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| Strategic Analysis Methods and Tools | September 2016
Contents
I.
NIKE OVERVIEW......................................................................................... 3
1.
History of Nike........................................................................................ 3
2.
3.
Competitors............................................................................................ 5
4.
Products.................................................................................................. 5
II.
PESTLE ANALYSIS....................................................................................... 6
1.
Political factors....................................................................................... 6
2.
ECONOMIC FACTORS............................................................................... 6
3.
SOCIAL Factors........................................................................................ 6
4.
TECHNOLOGICAL FACTORS.....................................................................6
5.
LEGAL FACTORS...................................................................................... 6
6.
ENVIRONMENTAL FACTORS.....................................................................6
III.
SWOT ANALYSIS...................................................................................... 7
IV.
1.
THREAT OF ENTRY................................................................................... 8
2.
THREAT OF SUBSTITUES.........................................................................8
3.
POWER OF BUYERS.................................................................................8
4.
POWER OF SUPPLIERS............................................................................. 8
5.
COMPETITVE RIVALRY.............................................................................8
V.
VI.
VII.
VIII.
IX.
COMPETITVE ADAVANTAGE (question 4 Anu) and prove by financial
indicators......................................................................................................... 8
PAGE 1
I.
2001
3.97
3.59
2002
4.26
3.31
2003
4.56
4.3
2004
7.04
6.8
2005
15.9
10.96
2006
16.39
9.03
2007
21.75
13.66
2008
23.68
7.68
2009
22.03
10.98
2010
2011
NIKE
63.45
71.15
ADIDAS
14.61
13.97
201
2
86.8
9
18.1
6
2013
2014
2015
48.6
9
69.28
86.2
25.38
16.12
17.1
NIKE, Inc.
CONSOLIDATED STATEMENTS OF INCOME
ADIDAS
8/31/
15
8/31/
14
Cha
nge
$8,41
4
4,419
$7,9
82
4,26
1
3,72
1
46.6
5%
3,995
47.5
%
2015
2014
change
9.190 $
48.3%
7.790 $
47.6%
18%
4%
7%
PAGE 2
Demand
creation
expense
Operating
overhead
expense
Total selling
and
administrative
expense
% of revenue
832
%
897
1,74
5
1,58
3
10%
2,577
30.6
%
2,48
0
31.1
%
4%
Interest
expense
(income), net
Other (income)
expense, net
Income before
income taxes
Income tax
expense
Effective tax
rate
NET INCOME
4
(31)
9
3
1,445
266
1,22
9
267
18%
0%
18.4
%
1,179
21.7
%
$962
Earnings per
common
share:
Basic
$1.38
Diluted
$1.34
$1.1
1
$1.0
9
-7%
8.303. $
6.980
19%
1.916
397
1.027
305
87%
30%
32.9%
29.7%
23%
1519
722
24%
3.32
2.72
22%
23%
3.32
2.72
22%
1.80
1.68
Weighted
average
common shares
outstanding:
Basic
854.5
Diluted
877.3
Dividends
declared per
$0.28
864.
9
886.
2
$0.2
4
PAGE 3
common share
NIKE 31%
ADIDAS 16%
REEBOK 6%
PUMA 7%
CONVERSE 4%
OTHERS
In this graph we can observe that Nike is the leader of the worlds footwear
market standing fare from there competitors with 31% of the shares. While
Adidas has only 16% and Reebok only 6%.
Furthermore after observing the US, which represents 40% of NIKEs total
sells, NIKE possess 60% of the running gear Market, 90% of the Basketball
sneakers (which represents almost all the market).These numbers clearly
witnesses the undefeatable leading position Nike keeps in the world.
Pricing strategy: Nike has value based/price leadership strategy that offers
the customer with the price that customer value so it has high prices for its
products as it has niche market to serve with valuable products.
Nike has become so well known that most people will pay more dollar for
quality products for this product. That is why Nike uses Cost Based/Value
Based Pricing other than its competitors
http://www.annualreports.com/Company/adidas-ag
http://investors.nike.com/investors/news-events-and-reports/investornews/investor-news-details/2015/NIKE-Inc-Reports-Fiscal-2016-First-QuarterResults/default.aspx
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