Nike Footwear Market Analysis and SWOT Analysis
Added on 2019-12-18
14 Pages4086 Words323 ViewsType: 323
Business DevelopmentLeadership ManagementMarketing
|
|
|
THE ATHLETICFOOTWEAR INUK -NIKE
TABLE OF CONTENTSIntroduction......................................................................................................................................31 5 force analysis For Footwear market of UK............................................................................3Reflective ....................................................................................................................................62 Analysis and discussion of assets and competencies of Nike's internal environment .............6Reflective ....................................................................................................................................83 SWOT analysis for Nike (UK) and future strategy that can be used by the company forgaining competitive advantage ...................................................................................................8Reflective ..................................................................................................................................11Conclusion.....................................................................................................................................11REFERENCES .............................................................................................................................122
INTRODUCTIONFootwear industry has emerged greatly with recognition due to branding of athletic orsportswear (Bickhoff, Hollensen and Opresnik, 2014). In this report, the different analyticalapproaches for assessing the current industrial situation of the footwear market of UK will bepresented. The five force analysis, VRIO framework and SWOT analysis will be applied forevaluating the performance of Nike. All these frameworks help in creating a perception about thecurrent working structure of the organisation.TASK 5 1 5 force analysis For Footwear market of UKFootwear industry of UK offers huge success and growth opportunities for organizationsthat are working in this sector. Many multinational organizations are working in this sector and itcomprise of Nike, Reebok, Puma and other medium and small sized firms are also working inthis sector. Intense competition is faced by the companies that are working in this industry and itmakes it essential that strategic approaches should be taken by companies so that competitiveadvantage can be gained for the business (Craig and Campbell, 2012). Quality and price of thegoods are two major factors that gives impact on the overall performance of the business. Likewise, needs and preferences of buyers changes continuously and due to that impact isbeing observed on the overall performance of the organization. Along with this fashion andlifestyle of people also play a pivot role in determining sales and profitability of the business.Competition that prevail in this sector is price sensitive and it provides added advantage for thebusiness firms that are working in this sector (Huang and Sarigöllü, 2012). Economic growth of nation is also supporting for making increment in purchasing powerof people and it is also supporting for enhancing the purchasing power of people. Herein it canbe stated that footwear industry of UK is growing at a faster rate and it offers huge success andgrowth opportunity for people that are working in this sector. Nike, Adidas and Reebok aremajor players that are leading the footwear market and large market share is gained by thesefirms (Luan and Sudhir, 2010). Other than this strategic approaches are used by business forgaining big market share in this sector. Porter's five force analysis supports for identifyingdiverse factors that gives impact on the performance and productivity of business. 3
Bargaining power of buyers :- Footwear industry of UK is enjoying successful period from last past decades and it isoffering huge success and growth opportunities for organizations that are working in this sector.However challenges and difficulties for the existing firms also have been increases and it hasmade it critical that innovative practices should be adopted so that growth and success of thissector can be ensured (O'shaughnessy, 2014). Different companies that works in this sector salefootwear through Brick and mortar stores and use of online platform is also taken. It aids for selling large number of products to the consumers and due to that impact isbeing observed on the overall sales performance of the company. Footwear market is dividedinto three segments and athletic footwear are offered in four different segments and it compriseof Insert shoes, sport shoes, backpacking shoes and hiking shoes. Bargaining power of buyers arehigh as there are large number of options are available in market. Factors that contributestowards bargaining power of buyers includes small size of individual buyers. Low switching costand moderate substitute availability (Pitta, 2012). Availability of substitutes is moderate and itexpedites customers for buying shoe products. These are some external forces that gives impacton the overall performance of the business. Bargaining power of suppliers :- Bargaining power of buyers is weak and major factors behind it are high overall supplyand large population of suppliers. One more factor that gives influence is moderate size ofindividual suppliers. Other than this high supply gives impact on the performance of individualsuppliers and it gives impact on the demand of the firm. In addition to that it has been observedthat bargaining power of buyers is a weak force for footwear industry of UK (Sadjadi, Yazdian,and Shahanaghi, 2012). Along with this strategies and action plans that are formed by thecompany gives influence on the overall performance of organizations that are working in thissector. Similarly large population of suppliers indicate that there are large number of suppliersthat are available in market. It provides opportunity for the organization to purchase theirrequired products in lower price ranges. Other than this moderate size of individual suppliers4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
5 Forces analysis on the athletic footwear market in UKlg...
|11
|3431
|53
Integrated Capston Projectlg...
|20
|1060
|400
Strategic Management & Marketing: NIKElg...
|21
|4572
|116
Market Analysis of Nike - Doclg...
|5
|563
|110
Strategic Operations Performance Assignmentlg...
|13
|3037
|47
Marketing Strategy of Reeboklg...
|16
|4500
|141