SWOT Analysis is a recognized business management methodology used by brands like Nike to gauge their performance and compare them to their industry competitors. Nike is one of the most-recognized companies in the apparel and footwear space.
Nike product category
Sports Equipment, Apparel and Accessories
Nike shoes are worn by professional athletes across the globe.
Nike Target Market
Men, women, and children from urban areas from upper-middle- and upper-class families.
Even though Nike products are expensive, their high quality and comfort make it worth it.
Nike SWOT Analysis
The following SWOT Analysis of Nike highlights its strengths:
- With a global presence, Nike is the most influential brand for sports shoes and apparel in the world.
- In fortune’s “100 best companies to work for” list, it has been recognized numerous times.
- Nike ranks among the 50 most innovative companies worldwide.
- Nike stands out from the rest by creating innovative products globally recognized.
- Its brand equity has increased because of establishing effective business relationships globally.
- There have been several other products launched in collaboration with other companies, including running watches, music players, and a fitness band.
- As one of the leading top brands with excellent innovative advertising and branding, Nike stands out from the competition.
- In addition to being available in multi-brand retail outlets, exclusive shops are available everywhere.
- Several climate-friendly companies place it in the top 10 among companies.
- A key part of Nike’s success is its association with world-class athletes, teams, and events.
- Various sports teams and events have been sponsored through Nike.
- In addition to celebrities from the various sports fields, Nike has brand ambassadors who represent us.
Nike’s SWOT Analysis identifies the following weaknesses:
- Employees of Nike faced accusations of poor working conditions, a violation of Labor and Wage laws, etc.
- Market share growth will be constrained by constant competition for Nike.
Below is a SWOT analysis of Nike’s Opportunities:
- Nike focusing on expanding its product line by concentrating on sportswear, sunglasses, etc.
- Nike can open their stores in small towns as well, in small cities in emerging economies.
- Open sports academies worldwide to foster talent and enhance brand awareness.
- To reach out to as many customers as possible, Nike can leverage the online opportunities available to it.
Nike faces the following threats in its SWOT Analysis:
- Competition from other brands is so fierce on the footwear market.
- Because of its global status, currency fluctuations can influence Nike’s business.
- Nike often faces fake replicas and imitations because of fake imitations.
- Adaptation of new innovations and techniques by other brands
- During the pandemic, sports and outdoor activities were affected, resulting in a decline in sales of sports apparel and footwear.
Young men and women who are passionate about fitness and sports.
Upper-middle-class and upper-class population in urban areas
Adidas is a symbol of sports passion.
Adidas SWOT Analysis
Adidas’ SWOT analysis revealed the following strengths:
- Adidas brand has been around since 1924 and has a distinguished heritage.
- Olympic games and major athletes and teams are among the events Adidas sponsors.
- International recognition and a worldwide presence are part of the company’s reputation.
- Adidas product portfolio consists of a wide range of products from sports shoes, equipment, clothing, and accessories.
- For many years, Adidas had a strong brand retention in the minds of consumers because of its strong and innovative marketing.
- There are over 45,000 employees at this company.
- Good advertising for Adidas products through television commercials, online ads, print advertisements, billboards, etc.
- Several sports stars act as brand ambassadors for the brand.
Adidas SWOT analysis identifies the following weaknesses:
- Adidas products are sometimes costly because of his innovative production methods and technology.
- A strong competitor and similar big brands mean that consumers are prone to switching brands.
A SWOT analysis of Adidas’ Opportunities is presented below.
- Adidas creates over 60 new shoe designs each year to stay on top of the competition.
- In the future, the company can expand to more trendy cuts and designs.
- Adidas could benefit from a tie-in with emerging sports teams/clubs/players in countries other than the U.S.
- Establishing sponsored sports academies is a great way to build brand loyalty.
- Specifically designed for college students, young professionals, Adidas’ budget range should be a priority.
Adidas’s SWOT Analysis identifies the following threats:
- In addition, there are numerous brands and styles that are available from competitors.
- Threat of competition from other sports equipment and accessories manufacturers that produce sports products at a lesser cost.
- Adidas brand image is compromised by pirated/fake replicas.
- There will be more competition for Adidas if local brands are available in individual countries.
Other Direct Competitors of Nike and Adidas
Below are the top 13 major sports industry competitors:
- New Balance
- Liberty Shoes
- Under Armour