We have just recently changed our collection period from 90 days to 60 days as an attempt to encourage faster payment. The equity is also a safe pick, with an A++ Financial Strength rating and relatively low levels of debt. Nike has many strengths and weaknesses as a consolidated company in a market that is competitive by nature, as are the sports. Their clothing and shoes are competing with Nike's. The company itself has acknowledged that the low wages for some of its workers remains a concern. Read: Strengths: Brand Image — A strong brand image is a key strength for any brand.
The number of Converse stores internationally has also grown to 45. It also has operations in Argentina, Brazil, India, and Mexico. In relation, the company has opportunities to integrate mobile technologies in its products to capture consumers who frequently use mobile technologies, such as mobile apps and online tools. Nike sells its products through retail accounts, Nike-owned retail stores, internet websites, and independent distributors and licensees throughout the world. The sector with the worst average Zacks Rank 16 out of 16 would place in the bottom 1%. The market share of any company is based on four measures, they are as follows:- 1. Focus — Weakness Focusing on applied research can be a weakness as well.
The software we have been using for the past few years called, Connect: Remote, made by Sterling Commerce Inc. Puma does not compete strongly with brands like Nike or Adidas, their products are also substitutes but it does not has a wide range and variety. Promising growth exhibited by e-commerce platforms in emerging countries, including India and China, is compelling manufacturers to reorient their distribution strategies for these countries. While retaining our company's long-standing tradition of placing performance through new-product development as a top priority, a never-before seen element of fashion will receive a second-place priority built into our products and image. Short-Term: Decrease our cost of sales from 62. The reasons that the companies want to increase their market share is based on the following: — 1.
We also sell athletic apparel carrying the same trademarks and brand names as many of our footwear lines. Most importantly, we will continue to meet the ever-changing needs of our customers, through product innovation. While the mission does broadly identify the business we are in, namely the sports and fitness industry, it is not specific as to what products and services we provide. It can either acquire a few of them or build some of its own which will help it have a more agile and stronger supply chain and find faster growth. In 2017, Asia Pacific accounted for the highest shipments at around 260 million units and is anticipated to continue its dominance from 2018 to 2025.
Higher legal pressures — The legal pressures over businesses have grown globally leading to higher pressure related to ethics and compliance. Porter Five Forces is a holistic strategy framework that took strategic decision away from just analyzing the present competition. Nike is a company that has attained success in the market thanks to the excellence of its products and the passion for everyone to use its brand products that create the Nike Just Do It feeling for the competition. Rapidly growing economies like China, along with other emerging markets like India and Brazil, have the potential to drive future earnings growth. Modest inflation, low unemployment, and a booming stock market will all contribute to healthy consumer spending. The company is the largest seller of athletic footwear and apparel in the world. The trekking and hiking shoe segment is anticipated to exhibit healthy growth during the forecast period owing to technological advancements that have ensured more comfort and flexibility for the hikers.
It can exploit both ecommerce and physical retail channels for international expansion. Because of such research, we have decided to revamp our apparel division, an area in which we can still greatly improve. For that reason, the newer generation is attracted by Adidas and Tommy Hilfiger. Backward integration- Nike currently relies totally on independent manufacturers for the production and supply of its products. For instance, exists different marketing tools that firms use for competition, such as branding and personal selling to differentiate their offerings and advertising.
After our analysis, we conclude that Nike is undervalued at its current share price and recommend buying this stock. Competitiveness Review, 24 1 , 32-45. The problem is that the athletic shoe market is already full of different brands and companies. Because Nike has such a strong history of effective marketing in key global regions, concentration is an alternate strategy. Unit 6 Assignment 2 Nike, Incorporated Company Analysis Michael G.
While China accounted for roughly 9% of 2014 revenues, the company believes this figure will rise as it continues to enhance its brand image there. Total number of Nike brand factory stores is now 642 and that of brand in line stores is 71. This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. This condition creates a strong force, as Nike and other companies compete for a market that grows slowly. About the author: Value LineSmart investors know Value Line is the go-to source for unbiased, expert analysis and guidance. Promotion: promotion includes sales promotion, advertising, sales force, public relations, direct marketing and the company also uses its catalog for promoting of their products worldwide. The company produces footwear for running, training, basketball and soccer use.
However, the cost of its footwear is higher than most of its competitors, which make its products out of reach for many customers around the globe, particularly in emerging markets. Intense competition, fashion trends, and price conscious consumers have slowed growth in this industry. The fact that we are not leaders is ultimately a weakness. In conclusion, consumers are always going to prefer products from companies like Nike or Adidas because they have sold them the idea that their products are at the top of the market, and indeed, they are. Consequently, long-time competitors like Saucony and K-Swiss have been struggling for years just to keep their brands alive.