MARKET ASSESSMENT
MARKET ASSESSMENT
How is the market characterized?
NIKE is the largest seller of athletic footwear, apparel, and equipment in the world.
Are there clear segments in the market? Describe them.
Nike segments are sneakers, athletic wear, accessories. Every product of Nike is well-known.
What important customer need(s) is the market not currently fulfilling?
Although Nike makes just about every product out there, I feel they are lacking in plus size products for consumers.
What opportunities and threats does your firm face?
Threats
· Nike faces competitor’s affordability to their products versus Nike high price products.
· There is always the threat of new entrants.
· Failure to maintain our reputation and brand image could negatively impact our business.
· General economic factors beyond our control, and changes in the global economic environment, including fluctuations in inflation and currency exchange rates, could result in lower revenues, higher costs and decreased margins and earnings.
· Global economic conditions could have a material adverse effect on our business, operating results, and financial condition.
· Failure to continue to obtain or maintain high-quality endorsers of our products could harm our business.
· Failure to accurately forecast consumer demand could lead to excess inventories or inventory shortages, which could result in decreased operating margins, reduced cash flows, and harm to our business.
Opportunities
The rising middle class in regions like China are increasingly demanding athletic apparel. These largely untapped markets could provide big opportunities for companies like Nike. https://www.businessinsider.com/risks-to-nikes-business-2015-6 [accessed 18 Jun. 2019]
What does an analysis using the Five Forces model suggest about your industry? Who is your competition (in light of the Five Forces)?
If suppliers are powerful then they can influence or impact the company too much. Strong buyers require
• Significant cost
• Supplier’s power to meet buyer’s power
• Brand should be powerful
• Desire and devotion of suppliers
• Customers need and targeted customers
Nike is strong at all and has potential suppliers all over the world. In 2000 NIKE has distribution and sub-contractors mastery, cheap labor and raw materials, low Tariff and duties of a country, Nike had 565 contract factories in 46 countries. The bargaining power of suppliers was comparatively very low. https://mba-tutorials.com/porters-five-forces-model-of-nike/ [accessed 7/18/19]
B. Customer Analysis
Who will be your customers?
Our customers will be consumers of all ages with foot ailments.
What do you sell to each of the customers?
The promise to help those with foot ailments
How does your product/service solve a key customer problem?
Being able to customize a fitting sneaker/shoe will help those consumers not to feel pain.
How difficult is it to retain a customer?
Nike has no issues retaining a customer. They take pride in their products to produce top-notch products.