Swot Analysis Of Nike's

Sports apparel major and footwear giant NIKE’S (NYSE: NKE) performance hasen’t been up to the

mark this year as for the trade trade ‘pundits’ are concerned. The depreciation in the financial results

of the of the company is reflected in the fact that it’s shares have dropped to the extent of almost 8% as

far as the third quarter results are concerned. However with every financial decline, it creates a new

financial horizon for the company as well as it creates a new vista for the stock market investors. Thus,

the company performed quite well with the increase in demand of its athletic goods globally. With

NIKE’S innovation mechanism in full flow and sitting on a slew of innovative products, its revenue

increased

NIKE’S attachment with major sporting events, much like the

FIFA World Cup has given a good boost to the business and further consolidated its global presence. It

has also encouraged investors to pick up its shares on the dip and the company has made the investors

believe that its innovative products/ extensive advertisement, marketing campaigns during major

sporting events will be long-term growth drivers, making its shares a solid long-term buy.

However, China (the factory to the world) still remains a major concern for the

company NIKE’S American rival, Under Armour increased its retail presence in China by opening eight

new stores and a new Under Armour Experience store in Shanghai. Under Armour already has been

operating an e-commerce site in China which has helped it to grab a greater slice of the ever so

developed Chinese market. Sporting major Adidas has been breathing down NIKE’S neck by opening

Home Court, an unique retail format which offers enhanced consumer experience. Adidas has kicked off

this new concept with the first store in Beijing in a bid to compound NIKE’S problems in the

ARE ITS GLOBAL FACE). NIKE’S effective channels of distribution has also enjoyed a solid bump in sales of

its soccer equipment because of the leverage it enjoys due to its official sponsorship deal with FIFA and

the German Football Federation . ADIDAS also enjoys an edge over NIKE heading into the FIFA World

Cup 2018 in Russia. On the contrary, NIKE has better fundaments and profit maximising ratio compared

to ADIDAS. NIKE has $ 5.1 billion in cash and its debt stands at $ 1.37 billion while ADIDAS has a weaker

cash position at $ 1.83 billion and its debt is greater at almost $ 2 billion. Thus, ADIDAS has got a greater

fiscal deficit when compared to its rival NIKE. Moreover, NIKE also needs to keep an eye on the

SWOT ANALYSIS

whooping 34% increase in the advertising budget of UNDER ARMOUR, which has achieving a 20%- plus

growth in revenue for 17 consecutive quarters. However, its financial standings and resources falls way

short of NIKE with just $ 300 million working capital. NIKE’S management has been decisive enough