Future Opportunities and Threats
Nike’s future will be filled with new opportunities to expand the company. As technology is always changing and developing it has allowed brands to connect to every part of the world whether there is a physical shop there or not. It allows brands to connect with their customers in not just a buying and selling but to create a relationship between consumers and Nike. With new technology in the future Nike has the opportunity to expand their already global market to the next level, they have already made a start to this by creating the Nike+ Running App. Since Nike is one of the most successful businesses in the world, they have the opportunity to keep on expanding their business, they already have products specialising in different sports like Nike Golf and Nike Tennis. In the future Nike could expand this range of sports therefore creating a wider range of consumers.
One of the biggest threats that Nike faces are brands that are merging to compete with the powerhouse that is Nike. Adidas, probably Nikes biggest competition had a huge marketing scheme that was to merge with Reebok to compete against Nike. Adidas announced a $3.8 billion deal to buy Reebok, which unites two of the world’s top sport companies and thus creating a much stronger challenge to Nike. Another threat to the business is that consumers are becoming more and more conservative and the retail sector is becoming substantially price competitive, this ultimately means that consumers are shopping around for better deals. Customers have the power over the business and the manufacturers, since there are so many different options consumers can choose from, customers can simply walk store to store and find the best deal.
Nike’s future will be filled with new opportunities to expand the company. As technology is always changing and developing it has allowed brands to connect to every part of the world whether there is a physical shop there or not. It allows brands to connect with their customers in not just a buying and selling but to create a relationship between consumers and Nike. With new technology in the future Nike has the opportunity to expand their already global market to the next level, they have already made a start to this by creating the Nike+ Running App. Since Nike is one of the most successful businesses in the world, they have the opportunity to keep on expanding their business, they already have products specialising in different sports like Nike Golf and Nike Tennis. In the future Nike could expand this range of sports therefore creating a wider range of consumers.
One of the biggest threats that Nike faces are brands that are merging to compete with the powerhouse that is Nike. Adidas, probably Nikes biggest competition had a huge marketing scheme that was to merge with Reebok to compete against Nike. Adidas announced a $3.8 billion deal to buy Reebok, which unites two of the world’s top sport companies and thus creating a much stronger challenge to Nike. Another threat to the business is that consumers are becoming more and more conservative and the retail sector is becoming substantially price competitive, this ultimately means that consumers are shopping around for better deals. Customers have the power over the business and the manufacturers, since there are so many different options consumers can choose from, customers can simply walk store to store and find the best deal.