Analysis of Nike by Porter Five Forces Model

1430 WordsAug 29, 20106 Pages
Family name Bao First name Cheng ( Steven ) Title: The analysis of Nike in athletic footwear market based on porter’s Five forces model 1. Introduction One and a half months ago, the biggest athletic event in the world ultimately drew its curtains after a pitched one-month-long battle, which saw thirty-two teams vying for the roll of honor of being crowned the final kings of football – the World Champions – and earn bragging rights for four years at least. It was not only a world war among 32 national teams, but also a white war among several major sponsors. Concentrating on those big-name stars, spectators would easily find that Adidas and Nike became the largest winners among various brands, obtaining the…show more content…
This is the main advantage of NIKE comparing with some local production facilities. In terms of sales, the ordering and distribution strategy induces the fluent goods flow and few warehouse stocks of NIKE. And it will also lead to higher service levels, satisfied customers and efficient workforce (Werner Wagenaar, 2009). Meanwhile, the large amounts of adverting and promotion expense were as much as $2351.3 million, $2308.3 million, and $1912.4 million in 2009, 2008, and 2007 respectively(Annual Report of NIKE, fiscal 2009), which helped NIKE to build a fantastic brand image and earn the support among the public. As contenders, other brands also have some incomparable advantages. For example, Adidas has implanted the brand image of local culture in the USA, and controlled the largest soccer sportswear market, which is far ahead of Nike. To maintain the role of market leader, Nike should not only hold its existing advantages, but also seed for breaks in advanced science and technology and formulate immediate and flexible strategies according to the changeable market, and 3. Conclusion To sum up, Nike has control the highest market share while the market growth is low, which means Nike is now at a position as a cash cow (BCG Matrix, 1968). Comparing with the internal rivalry among the existing competitors, Nike faces less stress

More about Analysis of Nike by Porter Five Forces Model

Open Document