Every business, whether small or big, must have a business plan to be able to achieve the goals that it was established to meet. The program acts as a guide on the progress of the business in all significant aspects of the company. The plan also gives an overview of the business strengths and weaknesses, as well as identifies some of the major competitors and the threats they pose to the business.
Two-business men joined forces in the year 1962 to form a firm that would import Japanese shoes. The founder of the firm Bill Bower and Phil Knight at the time labeled it Blue Ribbon Sports. The firm later changed its name to Nike the title, which is famous all around the world. Since then, the firm has grown into the number one producer of sports shoes and other sports products (Nike Inc., 2013).
Nike is currently one of the leading brand names not only in shoes but also in other sports equipment. The company products are divided into four categories, including tools, clothing, and apparel. Some of the sports equipment that is produced by Nike includes Nike Golf, Nike+, Nike skating boarding, and Nike Pro. Nike products are sold all over the world, thus giving it an edge against its competitors in the business. The firm currently has its products being sold in more than 160 countries worldwide. In the United States of America alone, the firm has over 22,000 retail outlets. According to a fiscal report in the year 2008, all the products sold by Nike came to about $18.6 billion. Footwear products accounted for 52%, equipment 6%, apparel 28%, and others 14%. The firm also sponsors some of the world’s best and renowned athletes (Micheletti, 2004).
The firm is currently the number one supplier of sports equipment, shoes, and sports apparel; it now controls about 47% of the athletic shoe market. The firm sells its products to over 100 countries in the word, and its primary target markets include Europe, the Americas, the United States of America, and the Asia Pacific. The firm has so far been able to secure its position in the primary target areas through keen marketing strategies, and the production of quality products (Blackwell, 2008).
The firm currently has about 800,000 who make its products in the 700 factories based in nearly 52 countries. The factories are based in China, Thailand, Vietnam, and Indonesia. About 80 % of all the workers in the factories are women who are aged averagely 18-24 years. Labour rights have been a significant concern in the firm for some time, but some reforms are being implemented, for example, no employee under 18 is allowed to work in any of the factories. The issue of employing persons less than 18 years has been given the highest priority after it emerged that some of the factories had used children, thus flouting the labor laws (Blackwell, 2008).
Nike has also allowed the labor authorities in countries where their factories are based on conducting a regular inspection, on looking at the working conditions and any other labor laws that have been flouted. The labor authorities have also been permitted to verify the ages of the employees by looking at their documents (Nike Inc, 2013).
In the past, workers who complained about the poor working conditions were fired. Those who were found to have spoken to journalists about the poor working conditions, mistreatment, or any other violation of their rights was victimized. However, the situation has since changed, and the workers are at liberty to express their views on anything that they might think is not fair to them (Parkinson, 2006).
Nike has customers all over the world who cherish its products; however, there are some notable significant customers. Nike’s most prominent clientele adore sports products, and they are drawn from basketball, aerobic, tennis, and jogging. All the considerable clients buy products in all the four categories of products produced by Nike. Many of the other big clients are soccer based companies that kit and sponsor various teams around the world (Nike Inc, 2013).
In every business venture, competition is bound to exist, and sports products business is not an exception. Some of the major competitors of Nike include Reebok, with a market share of 16%, Adidas 6%, and New Balance 3%. Converse also held a market share of about 3%, but Nike bought the firm and made it an affiliate brand. Nike still controls the highest percentage of the market, with about 47% (Nike Inc, 2013).
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Nike is a global brand that is well known for its excellent quality; its logo and slogan are familiar with millions of people across the world. Nike has a very reliable and efficient research and marketing team. Thus the department can advise the management on any issue that can help in the improvement of the firm’s sales. The products are produced in Far East countries where the cost of production is low. Therefore, more energy is spent on marketing (Nike Inc, 2013).
The firm spends a lot of money on advertisement and loyalties. It has a lot of different sports product, but unfortunately, only one of the footwear section is doing well compared to other parts such as sports equipment and apparel. Such a situation can be abused by some of the major competitors, who might decide to focus on producing goods that are not doing well in terms of sales at Nike (Parkinson, 2006).
Threats are always in business and cannot be eliminated. The most viable solution is to reduce their effects by the use of any appropriate means. One of the major threats is the ever-increasing competition because some of the major competitors have been growing stronger in recent years. The other danger is the overflow of counterfeit products. The fake products especially are the continent of Asia has led to the firm losing millions of dollars. The last threat is cost as most of the products sold by Nike have prices that are higher than the ones produced by other firms. Most of the people feel that Nike should reduce the number of their goods (Parkinson, 2006).
Nike should take advantage of the internet, which is the avenue for meeting more potential clients. Nike can allow their clients to order and pay for their products online then they can later pick them up at the nearest retail store or let them delivered to their doorsteps. The firm can also put up a database that can be able to get the feedback of their clients and have them post their views on various products (Micheletti, 2004).
A business plan is a very vital part of any firm that is involved in the business. It guides the company on various issues that affect the firm, such as the marketing of products and the strategies to be followed to ensure efficient sales. The plan also gives a summary of the strengths and weaknesses of the firm. Therefore, the firm can improve on the gaps to provide better deals. It also allows the firm to improve on its strength.
- Blackwell, E. (2008). How to prepare a business plan (5th ed.). London: Kogan Page.
- Micheletti, M., Føllesdal, A., & Stolle, D. (2004). Politics, products, and markets: exploring political consumerism past and present. New York: Transaction Publishers.
- Nike Inc (n.d.). Nike Inc. Retrieved November 23, 2013, from http://sec.gov/Archives/edgar/data/32018
- Parkinson, M. G., & Ekachai, D. (2006).International and intercultural public relations: a campaign case approach. New York: Pearson/Allyn & Bacon.