The political unrest in Thailand in the last few years was a major concern for the management of Nike, Inc. Target potential customers and market Nike typically targets athletes, men and women generally from the ages 15-30. Consequently, more and more people are joining fitness clubs. A weak Euro and an Asian recession could mean weak sales for Nike. As the preferences of the customers tend to change every year, product expansion would help to maintain their hold on market share. Insights into Adidas's business diversification, extracting its key business segments and highlighting its significant competitors 8. Prospects for growth are stronger, as sports participation for youths and health and fitness trends for adults and is going global.
Social Factors Fitness, in these days is a very important concern of people. The student should prepare a clear and detailed description of an organization company of their choice, or one there are familiar with. It is also a fine use of the technology. Here are some affect Nike. It is the Germany based firm.
All global brands that are dealing in international trade facing foreign exchange currency fluctuations. It had a significant effect on the production as well as the revenue of the company. Nike has a strong financial report over the years. Introduction Strategy is a high level plan in which to achieve one or more goals under conditions of uncertainty. What the organization does b. The following are the major opportunities in the case of Nike Inc.
Some of the countries also impose various tariffs to protect their indigenous brands for which Nike, Inc. Various allegations from Vietnam, Indonesia and Thailand had compelled them to devise a new commitment to maintain the standards at the factories. However, the business environment differs from nation to nation and from market to market. The first Blue Ribbon shoe was a soccer show which was introduced under the Nike brand name. Nike Introduction Targeting the market is what every company faces in order to increase sales and in order to keep their company in business. Strong Presence in European Market 1. E-commerce to be a major growth driver 1.
They are framing policies that favor the environment friendly brands and businesses. Nike's growth is not just affected by the local economy but also in the international economy. The overall results in the sales generated by Nike in athletic footwear, however, remained stable. What are the environmental considerations? In the passage, we know that many foreign countries put high tariff or customer tax on Australia, which may somehow influences the imported components and exported cars and makes it impossible to gain approval for foreign-made cars. E is for Environmental Environmental issues are of ever-growing importance. This is an advantage to Nike, as they do not need to be influenced by exchange rates when exporting goods from one country to the other. The main changes that had happened are from the accounting practices of the company.
For example a Korean subcontractor hired by Nike was hiring children as young as 13 years old, paying them 10 cents an hour and working them 17 hours a day. In the last few years, the market of online shopping has expanded which has given Nike, Inc. It is a renowned soft drink production company in the world. Constant Innovation and New Products 3. Further, the Nike brand is synonymous with quality and resilience as well as endurance and fitness, which makes it the brand of choice for athletes and anyone who wishes to run.
It referred to the Greek goddess of victory and Swoosh trademark. Rapid technological obsolescence also threatens Nike by putting pressure on the company to increase its product development efforts. Implementation of technology solutions for regulatory compliance 1. Nike remained the world most valuable brand of 2018 in sports, apparel equipment industry. Adidas can capitalize on these increasing trends and offer customized products for the same. Nike can take benefits of this influencing social dynamic by introducing its fine quality athletic and other sports products apparel and equipment both.
Price sensitivity of the retail market: The market in retail is highly price sensitive. Be sure to leave them in a comment down below. Nike was established in 1972 by Phil Knight a former collegiate track star whom enthusiasm has lead the company to become the leading provider of athletic shoes and apparel in the world. An open minded government and stable political environment offers better opportunities of business and growth for the brands like Nike. The analysis examines the impact of each of these factors and their interplay with each other on the business.