NIKE Sport Camps: A SWOT and PESTEL Analysis

Introduction to case organisation
Founded in 1964, NIKE are the world’s largest supplier of athletic shoes and apparel. The
multinational corporation focuses on the design, development, manufacturing, and
worldwide marketing and sales of footwear, apparel, equipment, accessories, and services.
NIKE employee over 75,000 employees to date and are the world’s most valuable brand
among sports business with partners such as, NBA, Premier League, NFL amongst many
others (Kornum, Gyrd-Jones, Al Zagir and Brandis, 2017).
NIKE’s mission is to “Bring inspiration and innovation to every athlete in the world.*
If you have a body, you are an athlete.” ‘The mission is what drives us to do everything
possible to expand human potential (Newman and Brucks, 2018). We do that by creating
ground breaking sport innovations, by making our products more sustainably, by building a
creative and diverse global team and by making a positive impact in communities where we
live and work’ (Putbrese, 2016).
The latest big idea at NIKE is to introduce sports camps and increase the physical activity of
young people in the United Kingdom. We want to inspire young people to pursue a healthy
lifestyle through aiming to become an athlete through various sport inspired camps. The
introduction of these camps aims to provide people with opportunities to be more active
and provide access to further education on living a healthier and more active lifestyle
(Rodhain and Aurier, 2016).
With the introduction of NIKE Sport Camps, we have identified two main goals, one short
term and one long term we wish to achieve from the programme;
1. To integrate the camp into 200 schools or colleges across the UK by 2020.
We want this to be a nationwide programme in the United Kingdom and allow schools
access to the programme. This will help us reach our target market
2. To create at least 100 semi-professional (or higher) athletes by 2023.
The target is achievable by 2023 as it allows time for students of the programme learn about
sport on and off the ‘pitch/court’ and give them time to become their own athlete in a sport
of their choice.

Internal and External Analysis
Conducting a SWOT and PESTEL analysis of NIKE has helped identify the areas we need to
push in order to meet our objectives. Below we have identified the key factors and elements
we believe are crucial to the success of this venture. All findings in our SWOT and PESTEL
analysis can be found in Appendix 1.
Nike are one of the world’s most renown global brands with the swoosh logo being
recognisable in almost every city across the globe. Having a strong research and
development team is one of NIKE’s biggest key’s to success in the footwear and apparel
market in recent years. The company has it’s own specialists in many sport related fields
such as physiology and biomechanics which help gain a competitive edge over rivals.
Having a strong global outreach is crucial for the success of this upcoming project, breaking
into a new market in order to achieve our vision will be helped massively by having an
outreach further than our target audience. One huge benefit identified from this would be
cost efficient marketing, with so many people talking about NIKE each an every day on social
media, a competitive advantage will be gained instantly.
One key downside is that NIKE are known to charge a premium for their products and
services and is higher than most of the closer competitors (Santos and Laczniak, 2015). High
prices are a big factor in driving customers away. The introduction into a new field for NIKE
will need a price point to suit the company and the needs for implementing into schools and
communities.
The United Kingdom is a place where sport and fitness are an ever-growing market, the
passion for sport in the country opens new opportunities every day with consumers wanting
to watch live sport, play sport, buy team equipment. All of these factors can aid in the
success of NIKE Sport Camps with the many opportunities available in the UK.
Economic conditions are a huge threat to the new venture, with NIKE offering premium
products and services they are not always affordable and such sport camps must be
affordable for all users involved, whether that be the schools or the users of the camps
(Brohi, Prithiani, Abbas, Bhutto and Chawla, 2016).
Intense competition in the industry. Similar to brand wars, there will also be competitors in
this new market NIKE are venturing into with the Sport Camps. For example, some local
communities offer free football training for children meaning NIKE will need something
different and exciting to drive consumers to the camps.
In terms of PESTEL Analysis, the political conditions in UK are ideal to support NIKE, since
due to Brexit, the government has encouraged companies to invest in the country. The
Economic conditions, might not be so ideal, since the UK economy has gone due, again due
to Brexit. There are a lot of sports played in the UK, which makes the social conditions ideal
for NIKE, and should not present any issues. There might be however, some issues that
arise, and resentment towards a foreign company in the minds of the people that can prove
a challenge. There are no legislatures as such that are a hindrance to the company, which

makes the legal conditions ideal. There are no environmental or technological issues for
NIKE setting up in the camps in the UK.
The recruits
In order to deliver our aim to the best possible standard, we are recruiting a team of ten
top specialists. These specialists have all been decided on and will include;
 1x Project Manager
 2x Marketing & IT Specalist
 1x Finance Advisor
 3x Personal Trainers
 1x Health and Safety Officer
 1x Resource Manager
 1x Human Resource Specialist
Costs – Direct and Indirect
There are direct and indirect costs that are associated with the training programme. The
venue is within the headquarters and office.
Direct Cost
Item Cost (in pounds)
Venue 0
Catering 1000
Transport 3000
Accommodation 5000
Materials 200
Indirect Costs
Item Cost (in pounds)
Overtime payment to employees 1000
Productivity 200
The training plan
Our five day training plan has been designed to give our specialists knowledge in the
competitive market involved with our vision. It is important for recruits to be able to identify
development needs and learning opportunities (Alhejji, Garavan, Carbery, O'Brien and
McGuire, 2016). The training programme will be for 5 days, and will be in the NIKE
headquarters in London, so as to increase the sense of belonging in the recruits. Most