• Nike is a very competitive organization. Phil Knight (Founder and CEO) is often quoted as saying that 'Business is war without bullets.' Nike has a healthy dislike of its competitors.
• It is the number one sports brand in the World. Its famous 'Swoosh' is instantly recognizable, and Phil Knight even has it tattooed on his ankle. Associates itself with leading international sports teams.
• Nike has no factories. No cash is buildings and manufacturing workers. This makes a very lean organization.
• Nike is strong at research and development, as is evidenced by its evolving and innovative product range.
• Ventured into many different rebranding opportunities with successful results.
• The income of the business is still heavily dependent upon its share of the footwear market, which leaves it vulnerable if for any reason its market shares erode.
• Competitors are becoming more aggressive and creating high quality products that are taking from the profits of NIKE.
• The retail sector is very price sensitive and even though Nike does have its own retailer in Nike Town. Most of its income is derived from selling into retailers. Retailers tend to offer a very similar experience to the consumer. So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Nike.
• Its board of directors, for all their marketing know-how, has an average age of around 60, and the company suffered bad publicity as a result of cheap labor in third world countries.
• Overseas manufacture dependency.
• Technology is moving very quickly, and the industry is coming up with new different form factors of usable technology. Nike has dabbed its hand in technology when it created Nike+ collaboration with Apple where it was sold as a smartphone feature to track running distances and calories burned along with wearable fitness technology with a fitness watch, the Fuel Band and with the Kinect camera for Xbox 360.