Macro and Micro Factors

We have looked into Nikes various Micro and macro factors which are as follows:

Micro (internal factors that affect your brand)

Competitors-

PUMA AG Rudolf Dassler Sport

K-Swiss Inc.

LaCrosse Footwear, Inc

Dick's Sporting Goods, Inc.

New Balance Athletic Shoe

Adidas AG ---Adidas have currently branched out into customization of footwear products; it is important that Nike are aware of this so Nike can sustain its competitive advantage over them. Adidas’s revenue- $18,580.2 million in financial year end of 2011 fy2011 whereas Nikes revenue= $24,128 million (last financial data given on Marketline).

Collaborations-

Apple and Nike have collaborated together to sell a Nike Ipod sports kit (branching out into new markets).

Suppliers-

Nike outsources almost all of its footwear production to independent third-party suppliers (Asia). As Nike gets its merchandise from foreign manufacturers, it has little control over the product quality. For instance, there have always been concerns over unsafe Chinese consumer products.

Publics-

Many colleges and universities, especially anti-globalization groups as well as several anti-sweatshop groups such as the United Students Against Sweatshops, took campaigns against Nike. These kinds of instances show that Nike has limited control over its contract manufacturers. Thus, any future instances like these could damage the company's reputation.

Intermediaries-

These are companies that also sell Nike footwear: JDSports, ASOS, Sports Direct, Schuh, Office, Footlocker, Very, Amazon.

Company-

These are other brands that Nike own: Converse, Cole Haan, Converse, Chuck Taylor, All Star, One Star, Star Chevron, Jack Purcell, Hurley, Umbro.

Macro (external factors that effect your brand)

Political- 

legislations- China has passed 2 new laws in 2007 to improve workers rights, bans, imports laws in sweat shops, pressure groups, Europe referendum- 50% of UK products go to Europe, so if we break off from Europe it will effect organisations. Vat 20%. In Japan importation of sports shoes requires a submission of notification to the ministry of economy, trade and industry. Pressure groups. There are environmental pressure groups that are against particular aspects of the brand. There was criticism on some of the adverting campaigns, which has some backlash eg T-shirt slogans included ‘dope’ and ‘get high’. There was a huge disputes and criticism over wages and working conditions in the production of Nike shoes in Asia.

Economical- 

Sales tax is added onto the imports of Nike shoes for example in some countries like Ireland it is 23%. Inflation= 2.7% and interest rates are low at the moment, this means that consumers may spend more. The Chinese footwear market is expanding rapidly and its expected to surpass the US in the next decade as the worlds largest consumer market,  unemployment levels in UK fall to 7.7% (2.49million people),  We are going into a triple dip recession.

Social-

Ageing population, obesity- 60.8% of adults and 31.1% of children are overweight (BBC 2009) There is an increased focus on doing physical activity to help control weight loss and even control diseases such as heart disease and cancer. There are also programs/action plans to help raise awareness for sports for example Sainsburys sports for kids. The Government invested £300million funding package into UK Sport and the Olympics

Technological-

There has been growth in technology within the production and development of the footwear products. There has also been developments and growths within advertising using technology for example online media, apps ect. There has been a huge increase in online shopping and new products being brought into the market for example IPads and smart phones which enables buying online or on the move much more efficient and common.

Environmental-

(G8 SUMMIT) - global targets set by 8 richest countries in world; by 2050 they wish to have halved emissions. There are pollution permits in place to regulate the amount of pollution a company can emit eg 100 units of carbon dioxide per year. This is an incentive for firms to cut pollution.

We will now go on to use these to create a TOWS analysis, from this we are able to assess and priorities Critical Success Factors (KSF).

Kirstin Ledson and Chelsea Lane

3.00pm 1st March 2013