Nike SWOT analysis 2016


A SWOT analysis of Nike


(Introduction): Nike, the number 1 sports shoe brand, excels in style and quality. It has continued to amaze the customers with its stylish and athletic designs. Nike is the largest maker of athletic apparel and gear. The year 2015 proved to be quite a profitable year for it. Its sales went up from $27.8 billion to $30.6 billion. The brand was founded in 1964 and renamed Nike in 1973. Its ‘Just Do it’ Slogan and the ‘Swoosh’ logo are a part of its identity and set it apart as a distinct brand. The company has a record of signing best athletes for its endorsements. After a profitable 2015, the brand is bullish about its future growth. Globally, a shift towards athleisure has brought excellent business opportunities for it . This year it rose from 106 to 91 on the fortune 500 list.

NIke SWOT Analysis
NIKE: Style & Sports

Below is presented a detailed SWOT analysis of Nike highlighting the brand’s special strengths, weaknesses, opportunities and threats.



  • Brand image
  • International presence
  • stylish and athletic designs
  • high quality products

Among the most important strengths of the Nike brand are its brand image, popularity and its international presence. In the sports gear and apparel category Nike is among the most well-known brands. It has distinctly positioned itself in the category of an athletic brand. However, the popularity of its brand name is mainly for the exquisite quality of its products. Nike also makes heavy investments into research and development. The strength of the brand can be measured by that of its logo and the slogan. Nike has retained its top position in the sports shoe category. Customers are attracted towards the brand for its sporty products. Nike’s products are also known for being stylish, good in quality as well as fashionable.  In this regard, Nike has proved to be the most loved brand. Its growth has been supported by both fashion and sports trends.


  • lack of stable production units
  • environmental issues down the supply chain

Nike is facing high competitive pressure. Moreover, it does not have stable production units like most of its competitors. The brand has been labelled as a sports brand. However, it needs to make a switch from purely sports to a more fashionable look given the newest trends. The environmental impact of the brand is also a weakness that it needs to address. The environmental impact of its suppliers has given rise to major protests in the past.


  • 2016 olympics
  • product line extension
  • Athleisure trends

Apart from the 2016 Olympics, the trends towards fashionable sports gear have supported the growth of the  brand. Nike is among the most loved sports wear brands. Its shoe designs and qualities are highly popular. However, it also has a huge opportunity open before it in the form of product extension. It can extend its products to new categories like sunglasses as well as other fashion accessories. On top of all, it can further focus upon the design and look of its products to make them more suitable for the athleisure fans.


  • Increasing competition
  • economic fluctuations
  • questions regarding eco-friendliness of supply chain

The main threat to the brand comes from its competitors. The brands like Adidas and Reebok are using quite aggressive techniques to beat Nike. Coupled with these things are the fluctuations in the international economic environment which also pose a major threat to the brand. Doing business amid dollar fluctuations is not so profitable. Eco-friendliness of its supply chain is another key question before the brand. Nike needs to have a eco-friendly supply chain otherwise its reputation is threatened.


Nike should focus on making its products more trendy and fashionable to make the best of the new trends and opportunities. Apart from that, it can also use the 2016 Olympics to better showcase the brand and its products. However, the brand should focus on the changing trends. Its products are suitable for athletic purposes. However, it can further innovate their design and style to make them suitable for the evolving athleisure market.

[‘SWOT’ is an acronym for Strengths, weaknesses, opportunities and threats. It is a powerful strategic management tool that can help to know one’s important strengths and weaknesses and to exploit the opportunities. It can also help counter the threats. Strengths and weaknesses are internal factors and opportunities and threats external. So basically, SWOT is a tool designed to help you reduce your weaknesses and counter the threats. This can improve the business’ chances of success.  Companies conduct a SWOT before they embark on a new strategy or before they make an important business move like investing in a new project.]


SWOTs, you may also check, COSTCO,  Apple, Coca Cola, Walmart, Microsoft, Ford, Toyota.