Nike Inc.’s External and Internal Forces and Trends

The company that will be analyzed in this study is Nike, a world-famous brand of sportswear and equipment for training. As a basis for the research, a table is presented, which reflects the main factors and key elements in the organization of work. This corporation is one of the largest and most recognizable in the world; therefore, SWOTT analysis will be useful for both consumers and employees.

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SWOTT Analysis of Nike

External forces

Factor Strengths Weaknesses Opportunities Threats Trends
Legal and regulatory State support Strict accountability Collaboration with partners Loss of support Cooperation
Global World’s recognition Heavy responsibility Scale-up of enterprises Closing of enterprises Continuous updating
Economic Large budget High taxes Expenses reduction Bankruptcy Open policies
Technological Modern equipment Similar products Updating of equipment Lack of growth Borrowings
Innovation Constant development Similarity with competitors New models Indifference to novelties New items
Social Consumers’ love Accustomedness Distribution of advertising Declining interest Participation in projects
Environmental Ecological materials Much waste Waste Reduction Possible damage Emphasis on ecology
Competitive analysis High positions Strong competition Leadership Loss of positions Individual development

Internal forces

Factor Strengths Weaknesses Opportunities Threats Trends
Strategy Growth Predictability World’s spread Lack of stakeholders Attraction
Structures Openness Complexity Simplification Production failure Association
Processes and systems Development Borrowings Innovation Plagiarism Creation
Resources Availability High costs Sources enlargement Loss of suppliers Collaboration
Goals Enlargement Slow process Gradual spread Irrelevance Market review
Strategic capabilities Competitiveness Imitation Leader position Uselessness Customer orientation
Culture Following the trends Unpopularity Public education Lack of interest Respect
Technology Improvement Lateness Uniqueness Similarity Advanced design
Innovations Attempts to implement Unstable demand New products Lack of interest Search for ideas
Intellectual property Large background Obsolescence Attraction of specialists Leak of professionals Ideas development
Leadership Competence Conservatism Update Inexperience Leadership struggle

Economic, Legal, and Regulatory Forces and Trends

The economic perspectives of Nike are quite favorable. This world-famous corporation in the sphere of sports goods and equipment for training is developing rather successfully. In most developed countries, there are branches of this company where specialists work, paying attention to the interests of a particular region, and develop advertising campaigns that can attract new customers. Nike has quite a large budget as its benefits from sales are significant (Reis, de Lima, & Cister, 2016).

At the same time, the corporation pays rather high taxes as placing of the goods on the most popular world platforms for sales costs much. Open business policy and timely response to changing market situations help to avoid the potential risk of bankruptcy and reduce the cost of promoting the brand.

Government bodies control the activities of Nike and support the corporation since significant revenues are a rather good source of the replenishment of the state treasury through taxes. In this regard, the company has strict accountability of all incomes. The constant cooperation of the corporation with other major market entities, as well as with government bodies, allows Nike not to lose the trust of sponsors and grow successfully. The leaders of the company and the heads of affiliates around the world discuss emerging issues regularly; they analyze sales figures and consumer interests in particular regions.

Adaptation to Changes

A relatively large competition in the modern market, including the sphere of sports goods, is one of the reasons for Nike’s adaptation to the current situation. According to Schermerhorn and Bachrach (2016), technological competency, the constant development of innovative technologies, and rapid progress led to the emergence of new areas of sales, and the development of products. In particular, some world corporations began to produce not only sports goods or training apparatus but also electronic devices. As Nerurkar (2015) notes, Nike specialists also started to develop specialized equipment to keep up with other market flagships.

Advertising campaigns have also undergone significant changes. The active dissemination of information about all the company’s innovations in social networks and on television is a direct consequence of the current situation. Potential customers spend a lot of time on the Internet, as a result of which the worldwide network is one of the most profitable platforms for advertising. Today, it is possible to find quite a lot of online resources where Nike presents its achievements and tells about the imminent release of new products. This work is the proof of the corporation’s adaptation to the current realities of the market, as well as its desire to remain in the leading positions.

Ways to Develop Core Competencies

Perhaps, one of the measures to strengthen market positions is to develop individual products that are fundamentally different from competitors’ ones. The imitation of the most famous brands’ goods leads to the fact that consumers find out about all the new Nike’s innovations with delay. Moreover, the emergence of similar products prevents potential customers from paying attention to Nike’s activity. People prefer to purchase newer samples from other manufacturers.

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According to Liu (2017), the enlargement of an intellectual base and a creative approach to work may help to avoid problems with the lack of demand. If the corporation’s specialists start developing their unique products that are unlike the innovations of competitors, consumers will pay more attention to the company’s achievements. The current policy and supply chain can be further developed according to the needs of customers; consequently, sales will certainly grow substantially.

Major Issues and Opportunities

One of the biggest problems faced by Nike is the irrelevance of most of the new products that it produces. A possible hypothesis that will help to correct this situation is related to developing the existing intellectual and technological base, as well as paying attention to the trends of the modern market. It is necessary to resort to some changes to solve this issue: to revise the fundamental spheres of production, which is the central task, and also to work on unique products, focusing on electronic devices and gadgets. These measures will increase Nike’s position in the market and strengthen its credibility among potential customers.

Another problem that the company faces is a frequent leakage of specialists. Quite an intense competition is the reason why the largest corporations are struggling to ensure that only the most experienced and qualified employees work for them. Accordingly, those workers who receive more favorable offers from competitors are ready to leave their jobs. It is necessary to review the policy of relations in the company to solve this problem and provide employees with more favorable working conditions. The primary direction that needs to be developed is the strengthening of the corporate spirit in the team and the promotion of achievements.

The system of bonuses can be introduced so that the most successful employees feel secured. Also, it is possible to offer Nike experts additional privileges, for example, insurance at the company’s expense or the protection of intellectual property. Such measures are necessary to ensure that employees do not leave for other organizations and remain faithful to their business.

The conducted analysis may be useful for the leadership of the corporations. All these changes can give Nike the opportunity to become the sole leader in the market and to achieve maximum recognition from its consumers. The development of new ideas and the introduction of innovative technologies are essential for success. Work on developing the current potential of employees and strengthening the corporate spirit are possible factors that can improve Nike’s position.


Liu, D. (2017). Sport industry in China: Opportunities and challenges. In M. Dodds, K. Heisey, & A. Ahonen (Eds.), Routledge handbook of international sport business (pp. 218-233). Thousand Oaks, NY: Routledge.

Nerurkar, O. (2015). Sustainability driven innovations matrix a conceptual framework for environmental sustainability opportunities. International Journal of Applied Engineering Research, 10(50), 245-265.

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Reis, T. S. M., de Lima, A. M. R., & Cister, A. M. (2016). NIKE CORRE: Generation Y moves the running market. Journal of Sports Science, 4, 300-310.

Schermerhorn, J. R., & Bachrach, D. G. (2016). Exploring management (5th ed.). Hoboken, NJ: Wiley.

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StudyCorgi. 2021. "Nike Inc.'s External and Internal Forces and Trends." January 10, 2021.


StudyCorgi. (2021) 'Nike Inc.'s External and Internal Forces and Trends'. 10 January.

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