QUESTION
Nike
1.1. SWOT analysis: an opportunity, a threat, a strength, a weakness, SWOT analysis
1.2. Value chain analysis
1.3. Performance analysis
1.4. Competitive advantage analysis
|
Opportunities |
Threats |
|
Industry environment: – – |
Industry environment: – – |
|
General environment: – – |
General environment: – – |
ANSWER
- SWOT analysis: an opportunity, a threat, a strength, a weakness, SWOT analysis
A SWOT analysis is used to look into the workings in the company and find out the strengths that it brings to the market, the threat that it perceives, the opportunities that it can tap into and the weaknesses that it needs to overcome
Given below is an example of the company with its various threats and opportunities for a Nike company
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Opportunities |
Threats |
|
Industry environment: – Increased automation in the company – New software reducing labor requirement |
Industry environment: – Excess competition with multiple competitors – New trends with a very little lifetime |
|
General environment: – Increased dependence of the country Brands – Favorable laws to promote make in the country and tax evading structures |
General environment: – The hostile situation on outsourcing in the US from factories outside – The emergence of many developing and customized niche brands |
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Value chain analysis
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Value Chain analysis looks into the value that is being added by the process chain of any company and how or where can it be improved
The primary value chain comprises of the input operation, output operations, and transformation and comprises of 9 parts as described by a porter to completely analyze the operations of a company
In Example of Nike
Inbound Logistics – It locally purchases almost all the raw materials with only the specialized materials being imported
Operations – It outsources manufacturing and outsourcing and assembly
Outbound Logistics – It looks into JIT and also looks for an expansive network of countries
1.3. Performance analysis
This determines the performance that the company is making across the years starting from the financial to the operations and how they can be improved. If we take the example of a random company like Nike the analysis will look like
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With 14.6% year over increase, Nike has beaten the Wall Street Revenue estimates and posted revenue of $15.4 billion in the initial part of the year.
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Nike is increasing “Direct to Customer” sales which are helping them to fight regional competitors and also increasing sale thus increasing performance.
1.4. Competitive advantage analysis
This analysis tries to find out the advantages that the company has with regards to its competitors in the same domain and whether the advantage is sustainable.
If we take an example of Nike
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Nike offers similar products at a lower cost maintaining the high standards of quality, which gives them a huge competitive advantage over competitors in their region.
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It is differentiating itself from others by proving unique and premium products (e.g. Air Jordan). This gives them a unique stand in the market among its rivals.
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