c c c c c

Key Factors Weight Sponsorship Market

For Converse
Olympics for price
conscious
Key External Factors c
cc
c c
cc
c
Strong line of wholly owned .09 4 / .36 4 / .36
subsidiaries through acquisitions/mergers
Social responsibility/charities - price .07
reduction for developing countries
Jordan brand successful ± .06 2 / .12 3 / .18
1 billion in revenues
EMEA market growing .04
to equal U.S. market
Internet sales to reach 18% .12 4 / .48 4 / .48
(total sales) by 2012
Growing global market for c ccc c ccc
leisure clothingc
-iversified distribution channelsc c cc c c
cc c
Worldwide recession leads to job shortages c c ccc c
ccc
Substitute products in Asia ± value reductionc  c cc c c cc c
Impact of foreign currency fluctuation and c c c c
interest rates, and political instabilityc
Widespread advertising causes adverse c
cc c c ccc
publicity feedbackc
Missing market for price conscious consumerc c ccc c cc
c
Eco-friendly reputation criticized c c c c
(raw material consumption)c
Failure to obtain quality endorsements will c ccc c cc c
negatively affect brand and revenuec
Key Internal Factorsc c c c c
Acquisitions including Cole Haan, Hurley c ccc c cc
c
International, Converse Inc. and Umbroc
Strong sense of marketing campaign by  c cc
c c cc c
Sponsoring top athletes
Nike has no factories and does not tie up cash  c c c c
in buildings; therefore limiting its long term
debt obligations.
Extremely competitive company  c
ccc c cc c
Brand recognition is global  c ccc c ccc
Strong R & - resulting in a continually  c cc c c cc c
innovative product range
Employees more than 30,000 people c c c c
Worldwide
Company is dependent on the footwear  c cc c c
ccc
market; vulnerable to eroding market share in
one area - less diversification
-iscloses little to no information concerning c c c c
its partnering companies
Low price competition pressure is forced  c
cc
c c
cc
c
onto Nike affecting their retail price
Alleged reports of child labor in Pakistan and c c c c
Cambodia; charged with the violation of
overtime and minimum wage rates in Vietnam
Positioned as a subject of criticism by anti- c
cc c c cc c
globalization groups due to its unruly and
exploited manner
Considered as the expensive brand, it is c ccc c
cc c
difficult for the third world and Asian
countries to afford Nike products
TOTAL c
c c 
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