We all know NIKE for its iconic swish but before being founded in 1964 it was known as
Blue Ribbon Sports. Nike is known for selling sporting goods, from athletic apparel to
sporting equipment such as shoes and balls. The value Nike delivers to its customers is a
well-known, high-quality product that most athletes are confident will make them perform
better in game or just for leisurely athletic activity. On top of great athletic apparel and
gear Nike provides great customer service and the ability to customize your own sporting
gear and apparel as well which builds an even stronger bond between Nike and its
customers.
Nike is the biggest sports retail corporation in the world, and they have some stiff
competition, just to name a few, Adidas, Reebok, and Under Armor, so what that have
accomplished and continue to accomplish year after year is impressive. They continue to
generate more and more profits, and despite covid continued to have a profitable year.
They success all comes from their ability to adapt to change quickly and the continued
innovation of their products and technology.
How did Nike get to the top and continue to stay on top? Nike has done this thanks to the
strengths of the company. These strengths are their large store networks, operational
excellence, research and development department, and their strong financial performance
year after year. Based on these strengths, Nike can use this to easily create new products.
Having an excellent R&D department helps with being able to formulate new ideas and
adapt quickly to change; having a strong financial performance year after year means the
company has plenty of money to fund the new product; strong operations and store
network means the company can quickly, easily, and effectively distribute the new
product all over the world.
I think a new product Nike should potentially look into doing is selling formal where, like
suits and dresses but with the designs they use for shoes, and they can even make them
customizable like they do with shoes. The uniqueness of this product or service is the fact
the suits and dresses will look similar to the shoe designs, and they will be comfortable
like Nike sports apparel.
Formal clothing sells anywhere from a few hundred to a few thousand dollars, so there is
a lot of potential for massive profits. There is also the opportunity of creating a service
out of formal where such as repairs or rentals which would also increase profits. The
company also already has the machinery and manpower to make clothing so they would
not have to go out and buy new equipment or anything like that so even more potential
for maximizing profits with the new product line.
References
NIKE Inc SWOT Analysis. (2022). NIKE, Inc. SWOT Analysis, 1–8.
Yahoo! (2022, April 27). Nike, inc. (NKE) income statement. Yahoo! Finance. Retrieved
April 27, 2022, from https://finance.yahoo.com/quote/NKE/financials?p=NKE
