Introduction
Nike, formerly known as Blue Ribbon Sports and later renamed in 1971, is the leading manufacturer of sports-related products. The company is headquartered in Oregon and was founded in 1964. Nike is a shoe company that designs, develops, and markets various athletic footwear, apparel, and equipment, and accessories (Liu, 2021). The company operates in many areas, including North America, Japan, Western Europe, and China. Primarily, the company was designed to sell athletic accessories but currently sells products for casual and leisure activities. The paper will analyze its products and services, financial performance, and the opportunities that foster its success.
Summary of The Company’s Primary Products and Services
The company’s flagship product is shoes, and it offers its products under several categories, including running, training, and sportswear. Its portfolio consists of Jordan Brand, Nike Brand, Hurley, and Converse. These shoes are designed for efficient performance in sports and aesthetics (Gürel & Tat, 2017). Furthermore, the company sells sporting equipment such as balls, swimming caps, golf clubs, and yoga mats, weights, and sports guards.
In addition, it also makes consumer shoes such as flip-flops and Mary Janes and designs casual clothes for both men and women. The company also produces apparel for other activities such as dance and yoga and features collections such as Nike Pro, Nike Free, and Livestrong. Moreover, it sells a line of performance accessories comprising eyewear, bags, timepieces, and other digital devices.
Ways in Which Primary Stakeholders Influence Nike’s Financial Performance
Primary stakeholders are groups of individuals who have a significant stake in the business operations at Nike. The primary stakeholders are the internal shareholders and include employees, management, and owners of the firm (Liu, 2021). They influence the policies and procedures that the organization carries out. The management and executives are the internal shareholders that work to meet the needs of the company. They are accountable for the decisions made and act as the contact with the shareholders of the company. Poor choices can decrease profitability and reduces bonuses and interests. The management can influence the company’s long-term and short-term goals by budgeting for greener investments. They also have a substantial role in giving a voice in operational decisions.
The employees at Nike have a pivotal influence on the sales of the firm’s products. Employees at Nike have time and financial investments, and they play a role in strategy, operation and tactics. Employees offer labor services required to achieve the objectives and results for the company. Their participation is vital as they come up with new ideas and improvements to the production process. The organization can consider the concerns, opinions, and values in shaping the vision and mission of the company. The owners have a more significant impact on management and accountability as compared to employees and managers. Additionally, they are involved actively in the activities or own shares in the organization. The owners strategize and outline goals such as financial mission, brand management, new acquisition, and product lines. The owners may make decisions to prioritize higher sales rather than making profits.
Factors in External Environment That Can Affect Nike’s Success
The external environments are the events that occur outside the firm and can influence the company’s business process. Political and economic factors influence Nike’s external environment. Nike’s external environment has had political pressure, and this has affected the company’s reputation. The political factors include the political situations in the countries the organization is operating. These factors include tariffs, low interests, and tax laws. Political changes can affect how Nike produces their goods and the profits they make. Also, political conflicts can prevent imports and exports, making custom processes difficult. When a company is politically stable, the business flourishes and vice versa.
Nike is also affected by economic factors like any other firm in the market industry. A collapse in the market could lead to losses. A competitive market environment that offers similar expensive products offers Nike an excellent environment to establish themselves due to the availability and affordability. This increased demand for sporting wear can provide an excellent opportunity for the company (Liu, 2021). Additionally, the company leverages economies of scale to increase sales and make a profit. Also, the company is financially stable, allowing it to tap into emerging markets and optimize its high-quality products to increase its profitability.
The Company’s Biggest Success Opportunity and Its Impact on Company’s Performance
Nike’s loyal market is aging, which poses both a threat and an opportunity to the firm. The company can influence the next generation of Nike customers by using social media as a marketing strategy. Nike has heavily focused on digital marketing to tap into different types of customers. When it comes to social engagement, the company has been able to stay ahead of its competitors. On social media, the company is not just about brand identity but takes a holistic approach to fitness and maintaining a healthy lifestyle. One successful opportunity was the decision by Nike to sell its products on Amazon.com and Instagram (Gürel & Tat, 2017).
The platforms are popular among the youth and thus have increased their sales. Nike has room for improvement on all social media fronts, with many potential buyers being the young population. A company that markets to a younger demographic increase its profit margins.
Much of the company’s success is attributed to sponsorship deals with great athletes and professionals in the sports arena. It has recently established a contract with NFL and NBA, which was an excellent move for the company. These high-profile influences act as a credible voice to market the brand. Also, its collaboration with the National Football League has ensured that the company has attracted customers across America (Gürel & Tat, 2017). This opportunity has created substantial growth in the global market and enabled them to earn a competitive advantage against their competitors. It has also benefited significantly from sponsoring sports clubs and sportspeople. Nike sponsors a significant amount of footballer’s basketball players who like to wear the products offered by the company
Conclusion
In conclusion, with a global focus shifting towards maintaining healthy lifestyles, exercising has become a spotlight activity. This benefits the Nike company as it is in a better position to specialize and tailor products for its consumers. Primary stakeholders have direct involvement in the company’s operations and are affected by the organization’s performance. The owners make crucial business decisions while the management is involved in routine operations daily. To be a successful company, it is necessary that Nike pays attention to political and economic factors and stay ahead of its competitors. Nike has the mission to serve the community and society through promoting physical fitness among younger populations on social media platforms. It also has leveraged sponsorships to attract a more extensive customer base and have a competitive edge against its rivals.
References
Gürel, E., & Tat, M. (2017). SWOT analysis: A theoretical review. Journal of International Social Research, 10(51).
Liu, X. (2021). Nike’s general company analysis is based on its 2020 annual report. In 6th International Conference on Financial Innovation and Economic Development (ICFIED 2021) (pp. 799-803). Atlantis Press.