Porter's 5 Forces analysis of Nike Inc: Cost Of Capital Case Help

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Porter's 5 Forces analysis of Nike Inc: Cost Of Capital Case Study Help

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Nike Inc: Cost Of Capital Case Solution might be performed to create numerous methods utilizing the strengths of the company to get opportunities, conquer weak points and to minimize the dangers. It could likewise be utilized to examine that how particular weaknesses resist particular opportunities and increase the hazards. The strategies drafted using the Porter's 5 Forces analysis of Nike Inc: Cost Of Capital Case Analysis are given as follows;
• Utilization of strong global brand position and financial resources in broadening towards possible markets.
• Special brand name experience could help out the company to better position itself in new markets.
• Resistance in expansion in the prospective global markets encouraging variety.
• High prices restricts the expansion in various Asian and African nations with low per capita income.
• Strong brand name recognition, non-traditional methods of marketing and the distinct brand name experience might be used to minimize the threat from prospective clients.
• Strict look policies could caused the customer shift towards Victoria with high social obligation.
• Limited target markets could led to a decline in the overall market share of the company.
These techniques could help the business to improvise its market position and be at the leading position in the market.

Financial Analysis


Monetary analysis for Porter's 5 Forces analysis of Nike Inc: Cost Of Capital Case Help could be performed to evaluate the accessibility of financial resources to the company that could be utilized in growth towards global markets. The financial position of the business might be evaluated by utilizing the information given in the case Exhibit 1. The ratios that could be considered in monetary performance analysis are given in the Table 1 listed below;

From the above Table 1, it might be seen that the business has an affordable monetary performance with a ROE of 7.9% and a high sales growth of 18.4%. Although, a 4.3% net earnings margin does not appears to be possible and the company must put efforts in increasing its incomes together with decreasing its operational expenses to increase its earnings margins.

Porter's 5 Forces analysis of Nike Inc: Cost Of Capital Case Help

Segmentation

The segmentation analysis includes the analysis of different service sections of the company in domestic and the international, markets. Most of the business's Physical stores lie in US including above 500 stores in nearly each of the state of US. However, the business has also an international presence in 8 different nations with its greatest number of stores located in UK i.e. 21. The companyhas a total of 54 stores in worldwide markets that is most likely the 10% of its stores in the US. It suggests that majority of the incomes of the company come from the regional markets. Moreover, the company is thinking about to broaden its shops into 7 more European and Asian countries. A chart revealing the existence of the company in numerous worldwide markets is given in the Appendix 2.

Targeting


The business targets its clothes brand to the young, high and good-looking teens and kids that are thought about to be cool. This targeting policy is responsible for various distinctions in the company related to its competitors. The company employs great looking males and females for its stores and follows a stringent look policy to preserve tourist attraction of good-looking people towards its stores and supply a special brand name experience.

Positioning


The company has actually positioned its brand name as a high-end brand name targeting only a particular market segment. The business with its non-traditional methods of marketing through models and representatives posters its brand image as a luxury clothes brand targeted to the cool and attractive characters in society. Although, this market position attracts various elite people towards the brand name however it harms the business's position in different neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Nike Inc: Cost Of Capital Case Solution deals with a great deal of competition in the market with the presence of various variety of competitors in the market. A chart showing the close competitors together with their attributes and the marketing method is given up. it might be seen that the American Eagle Outfitters is thought about to be the strongest rivals for company with its marketing strategy associated to the television programs. Gap is also thought about to be a possible competitor in regional as well as in worldwide; markets as the business is thinking about to move in the worldwide markets. Together with it, Nike Inc: Cost Of Capital Case Study Help. with its versatile prices strategy and the Victoria's Street with its strong social status posture a severe danger to the existing market share of the Porter's 5 Forces analysis of Nike Inc: Cost Of Capital Case Analysis.



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