A Detailed Guide on Nike SWOT Analysis

Nike, Inc. is an American multinational company. The headquarter of Nike is located in Beaverton, Oregon, USA. Bill Bowerman and Phil Knight founded this company in 1964. The company is popular for manufacturing sportswear, footwear, apparel, sports kits, and accessories. 

The primary aim of Nike is to provide athletes with extraordinary products and wearable that helps them to perform better in sports.  Nike got a nice success and so it now offers athleisure wear too. John Donahoe is the CEO of Nike now. 

SWOT Analysis of Nike

Nike’s SWOT analysis will unveil the strengths and weaknesses that are restricting its development. At the same time detecting the opportunities and threats prevailing in the present market scenario will indicate their probable business policies to handle this situation. Here is the SWOT analysis of Nike in detail: 


It is very important to know the strength of an important and polar company. The strengths of a company help them to get the best positions. Nike is a very popular company and it has a few important areas. We have mentioned some of them below: 

  • The company successfully created strong brand awareness. The company is also connected to a few non-profit associations.
  • Being a sports garment company, Nike is successful in creating an outstanding customer base in the whole universe. They have a low manufacturing cost which enables them to keep their product range reasonable. That is why a lot of customers get attracted to the products of this company. 
  • The company completely controls its retail business along with its online business. Just like their retail businesses, they are also successful in their online business. 
  • The company is well aware of how to make campaigns. They are also connected to very popular athletes and also got credit for the quality of their products. 


Unlike other top-notch companies, Nike has a few weaknesses too. Apart from making the important areas of the company strong, working on their strengths may boost its services, and finally support its development. 

  • Although the company offers its services all over the world, the company mostly relies on the market of North America. 
  • The vendors received upper margin amounts and this is one of the most important drawbacks of this brand. 
  • There are a few charges against Nike related to their bad labor situations in different nations.  They faced a lot of arguments like lawsuits and sexual harassment.  The continuous highlight of their unfavorable fuss is hindering the development of their company. 
  • The outsourced production of the company is one of the important drawbacks of the brand. The firm should have a devoted team of workers for quality management and good brand awareness. Nike is unable to control its products due to outsourcing.  That is why the products may not be of the exact quality in every country. 


Nike is indeed one of the top-notch companies.  But the retail market, particularly the sports clothing market, is very competitive. A lot of high-rated companies are constantly striving their way to reach the top. Nike has to search for opportunities that may enable them to expand their company. 

  • The firm is associated with a few non-profit associations that may encourage them to manufacture additional creations from recycled derivatives in case one of the top-notch companies takes the responsibility to apply its R&D team to function on recycled derivatives that will indeed motivate other tiny companies. It will also be supportive of the environment and also send proper messages to the consumers. 
  • Nike must take away a chance by standing strong against any charges about the higher administration. The heavy amount of debates regarding the upper administration is ruining their impression. Nike must take necessary actions against labor treatment and sexual harassment, aiding them to create a more devoted crew. 
  • Nike may create more AR/VR-related derivatives as it has a successful online business. 
  • Nike is associated with many popular sports persons. Hence they will be able to grow more if they launch sports accessories,  sunglasses, or other style lines. 
  • Nike must make an effort to extend more in the international market by regulating the grade of its derivatives. 


In a greatly competitive market like Sports retail, the business of a company may get affected due to several threats. Trying to recognize them from Nike’s SWOT analysis may assist the firm to bring different policies that will contradict them. It will enable them to focus on their possibilities to extend. 

  • For most companies, the after-epidemic economy is producing at the wrong time. The top-rated companies like Nike are now out of the consequences of it. The pressure of the budget because of the low economy may wrongly influence their development. 
  • The existence of counterfeit derivatives is a great danger to the company. As the demand for these kinds of derivatives is myriad, Nike faces challenges to regulate them.
  • The retail market is willing to accommodate additional companies which creates a threat to the prevailing ones. Nike is indeed one of the top-rated companies; it becomes risky for them to confirm their greatly competitive market development. Multiple companies provide the best-graded derivatives at a reasonable price, enticing more consumers toward them. 
  • The brand importance of the company is in endless danger due to the charges against the upper administrations, inconsistent product quality, and poor labor treatment. 


For Nike the fiscal 2022 became very successful. Indeed, the company is still in debt, the next few years are supposed to be promising. Nike has developed incredibly in the previous decade. 

Some of its achievements of Nike are the release of fresh product lines, the creation of unique trademarks, outsourcing, and creating an international existence independently. 

You will be able to comprehend the business model of the company through this SWOT analysis of Nike. For further assistance you may get in touch with My Assignment Writing Help


  1. What are the strengths of Nike?

The strength of Nike is as follows: 

  • Internal Strategic Factors
  • Strong Brand Awareness and Brand Value
  • Huge Customer base
  • Aimed For Sustainability
  • Iconic Relationships
  • Side Brands
  • Low Manufacturing Cost
  • In-house Professionals
  • Superior Marketing Capabilities
  1. What is the strategy of Nike?

The development strategy of Nike concentrates on innovation, sustainability, and expanding its worldwide reach. The company sounds a lot in investigation and growth to make new derivatives that fulfill the requirements of consumers as well as athletes. 

  1. What is Nike’s competitive advantage?

The competitive policy of Nike is supposed to be competitive because of their low cost system. They have an incredibly low cost to make proportion compared to how much they are actually selling their derivatives for. Moreover, they see their derivatives to a large target of customers. 

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