Executive summary Nike is an incorporated company that design, manufactures the footwears shoes. CEO and president Philip Knight run Nike Inc. Mr. Knight and co- founded Blue-ribbon sports in 1962 and officially become Nike Inc. in 1978 After the data collected, it was analyzed in SWOT and PEST analyzed was conducted to reveal Nike’s strength, weakness, threats, opportunities. Based on finding, the following recommendation was made for Nike’s; improve quality, expand market on casual footwears shoes, use money more efficiently for the promotion and advertisement of their product, continue of cutting edge of design of athletes, online website need to be enhanced, increase international market effort. Moreover, the finding includes the competitors of Nike Inc. with its brand value and share market in the global market. Introduction Nike is an American multinational company which is engaged in designing, manufacturing of footwears. The company head office is near Beaverton, Oregon in the Portland metropolitan areas. It is one of the largest shoes suppliers in the world. The company first founded at January 25, 1964 as Blue ribbon sports by Bill Bowerman and Phil Knight and officially became Nike in May 30, 1971 (O'REILLY, 2014). Nike employees more than 62,600 people all over the world. Several football, tennis and basketball players are sponsored by Nike company. They also have a special line of shoes for the athletes. In 2012, brand alone was valued at $19 billion among sport business all over the world. Per the Forbes, Nike has world-wide revenue of $33 billion. Situation analysis Nike Inc. has been the world-wide leaders of the athletic shoes sales. They construct, design and market footwears equipment, clothing and accessories for athletes. In the global market, Nike competing with Adidas, reebok, puma and many others. Therefore, there is a high competition in the market. Because of the competition demands will be flatten. In this case, price pressure will be bound the profitability of the company. However, regardless of the competition Nike is still in the current leader in footwears sales in most sports. Based on the research, Nike leads with a global market of 31% whereas Adidas has 24%, puma 7% and reebok 6%. Nike offers their product world-wide. Nike is a very competitive organization. In another hand, Nike is facing the problem like most of the product has been going out of style. External Micro economics trend The business overview of Nike is bright. In most of the region, for both athletic footwear and apparel were more demanded. The drivers of good result include basketball, men and women apparel. Based on research, we find that North America and China has more and strong demand. However, sometimes due to unfavorable exchange rates put the pressure result in recent months. And this system continues throughout the year. Nike sells its products through retail accounts, Nike-owned retail stores, internet websites, and independent distributors and licensees throughout the world. Most of Nike’s footwear and apparel products are produced outside the United States, while equipment goods, including bags, socks, sport balls, eyewear, timepieces, bats, and golf clubs, are produced both domestically and abroad. Nike selling price for footwears were increased by 5% worldwide and 4% in north America. Basically, Nike is more targeting in women customers. In facts, women’s training segments is growing faster than men’s training segments. Young athletes are also big part of its sales strategies. Nike believes young athletes will be Nike’s target in future. Brand Jordan, named after basketball superstar Michael Jordan, is also the targeted for athlete. Despite all this, Nike growth are partly based on external condition. To analysis all this PEST will outlined the external condition of the company; Macro-environment factors Issues Opportunities or threats Information sources Political Expanding free trade policies Opportunities http://panmore.com/nike-inc-pestel-pestle-analysis-recommendations Economics Rapid growth of developing market Opportunities http://panmore.com/nike-inc-pestel-pestle-analysis-recommendations Social Increasing emphasis on product safety Opportunities http://panmore.com/nike-inc-pestel-pestle-analysis-recommendations Technological Increasing R&D investment among firms Threats http://panmore.com/nike-inc-pestel-pestle-analysis-recommendations Competitors analysis Nike’s is the leading sports footwears brand in the world. Adidas, Reebok and Puma are the main competitors of Nike. Nike has world-wide revenue of $33 billion and brand value of $27 billion. They are the higher seller of footwear all over the world. They also have a huge distribution network in the world form which they sell a combination of products. Moreover, Nike has brilliant strategic tie ups with footballs, crickets and others sports teams. Comparing Adidas, rebook, puma it has collected more revenue as well as brand value. Adidas have $16 billion revenue with $7 billion brand value. Moreover, Rebook have collected $3 billion of revenue along with $1 billion of brand value. And another competitor’s puma has collected $3 billion of revenue . Nike are more focusing on youngster. Because they believe they are the future athlete for the company. Despite that, they are making more product for women segment. In the 21st century, competing with another brand is not so easy. Company should run per the wants, demands of the environment. They should provide the good quality product in a reasonable price to each of the customers. Nike sells its product to retailer shop who stock other brands which is the weakness for the business. So, to remain stable Nike’s is following the same tradition in the global market. Competitors like Adidas, puma, reebok are also the world largest footwears selling company. Expanding free trade policies are the opportunities for the company. Phil Knight (founder and CEO) is often quoted as saying that “Business is war without bullets”. It means business is a continuous war by others means. Since the goal of your business is to survive and prosper, you must capture it. Falling international brand recognition, fluctuation in strong economics condition in foreign currency and economics recession are the weakness for the company. Internal analysis Nike Inc. is the largest seller of athletes, apparel and footwear worldwide. They are selling their product to around 18000 retailers world-wide. They create design for men, women and children. Women shoes, running, basketball, cross-training are the top selling product of the company. Not only for indoor, they have designed and selling their product for outdoor activities like baseball, volleyball, golf etc. Nike’s innovates with apple as well. Customer can choose design from the catalogue per their size and color. Research, volume manufacturing, marketing capabilities, distinctive marketing are the key factor to get success in the global market. President & CEO Mark Parker confirmed that NIKE continues to “to work with global influencers, including the United Nations Global Compact, in support of global principles in the areas of human rights, labor, the environment and anti-corruption. To, meet the aim and objectives of the company Nike’s are manufacturing superior goods, maintaining the integrity of the global operation. They are moving easily because for many less developed countries which is facing difficulties economically and hard to operates. Their main mission is to improve the quality of product. Evaluation of the company internal capabilities and core competencies Nike is an industry leader in developing innovative new products. They first start with air product line called Nike air. Moreover, it has now moved to the latest release, the Nike Shox line. After spending 16 years in research, they find the possibilities of attracting spring to the bottom of an athlete’s foot. Nike has excellent mass- merchandising, unique advertisement and promotion of their shoes in the market. Nike’s being a sport brand, it attracts sports as well as non-sports population. Due to their high-quality product costumer are well satisfy. The key success of this company is because it maintains a good relation with customers. Different varieties of product goods are shipped as soon as they offered online and they are ready to sale buffer for safety stock. The capability of Nike’s manufacturing of footwear and apparel is about 98% outside the US: Thailand, china, Vietnam. Nike Inc. generates $0.10 profit from every dollar of assets. Its current ratio is 1.7 which is lower than industry standard of 2.2. However, their quick ratio is 9.1 but industry standard is 9. And Nike Inc. posted that they jump 20% of profit quarterly in a difficult retail environment. It means they are doing good job in liquidating their inventory assets. Nike’s have best cost provider competitive strategy in which they outsource and most of their product are manufactured outside US. Nike differential its product for athletics in three ways: Firstly, they manufacture three different products for men, women and children. Secondly, they differentiate it product by offering a variety of accessories and apparels like bags, skate and gloves. Lastly, they produce other different product like school supplies, electronic media device and timepieces because they have got licensed to produce. Conclusion After thoroughly analyzing Nike organization we come to know its business practice, and position in the market. Currently, Nike is more focusing towards sport footwears line. In-order to increase more sale they also need to put more effort in casual footwears. One of the most important things they are connecting through customer online where costumer can design the product they want per the color they want. We also recommend that Nike should increase their more effort in maximizing their international product sales. . Referencing www.guruforce.com www.nikebuz.com www.ukessay.com Pictures retrieved from: https://www.google.com.au/search?q=nike+evolution&rlz=1C1CHFX_enNP665NP665&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiriaen7sjTAhWDFJQKHfolAzAQ_AUICigB&biw=1366&bih=613#tbm=isch&q=nike+share+market&imgrc=kXSQGh8hWHRHOM: