Nike Marketing Report: External and Industry Analysis

This report provides a comprehensive analysis of Nike's marketing strategies, encompassing an action plan, external analysis, and industry analysis. The report begins with an introduction and presents a detailed action plan outlining strategies for product reintroduction, distribution channel diversification, cost control, and promotion. It then delves into an external analysis, examining political, economic, social, technological, legal, and environmental (PESTLE) factors affecting Nike. Furthermore, the report analyzes the industry, evaluating the bargaining power of consumers and suppliers, competitive rivalry, the threat of substitutes, and the threat of new entrants. The analysis highlights the need for Nike to focus on competitive and promotional strategies. The report concludes with references to support its findings.

Running Head: MARKETING 0
nike
Marketing
(Student Name)
4/7/2020

MARKETING 1
Table of Contents
Introduction......................................................................................................................................2
Action Plan......................................................................................................................................2
External Analysis.............................................................................................................................3
Analysis of PESTLE factors based on Nike................................................................................4
Industry Analysis.............................................................................................................................4
Analysis of Industry Analysis for Nike........................................................................................4
References........................................................................................................................................5

MARKETING 2
Introduction
A summary or preliminary business strategy details the promotion and promotional strategies for
the next year. A strategic plan defines company practices that accomplish particular marketing
objectives within a defined time frame (Olson et al., 2018).
Action Plan
What When How By Whom How to acquire
consumer
Reintroducing
of New Product
(Product Mix)
In 12 months By focusing
over the
innovative ideas
and analysis of
market needs
Research and
Development
Department
It will help in
attracting new
consumers and
existing
consumers of
other brands.
Diversification
of Distribution
Channels in
Asian
In 4 months By opening
franchise
distribution
channels in
other countries
Operation
Department
It will help in
covering high
volume of
market
Control over
production cost
In 6 months By adopting
updated
technology
Production
Department
It will help in
catering product
at competitive or
low price
Focus more on
promotion and
In every three By using online
platform such as
Marketing It will help in
competing the

MARKETING 3
advertisement months YouTube,
Instagram,
Facebook
Department competitors to
the certain
extent (Seeger,
2019).
External Analysis
Political  In August 2019, following the United States 'declaration that it
would place tariffs on additional Chinese imports for $300 billion,
trade relations between China and the United States re-escalated.
 Trade growth not only slowed relative to 2018 but also fell well
below the 2012-2017 annual growth rates.
Economical  For 2018 and 2019, the worldwide growth outlook has been raised
by 3.9%, indicating an improved global growth environment and
the potential effect of US tax policy adjustments recently accepted.
 The current cyclical upswing provides the best opportunity for
reforms. Strengthening potential performance and promoting
balanced development require common goals in all economies.
Social  Sustainable economic growth is a crucial road to poverty and a
vital catalyst for human progress and prosperity. Yet it is not
enough on its own to search at strategies for the next decade's two
biggest challenges: creating mutual wealth and handling the green
economy transformation.
Technological  The global technology market is expected to grow to 5 trillion

MARKETING 4
dollars, at 4% this year, and to boost its capacity by 6.4%.
Legal  In 2019, the worldwide legal services industry hit nearly $766.3
billion and since 2015 it has risen 5.4 percent year-on-year at a
cumulative growth rate (CAGR). At a CAGR of 6,5% and almost
986,7 billion dollars by 2023, the global demand in legal services
is projected to expand.
Environmental  Increased risks to the Earth's atmosphere, soil, forestry, bio
diverse, crops, power supplies and the growth of developed
countries are faced by harmful environmental activities
(Rothaermel, 2019).
Analysis of PESTLE factors based on Nike
In order to analyze the PESTLE situation of global market, great opportunities and threats are
available in the market. The unstable economic factors as well as political factors enhance the
threat for the company to enter in the global market. However, updated technology as well as
social factors provides an opportunity to the company to attract maximum number of consumers
to the certain extent. Therefore, it is recommended to the Nike to focus over the marketing
strategies more efficiently and analyze the market changes frequently.
Industry Analysis
High Bargaining power
of consumers
 Switching cost is low
 Customer could choose other brands
Low Bargaining Power
of Suppliers
 Number of suppliers are high in the market

MARKETING 5
 Significant switching costs in changing suppliers
 Suppliers has inflationary pressure
Competitive Rivalry  Rising Competition from Under Armour and Lululemon
Athletica
 Industry has grown saturated
Low to moderate Threat
of Substitute
 Large number of competing brands are available in the market
 Sports shoes hardly replace by other product
Low Threat of New
Entrants
 The cost of Investment is high
 The risk level is high
 Resist small retailers to enter in the market (Rothaermel,
2019)
Analysis of Industry Analysis for Nike
In order to analyze the industry of the global market, it has been identified that Nike is required
to focus over their competitive strategies and promotional strategies. The company is required to
seek to do the business with the suppliers who not only meet however, also exceed the
stipulations of the code of conduct.

MARKETING 6
References
Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M. (2018) The application of human
resource management policies within the marketing organization: The impact on business and
marketing strategy implementation. Industrial Marketing Management, 69, pp.62-73.
Rothaermel, F.T. (2019) Nike, Inc. New York: McGraw Hill
Seeger, M. (2019) Marketing the Mining Business Case: Best Practice. In Mining Capital (pp.
75-111). Cham: Springer.