TOWS and CSF

NIKE	THREATS 1. Triple dip recession 2.  Negative media and pressure groups 3.  Intense competition eg Adidas; cheaper imported footwear from Asian countries 4. Pollution permits and G8 Summit goal to reduce emissions by 2050.	OPPORTUNITIES 1.  Interest rates- consumers may have more surplus cash, which they are willing to spend on luxury goods. 2. Increase in health awareness with regards to weight loss and benefiting those with problems such as high blood pressure and cancer. 3. Government funding towards sport and large programmes set up by leading companies (Sainsbury’s) 4. Growing opportunities in India- increase in India’s urban middleclass; Indian government has removed restrictions on foreign direct investment, meaning Nike can have full ownership of its Indian operations. 5. General growth of the global footwear market- By 2016 its predicted to increase by 28.9% since 2011. 6. Promotion of sport due to the Olympics.
WEAKNESSES 1. Suppliers- They depend on 3rd party manufactures eg China, so they has little control over the product quality. 2.  Competitors ie Adidas are creating similar products i.e. customization. 3. Limited control over contract manufactures, the contract manufactures of Nike have been criticised for the violation of labour laws. 4. Nike was criticised for the use of child labour, this lead to anti-sweat shop groups campaigning against Nike.	Remedy weaknesses to minimise threats o    Try and move away from totally relying on third parties as this will help to reduce costs and improve quality of the products and reduce the amount of media controversy. o    Because competitors are starting to develop similar products i.e. Adidas, Nike needs to develop new and advanced products and customization which will help them keep their competitive advantage.	Remedy weaknesses to take advantage of opportunities o    By moving into INDIA, Nike can contract out more factories there; this will enable them to have more control over their manufactures. o    They could use large sporting events such as the Olympics and programmes such as the Sainsbury’s sport one to show that they are committed to try and get their reputation back on track after event such as bad press over sponsors and allegations about breaking labour laws.
STRENGTHS 1. Broad distribution network i.e. sells its products globally 2. It’s a worldwide brand leader. 3.  Nike has a large market share. 4. Nike uses new technology to innovate products and to give them a competitive edge e.g. Nikes partnership with Apple. 5. Offers wide variety of footwear products and allows customization as well.	Use strengths to minimise threats o    Due to the current recession and unemployment rates Nike could use its strong research and development and technological advances to develop a range of high quality, yet more affordable shoes. o     Because Nike has increasing profits each year, it can take on board the aims from the G8 and look into creating more efficient production line, creating less emissions and reducing the company’s carbon footprint. o    Nike has been subject to negative media regarding some of its sponsors and also pressure groups for environmental and political issues, so by using the fact that it’s a worldwide brand leader it can invest in sponsoring up and coming sport stars or people who are established, admired. This would help to change their public image and steer away from negative press. In relation to pressure groups Nike could actively show that it is monitoring working conditions in its production line.	Use strengths to capitalise on opportunities o    They can branch into other areas of the world i.e. INDIA because they are brand leaders and have a huge market share and intermediaries and distribution around the world. There is a growing urban middle class and strong demand for international brands and lifestyle products, which Nike can benefit from. o    Nike can use its high status and technological advances to develop products and services that will link into government investment in sport and programmes i.e. Sainsbury’s- kids sports. o    They could also look into using their current position to influence health awareness schemes and the advantages sports has on them

Above is our TOWS analysis and critical success factors, we used macro ideas to create threats and opportunities and micro factors to create weaknesses and strengths.

We now going onto prioritise all of our factors and start to create our infographic.

Kirstin Ledson & Chelsea Lane

5.00pm 1st March 2013