Nike Situational Analysis

Running Head: NIKE SITUATIONAL ANALYSIS 1
Nike Situational Analysis
Names
Institution

NIKE SITUATIONAL ANALYSIS 2
Situational Analysis
Market definition, products/services definition and customer group
The demand for Nike footwear products in the Middle East has been growing and is
expected to increase over the years. For some countries like Saudi Arabia for instance, men’s
footwear dominates the most significant market share, although that of the women segment has
been growing over the years to close the gap. The fact that the middle east has achieved highest
honor in athletics, and is known to be among the regions that that value these sports, demand for
footwear has been high and is expected to grow over the years (Robert, 2013). Although Nike
has realized success in this region, the presence of big companies that produce similar products
such as Adidas has made it to experience challenges.
Just like in the Middle East, Nike targets athletes in North Africa in two segments: men
and women (Daniel, 2011). In this region, the company has been competing with both domestic
and international companies. Due to its global reputation, the company has managed to attract a
substantial market share, especially in sportswear. In North America, athletes believe that Nike
products are of high quality and gives them value for their money. Therefore, they opt to
purchase its brands as compared to others from its competitors.
Financial and market analysis
In the two regions, the company has been attracting many customers, because of its
reputation and strong brand image. The current market size of athlete footwear in both countries
has been increasing due to high demand for exercises. However, competition with both local and
international companies in these areas raises concerns that the market size might shrink future
(Daniel, 2011). In North Africa, the revenues generated through footwear increased in the last