NIKE’s SWOT analysis defines the organization and its current achievement thus far. Among this analysis are the organization’s weaknesses. Despite the success being relished at the moment, there are several weaknesses that might hinder its operations if not addressed adequately. Among them is lack of diversification of products being manufactured. NIKE depends heavily on footwear products compared to other products that emanate from the organization (Emery, 2011). This is a weakness and a risk to the business in future operations. If the footwear does not convert, the company might end up to collapse. This is because the products sustain various operations being conducted.
Another weakness is that the organization has been involved in several labor violation practices. On many occasions, NIKE is not adamant in adhering to various stipulated rules in its regions of operation. This might bring conflicting aspects with governing officials hence making the external environment unfavorable for the company’s operations. Over the years, the publicity of sweatshops has also been unfavorable (Lussier & David, 2009).
Most of the organization’s products are produced outside USA. This is done in an attempt of reducing the costs involved during the manufacturing process. Consumers do not take this well. To them, they feel that they are deprived the opportunity of associating themselves with the brand. Products being delivered are also price sensitive. The aspect tends to put up higher pricing points so as to increase the products’ value. This mostly targets consumers paying high prices for quality products and neglects the others (Smith, 2012).
NIKE also lacks retail stores for its products. As a result, consumers do not have adequate access to the company’s products. In the long-run, this might make consumers to turn on competitors’ substitutes so as to satisfy their wants.
Emery, Paul . The Sports Management Toolkit. Oxford: Taylor & Francis, 2011.
Lussier, Robert N., and David Charles Kimball. Applied sport management skills. Champaign,
IL: Human Kinetics, 2009.
Smith, Aaron . Introduction to Sport Marketing. London: Routledge, 2012.