the chance to apply useful information-based measures, enabling them to maximize income by optimizing manufacturing and focusing” (Senefeldet al., 2021).
  • Nike’s initiatives, also including mobile applications for contacting ideal customers, must be taken into consideration Apple and Google’s tactics as people use portable devices” (Joubert and Jones, 2022).

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3.5 Legal

Although there are not numerous legal factors that might influence Nike, the scholar has not overlooked the biggest one:

  • Consumers should not be surprised to hear that Nike, such as the bulk of big businesses, considerably bypasses customs. However, according to Eyada(2020), “there has not been significant enforcement on this issue in latest days, it is certainly important to take this into account“.
  • Due to the extra regulations for making, transporting, or distributing commodities like footwear as well as clothing, this exterior constitutional matter poses a danger to the company’s operations. Nike, meanwhile, has the chance to enhance its company procedures, plans, as well as guidelines in order to comply with emerging workplace rules and restrictions as a result of the identical legislative movement.
  • In this regard, greater consumer rights may lead to more athletic product expenses. Nike can quickly embrace emerging customer safeguards to comply with legislation, improve shopper relationships, as well as boost the business image (Greenman, Mendez, and Steiner, 2019).

3.6 Environmental

The importance of environmental concerns is steadily increasing. Admittedly, there are just a few factors that affect Nike in this regard, but it is still vital to describe them:

  • There is minimal doubt that Nike’s professional production units are environmentally unfriendly. Nike’s manufacturing facilities frequently reach the point where they deliberately pollute watersheds in addition to releasing a lot of airborne pollutants like most manufacturers.
  • Conversely, Nike does make a genuine effort to alter its current practices in an attempt to become more “green”.
  • In this report, peer feedback regarding recycling is referred to have a wide-ranging potential for Nike. For instance, as mentioned by Curtis and Hansson(2019), the business may employ reusable content in part of its footwear to appeal to customer groups of eco-conscious consumers. Alongside Nike’s CSR as well as stakeholders’ governance efforts, the identical ecological exterior element offers a chance for enhancing the product line as well as commercial perception.


4.0 Microanalysis

4.1 Brand image

Brand image is among the most vital part of any organization as it carries several things with it. It takes a lot of hard work to gain a good brand image and moreover, it also takes more input to keep the business on the right track for a long time. Nike’s reputation contributes to increased recognition as well as brand attachment around the globe. Subsequently, Nike has sustained its standing as a business that emphasizes development, expertise, as well as its clients. A company’s favorable standing throughout the field increases as numerous customers are drawn to it. “Nike’s business model has additionally been instrumental in enhancing its reputation globally” (De Silva and Seneviratne, 2022). The foundation of long-term commercial strength for the company is its intangible assets.

4.2 Marketing

Numerous businesses have used marketing to overcome the strain of the competition as well as achieve a major advantage over competitors. According to La Rocca(2019), businesses have grown their global supremacy as well as set their identity apart from competitors with the use of effective marketing techniques. Probably another best marketer in the world seems to be Nike. Its promotional approach is dependent on motivating sportsmen to do the seemingly unimaginable. It has become a global superstar throughout the marketing industry thanks to its “swoosh emblem and the Just Do It” motto. Conversely, as stated by La Rocca(2019), in addition to advertisements, and incentives, including collaborations, its marketing technique also includes other components with a heavy emphasis on goods excellence along with athlete-friendly ingenuity.

4.2.1 Celebrity Endorsement

Nike is well-known around the world for integrating celebrities with their brand in order to endorse their brand. In the past, Nike successfully collaborates with various sportspersons around various sports. Famous sportspeople like Michael Jordan and Cristiano Ronaldo are featured in Nike’s marketing efforts and endorse the company product (, 2018). Celebrities throughout the sporting world constantly share their reviews and experience of Nike products that help the company to capture certain target markets. Also, Nike is very committed to consistency and long-term commitment. Sportspersons around the world signed a long-term contract with Nike in order to endorse their product. Using social media celebrities promote Nike products and spread more awareness about the company and all its products.

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4.3 Customer experience

Nike does indeed have a distinct advantage over its competitors’ thanks in large part to its emphasis on client administration (De Silva and Seneviratne, 2022). Among the most important elements that contribute to increased consumer engagement as well as competitive supremacy for organizations involves the essential differentiator. From procurement to retail, in addition to additional sectors like manufacturing including after-sales support, Nike has placed a strong emphasis on client administration. It has released several applications for its users all around the globe. Because of the firm’s specific emphasis on consumer encounters, multitudes of consumers throughout the globe have become fans of the product line, increasing consumer happiness (Zone, 2019).

4.3.1 Target market (External customers)

Whereas the marketplace for athletics and clothing might be large, Nike generally caters to customers who range from the “demographics of 15 and 40“. The organization offers the same services to male and female sportspersons, and it is putting more of an emphasis on tweens and teenagers in order to foster protracted brand awareness. In the section of behavioral, Nike prefers to target the upper-middle-class and higher-class people as they prefer to maintain an affordable rate, not too high or not too low. In the criteria of psychographics, sports-freak people are on the top in the target customers’ list Nike.

4.3.2 Internal customers

Internal customers of the company are the workers and other people who are associated with the governing bodies. Just to assure sustainable expansion and acquire devoted brand supporters, Nike targets middle-aged individuals with discretionary wealth and strengthens its engagement with modern generations. Moreover, there is a benefit to the company if their employees wear products of their brand as it helps to promote automatically without any external investment.

4.4 Product innovation

Product quality remains a major aspect in the growing usage as well as the profitability of companies globally. Nike has always prioritized innovation activities, which has been a major factor in why its goods remain to surpass those of its competitors globally.

4.5 Product range

Nike has concentrated on developing items for individuals that would enable them to execute better and succeed in their particular sports. A wide variety of items have been created, mostly geared towards different disciplines and athletic pursuits including volleyball, football, jogging, as well as beyond. Another main contributor of benefit for the company seems to be the breadth of its technology platform.

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4.6 Product Quality

Product quality constitutes among the most important elements that may aid a business in dominating its marketplace. The majority of the top businesses throughout a range of sectors have become major competitors thanks to their high-caliber goods. In order to keep its items appealing as well as its customers committed, Nike has indeed kept a sharp emphasis on item integrity (, 2023). The business is capable of offering premium rates while yet enjoying higher expectations and rising consumer engagement, in large part due to the outstanding products it sells.

4.7 Technology

In a number of sectors, such as the athletic footwear as well as garment sector, modern innovation as well as other cutting-edge innovations like artificial intelligence (AI) have emerged as sources of differentiation. “Digital technology has also become a huge source of competitive advantage for Nike, giving the company a big lead over its competitors in the market” (, 2013). Notwithstanding the pandemic-related distribution network interruption as well as the resulting economic uncertainty, the firm was nonetheless capable of increasing its volumes and earnings. Consequently, technology has emerged as a significant driver of something like the company’s enduring competitiveness.

4.8 Manufacturing capabilities

Nike has maintained considerable distribution channels and integrators. Today, the majority of its industrial production is addressed by third-party vendors and system integrators. All of Nike’s apparel is produced by fifteen separate multiple suppliers beyond the United States. According to Zone (2019), the business upholds strict manufacturing guidelines, which have assisted it in maintaining strong client engagement and recognition. Despite being an uncommon skill, it seems not wholly unique and can give the corporation short-term competitiveness. In order to continue to dominate the industry, Nike must continually develop in enhancing its production skills.

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Figure 3: “VRIO analysis of Nike

5.0 Competitive analysis

5.1 Competitors in the UK

According to (2022), In the United Kingdom market, the sportswear industry was valued at £13.8 billion which will continue to grow at a pace of 4% annually by 2025. Although, due to the coronavirus pandemic the market saw a sharp decline. However, the sales of footwear and other sports appeals showed a great recovery from the pandemic. Nike is among the leading brand in the United Kingdom. Nike had always been very successful in the United Kingdom market. The marketing strategies that Nike used in order to penetrate the UK market resulted in an outcome of 97% brand awareness (, 2022). The company hold 20% of the total market share in the United Kingdom before Adidas (Vyshnaviand Jain, 2023). Adidas holds 15% of the total market share in the United Kingdom which made the company a primary competitor of Nike within the UK market.

Marketing Research Project

Figure 4: Nike brand awareness in the UK market

Source: (, 2022)

Because of its affordable framework, Nike’s commercial approach appears to remain effective. When contrasted with the prices they have been really charging for each one of their items, they seem a highly “low cost-to-create ratio” (Rasmussen et al., 2021). They also market their goods to a big target market. The range for reimbursement is quite broad. While it is true that several employees at Nike retail locations enjoy decent advantages and competitive pay, they frequently lament the heavy workload. Additionally, according to (2023), highly seasoned Nike employees possess greater workplace flexibility along with remain extremely popular, yet they are unquestionably highly rewarded. Additionally, their low-cost aggressive approach nearly goes against everything they claim to represent among customers. When it comes to morality, and tolerance, including contributing, they are quite vocal. Meanwhile, they have increasingly come under fire for abusing labor from developing nations. In terms of sports apparel, Nike occupies the front line. Both benefits and drawbacks result from this. Since they had been identified for abusing their workers, the valuation of manufacturing their goods increased owing to that same workforce, which led to an escalation in retail prices (Bag and Pretorius, 2022).

Nike really should have brought substantial advancements to its products from the moment it was founded to develop them lighter and more comfortable, enabling people to employ footwear for a prolonged period without feeling pain or hurting feet. Its trademark has also been broadened to include sports, apparel, bags, protectors, and sporting goods” (, 2023). The organization’s goal is to succeed in developing and maximizing developmental capabilities while positively influencing its clients in various locations. As a global enterprise, it has physical stores established across the world to provide its products widely available.

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5.2 Global Competitors

These companies must be considered within the perspective of metrics like “fashion” as well as “comfort” that is used to assess Nike’s market presence. As a result, the recommended perceptual map contains knowledge on the whereabouts of “Nike, Adidas, Puma, and Under Armour.” The generated diagram clearly demonstrates that “Nike and Adidas” remain dominant in the American sector for athletic footwear that prioritizes comfort along with appearance (trend). As per Manurung and Alvin(2021), “it is significant to notice that Puma dominates the market for expensive fashion but low-comfort products”. Accessibility is something that “Under Armour” is noted for emphasizing, and some people would consider the visual qualities of its goods to be subpar (fashion).

Marketing Research Project

Figure5: “The perceptual map for Nike’s athletic shoes

Despite facing competitive pressure throughout the seasons, Nike has managed to maintain its position as the sector leader owing to efficient promotional activities (, 2023). Nike’s business plan makes it clear that it intends to change its technology platform based on its targeted audience and region, much like other worldwide companies. Enterprises can apply certain essential ideas to build their reputations.

ADIDAS As per (2023), “Adidas, one of Nike’s oldest and most able rivals, was founded in 1949“. The two firms compete for consumer engagement, advertisement dollars, and market domination in a number of product categories, especially footwear, garments, and apparatus. It is the second-largest apparel producer in the world, behind Nike, as well as the biggest in Continental. “In 2021, Adidas recorded annual revenues of $25.122 billion, an increase of 10.83 percent from the preceding year” (, 2022). Adidas’ valuation was $32.86 billion from about July 2022. “Adidas anticipates that its double-digit top-line growth will continue into 2022 when Covid-19 fades away and people resume their regular lifestyles” (, 2022). Meanwhile, Adidas’ sales in that territory and around a single percent of all its overall revenue are in danger due to the conflict in “Russia and Ukraine“. The marketing strategy of Adidas also focused on building a strong image. Within the overall shoes and sports apparel industry Adidas made and maintained a strong brand image over the years. Alike Nike, Adidas also invests heavily in its marketing campaign. Using various marketing channels, the company promotes its products to the customers.
PUMA Renowned German global firm Puma creates and produces sports as well as everyday footwear, clothing, and collectibles. “Around 6.81 billion Euros in worldwide revenue in 2021, the firm will rank third among sportswear producers, behind Nike and Adidas” (, 2023). Puma, including Adidas, is not being lax in its environmental policies as it strives to become energy independent by 2030. This same DTC business paradigm has played a key factor in Puma’s current advancement. Sales at the corporation increased by thirty-two percent in 2021, well with Americas recording the most rapid increase at 53.9 percent (, 2022). Whereas the Americas are a key region opportunity for Puma, more than fifty percent of all transactions are made in Europe. Adidas as well as Puma possesses a somewhat favorable mood on digital networking, whereas Nike does have a skeptical view based on an analysis of their online platforms. PUMA’S marketing strategy is also focused on a strong brand image and providing value-based quality products to their customers. PUMA also innovates new designs for the customer to win over the competition. However, like the other two companies, PUMA also heavily invested in various channels of marketing, from new-age digital marketing to the traditional style of marketing.

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5.3 Improving Nike’s Supply chain

Nike introduced many new innovations and services for better customer experiences and in order to improve the overall supply chain. In order to mitigate current supply chain issues, the company is heavily focused and invested in automation technology. Using automation technology, the company also supports sustainability within the supply chain network. Introducing “Buy Online, Pick-Up in Stores, Ship to Store and providing No-Rush Shipping options”, the company improving its supply chain (Torres, 2022). It helped the company to increase its overall capacity, quick delivery, and delivery of items precisely.

5.4 Expanding the online market of Nike in China

Nike begins its online journey in the year of 2012. At first, the company mostly sells its products through its websites and other e-commerce websites. Aside from this the company also started a WeChat program in order to sell its products. However, in 2019 with the launch of Nike’s new mobile application. The company started to transfer its overall customer traffic from the other channels to the mobile application. Nike also joint ventured with companies like Tmall. It helped the company with data-driven marketing in the Chinese market.

6.0Marketing Mix

The four pillars of business change in accordance with the fluctuations of the international athletic marketplace. Such development is a crucial component of corporate performance because it allows the firm to adapt its marketing strategy in response to movements, including shifts throughout the “footwear industry“.

6.1 Product

Nike’s production system advocates for growing the business through adjustments to the segmenting based on the competition.“Nike’s main famous item is footwear, as well as the organization’s overarching promotional plan steadily expands the product offerings by adding another brand portfolio” (Niazi, Rashid and Shamugia, 2021). For instance, the business now provides sneakers, accessories, as well as apparel for several different activities, such as cricket. The company sells these items under a variety of its trademarks, most significantly “Air Jordan and Converse“. Nike increases its value proposition to meet the demands of its intended audiences as well as the industry described in the section upon the component of the promotional balance, better adjusting the 4Ps towards economic factors.


6.2 Place

Due to their central location and convenience to reach several areas worldwide, retail outlets represent the primary major locations where Nike merchandise is sold (Alexander and Cano, 2020). Such merchants include big companies like Amazon in addition to the smaller neighborhood and provincial shops. The Nike e-commerce website allows shoppers to buy athletic shoes, gear, and technology, as demonstrated by the 4P part of the firm’s marketing initiatives. “Predicated upon the component of this same promotional combination, the business has significant influence over how its commodities are distributed, particularly through its digital website and Niketown major retailers, making this 4P component a valuable source of knowledge for developing the organization’s strategy” (Iftikhar, Pourzolfaghar and Helfert, 2020). Moreover, this advertising method also demonstrates how little management Nike has over the supply chain as well as consumer spending on its goods.

6.3 Promotion

Advertising is one of the key drivers of Nike’s accomplishment in attracting customers. Likewise, this part of the institute’s marketing technique includes personalized offers, in which representatives persuade potential consumers to consume the sporting goods the company purchases. The firm’s straight advertising methods also include advertising its goods online to universities, neighborhood sporting events, as well as other groups in the framework of the 4Ps. Additionally, as opined by Wallace(2022), “Nike periodically offers online and other special deals as part of its sales campaigns in an effort to draw additional consumers as well as increase revenues”. The company’s ability to effectively sell its brand as well as commodities to the global sports accessories industry hinges on its relationships with well-known celebrity endorsements.

6.4 Price

Nike takes the customer impression of something like the worth of its commodities into account when developing its “value-based pricing strategy“. Perceived utility affects the utmost pricing that customers would spend for the firm’s athletic footwear, gear, and technology inside this framework of the promotional combination. Conversely, as per Kalangie and Worang(2019), “the premium pricing strategy makes use of high prices in order to position Nike items as being of greater quality and value than those of rival companies“. Since consumers connect a luxury reputation with the firm’s commodities when Nike uses the elite costing method as a component of this assessment, the benefits from larger profitability margins and perhaps increased sales volumes (Parkman, 2021). Nike effectively employs pricing methods that emphasize significant importance in advertising its commodities and franchises to maximize earnings. The pricing strategy of the company also depended upon several factors. Brand positioning, high product quality, and innovation are several leading factors for the company’s pricing strategy.

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7.0 SWOTanalysis

Strengths, Weaknesses, Opportunities, and Threats, or SWOT, are the four crucial business factors that corporations should evaluate in order to set the stage for further fruitful pondering as well as tactical development sessions” (David, Creek, and David, 2019). Opportunities can result from circumstances outside of our control (Puytet al., 2020). All of those are aspects of the corporation’s external surroundings that might have a detrimental effect on its operations. According to David, Creek, and David (2019), threats may stifle a firm’s progress and overall threaten its sustainability, whereas opportunities can help an enterprise prosper.

7.1 Strengths

  • This business is one of the most popular around the globe attributable to its memorable name, straightforward articulation, as well as striking appearance. Its swoosh emblem is instantly recognizable by everybody. According to Nica, Chiriță, and Ionescu(2021), “Nike has a $42.5 billion brand value“.
  • This organization has had unmatched profitability for generations because of its capacity to preserve and grow its subsidiary businesses, like “Converse and Hurley”.
  • The majority of Nike’s apparel is made overseas.

7.2 Weaknesses

  • Nike has indeed been continuously attacked over the past two decades due to their subpar working circumstances. “Modern slavery, child workforce, low pay, and appalling workplace circumstances that had been labeled “unsafe” are some of these problems” (Meng et al., 2021, September).
  • Because of its budgetary vulnerability, Nike’s merchandise leaves the corporation exposed. Retail marketing to distributors or merchants accounts for sixty-five percent of all Nike marketing expenses. Since merchants are indeed the primary customers, Nike sometimes does not object to their pricing agreements.
  • Even though Nike’s income announcement indicates that the company is still around, a quick glance at its accounting information might reflect that instead. Nike’s financial troubles have not abated. “Nike has had $9.4 billion in cumulative protracted indebtedness since around FY21” (Kiselevaet al., 2021).
  • Nike remains dependent upon the U.S. marketplace for earnings, despite maintaining an international presence. Approximately thirty-nine percent of this organization’s profits for the financial year 2021 originated from North America, with the remaining sixty-one percent coming from all corners of the world.

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7.3 Opportunities

  • Regardless of the notion that Nike is already well-established in a number of foreign countries, the company still has a lot of opportunities. That is mainly a result of the gradually expanding economy of emerging finances like “Brazil, China, and India”.
  • As per Nie(2022, December), “in order to improve its digital commerce skills and forecast clients’ purchasing patterns, it just bought the Celect predictive analytics technology“.
  • Moreover, as opined by Zhu(2022), “Nike has been counting on the Metaverse, where users might use their Metamask wallets to buy all kinds of in-game goods, as a platform to promote their virtual footwear“.

7.4 Threats

  • Throughout the academic season of 2020, Nike committed $3.5 billion solely to requirement development and promotion. “Nike’s best chance of dominating the rivalry would be to create novel items that are specifically catered to the requirements of professionals” (Meng et al., 2021, September).
  • The strain on this company continues growing as businesses like Under Armour, Adidas, and Lululemon devote increasingly to manufacturing and advertising efforts” (Meng et al., 2021, September).
  • Regardless of their industry, all firms are susceptible to the negative effects of something like a global slowdown. Additionally, Nike’s revenues have indeed dropped by thirty-eight percent in Q2 2020, and if this slump worsens as economists predict, they might fall significantly higher throughout the near future.

8.0 Conclusion

This study concludes that this company is in good shape while several issues are also there which are quite common in similar organizations. The company does exhibit its advantages and drawbacks as it has the opportunity to flourish. Strengths constitute the intrinsic elements and assets that help Nike achieve accomplishment. These represent the areas in which the firm excels exceptionally well or where it distinguishes itself from the competition. Serious contradictions exist inside any institution. Evaluate what kind of this organization’s human facilities, finances, technologies, and processes should be improved or should be abandoned. Various analysis during this study has highlighted several pieces of information. Throughout the athletic shoe sector, Nike represents a dominant player. Nike has about thirty-nine percent market dominance in athletic shoes as well as a thirteen percent market dominance in athletic clothes worldwide. Nike’s over-emphasis on sports gear and dearth of diversity are a couple of its main shortcomings. Due to the outbreak, major sporting events have been postponed or discontinued, which has discouraged gathering and close connection. Additionally, a few sports organizations still pose a threat of dissolution.

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9.0 Reference List (2023) Available at: (Accessed: February 14, 2023).

Alexander, B. and Cano, M.B., (2020). Store of the future: Towards a (re) invention and (re) imagination of physical store space in an omnichannel context. Journal of Retailing and Consumer Services55, p.101913. Available at: (2023) Overview 2021: Puma Annual Report 2021, PUMA AR 2021. Available at: (Accessed: February 14, 2023).

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