Brand image. Nike has developed a very strong brand recognition through its “Swoosh” logo and slogan, “Just Do It.” Strong distribution chain. As a global company Nike has a distribution chain which enables it to sell its products worldwide. Nike owns no factories, which allows it to easily move manufacture to wherever it can produce high quality product at the lowest possible price. Nike is highly innovative, through strong research and development. Employs over 44,000 people worldwide.
Brand loyalty. Nike has been able to successfully produce high quality products which appeal to its multi-national consumers. Fortune 500 company.
Still largely reliant on profits from footwear products, this could leave Nike vulnerable. Nike has been criticised for contracting with factories in countries such as China, Vietnam, Indonesia and Mexico known as Nike sweatshops. Bad publicity through the press and such things as a BBC documentary exposing child labour and poor working conditions in a Cambodian factory used by Nike. Price sensitive, which calls for higher pricing points to push the perceived product value up. Nike hopes and relies on consumers who consider its products are of high quality so are therefore more likely to consistently pay a high price. Negative publicity associated with controversial, high profile sportsmen and women who they sponsor. Tiger Woods for example. Constant vocal point for negative criticism by the anti-globalisation groups.
Product development, keeping with trends and the latest innovative technology. Emerging markets. Nike could seek to take advantage of its global brand awareness in growing economies such as China. Become a fashion brand as well as an athletic one, which will appeal to a wider and diverse consumer base. New sponsorships of successful sports teams or individuals who are currently seen in the public eye as ‘heroes’ for example gold medal winning Olympians. Gain global...
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