Nike: Competitive Analysis

Background

Nike, Inc. is the number one manufacturer of footwear and sports apparel in the world, and is one of the most recognized global brands today. It is a major publicly traded corporation headquartered in Beaverton, Oregon. Nike sells a variety of products, including shoes and apparel for nearly any sporting activity, as well as sporting equipment, casual attire, and accessories. Nike sells products under Nike, Inc., Nike Golf, Nike+, Nike Pro, Nike SB, Air Jordan, and Team Starter, with subsidiaries Cole Haan, Umbro, Converse, and Hurley International. The Nike “Swoosh” logo is one of the most recognizable logos in the world, and the Nike brand equity is well over $10 billion to date.

Nike continues to innovate and expand even during poor global economic conditions. It has a presence in over 160 countries worldwide, with products sold through a variety of channels, including more than 25,000 retail accounts in the United States and more than 27,000 retail accounts internationally. In 2009, Nike restructured its brand to include six geographies, North America, Western Europe, Eastern/Central Europe, Greater China, Japan, and Emerging Markets, to follow with its immense expansion. This report will uncover strengths and weaknesses of the Nike brand, as well as threats and opportunities ahead. An analysis of the Nike brand, as it pertains to the global athletic footwear market, will be discussed in order to highlight Nike’s approach to marketing, distribution, and competition.

Situation Analysis

The athletic footwear market includes all producers of non-cleated, rubber, and plastic footwear designed for athletic use, and consists of a collection of smaller, segmented, yet often overlapping markets, defined by both the price and purpose of the shoe . According to the U.S. Athletic Retail Market Report, 2009 Edition, Nike has a 31% share of the global athletic footwear