Nike Shoes: SWOT Analysis, Competitor Analysis, and Change Management Plan

This article provides a detailed analysis of Nike Shoes, including its vision, mission, and values. It also includes a SWOT analysis of the company, competitor analysis, change management plan, and communication plan. The article concludes with a cost-benefit analysis of the proposed changes.

Lead and Manage Organisational change
Assessment 1
Submitted by:
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Introduction:
The project deals with the organization of Nike shoes in Australia. Nike shoes
are reputed brand of manufacturing highly durable and quality shoes in the
world and they are reputed as manufacturing high quality shoes in the world.
Organisations vision:
The vision of the Nike Organization is to manufacture the best quality shoes in the
world and to make the name of Nike organization resonate with excellence and
innovation. Nike is a gloabally recognized brand due to their emphasis on excellence
and in manufacturting the best quality products for the clients and the customers.
Organisations mission:
The mission of Nike shoes states that they are driven by everything which is possible
in order to expand the human potential. In order to do this, they create
groundbreaking innovation in sports and promote their products by enabling creative
and sustainable production of their products and creating a postitive impact in the
world communities through their products (Schlegelmilch, 2016).
Organisations Values:
The organizational values focus on the aspect of innovation,creativity and
sustainable development of their manufacturing process. The Nike organization
emphasizes on the drive for creating everything which expands the human potential.
The Nike organization is a highly disciplined as well as efficient organization which
gives enough emphasis on the aspects of developing their products through the
efficient management as well as systematic approach to design their footwear.
Strengths and weaknesses of competitors and allies (at least 2)
 Competitor 1: Adidas footwear
 Strength : Adidas is a company which focuses on the aspects of
diversification of their products as well as manufacturing excellent
products which are highly valued and esteemed in the modern world.
The adidas company is a global brand and it its brand value is immense
in the global world. The Adidas company hires the global sporting

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celebrities to promote their products and therefore they are considered
as a youthful product in the world.
 Weakness: The greatest weakness of Adidas company is the price
range which is unaffordable for the common lower middle class people.
The products of Adidas are manufactured in the outsourced
manufacturing hubs which are mainly in the Asian countries where the
labor cost are cheap and the labour is easily available. Adidas lacks in
the product line expansion as the company has less number of brands
which are manufactured under its production hubs.
 Competitor 2: Puma organization
 Strength : Puma is considered as one of the main competitors of both
the Adidas as well as the Nike organization. This is due to the fact that
the Puma organization spends heavily in the promotion of its brand’s
products. The organization hires global celebrities such as Diego
Maradona, Olivier Giroud as well as Marco Reus to promote its products.
Puma has a high growth rate and there has been a relatively higher
increase in the sales and the revenue of the products.
 Weakness: Puma faces high competition from both the Nike as well as
the Adidas companies and these companies are bothy excelling in their
respective areas. The other weak areas of Puma are that in comparison
to the other organization such as Adidas and Nike, Puma has a less
revenue generation in comparison to both Nike and Adidas.
SWOT Analysis of your business:
 Strength
Nike is considered as the world’s most reputed shoemaker. Its emphasis on the
design as the innovation which the organization employs in the manufacturing of the
shoes is the most effective feature of the organization. The Nike shoe company also
specializes in the manufacture of the highly durable sports wear and it does thorough
research before implementing those designs in the manufacture of the shoes. Nike
has a dedicated and an efficient research and development team and does
innovation in the manufacture of the shoes. Nike is considered as a global brand and
is considered as the top sports brands in the world.

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 Weakness
Nike has a revenue which is highly dedicated and efficient and is dependent upon
the share of the footwear market. The retail sector of Nike is very sensitive to the
price of the footwear. The income of Nike is derived from the revenue generated by
the retailers.
 Threat
Nike is highly exposed to the international aspect of trade and it is engaged in the
transaction of the different currencies. Nike manufactures its products in the
different countries of the world and it becomes difficult to estimate the actual cost
incurred in the manufacture of the products. There are many alternative products
launched by different companies which are giving tough competition to the Nike
organization.
 Opportunities
Nike is known for the product development and the development leads to the
arising of opportunities for the development of new products (Fiksel, 2015). Nike
emphasizes heavily on the research and development aspect and the products
which emerge out of such research are highly durable and flexible in the usage
and elasticity.
Strategic objectives and strategies needed for the future
 Strategic objectives 1:
 Strategy needed 1: Increase in the sales and revenue generation
Priority: Customer satisfaction
Timeframe: 6 months
Responsible party/person: Stakeholders
KPI (measurableperformance indicator): Financial and non-financial
 Strategy needed 2: To develop the innovation of the products
Priority: Prioritising the needs of the customers and the clients
Timeframe: 1 year

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Responsible party/person: Shareholders and the stakeholders
KPI (measurableperformance indicator): The financial and the non-
financial aspects.
Review the existing policies and procedures against the strategic plan:
Nike follows a generic strategy for exploiting its competitive advantages and
focuses on the marketing mix strategy (Rothaermel, 2015). The Nike follows the
Porter model to develop its strategies and evaluate its performance.
Monitor the trends within your external environment (PEST Analysis) Political environment:
o The Nike has operates in a stable political environment and has its
presence in the major markets of the world.
o The expansion of the free trade policies also affects the company.
o The improved government support also becomes possible for the
company to achieve the target of achieving the target of achieving
the sales revenue generation.
 Economical environment:
o The Nike organization focuses on the rapid growth of the developed
markets and the international political factors like the Slowdown of
the Chinese economy directly affects the Nike organization
(Burgleman, 2017).
o The economic stability of the developed markets also becomes
beneficial for the organization.
 Social environment:
o The increased individual wealth in the developing countries is a big
opportunity for the social environment.
o The Nike organization emphasizes on the product safety.
 Technological environment:
o The Nike organization emphasizes on the Research and
Development of the products (GalbRaith, 2014).
o The widespread usage of the mobile technology is the best
opportunity for the Nike organization.

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Change management Plan Situational awareness
Discuss your change
characteristics
Change in the
manufacturing and the
innovation of the
products
change characteristics Detail the scope of the change
 A lot of people will be impacted by the changes in
the innovation as well as the manufacturing of the
people.
 The impact of the innovation and manufacturing of
the products is possible only after thorough
research and development.
organisational
attributes
organisational attributes will include
 Changes in the organization and the working of
the organization.
 Past changes have been managed efficiently and
it has become outdated in the modern aspect of
organizational management.
impact Impacted Group
 The young people
 They will be impacted by the changes in the
working styles of the organization.
 Supporting structure
Team structure Team structure
 The people who w2ill be responsible for the changes
in the organization.
 The groups who will be allotted the duty of overseeing
the operations of the organization.
Sponsor Coalition Sponsor Coalition
 The leaders need to take charge in overseeing the
evaluation of the changes in the organizational
structure of the organization.
 The managers need to focus more on the
development and research factors of the
organizational structure.
 Strategy Analysis :
1. Risk assessment

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Identify risk Impact
(High/Moderate/Low)
Priority
(High/Medium/Low)
Mitigation
strategies
Risk from
substitute
products
The cheap cost of the
products are a high
risk for the Nike
organization.
The Nike
organization needs
to focus more on
expanding their
services in the other
products.
Expand in the
other aspects of
the products.
Risk from rival
groups such as
Adidas and
Puma
The qualitative as well
as the efficient
marketing of the
products. The Nike
organization needs
to efficiently market
themselves in the
other areas of
innovation and
development.
The rival groups
are revising their
marketing
strategies. The
nike
organization
needs to take
note of it and
keep
themselves
informed about
these changes
and make
counter plans.
2. Anticipated resistance
 The Asian countries have a huge market for the substitute products of Nike
which are relatively cheap. Asian countries have huge population of middle class
population hence the Nike products are not affordable by the majority of the
population.
3. Special tactics
 The Nike organization can lower the prices of their products in the Asian
countries and develop a customer base for themselves in these regions.
Cost benefit analysis for high priority change opportunities

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Year 2018 2019 2020 2021 2022
Discount factor (mid-year) 0.96225 0.89097 0.82497 0.76387 0.70728
Discount factor (start of year) 1.00000 0.92593 0.85734 0.79383 0.73503
Benefit 1 300000 300000 300000 225000 225000
Benefit 2 300000 300000 300000 257500 257500
Benefit 3 105000 105000 105000 105000 105000
Total Benefits (mid-year) $705,000 $705,000 $705,000 $587,500 $587,500
Present Value of Benefits (mid-yr) $678,387 $628,136 $581,607 $448,771 $415,529
Present Value of Benefits $2,752,429
Cost 1 -$32,560 -$32,560 -$32,560 -$32,560 -$32,800
Cost 2 -$32,560 -$32,560 -$32,560 -$32,560 -$23,000
Cost 3 -$42,500 -$42,500 -$42,500 -$15,000 -$15,000
Total Costs (mid-year) -$107,620 -$107,620 -$107,620 -$80,120 -$70,800
Capital Costs (at start of year) $0 $0 $0 $0 $0
Total Costs -$107,620 -$107,620 -$107,620 -$80,120 -$70,800
Total Capital Costs $0
Total Whole of Life Costs -$473,780
Present Value of Costs (mid-year) -$103,557 -$95,886 -$88,784 -$61,201 -$50,076
Present Value of Costs (start year) $0 $0 $0 $0 $0
Present Value of Costs (by year) -$103,557 -$95,886 -$88,784 -$61,201 -$50,076
Present Value of Costs -$399,504
Net Cash Flows $597,380 $597,380 $597,380 $507,380 $516,700
Net Present Value (by year) $574,829 $532,249 $492,823 $387,570 $365,453
Cumulative NPV $574,829 $1,107,078 $1,599,902 $1,987,472 $2,352,925
Chart data only:
Year 0 1 2 3 4
Present Value of Benefits ($million) 0.678$ 0.628$ 0.582$ 0.449$ 0.416$
Present Value of Costs ($million) 0.104-$ 0.096-$ 0.089-$ 0.061-$ 0.050-$
Cumulative Net Present Value ($million) 0.575$ 1.107$ 1.600$ 1.987$ 2.353$
Communication plan:
The Nike organization must be summoned to meet in order about the changes in
the working of the organization. The Nike organization must discuss the actions
and strategies of the rival companies and make plans to counter those plans.
Conclusion:
The Nike organization is a highly efficient and developed team which has always
emphasized on the development of the products and the services they provide
to the people in the different countries wherein they operate. The Nike
organization emphasizes on the aspects of innovation and development and is
considered as a globally reputed brand in the world.
REFERENCES
Burgelman, R. A. (2017). 9. Complex strategic integration at Nike: Strategy process and
strategy-as-practice. Handbook of Middle Management Strategy Process Research,
197.
Fiksel, J. (2015). Organizational Resilience. In Resilient by Design (pp. 129-147). Island
Press, Washington, DC.
GalbRaith, J. R. (2014). Organizational design challenges resulting from big data.

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Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
Schlegelmilch, B. B. (2016). Organizational Design for Global Marketing Strategy. In Global
Marketing Strategy (pp. 177-193). Springer, Cham.