Strategic Analysis Unlocking Nike Inc.'s Competitive Edge Through Marketing Excellence



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Nike Inc. is a well-known sportswear company. Development and amplification of the products according to the needs and demands of the customers have been made possible by the integration of technological advancement and diversification of the products that are related to sports. In this report, the business environment in Nike has been taken up by the comparison and analysis of the external and the internal environment of the company. Evaluation of the 7Ps of marketing strategy has been taken up which will give an understanding of the reason behind the success of the company. Recommendation has been taken up for the increase in the competitive advantage of the company. 


The main objective of this report is to understand the business environment that is present at Nike and how Nike can increase their competitive advantage in the UK market. The utilisation of the 7Ps of marketing strategy has also been taken up in the objectives. 

Business environment in Nike Ic

The marketing notion refers to a collection of tactics used by corporate organizations to study the requirements of their customers as well as put into action plans to address those demands, increasing sales, maximizing profits, and outperforming current promotions. The selling, production, product, marketing, and societal pillars form the foundation of the marketing idea. No organization can conduct marketing activities without the support of marketing operations. Nike advertises their products using a variety of strategies (Farida and Setiawan, 2022). In addition to direct marketing, they also comprise advertising, personal selling, and sales promotion.

The company's primary source of income is advertising, where well-known celebrities are used to promote the company's brand. Customers are made aware of Nike's goods and services thanks to its marketing. This encourages consumers to interact with the goods offered by businesses, which in turn encourages them to make profitable purchasing decisions for Nike. As part of Nike's business plan, there is a marketing strategy (Elgarhy and Mohamed, 2022). By doing this, the organization is better able to develop and sustain demand.

Nike chooses prominent athletes who can influence consumers' tastes, opinions, and purchasing decisions to represent its brands and promote its goods. Moreover, Nike's marketing raises customer engagement. This aids the organization's business expansion as well. The marketing helped to forge a close bond between Nike and its clients. The marketing also raises Nike's brand value, which has a positive effect on the company's business climate.

Cooperation with the departments in Nike

Various departments cooperate with marketing activities to achieve the desired goal of the organization. The marketing department will work closely with the production department, and this will help in making sure that there is an adequate amount of research and envelopment, and this will help in planning and satisfying the current and future needs of the customer. In this case, the item can be manufactured based on the quality and design specification that has been laid by the customer.

Also, another crucial thing that the marketing department needs to work on with respect to the production department is the volume of the order that has been generated by the whole marketing department and thus this can be met within the schedule (Londhe, 2021). The marketing department also works closely with the finance department and makes sure that there is a surplus budget to meet the desired needs for research work, promotion of the new product, and distribution. 

All these aspects happen by making the marketing department as this department actively works in collaboration with other departments. Human resource management also works with respect to the marketing department and this human resource department makes sure that adequate skills and staffing levels are there in the organization. There are the ones who will be concerned with the research and development of new products and ideas.

They are the ones who can meet the production targets. This human resource management is one who has the potential to create a sales team who will work for the organization to achieve the desired objectives. The whole concept is a large term, and this concept is much bigger than selling the product. This marketing is a specialized activity, and it will happen with other business activities. The marketing department cannot operate itself, but it will require other departments and then only it will help the organization to achieve the desired result for the organization. 

Analysis of internal and external environments

The impact of the internal and external environment on the marketing success of Nike Inc can be done by the analysis of SWOT analysis. 

The analysis of internal factors will happen only with the help of a SWOT analysis.


The Company aims at manufacturing and distributing the width and sizes of superior apparel and athletic footwear. The company also aims to utilise modern technologies sin the process of production, and this will help the company to enhance the engagement of customers. There is a rapid delivery of sports goods to the customers, and this is done by the client who starts the shipping method with respect to time and price. The company also tries to create its own brand recognition. 


The Company does not provide a well-developed system for the process of training. Due to the excessive cost of the product, there is an extremely high demand for athletic apparel and footwear. There are an inadequate number of loyalty programs, and this creates more problems for the company.

 External factors will include the threats and opportunities 


There should be proper cooperation between domestic manufacturers and retailers and suppliers. The company has greater opportunities to expand to various countries by using different marketing strategies. There will be easy customer attraction, and this will only happen with the help of British athletes and celebrities.


There is intense competition in the market, and this can lead to a decrease in the demand for the product. There might be a situation that will eventually lead to an increase in the cost of materials, and this will lead to financial losses. The most important perspective is that there has been a notable change in the taste of the customer as the customer is interested in going with the product that will fit in the budget.

Comparison of 7Ps

Using the 7ps Nike and the other footwear company Puma do their marketing. The 7ps marketing mix strategy helps the organizations to do their business successfully and helps the organizations to satisfy their customers’ needs.


The organizations make their products design according to the needs of the customers. They also use good packaging to attract the customers and that product also defines the market position of the company. Puma enhances its product engines with a robust pipeline of intriguing, innovative, and marketable products (Dean, 2019). The sneaker firm Adidas produces its goods in a scalable manner and with high quality.


The organizations use various strategies like sales and advertising for their product promotion. For the promotion of the products Puma uses celebrities for their advertisement of the products, and Adidas spends their money on traditional advertisement for the promotion of their products.

Physical Evidence

All businesses include physical evidence in their marketing to gain the trust of the customers (Kusumawati et al., 2014). As physical evidence Puma uses its online websites, and puma gives the confirmation letter to customers on purchasing their products. Adidas uses user-friendly websites, and this helps their customers to see their products. 


The organizations use the people who help the organization to complete their marketing, Puma considers the celebrities as the good people who help the organization in their marketing. Adidas consider their sales team, retail stores people as their people, who help the company in marketing. 


The ideal price always helps the organizations to attract customers based on the products. Puma strengthens its collaboration with its major retail partners to improve distribution quality. In their marketing mix, Adidas includes competitive pricing and skimming pricing.


The customer is typically present when the service is delivered, thus this adds another layer of complexity to what the customer is paying for (Cao and Chen, 2019). Puma quickens both organizational and commercial processes. To keep the stores stocked and the products available, Adidas has a system in place where retailers may alert them when the inventory is low.


The location is important for marketing; the product must be offered where the target market finds it easiest to shop. To highlight and sell Puma products in more noticeable locations surrounding shops, Puma pays retailers additional amounts of money (Juliana Jaya et al., 2020). Adidas has 800 factories spread across many nations and production facilities in about 55 different countries.

Evaluation of 7Ps in Nike

Nike uses 7Ps of marketing mix to advance the sales and the customer services:


Nike sells the goods and products under several categories and each of the categories sells different product lines. The brand name of the company is used in the sales of the producers. Variety and differentiation of the products are maintained by Nike. 


The competitive pricing strategy is used by the company Nike, which means that the company sells the products at a much higher rate than the other brands. 


Two channels of marketing are used by the company. The first channel is selling the products directly through the customers and the second is via an online platform (Brohi et al., 2016).


Nike uses several media channels and an online marketing strategy for the promotion of its products. Platforms like You tube, Facebook and Instagram are used by Nike. 


The employees of Nike are trained strategically andcan handle any customer issues like a pro.


Nike looks after the availability of the products at the stores and installed a system where they can get notification regarding the inventories and stock. 

Physical evidence

Nike is known for the sales of goods in colours that are distinct and eye catching thus attracting more customers. 


There are several steps that can be taken by Nike to improve the marketing strategy and increase brand awareness of the company. Entering partnership with prominent football players from British Footwear Association in UK can be taken up. This will allow the company to increase brand awareness and increase the base of the customers. Promotion of the low-cost structure for the products as compared to the other brands can be taken up by Nike (Andrea, 2019). Generic strategy can be used for the differentiation of the products in Nike. The development of u

nique products from sporting goods can be taken up by the company. Integration of innovative technology and maximum performance of the products can be taken up by Nike. Understanding the values and creation of the brand experience can be taken up to increase the brand awareness of the company. 


It can be concluded that using the 7Ps helps Nike to complete its marketing strategy. The study has discussed how the 7ps marketing impacts on the business environment of Nike. This has also analysed in detail how the marketing strategy is used in the company and how it develops the business growth of the organization. This study has also analysed and discussed how Nike uses the 7ps marketing strategy


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