Business Strategy and SWOT Analysis of Nike

Business Stpacegy and SWOT Analysis of NikeExecutive Summary.Nike is a One of the leading caller-up in the world which generally activated in design, develop workforcet and global mart with high lumber of equipment, footgear and accessory mathematical point of intersections. Nike is matchless the biggest seller of athletic foot founder and app arl in the world. The Nike is got the best get in the grocery store to go with the approach of athletic grocery store. The attach to is excavate into any niche in relates with sports market as well as technical breakthroughs, retailing, management of sports and sports progresss. Nike is right away going into the particular market of the Pakistan. This is the best time for Nike to introduce its womens footwear, app arl and equipment for the womens of Pakistan because the womens argon getting freedom in Pakistan. Pakistan is already matchless of the biggest supplier for the Nikes soccer. History of Nikes.In 1962, two citizenry fr om the University of Oregon created a undersized caller-out with the mention of Blue Ribbon.In the 1972, the company transformed his severalise and became in to the market with the notice of Nike. In the current home, Nike owns conveniences in Oregon, Tennessee, Netherlands and the North Carolina. It also working in leased services for 15 Nike-towns, more than 80 Nike Factory Stores, 2 NIKE goddess boutiques and more than 100 sales and administrative offices. There be just astir(predicate) 23,000 multitude engaged by the Nike, wide-reaching. The companys first year sales did non cross $ 10,000 however, its present revenues surpass well over$10billion.Nike inquiry lab is frequently pursuing modernization in the field of sports. The research work in the lab is circulated into three categories including biomechanics, physiology and sensory/perceptual attributes. The researches main purpose is to focuses on differentiating factors same geography, sexual category, age and sk ill level.Products of Nike rump largely be scattered into two categories as footwear and equipment. The footwear has been sub characterized into various product lines including sports culture, running, basketball and soccer. Nike is doing their barter in a very(prenominal) node slanting market. This means that the requirement for the Nikes goods seriously depends on the attractiveness of the different fitness actions. The company adjusts evermore their product mixing in direct to meet demands. It manages its business cautiously, leading in hostile merchandise styles and pioneering products.Nike Mission statement.our mission is to bring inspiration and and innovation to every(prenominal) athlete in the worldif u have body, u argon an athlete(My strategic plan,2008)Nike as Innovative Company.According to (S. Parkash Sethi,2003) Nike is one of the passing calculateprunual and innovative company that is running on more than one ways it took all the relevancy and useful in al l purposes its aims to one type fits all Nike has the high tech and high quality footwear and athletic sports equipment for all seasons.Business Plan.Pakistan is the most passionate estate in the world in harm of sports. It is the time for Nike to introduce his footwear and apparel for womens because womens of the Pakistan are now participating shoulder to shoulder with men in all fields of life. Most important challenges confronted women in Pakistan in the start of 1990s rousingly practical literacy, attainment access to service opportunities at all levels in theeconomic, promoting revolutionize in the sensitivity of womens roles and perspective, andgetting hold of a public vote both inside and outside of the political process. Kiran khan and Robab Naz are cogitateing role module for Pakistani womens. After the getting ranking in international ranking now Pakistani womens cricket is also very popular in the Pakistan.SWOT summary.According to (Bohim,2008) Examining a company in ternal and external environmental is essential in the process of strategic planning the swot analysis which includes the analysis strength , weakness, opportunities and threats investigates both internal and external as well as positive and negatively charged factors of a corporation on the basis of swot analysis a marketing strategy discount be deverlped using corporate strengths as well as avoiding corporate weaknesses to enable a company to benefits from future opportunities with regards of future risk.StrengthsWeaknessesBrand NameDependent on footwear sale.Innovation.Dont have Nikes own retailers. celebrated Spokespersons.Doesnt able to capture the local market like international market.Gradually growthStrong look and development department.OpportunitiesThreatsJumped into recycling.Currency fluctuationSunglasses and jewelleryBy the competitors alternative taintsMaintaing e-co friendly envirementCompanies financial statusMarket Segmentation.Market Segmentation is the process of identifying different sort out of users with in a market who could maybe be targeted with a pick out products or marketing programs.(Michael j croft n.d )Market Size.Pakistan with world of over cxl million has a demand of 220 million pairs of shoes annually.(Daily times, 2003)Pakistan have the population of 140 million and the Womens in that are 47.5% of the total.Location.Nikes targeted location is the Pakistani market particularly womens markets so they need to design the product harmonise to the inescapably and of the Pakistani womens.Gender.Nikes targeted gender are the womens in the Pakistan that are the 47.5% of the total population that is the niche market for the Nikes and the Pakistani womens are not very much use to of exercise so they need to be very focused.Age Group.Nikes targeted guests are from all the group fellows. The products must be varied from every group the mostly used customers are the teenagers between 13 to 25.Religion.In Pakistan the majority o f the Muslims and the other religions like Christians and Hindus are also have the customers in Pakistan. So the company call for to be care full the norms and set of the religion.Buying Power.The economy of the Pakistan is not so strong so the company needs to set their prices at that level where majority of people are willing to accept that product.Education.The education level is not full up to standard but now a sidereal days Pakistan sloly and gradually going towards the bitterness and people are now able to under to understand the importance of health and safety.Cultural Influence and Business. subtlety is the part of human action that is socially as opposed to gentacally transmitted. It comprises the idea through which we perceive and take care the world, symbols we use to communicate thsese idieas, and institution which enable individuals to become socialised and satisfy their needs(David Needle 1994 )The culture of the Pakistan is very rich and the company needs to loo k at the culture of Pakistan where womens are not mostly allowed to wear tide dress and so the company needs to understand the pros and norms of the particular culture and design the product according to the needs of that culture.PEST Analysis.http//www.learnmarketing.net/pestmarketing.jpg(Source, website)According to (Management Bluffers 2000) Now a days environmental is changing day by day and its reached there where it wasnt before constantly changing the environmental make mangers job is so tough now a days. Thats why the PEST analysis is useful and simple tool for the passenger car where they can track the environmental changes dissembles on the business it includes the social, Political , Economical ,and technological. It is difficult for others to resist compare with (a) an inept user and (b) vermin to be eliminated.Political.Countries have both market and non-market environment. The market environment involves the fundamental interaction between households( or individuals ) and companies to allocate resources, free from governmental ownership or control. The non-market government agencies and government have business ).(Johan D,Daniel , lee 1998)According to the current political situation of the Pakistan is trying to stable the economy of the country and if Nikes introduce new products into the market the market condition will be more better because the Nikes has the brand name in the footwear industry.Economical.Economics factors are affect the purchasing power of potential customer and firms cost of capital(John William, Curtis,2006)Nikes needs to give the economic factor as a main role in Pakistan. During the year of 2008 Pak rupee entertain is decreased and Pakistan is facing the Bank crisis as well so company needs to have a very strong capital to face these situation. The company needs to consider the following steps.Current economic system in the Pakistan.Exchange rate and stability.Business cycle.Economic rate of growthRate of unemployme ntRate of Inflation.Social Factor.Social factors includes the demography of the people. How the people behave to towards the products and What are the norms and value of respective countries. In Pakistan womens are not allowed to go out for exercise so company needs to give the awareness and provide the facilities to the womens of Pakistan.Technological Factor.According to blab bulb is needs to be consider untried purchasing mechanismNew production technologyNew distribution mechanismNew method of workingOpportunities for new products to sellThe Pakistan is developing country so the trend of online shopping is not so much popular in Pakistan still people go to the market for shopping so and distribution method is also same like people would like to by through suppliers chain.Competitors.No firm can exists in vacuum(Lay young Man,1998)It is really very important for the company to know who are their potential competitors and what the strategies they are using to capture the market as the CEO Philip kotler says a quite that business is a war without bullets. Nikes main competitors are in the Pakistan market areAddidasPumaReebokAnd local Firmshttp//www.psfk.com/wp-content/uploads/HLIC/1ac79b884a0c8da1796d12e024fce542.jpgAlthough Nike is one of the biggest company in the world in soccer and footwear with a high brand name but its rival company Addidas giving really very tough time in mainland China addidas take over china with 60% shares and Nikes is 2% behind the addidas but in Pakistan culture people are mostly brand oriented and Nike is already working in soccer industry in Pakistan so Nike has competitive advantage that Nike is contributing in the economy of the Pakistan.To introduce the new product into the market the company needs to analyse the the porter five forces as well to compete with rivals the company needs to understand and make a good strategy for these forces.Marketing Mix . The set of tools that management can use to influence sales(Philip Kotle r)Every targeted market needs to be a exceptional marketing mix to convince the needs of the beleaguered consumer to achieve the firms goal the strategy must be followed by the each of the every single 4p and Because these four ps are the basics of the strategies that to achieve the firms goals. Nike also must follows this strategy to enter into the Market of Pakistan.Product.Nikes Product in respect of Pakistan market is the womens footwear and apparel Nikes needs to design the product as the demand of the market in Pakistan and needs to keep in mind the cultural barriers that are faced by the womens of Pakistan.Price.According to(Stafanie Hoffmen 2005) Price is a potential marketing mix because it has the direct impact on the consumer , economy and the company as well. The price is major indicator about the quality of the product. collectable to depressed economy and like other developing countries people of Pakistan buying power is not so strong 98% people are living average lev el life so Nikes needs to set that price for the products that are acceptable by the majority of the population . keister or Distribution.Place or distribution strategies are concern with making product available when and where customer want them(Charlas W lamb,2009 )In Pakistan the areas of capturing where the more output the company get is the main cities of Pakistan like Karachi, Lahore, Islamabad. These are the main markets for the Nikes to be captured. And needs to be the access able for the customers.Promotion.Promotion or Marketing communication is the component of marketing mix used to inform and persuade the targeted audience to buy or use and organization products promotion is the element in the marketing mix that communicates the key message to targeted audience(Richard barker, Gorge,nd )In Pakistan Nikes has the best opportunity for promotion to use the Pakistani womens heros like Robab and Kiran khan and the Pakistani womens cricket team players to promote and products and the brand name in the country. The best method of advertising and promotion in Pakistan is electronic media.Recommendations.In current situation Pakistan market is niche for women footwear and apparel. According to the research. It is recommended that Nikes needs a very strong and tactical strategy for Pakistan because in Pakistan womens are getting rights but still that is a conservative country. Pakistan is an Islamic state where womens are not allowed to wear tides and bikinis and also in Pakistan only in big cities there are separate exercise clubs for the womens so Nikes also needs to develop health clubs and take a part in spreading the awareness of health issues. Pakistan market is good market but more than 80% population is under the poverty level so price needs to consider most in this.