Weight Score

Weighted
Score
0.09 4 0.36
0.1 4 0.4
0.09 3 0.27
0.08 3 0.24
0.1 3 0.3
0
0.1 4 0.4
0.1 3 0.3
0.08 3 0.24
0.1 2 0.2
0.08 2 0.16
0.08 2 0.16
1 3.03
Barriers to entry is low
Weak Economy
Internet enhances sales than traditional sales models
Threats
Older Consumer is not willing to pay more
Strong compitition among branded and off brand companies
Fluctuation in foreign currency impects imports
Increas in unemployement
NAFTA & WTO eliminates Quotas & Tariff Barriers
Key External Factors
Opportunities
Younger Consumers are less Price Sensitive
Outsourced Production to cut expenses
US footwear imports are increasing
Weight Score
Weighted
Score
0.09 4 0.36
0.09 3 0.27
0.1 3 0.3
0.1 4 0.4
0.08 4 0.32
0.08 3 0.24
0
0.1 4 0.4
0.1 3 0.3
0.08 3 0.24
0.08 2 0.16
0.1 2 0.2
1 3.19
Nike sell products at global level
Key Internal Factors
Strengths
Nike is the dominent Competitors
Nike revenue is increasing
Nike is financially very sound company
Negative pulicity & boycotting of the nike product
Nike has many wholly owned subsideries
Companies web bassed marketing enhances sales
Weakness
Nike's net income is decreasing
Almost all the Nike's production is outsources
Sales are heavily concentrated in the youth market
Accounts payable has increased
Weight Score
Weighted
Score Score
Weighted
Score Score
Weighted
Score
0.1 2 0.2 3 0.3 3 0.3
0.07 4 0.28 3 0.21 2 0.14
0.04 3 0.12 2 0.08 2 0.08
0.09 3 0.27 2 0.18 1 0.09
0.15 3 0.45 2 0.3 2 0.3
0.09 4 0.36 3 0.27 1 0.09
0.09 3 0.27 2 0.18 1 0.09
0.12 4 0.48 3 0.36 1 0.12
0.12 4 0.48 3 0.36 2 0.24
0.07 4 0.28 3 0.21 2 0.14
0.06 4 0.24 3 0.18 2 0.12
1 3.43 2.63 1.71
Market Share
Advertising
Product Quality
Product Image
Financial Position
Product Safety
Customer Loyalty
Nike Addidas Puma Critical Success Factors
CPM
Price competitiveness
Global Expansion
Organizational Structure
Technology
2009 2008 2007 2006 Average
Industry
Median
EPS 3.07 3.8 2.96 2.69 3.13 0.39
ROCE 18.00% 25.40% 22.40% 23.30% 22.28% 19.40%
ROA 11.60% 16.30% 14.50% 14.90% 14.33% 13%
Assets
Turnover
1.5 1.6 1.6 1.6 1.575 1.4
Days Rec.
Outstanding
54 52 55 57 54.5 39
Days Inventory
Held
83 81 84 85 83.25 94
Current Ratio 3 2.7 3.1 2.8 2.9 3.5
Long-term Debt
to
Shareholders'
Equity
5.00% 5.60% 5.80% 6.50% 5.73% 6.00%
Nike Financial Ratio Year 2006-2009
The IE
Matrix
Strong
3.0-4.0
Average 2.0-
2.99
Weak
1.0-1.99
High 3.0-
3.99
Nike Inc. 2 3
EFE Total
weighted
score
Medium
2.0-2.99
4 5 6
Low 1.0-
1.99
7 8 9
IFE Total Weighted Score
Weight AS
0.09 4
0.1 1
0.09 1
0.08 1
0.1 4
0.1 1
0.1 4
0.1 1
0.08 3
0.08 3
0.92
0.09 3
0.1 3
0.08 4
0.08 1
0.1 1
0.08 1
0.1 4
0.63 Subtotal
Sum Total
Negative pulicity & boycotting of the nike product
Key External Factors
Key Internal Factors
Strengths
Nike is the dominent Competitors
Nike sell products at global level
Companies web bassed marketing enhances sales
Nike has many wholly owned subsideries
Weakness
Nike's net income is decreasing
Sales are heavily concentrated in the youth market
Threats
Increase advertising
and promotion
through social
networking such as
twiter and facebook
Alternative Strategies QSPM
Subtotal
Opportunities
Older Consumer is not willing to pay more
Strong compitition among branded and off brand companies
Increas in unemployement
Barriers to entry is low
Weak Economy
Younger Consumers are less Price Sensitive
Outsourced Production to cut expenses
US footwear imports are increasing
NAFTA & WTO eliminates Quotas & Tariff Barriers
Internet enhances sales than traditional sales models
TAS AS TAS
0.36 3 0.27
0.1 4 0.4
0.09 3 0.27
0.08 3 0.24
0.4 3 0.3
0 0
0.1 4 0.4
0.4 4 0.4
0.1 4 0.4
0.24 4 0.32
0.24 4 0.32
2.11 3.32
0.27 4 0.36
0.3 4 0.4
0.32 1 0.08
0.08 3 0.24
0 0
0.1 3 0.3
0.08 3 0.24
0.4 2 0.2
1.55 1.82
3.66 5.14
Increase advertising
and promotion
through social
networking such as
twiter and facebook
Acquire a less
expensive brand of
accessories,
sportswear and
promote them as an
off brand of nike
Alternative Strategies
Average
Revenue
in Million
$ % Revenue RMSP %GR
Converse 736 30.51 1 27.5
Nike Golf 673 27.9 0.914454 3
Cole Haan 478 19.84 0.650279 0.5
Hurley 175 7.2 0.235988 16.5
Umbro 114 4.72 0.154703 111.5
Bauer 184 7.62 0.249754 -39
Exerter 51 2.13 0.069813 -74
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