Weaknesses Of Nike

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The point of a SWOT analysis is to help you develop a strong business strategy by making sure you’ve considered all of your business’s strengths and weaknesses, as well as the opportunities and threats it faces in the marketplace. As you might have guessed from that last sentence, S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is an organized list of your business’s greatest strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal to the company, like reputation, patents, location. You can change them but with some work to be done. Opportunities and threats are external, like suppliers, competitors, prices. They are out there in the market, happening whether you like it…show more content…
Virtually all of Nike’s footwear is manufactured outside of the United States by independent contract manufacturers who operate multiple factories. Nike is strong at research and development, as is evidenced by its evolving and innovative product range. The company has its own staff of specialists in the areas of biomechanics, chemistry, exercise physiology, and related fields, and also uses advisory boards made up of athletes, coaches, trainers, orthopedists, and other experts who consult with Nike about designs, materials, and concepts for products and improvements. The strength of Nike is with a strong cash flow. The company generates a lot of free cash flow, a good portion of which it uses to enhance shareholder value. Apart from a modest dividend payout (the Dow component typically yields between 1% and 1.5%), cash is used to fund an aggressive buyback program. In fact, stock repurchases typically approximate $2 billion annually, an activity that goes a long way toward supporting share net. There’s ample cash, in the meantime, for NIKE to maintain a large R&D budget. This ought to keep new and old rivals at bay in 2014 and
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