Environmental Analysis of Nike Inc. (Case study) PESTLE, PESTEL, VRIO, SWOT Analysis, Porter’s Five Forces
Nike Inc. is one of the world’s largest US multinational retailers of athletic shoes, apparel and sports equipment. With world headquarters in Beaverton, Oregon, USA,
Nike operates through more than 930 retail stores across 190 countries, an e-commerce site and independent distributors and licensees. Operations are spread across six geographic segments: North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging Markets.
Over the years Nike have created a portfolio of brands capable of reaching across multiple sports, lifestyle categories and price points; some of which include wholly owned subsidiaries Converse, Hurley and Jordan. In addition, established category-specific retail destinations by partnering with footwear retailers such as Foot Locker Inc, JD Sports, and Intersport.
NIKE Inc. has also been investing significantly in expanding its retail foot-print through its direct-to-consumer strategy. This includes both bricks-and-mortar retail and digital commerce, vital areas for growth; The Company plans to grow global direct-to-consumer sales almost 2.5 times in the next five years, from $6.6 billion in 2015 to $16 billion by 2020. E-commerce sales are projected to grow to $7 billion by 2020 (Business Today, 2015).
Nike’s looking to steadily increase the ratio of sales through new store rollouts and continual digital enhancements and innovation.
Nike plans to achieve brand growth across all six of its geographic segments through broader expansion in its developed geographies (North America, Western Europe, and Japan), and investing aggressively in its developing market geographies (Greater China, Central & Eastern Europe, and Emerging Markets) (Forbes, 2015).
As a marketing consultant for Nike Inc. you have been asked to recommend 2 international growth markets for it to enter in 2017/18.
Growth markets should be countries or cities where there is currently no presence.
Primary focus for market entry will be through physical store presence but you may recommend that onlinepresence may be required to support this.
You should prepare a report for the board of directors addressing your consultancy brief, this should include:
- An analysis of the macro and micro factors impacting on the sports retail market and the market recommendations
- An analysis of Nike Inc. internal business factors
- An evaluation of market potential, to include an identified shortlist of markets with potential.
- Then using a clear and identified screening criteria, select two recommended markets with clear justification as to why these markets have been selected.
- Recommended and justified market entry strategy to take Nike Inc. into each of these markets
- Recommended adaptations to Nike’s marketing mix for the proposed markets, ensuringdifferences in culture and consumer behaviour are recognised in their marketing mix activity
Detailed analysis should be developed and placed in the appendix of your report, with summaries of analysis in the main body of the report cross referencing to the appendix.
Additional information will be available on the portal to support your research but you will need to conduct your own research into macro and micro factors using the online library.
Please see below for grading criteria. Marks will be distributed as indicated in the assessment criteria. To understand the requirements for each grade level please see below.
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