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    Weakness of NIKE

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    Debjyoti Das
    Nike's main weakness is their lack of focus on one main product due to having too many diversified products. Nike sells sporting goods through retail stores, their online store, and company-owned outlets. They promote their products heavily through celebrity endorsements and advertisements. Nike targets sports enthusiasts interested in fitness from higher-income groups.

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    Weakness of NIKE

    Uploaded by

    Debjyoti Das
    89 views2 pages
    Nike's main weakness is their lack of focus on one main product due to having too many diversified products. Nike sells sporting goods through retail stores, their online store, and company-owned outlets. They promote their products heavily through celebrity endorsements and advertisements. Nike targets sports enthusiasts interested in fitness from higher-income groups.

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    Nike's main weakness is their lack of focus on one main product due to having too many diversified products. Nike sells sporting goods through retail stores, their online store, and company-owned outlets. They promote their products heavily through celebrity endorsements and advertisements. Nike targets sports enthusiasts interested in fitness from higher-income groups.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    89 views2 pages

    Weakness of NIKE

    Uploaded by

    Debjyoti Das
    Nike's main weakness is their lack of focus on one main product due to having too many diversified products. Nike sells sporting goods through retail stores, their online store, and company-owned outlets. They promote their products heavily through celebrity endorsements and advertisements. Nike targets sports enthusiasts interested in fitness from higher-income groups.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Weakness

    Nike's main weakness is their lack of focus on one main product. This is


    because of Nike's commitment on having diversified products for
    athletes, meaning having too many different products available to sell to
    their customers. Due to this, they tend to have divided attention on each
    product line.
    4ps

    Product
    Nike sells sporting and athletic shoes, apparel, equipment, and
    accessories. The brand has also expanded into more fashionable
    clothing lines in recent years, though their niche is still athletic apparel.

    Price
    Nike implements both value-based and premium pricing strategies to
    price and sell their products. Value-based pricing uses consumer
    perception to determine the maximum price consumers are willing to pay
    for their products. Premium pricing, on the other hand, comes into play
    when you consider Nike’s use of celebrity endorsements and influencer
    marketing, which positions Nike as a premium brand which is worth
    paying premium prices for.

    Place
    Nike sells its products through three main sources: retail stores, Nike’s
    online store, and company-owned retail outlets. Using retail stores is an
    effective strategy for Nike because it allows them to meet their
    consumers where they are without investing exorbitant amounts of
    money opening a chain of brand-specific stores. Their online store
    allows for more options than retail stores, but are at a disadvantage
    because consumers are unable to see the products in person and try
    them out before purchasing. Nike’s retail outlets act as another way to
    reach customers, and often have lower prices than regular retailers.
    They are, however, limited in location and access to populations.

    Promotion
    Nike relies heavily on advertisements to promote their products,
    especially those featuring high-profile athletes and celebrities.
    Additionally, Nike makes use of sales promotion strategies like discount
    codes to entice potential customers to buy their products.
    In Nike’s case, people were looking for new ways to stay in shape. As
    jogging became more popular, people needed jogging shoes. Nike then
    smartly positioned themselves not just as a company that made shoes,
    but a company that helped their customers achieve their fitness goals
    The Nike target audience according tends to be from the higher-income
    socio-economic group, reflected in the premium brand image and pricing
    of Nike products. The average Nike customer is a sports enthusiast,
    interested in leading an active and healthy lifestyle.
    Competitors
    Adidas Group, one of Nike’s toughest competitors, spent $688 million on
    US-based advertising in 2019. By comparison, Nike ad spend in the
    US that year was over double the amount, reaching nearly $1.5 billion.
    One of Nike's 2022 strategies has been to reach a large audience to
    achieve the greatest possible impact. That's why its successful
    advertisements have promoted the brand among customers, improving
    the perception that they have about the products and company.

     Company: Nike 
     CEO: John Donahoe
     Year founded: 1964
     Headquarter: Beaverton, Oregon, USA
     Number of Employees (FY2021): 73,300
     Type: Public
     Ticker Symbol:  NKE
     Market Cap (Jan 2022): $232.26 Billion
     Annual Revenue (FY2021): $44.54 Billion 
     Profit | Net income (FY2021): $5.7 Billion

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