SWOT analysis of Nike, Inc
- Nike, Inc is listed in NYSE and positioned as a US headquartered worldwide sportswear trader and supplier that:
- Contracts with about 700 shops worldwide, runs offices in 45 countries, and manages factories in China, Indonesia, Taiwan, Thailand, India, Vietnam, Philippines, Pakistan, and Malaysia.
- Belongs to Fortune 500 companies which 2007 total revenue exceeded 16 b. USD
- Employs more than 30.000 people worldwide;
- Owns strong marketing strategy under Nike brand that assumes the involvement of world top-class athletes and sportsmen in Nike’s ‘Just do it’ advertising campaigns;
- Operates a chain of Niketown retail stores;
- Leads its international business operations through acquisitions and re-branding: Converse Inc, 2003; Starter athletic clothing, 2004; Umbro, 2008;
- Nike’s premium brand is used to manufacture and promote a wide variety of products for all types of sport-oriented and leisure activities;
- Manages the US premier training program SPARQ Training Program;
- Applies lunarlite foam and flywire materials to reduce the weight of manufactured shoes
- Unwilling to disclose information concerning its partnering companies, which caused harsh criticism from CorpWatch and other companies;
- Contracts factories in Vietnam, China, Mexico, Indonesia;
- Violated overtime laws minimum wage rates and in Vietnam, 1996
- Provides poor working conditions, and tends to exploit cheap workforce overseas, especially in free trade zones where;
- Some of Nike’s ads are associated with US female empowerment;
- In 1990s, Nike was reported to apply child labour in Pakistan and Cambodia to produce soccer balls;
- Contracts overseas companies that apply non-transparent and inadequate labour regulations, involving child labour.
- Positioned as a permanent subject of criticism by anti-globalization groups;
- Forced Labour applications in partnering apparel factories in Malaysia, involving forced Labour and poor living conditions.
- Producing sportswear products from manufacturing waste;
- Extension of eco-friendly projects like ‘Reuse-A-Shoe Program’ aimed at further recycling;
- Emphasis on corporate marketing strategy through the promotion of corporate brand and sponsorship agreements;
- Textile industry adversely affects the environment, and therefore the company is permanently striving to maintain its eco-friendly reputation;
- Financial crisis may lead to job shortages in a number of Nike’s worldwide subsidiaries;
- The company has experienced negative publicity feedbacks due to its extensive advertising in mass media (Kasky v. Nike; Minor Threat at; Beatles song; Chinese-themed at, Horror ad etc).
Source: ChinaStones - http://china-stones.info/guides/swot-analyses/nike-swot-analysis.php