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Nike Strategic Aanlysis

1. Analysis of problem areas:
Nike Inc. is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of $16 billion USD in 2007 (SEC, 2008). In reflective strategies, Nike identifies that great brand must present its both rational benefits and emotional benefits. Rational benefits are product’s features, pricing as well as sales promotion. Great brand, on the other hand, works more on emotions in which social responsibility is shown. Therefore, Promotion is always Nike’s key marketing tool.
1.1 Problem definition:
1.1.1 Characteristics of market problems:
Nike and the athletic shoes industry have evolved into one of the most competitive market recent years. However, Nike’s analysts believe that athletic shoe sales will slow down over the next few years. The slow down will come with the changes in the consumer fashion trends, in buying power and in severe competition with emerging sportswear brands.
According to Tucker (2006), Nike+iPod, one of Nike’s high-tech products, has exposed shortcoming recently. Users of Nike+iPod were surprised to recognize that their personal sensitive information is being broadcasted to public by their digital music player.
A serious challenge Nike has to cope with is bad media coverage over reports of labor-related problems. Such unfavorable publicity leads to reduction in Nike’s reputation especially when customers currently require more and more socially responsible brands.

1.1.2 Urgency ranking:
Unfriendly publicity can seriously affect to the company’s image immediately and it will lead to reduction in company’s share prices later on. Facing labor-related problems, Nike has shown that their Promotion strategies need to be put on the first urgency in which social responsibility should be emphasized.
The second urgency is Product strategies in which R&D should be focused not only for high quality but also for attractive design. Considered by Burrow...