For this assignment, review our SWOT learning object, and think about a global c

Question

For this assignment, review our SWOT learning object, and think about a global company that you are knowledgeable about, or even your selected focus company. Select a company other than McDonalds, which is used as an example of a partial SWOT analysis in your chapter reading for this module.

Then, describe in detail (not just a bulleted list) at least two strengths, two weaknesses, two opportunities, and two threats that you have found in your research for this company. Keep in mind that strengths and weaknesses come from the internal environment, while opportunities and threats come from the external environment.

Explanation / Answer

Well I am considering Nike company to study SWOT analysis.

Strength:

1.Strong Brand image: The brand name of Nike itself is a fame for sportswear. It supplies footwear to 30% sportsperson all over the world.Their dominant market position is mainly due to their portfolio of strong brands such as NIKE, Converse, Jordan, and Hurley. Each of the brands specializes in different aspects, for example, the Jordan is more focused on the collection of athletic wear for basketball players.

2. Research and development : This has been one of the primary reasons why they’ve been able to maintain the top position in the business. They focus on technical innovation that brings more comfort, while also reducing injuries for athletes. They also make use of the services of experts in athletes such as the coaches, trainers, and athletes who they consult to produce better products.

Weakness

1.Dependence on independent contract manufacturers: NIKE largely depends on independent manufacturers outside of United States to supply it fabrics and also to produce most of its products. Hence they have limited control on the quality of their product. Some of the countries where they have contract manufacturers include China, Indonesia, and Vietnam. This means that any mistake on the part of the contract manufacturers affects them too

2. Unorganised sector as suppliers: Most of the suppliers in countries like Bangladesh, Pakistan are unorganised sector who can produce product not of the quality standard demanded.

Opportunity

1. Growing market: Recently, there has been tremendous growth in the total revenue generated from footwear. There was an increase of about 4.8% in total revenue between the years of 2010 and 2014, and there is also a forecast of an increase of about 19.9% between the years 2014 and 2019. Owing to the company’s strong brand portfolio, they are in a good position to take advantage of the growing need for footwear

2. Growing online sellers: There has been a preference to shop online by customers recently. This is evident in the statistics of the amount spent on online stores by citizens of the United States increasing every year and recently at a high rate. A similar trend has also been recorded in Europe in respect to this. With NIKE’s online stores www.nike.com, and www.converse.com, they can turn this in their favor thereby increasing their revenue.

Threats

1. Growing counterfeit products: With the increase in internet usage, there is no doubt that there will be a bad side to this. It has aided the full spread of counterfeit product all over the world. The number of IPR seizures made in the United States increases by about 25% within a year, which shows the rate at which counterfeit products are being pumped into the market.

2. Competition:NIKE is involved in one of the most competitive businesses in the United States as well as in the world. With a lot of strong competitors such as Adidas, PUMA, V.F Corporation, NIKE has a lot to do to maintain their position as the leader in the market.

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