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Nike internal environment is containing of resources and staff. Resources; "physical & human resource" are manages and uses by staff "management staff & project staff ". Most Nike employees are former athletes and who have the experience in the field of sports supplies. It entered into contracts with renowned players. Management staff is responsible of planning, mentoring, controlling …etc.

Nike's capital spending - investment in infrastructure - in spent not on factories but on distribution infrastructure, such as warehouse, computerized management information systems, administrative buildings and retail locations.

This strategy has played a large part in ensuring Nike's business success and set a production trend which most other training shoe companies have eventually followed, moving manufacturing from their home country to lower-cost, usually Southeast Asian, countries. There was an additional benefit of this strategy in that allowed companies like Nike to distance themselves for a time from the working conditions in their overseas factories. Eventually, however, there was a backlash if criticism for this policy of using low-paid workers in developing countries to manufacture expensive shoes for sale in the USA, Europe and other wealthy economies.


The power of Nike, ensured that this success was short-lived that make Nike ready and flexible for changes and in other time a changes maker.

In designing the training shoe, Nike is aware to be a sport brand and a fashionable brand too in the same time. This feature distinguished Nike on its competitors. Nike didn't a manufacturing company in first position, it interests about designing in the precedence. The company took creative ideas and developed in order to be in the area of creativity.

Distribution through E-commerce ,Nike is first to market with its e-commerce web-site through the launch of its e-commerce site in April 1999 by offering 65 styles of shoes to the U.S. market. Nike improved its e-commerce presence by launching NIKEiD in November 1999. NIKEiD enables online consumers to make design for the shoes they purchase. Being the fir and Advertising and Promotion , Nike's brand images, including the Nike name and the trademark Swoosh, are one of the most recognizable brands in the world. This brand power is one reason for its revenues. The trademarks coupled with aggressive advertising campaigns, celebrity endorsements, < and quality products comprise the brand. Nike's brand presence was evident at the 1999 NCAA Basketball tournament when 42 of the 64 teams participating wore shoes provided. Nike's brand-building endeavors are focused on strengthening association with women's sports. Some examples are sponsorship of the 1999 Women's World Cup Soccer Tournament and U.S. Speedskating team in the 2002 Winter Olympics.

Products , Nike may have much success as a result of collaborating with other companies within the sports and fitness industry. But at other times, Nike expanded into markets for which it is not strategically suited. An example of this is the decrease in brands made available due to decrease in demand of in-line skating and roller hockey products at Bauer Nike Hockey. Consequently, Nike had to cease two manufacturing operations at the Bauer Nike subsidiary and was forced to terminate 51 employees. If Nike was able to anticipate the decline earlier, perhaps gradual changes could have been adopted to prevent such kind of limitation. The desire to prevent situations such as these from continuing to occur, Nike has realized to initiate more aggressive program to review product partnerships that are outside of its core basis of products.

Pricing , Nike's products are viewed to be of higher quality and command higher prices than its competitors. Sometimes though consumers do not agree to this line of thinking. This could be a potential weakness. To substantiate its high quality/high price lines, Nike is placing emphasis on the latest technology and applying innovation towards the development of new products, particularly the Nike Alpha Project which is a new line of athletic shoes. In the past, Nike has overlooked the mid- to lower-price-point products, which could be a possible weakness too. Recently, it is pouring time and money to better develop competitive position at all price points to build strengths at each of these levels. There is a lot of sales potential in the lower price points and plan to meet the needs of those markets.


Product development offers Nike many opportunities. The brand is fiercely defended by its owners whom truly believe that Nike is not a fashion brand. However, like it or not, consumers that wear Nike product do not always buy it to participate in sport. Some would argue that in youth culture especially, Nike is a fashion brand. This creates its own opportunities, since product could become unfashionable before it wears out i.e. consumers need to replace shoes. There is also the opportunity to develop products such as sport wear, sunglasses and jewellery. Such high value items do tend to have associated with them, high profits. The business could also be developed internationally, building upon its strong global brand recognition. There are many markets that have the disposable income to spend on high value sports goods. For example, emerging markets such as China and India have a new richer generation of consumers. There are also global marketing events that can be utilized to support the brand such as the World Cup (soccer) and The Olympics.

Nike is exposed to the international nature of trade. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. Such an exposure could mean that Nike may be manufacturing and/or selling at a loss. This is an issue that faces all global brands. The market for sports shoes and garments is very competitive. now commonly used and to an extent is no longer a basis for sustainable competitive advantage. Competitors are developing alternative brands to take away Nike’s market share. As discussed above in weaknesses, the retail sector is becoming price competitive. This ultimately means that consumers are shopping around for a better deal. So if one store charges a price for a pair of sports shoes, the consumer could go to the store along the street to compare prices for the exactly the same item, and buy the cheaper of the two. Such consumer price sensitivity is a potential external threat to Nike.



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