Critical Success Factors

Critical success factor analysis

Discussions and research has allowed us to decide our rank and provide reasons that we feel justify our conclusion:

1.     Global market <Www.nikeinc.com/pages/locations> access 15/10/2013
      - Branched in over 160 countries
- Large customer market, thus vast opportunity to enhance sales
- Associates with influencer markets, as it’s operations cross-boarder, there are a variety of political/governmental influences i.e. taxation
 

2.     Financial power
- Eligible to invest into other ventures i.e. new technology, the Nike foundation, and celebrity endorsement.
- Associates well with the supplier/alliance market, as they are able to sustain good relations/distributions and production materials. Brand reputation can effectively enhance revenue.

3.     Brand image <http://www.forbes.com/pictures/mlm45eleik/1-nike-5/>  access 15/10/2013
      - Swoosh sign well recognised and associated within many sports teams (sponsorship)
- Relates to referral markets, as consumers can identify that the swoosh sign provides connotations of quality, prestige, and trust. 

4.     Product innovation

- Provides the distinction in competition
- Make your own trainers (Nike ID)
- Associates well with the customer market, as innovation allows the company to develop and grow and attract a large consumer market, as stated in <http://www.nike.com/gb/en_gb/c/nikeid.> access 17/10/2013
 

5.     Customer service
- Provides customer loyalty and longevity
- Links to customer and employee market, as customer service can differentiate the company allowing it a competitive advantage. Attracts employees through trust in the organisation.

6.     Corporate social responsibilities
- Provides structure on how they want to operate
- Relates to recruitment markets, and the community within which it’s organisation is operating within. For example its design to move operation, which encourages youths to be more active, according to <http://nikeinc.com/pages/about-nike-inc.> access 18/10/2013

SWOT analysis of Nike

Our “SWOT” analysis has helped us to identify a variety of strengths, weaknesses, opportunities and threats. Our previous Marco and Micro analysis has enabled us to provide the following:

 

Strengths

·      Global market:
      Based in 160 countries, thus vast access to customers <www.nikeinc.com/pages/locations> access 08/10/2013
 

·      Celebrity Endorsements
      Success and sponsorships allows them to have access to professional football players such as Ronaldo, a worldwide idol <http://store.nike.com/gb/en_gb/pw/cristiano-ronaldo/a04).  http://www.youtube.com/watch?v=MWVYwppLPdE> access 06/10/2013.

·      Brand Logo:
      The "swoosh" sign is one the most prestigious logos on the planet, and is involved in many sponsorships of sports, which is a great marketing campaign as it is watched by millions.     

Weaknesses

·     Lack of supply control:
     Gets its produce overseas, thus has little control over the product quality. <http://nikeresearch.blogspot.co.uk/2013/03/macro-and-micro-factors.html> access 10/10/2013
<http://www.nikeresponsibility.com/report/content/chapter/manufacturing> access 10/10/2013

·     Pressure Groups:
            Experiences a vast amount of disturbance from pressure groups based on issues such as globalisation and working conditions.
<http://nikeresearch.blogspot.co.uk/2013/03/macro-and-micro-factors.htmlhttp://peopleandplanet.org/navid10432> access 09/10/2013

 

·      Other products:
       Nike are dependent on their footwear for profits due to other branded products not being as strong. www.quality-assurance-solutions.com access 10/10/2013

Opportunities

·      Growth and investment:
       Global market enables Nike to expand the brand and invest in other ventures such as the Nike foundation. <www.nikeinc.com/pages/the-nike-foundation> access 08/10/2013

·      Stronger brand image:
      Controversy around sweatshops provide the opportunity for Nike to distinguish it.
 

·      Merging:
      Nike has the opportunity to merge with other sportswear companies to eliminate compertition and increase sales

Threats

·      Pressure Groups
      Great deal of disturbance from higher education establishments, mainly those associated with globalisation and anti-sweatshop groups. Poses a threat to Nike’s brand image<http://nikeresearch.blogspot.co.uk/2013/03/macro-and-micro-factors.htmlhttp://peopleandplanet.org/navid10432)>  access 11/10/2013

 

·      Lack of involvement in products
      Nike gets its merchandise from overseas, thus has little control over the product quality, thus Nike can’t address its concerns.<http://nikeresearch.blogspot.co.uk/2013/03/macro-and-micro-factors.html> access 11/10/2013
<http://www.nikeresponsibility.com/report/content/chapter/manufacturing> access 11/10/2013

·      Competitors & Innovation
      Nike may provide products such as the “Nike fuel band” but it is always a concern for competitors to provide a substitute good or a rival product; this is demonstrated by Adidas’s “MiCoach”. Nike also deals with competitors such as Puma <http://micoach.adidas.com> access 10/10/2013
<http://goalsandgear.com/2012/08/adidas-micoach-v-nike-fuel-band/> access 10/10/2013

The Macro & Micro elements of Nike

Focusing on Nike as our brand we assigned each other an element of macro and micro factors to research.

Macro-environment of Nike

 

P- US policies enabled Nike to modernise their products and lower interest rates. With the stable currency conditions it helped strengthen the foundation of the business. <Ukessays.com> access 02/10/2013.
China passed 2 new laws in 2007 to improve workers rights. <Nikeresearch.blogspot.co.uk> access 01/10/2013

E- China's sales have increased 25-30% per year, thus Nike have revamped its shipping & distribution centres so China can receive deliveries faster & and more proficiently. Their total revenue rose 7.7% to $6.97 billion & global orders has rose 10%. 

<https://sites.google.com/a/email.vccs.edu/bus100jmccalla/home/how-economics-affects-nike-1> access 03/10/2013
<http://articles.economictimes.indiatimes.com/2013-09-27/news/42464043_1_nike-shares-futures-orders-gross-margin> access 03/10/2013

S- The Nike foundation enables women from Ethiopia, Nigeria and Rwanda improve their quality of living and provide a structure to family planning.
http://nikeinc.com/pages/the-nike-foundation access 03/10/2013

 

T- The "New Digital revolution" has enabled Nike to provide a website and an application for smartphones enabling customers to access features and purchase products online in a comfortable environment. Thus allows Nike to move forward, create products, and provide a more efficient service.
"Innovation" was used to create the "Nike Fueld band", this technological novelty provides a better service to Nikes customers.
<Www.Nike.com> access 02/10.2013

 

E- Nikes environmental impact is based on their extraction of natural resources from the environment. Leather is one of Nikes key resources because of its strength and flexibility. Other natural resources that the company extract for use in their products are fibre, wool, nylon, polyester, and rubber. They had success in reducing Co2 emissions in its footwear factories by 6% despite 20% increase in production.
<http://www.nikeresponsibility.com/report/content/chapter/materials> access 01/10/2013
<Nikeinc.com/pages/responsibility> access 01/10/2013

Microenvironment of Nike

Suppliers- Nike views its supply chain as a way to ensure social responsibility by obtaining sustainable product purchases and focusing decisions on the lives of workers in their factories that bring their product to life. Nike looks at the first phase of the production process and see an important role in bringing about positive and systematic change within their supply chain and industry.
<Nikeinc.com/pages/manufacturing> access 27/09/2013.
           

Public- Higher education facilities; particularly globalisation groups and anti-sweatshop groups (an example being United Students Against Sweatshops) took campaigns against Nike <http://nikeresearch.blogspot.co.uk/2013/03/macro-and-micro-factors.html> access 27/09/2013
<http://peopleandplanet.org/navid10432> access 26/09/2013        
A variety of opinions based on Nikes products: “the last two pairs of Nike trainers that I bought have fallen apart in the first two weeks” and “I just got these new shoes and they are the most comfortable shoes I have worn” thus showing a distinction in opinion <http://reviews.nike.com/9191/510643/nike-free-run-3-womens-running-shoe-reviews/reviews.htm> access 26/09/2013
 

Collaborations- Apple and Nike have worked together to sell the Nike Ipod sports kit. <http://www.apple.com/uk/pr/library/2006/05/23Nike-and-Apple-Team-Up-to-Launch-Nike-iPod.html> access 25/09/2013
           Nike teamed up with Liberty to provide a new style to some of their biggest sellers i.e. the “Air Max” <http://www.teenvogue.com/fashion/spring-trends/2012-04/nike-liberty-london-collaboration/?slide=1> access 24/09/2013