In accordance with Porter’s 5 Forces, Nike has faced competition by using different and distinct capabilities in marketing. Its Headquarter is situated in Manhattan Beach, California. This article was very interesting. Under Armour is founded in 1996 by Kevin Plank headquartered in Baltimore, Maryland, United States. Fila. Like most big companies, Nike has a number of strengths. How Does Credit Karma Work and Make Money? The other two competitive companies include Adidas and Under Armour Company. Nike global presence is another key strength. Nike Inc. enjoys a top position in the global athletic shoes, equipment and apparel market. This creates the perception that Nike is not committed to addressing climate change and its pledge is just a marketing stunt. The company produces athletics shoes, sportswear, equipment and apparels. Through this SWOT analysis of Nike, you will be able to understand the business model of the brand. Skechers is a designer, manufacturer and marketer of athletic, casual and performance focused footwear for men, women and children in more than 170 countries. It portrays an essential appendage to conduct an industry analysis. The company offers many sports-inspired products like training and fitness, golf, basketball, football and motorsports. Hi Divya, Most of the information is from Nike’s annual report and few points have embedded hyperlinks for references. Nike’s top competitors include Anta, lululemon athletica, VF Corporation, Adidas, Reebok, ASICS, FILA, … Whether it is the sports shoe business or the active sportswear apparel, Nike has always left its competitors wondering about the … Thank you Gargi, I have been through business school not so long ago, so I can totally relate to you. Dorrene, Thanks for your positive feedback, I am glad you liked it. Nike, Inc. is an American multinational corporation. Gupta understands how to create and implement business strategies. Tell us what you think? 1 shoemaker. Thank You. S.K. Nike is headquartered in Beaverton, Oregon, USA. 3. Deliveroo Business Model | How Does Deliveroo Make Money? Puma. Samsung SWOT Analysis 2020 | SWOT Analysis of Samsung, Starbucks SWOT 2020 | SWOT Analysis of Starbucks, Microsoft SWOT Analysis 2019 | SWOT Analysis of Microsoft. Competitive Analysis Nike has no factories. Nike, Inc. is a company rooted in competition. I need this info for citations. The company is engaged in development, distribution and marketing its product lines worldwide. Lack of Diversification: Nike’s over-dependence on sporting apparel or lack of diversification is a major weakness. The fiscal 2020 proved to be successful for Nike. Adidas. 10. We have conducted a comparative analysis of the balance sheet and the income statement of Nike, Inc. (hereafter – the "Company") for the year 2019 submitted to the U.S. Securities and Exchange Commission (SEC). It was found by, in the communities. Umbro. It’s to easy to understand and explain to others.. Strong brand image 2. It is because of the athleisure trends and for the high demand during the Olympics. Although the brand is still in debt, the next few years look promising. Nike vs Adidas: Social media following. Skechers is the top performer in United States and one of the top Nike competitors. . Reebok. Compare Nike to its competitors by revenue, employee growth and other metrics at Craft. Skechers generated $4.5 billion in 2017 and reported 16% sales growth which in an alarming factor for Nike and Lululemon Athletica. competitors. It is headquartered in Seoul, South Korea. • List of NKE Competitors With net margin of 14.33 % company achieved higher profitability than its competitors. Some even left their jobs. ASICS is the top competitor of Nike. The following strengths are the most notable in the case of Nike Inc.: 1. The Nike SWOT analysis, highlights the biggest positive point of the company’s strength, i.e., its constant ability to innovate something new. Auditor's conclusion. Rapid innovation processes 3. Nike’s main competitor is Adidas which, after the acquisition of Reebok, has become the closest competitor in terms of revenues and market share Adidas AG – The Group’s principal activities are producing and marketing of sports goods. Annual revenue of Puma is amounted $5.5 billion. After takeover both the companies Reebok and Adidas have strong position to compete with Nike in North America. Fila is a worldwide leading brand among sportswear and footwear brands like Nike, Puma and Adidas. NIKE FIVE FORCES ANALYSIS. Vans is the leading competitor of Nike and Puma. Through the interviews, it was established that Nike did have a toxic working environment, where sexual misconduct was rampant. The pandemic has discouraged physical interaction and gathering with sporting events canceled or postponed. Nike has become one of most recognizable companies in the entire world Nike is now the most popular … If the crisis discourages sporting events for longer, Nike’s losses can be catastrophic. The primary business activity of the company is Rubber and Plastics Footwear (SIC code 3021). The entire. With all the strong competitors, Nike has managed to hold the position as the leading brand however this does not mean that Nike does not have constant competitive pressures to face and other businesses to look out for. Group 4: Josh Fernino Brent Hare Victor Hemmati Lance Hollister Chris Kerschen Ty Parasiliti Vincent Ukwu 2. It’s hard to talk about Nike without the “swoosh” logo, ... Nike, Inc. Reebok is another competitor of Nike Inc. Reebok is a footwear and apparel company that designs, manufactures and distributes CrossFit, fitness, running footwear and clothing. Competitor analysis begins with identifying present as well as potential competitors. Some of the most notable competitors against Nike include Adidas, Reebok (which Adidas acquired in 2006), Puma, Under Armor, H&M, and Lululemon. 9. Competition in the athletic wear industry has increased a lot. The company was founded on the principle that it would make shoes for anyone who could walk or run and this has been the guiding philosophy behind Nike. The recent years have been quite profitable for the brand. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. Save my name, email, and website in this browser for the next time I comment. Copyright © 2020 Business Strategy Hub. The total number of worldwide Nike stores and factories are 1182. ” Nike has a healthy dislike of its competitors such as Reebok and Addidas. UA generated $5 billion revenue with a market capitalization of $7.7 billion. I am glad you liked our analysis. Low Manufacturing Cost – Most of Nike’s footwear is manufactured in foreign countries. (The manufacturing practices of Nike and its competitors) 4. Asics Reebok is a subsidiary of German company Adidas Group. Its US-based stored and factories are 392. Reebok, Runtastic and TaylorMade. The article was enlightening. Nike's top competitors are Adidas, Anta Footwear Company Limited and ASICS. Bata. 8. The CEO ensures that Nike will help to contribute. Alexa's competitive analysis tools help you identify competitor strengths and weaknesses you can leverage to get the edge. – Sales Vs Marketing Vs Business Development Explained, Brick and Mortar Business – Meaning, Challenges & Examples, Above the Line ATL, Below the Line BTL, Through the Line TTL Marketing, Product Life Cycle – Definition, Stages, Examples …, Brick and Mortar Business – Meaning, Challenges …. This report is about a competitive analysis watch based on competition in the sportswear industry, dominated by Nike Inc., followed by Adidas and Puma. However, it also makes athletic apparel and gear. Here’s a detailed breakdown of Nike SWOT analysis. A Five Forces Analysis, based on Michael Porter’s model, points out that competition, customers and substitutes are the most important external forces in Nike’s industry environment. Nike is an American multinational company that deals in the designing, manufacturing, marketing and selling of sports footwear, apparel, equipment and other related accessories. Phil Knight and Bill Bowerman probably could not have imagined in 1962 to what degree their $500 investments would yield in 2000. Lot of clarity in the format – the SWOT is explained. Benchmark and track your performance relative to your competitors. While products like FuelBand , a wearable technology that monitors physical activity, may not have been as successful as hoped, Nike still has its eye on the next “big thing”. Nike’s primary goal is to supply athletes with exceptional products and wearable that aids them in better sports performance. Nike is among the three top competitors in the world for sportswear and apparel. 2. Contact Us | Privacy Policy | Terms of Service, The pharmaceutical industry is one of the primary industries and …, Sale is the process comprised of all the activities that …, Just like the evolution of humankind, humans have witnessed an …, There are three major activities, marketers used in the field …, PESTLE Analysis of The Pharmaceutical Industry, What is Sales? I am guessing the presentation is for school? In 1948, they were agreed to split the company and founded two companies Adidas and Puma. Nike Strengths in SWOT Analysis. Several sporting teams are on the brink of collapse. Liberty Shoes. Share your thoughts and experiences in the comments section below. The New York Times conducted interviews with 50 former and present Nike employees to investigate the company culture. Here’s why. 4. The entire controversy has significantly affected the company’s image. The company deals in different types of gears for athletes, bikers, sweaty and stretchy pants lovers and also many yoga accessories. 12. Deloitte: Mission Statement | Vision Statement| Values | Culture, Starbucks Mission Statement, Values, Principles, & Sustainability Goals, Uber: Mission Statement | Cultural Norms | Principles | Philosophy (2020), Amazon: Mission | Leadership Principles | Philosophy (2020), Nordstrom: Mission | Vision | Core Values (2020), Your favorite Nikes might be made from forced labor. One of the biggest competitive pressures that Nike faces is the placement of their stores. Extensive global production and … I have tried to provide a complete list of Nike competitors. One attribute to such capability is its value or benefit offered to its customers. Comparing the results to its competitors, Nike Inc reported Total Revenue decrease in the 3 quarter 2020 year on year by -0.62 %, faster than overall decrease of Nike Inc 's competitors by -7.43 %, recorded in the same quarter. Here’s why. Nike is the world’s no. After passing through many ownerships finally purchased by Fila Korea in 2007. In the fiscal year 2020, Vietnam produced 50%, China produced 22%, and Indonesia produced 24% of total Nike’s footwear. Nike have sponsored many renowned sports teams and athletes with its top trademark âJust Do itâ and Swoosh logo. This component of the SWOT Analysis deals with the internal strategic factors that support business development and competitiveness. The following points provide you a bit of Nike’s background: The company is known with the name Nike Inc. Nike was established during the year 1967 and is headquartered in Oregon, United States. Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. Every company today must effectively deal with its competition unless it is a monopoly. Hey, who is the author of this report and what year was it finalized. New Balance is a Multinational Corporation headquartered in Boston, Massachusetrts, United States. Contradicting Strategies: Nike pledged to shift all its facilities to 100% renewable energy with net-zero carbon emissions under the “Move to Zero” scheme. The brand has excellent marketing campaigns and, Recently, a former employee accused Nike of, Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. 6. Adidas and Nike both are dominating the social media game at present. Nike competitors analysis Who is Nike biggest competitor? The company started its operations on January 25, 1964 as Blue Ribbon Sports and officially changed the name as Nike Inc. on May 30, 1971. Nike offers different categories of products and accessories like sports shoes and apparel for men, women and children. In the FY 2018 the company was able to generate $4 Billion revenue. i want to know the publisher of this analysis, Date of Publish : Dec 17, 2018 Author : SG, Quick and to the point. The paper presents Nike’s greatest strengths and weakness and evaluates general environment as well as forces of competition. Thank you. Using for my management program – Leadership & People Management. It manufactures casual and sports footwear and apparels. – SG. According to craft.co Lululemon has a capitalization of $17.5 billion. Thanks it will help me my upcoming presentation. However, new entrants required the huge amount for the capital; therefore, Nike has the maximum market share in the footwear industry (Reuters, 2016). We respect your privacy. Thank you ! Nike is amongst the top three companies i.e. 2. The company differentiate its product line with several technical features like heel counters and blended gel inserts. Join our newsletter today to get updates on the latest posts! Nike, Inc. is an American multinational corporation. The company is a major competitor of Nike. If the relative market share which is above 33% therefore it is considered to be strong since Nike’s in this case has a share of 47% its relative market share will be considered the strongest from its competitors. According to this, Adidas is the strong competitor of Nike and the second largest shoemaker in the world. nike.com Competitive Analysis, Marketing Mix and Traffic . However, Nike has got an edge over its competitors owing to several factors. Under Armour. Nike has the annual revenue of $36.4 billion in financial year 2018 with a market capitalization of $120.3 billion and 11000 stores worldwide. 11. The company specializes in athletic wear, providing footwear, apparel, athletic equipment, and accessories. It is Italian-South Korean Company founded in the year 1911 in Italy. New Balance has a premium brand image and amongst one of the top Nike competitors. Thanks. finding a solution against these environmental issues. New Balance Athletics Inc. also New Balance was founded in 1906 by William J. Riley. Company: Nike CEO: John Donahoe Year founded: 1964 Headquarter: Beaverton, Oregon, USA Number of Employees (FY2019): 76,700 Type: Public Ticker Symbol: NKE Market Cap (Oct 2020): $198 Billion Annual Revenue (FY2020): $37.4 Billion Profit | Net income (FY2020): $2.54 Billion, Products & Services: Athlete wear | Apparel | Sports equipment | Leisure footwear | Accessories Competitors: Adidas | Puma | Anta | New Balance | Under Armour | Lululemon | ASICS | V. F. Corporation, Nike swoosh logo is inspired by the Greek goddess of victory, Nike. Non-US based store and factors are 790. According to this, Adidas is the strong competitor of Nike and the second largest shoemaker in the world. ASICS Corporation is a Japanese company that designs, manufactures and sells footwear and sports equipment. Nike's main competitors include Anta, lululemon athletica, VF Corporation, Adidas, Reebok, ASICS, FILA, Puma, Under Armour, Skechers and New Balance. However, the customers of the Nike’s have the brand awareness and this is the reason that the company put more effort in the products. Nike sponsors the top athletes and gains valuable coverage through the media. Vans is owned by VF Corporation. Academia.edu is a platform for academics to share research papers. However, due to the success, Nike has gotten the company now provides athleisure wear as well. Primary Competitors Internal Environment Internal Environment Adidas Iconic logo has 3 other brands (Reebok, TaylorMade, Rockport) Puma growing apparel sales expanding into more sports Under Armour success in sports clothing footwear gaining popularity, began in 2006 New Balance Nike Inc.’s SWOT Analysis. It is founded in 1966 and headquartered in Santa Ana California. 7. It was found by Bill Bowerman and Phil Knight in the year 1964. A yoga inspired athletic company, Lululemon Athletica makes athletic apparels for women and men. Converse. who wrote this article ? Reebok revenue is amounted for $2 billion in 2017. The company is also engaged in selling shoes for many outdoor and recreational uses. It’s a great help. This competition in the market results in the company to strive to have to best products and on the market. can i know the name? Nike is trying to increase the Non-US stores, as a result, the International Converse stores reach to 45. Your favorite Nikes might be made from forced labor. The SWOT analysis of Nike discusses the strengths, weaknesses, opportunities and threats of the leading footwear brand - Nike. Good read. Lululemon is a major competitor of Nike and Under Armour. Nike not only dominates almost half of the United States athletic apparel market, but it is also newly considered as the most valuable sports apparel brand in the world. Your information is safe and will never be shared. Currently, Mark Parker is the CEO of Nike. Adidas group consist three subsidiaries i.e. Innovative Products: Given Nike’s focus on R&D, as mentioned in the strengths section of this analysis, the company is typically on the forefront on product innovation. very grateful analysis. The women were left devastated and felt unsafe while working at Nike. Under Armour products are used by all levels of college and professional players as well as general consumers who love active lifestyle. See Nike's revenue, employees, and funding info on Owler, the … The competitive analysis of market share gives Nike a clear edge over Adidas. Nike Background. The biggest strength of Nike is that it is an extremely competitive organization with its approach of “Just Do It” slogan for its brand epitomizing its attitude towards business. Interestingly both the founders of Adidas and Puma were brother and founders of Dassler Brothers Shoes. It does not tie up cash in buildings and manufacturing workers. Nike’s steady competition in the 1980s was Reebok. Nike is known as a brand of sports shoes mainly. Nike is so large that many of the company’s suppliers depend on Nike to remain in business. Sexual Harassment: Former female employees also pointed out that sexual harassment and misconduct was very common in the company. Adidas brand valuation is $14.3 billion and revenue amounted for 21.218 billion (Euro). A management consultant and entrepreneur. Author: S.K Gupta First published: December 17, 2018 Last updated: Oct 06, 2020. It is a manufacturer of skateboard footwear and related apparels and accessories for women, men and children. Nike is headquartered in Beaverton, Oregon, USA. The women were left devastated and felt unsafe while working at Nike. Nike has grown exponentially in the last decade. Needless to say, the most important strengths are Nike’s powerful brand and low product cost. Xu, V. (2020, March 17). Adidas formerly known as Dassler Brother Shoes is the designer, manufacturer and marketer of shoes, clothing and accessories. Some even left their jobs. It designs and sells shoes for a variety of sports including baseball, golf, cheerleading, volleyball, tennis and football. Unique designs, great product quality, product and process innovation, and marketing have helped it achieve a strong competitive edge. Here we will conduct a detailed analysis of Nike competitors. The Threats Nike Faces Growing Competition from Strong Rivals Including H&M and Adidas. Other operations are in Argentina, Brazil, India, Italy, and Mexico. The company considers itself distinctive and authentic with is consumers. Larger companies tend to have major economies of scale over smaller companies in areas such as distribution and marketing. Fila is another sportswear manufacturing company and also a top competitor of Nike. Nike’s strengths are the primary drivers of the company’s growth and global leadership in the sports shoes, apparel and equipment market. From releasing new product lines to building new brands, to outsourcing, and establishing a global presence alone is an extraordinary achievement. Adidas brand valuation is $14.3 billion and revenue amounted for … In our case the major competitors of Nike are Adidas and Reebok. Nike is the single largest producer of athletic footwear and apparel, allowing them large cost advantages over competition. Nike has signed top athletes in the sports of Football, Basketball, Soccer, Baseball, Cycling, Golf, Tennis, Skateboarding, Boxing, Track and Field and Formula 1 Racing. One of Nike’s best PR decisions was signing Michael Jordan as a celebrity endorser in 1984. This Canadian company granted revenue of $2,648 million in 2018. The Tax Act offset it revenue growth as Nike net income of $1.9 billion as a result of 54% decrease as compared to previous FY 2017. Before discussing Nike competitors, let us know the company background and information. Puma is a German multinational brand that designs and manufactures variety of athletic and casual footwear, apparels and accessories. Balance has a number of strengths phil Knight in the world to continuously improving our own financial performance Nike! Female employees also pointed out that sexual Harassment and misconduct was very common in the FY the..., as a result, the most notable in the format – the SWOT analysis biggest pressures! 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