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STRATEGIC MANAGEMENT(SMG 605)
PREPARED BY:
MOHD ELYIAS BIN HAMDAN
MUHAMMAD HANIS NAQIUDDIN BIN MOHD PAUZI
MOHAMMAD IQRAM BIN ZULKORNAIN
MUHAMMAD HARRIS BIN SHARUDDIN
2
The become world’s leading innovator in athletic
footwear, apparel, equipment and accessories.
3
"To bring inspiration and innovation to every
athlete* in the world"
*If you have a body, you are an athlete.
4
1. Customers2. Products or services3. Markets4. Technology. 5. Concern for survival, growth, and profitability6. Philosophy7. Self-concept8. Concern for public image 9. Concern for employees
• As the largest seller of athletic footwear and athletic apparel in the world (2,
3),we create products for consumers and athletics (1) who enjoy having quality
products that are high performance and reliable such as shoes, apparel, and
technologically advanced equipment (4). Our dedicated employees
(9)continuously work on developing new products, price, and product identity
through marketing and promotion (7). The company aims to lead in corporate
citizenship (8) through proactive programs that reflect caring for the world
family of Nike (6) and by ensuring continuous growth and profitability to our
investors and stakeholders (5).
5
1. Growing segment of the female athletes. (The New York
Times, 2010)
2. International expansion into emerging markets – e.g. India
(Business Standard, 2013)
3. Additional marketing of existing products to appeal to new
demographic groups.
4. Develop new alliances with companies that are respected
regarding social responsibility. (Bloomberg BusinessWeek
Technology, 2006)
5. Brand reorganization by market regions6
1. High competitive industry
2. Production of counterfeit goods, and generic products. (The
Economic Times, 2002)
3. Negative public perception created by environmental, child
labor, contracted manufacturing issues, and sponsored
athletes. (The Boca Raton Tribune, 2012)
4. International currency changes could decrease profits.
5. Federal Trade regulations in dealing with foreign
manufactures. (Global Issues, 2006)
7
8
External Opportunities Weight Rating Weight Score
3. Growing segment of the female athletes. 0.12 4 0.48
4. International expansion into emerging markets – e.g. India 0.12 4 0.48
5. Additional marketing of existing products to appeal to new demographic groups. 0.07 2 0.14
6. Develop new alliances with companies that are respected regarding social
responsibility. 0.08 2 0.16
7. Brand reorganization by market regions 0.08 2 0.16
External Threats
1. High competitive industry 0.14 4 0.56
3. Production of counterfeit goods, and generic products. 0.10 3 0.30
4. Negative public perception created by environmental, child labor, contracted
manufacturing issues, and sponsored athletes. 0.10 3 0.30
5. International currency changes could decrease profits. 0.12 3 0.36
6. Federal Trade regulations in dealing with foreign manufactures. 0.07 2 0.14
Totals 1.00 3.08
9
1. Recognized brand name – ‘Swoosh’ is ubiquitous
2. Strong in research and development – innovative product
development (Wikinvest, 2013)
3. Strong marketing campaign - sponsors top athletes and
teams. (The New York Times, 2013)
4. Diverse portfolio
5. Customer loyalty. (Reuters, 2013)
6. Strong financial position. (The Associated Press, 2013)
10
1. Production costs are highly priced based on manufacturing
countries. (Bloomberg News, 2011)
2. Revenues are still mostly dependent upon footwear sales.
3. History for violations of minimum wages, child labor and over
times in its manufacturing countries. (Reuters, 2013)
4. Little control over quality of products from 3rd party
contractors.
5. Price sensitivity of products. (Trefis, 2010)
11
12
Internal Strengths Weight Rating Weight Score
Recognized brand name – Swoosh is ubiquitous 0.14 4 0.56
Strong in research and development – innovative product
development 0.10 3 0.30
Strong marketing campaign - sponsors top athletes and teams. 0.09 4 0.36
Diverse portfolio 0.08 3 0.24
Customer loyalty 0.10 3 0.30
Strong financial position 0.10 4 0.40
Internal Weaknesses
Production costs are highly priced based on manufacturing
countries. 0.09 2 0.18
Revenues are still mostly dependent upon footwear sales 0.07 2 0.14
History for violations of minimum wages, child labor and over
times in its manufacturing countries. 0.08 2 0.16
Little control over quality of products from 3rd party contractors 0.09 1 0.09
Price sensitivity of products 0.06 2 0.12
Totals 1.00 2.85
13
14
OPPORTUNITIES THREATS
STRENGTHS WEAKNESSES
15
SWOT Matrix.docx
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Financial Position rating is 1 (worst) to 6 (best) Ratings1 Liquidity 6.02 Leverage 6.03 Working capital 6.04 Return on assets 4.05 Return on equity 4.06 Price per earnings 6.07 Earnings per share 5.0
Industry Position rating is 1 (worst) to 6 (best) FP Total 37.01 Profit potential 6.02 Extent Leveraged 5.03 Economies of scale 5.04 Growth potential 5.05 Financial stability 6.06 Resource utilization 5.07 Diverse Portfolio 5.0
Stability Position rating is -1 (best) to -6 (worst) IP Total 37.01 Price range of competing products -2.02 Competitive pressure -2.03 Ease of exit from market -1.04 Successful and recognized advertising -1.05 Endorsement agreements -1.06 Price elasticity of demand -1.07 Risk involved in business -1.0
Competitive Position rating is -1 (best) to -6 (worst) SP Total -9.01 Market share -1.02 Global presence -1.03 Strong investor reputation -1.04 Technological innovation -1.05 Product life cycle -2.06 Customer loyalty -1.07 Control over suppliers and distributors -3.0
CP total -10.0
17
SP average -1.29CP average -1.43IP average 5.29FP average 5.29
X Coordinate 3.86Y Coordinate 4.00
Strategy ->>>> Aggressive
FP
SP
IPCP
(3.86, 4.00)
18
Rapid Market Growth
Slow Market Growth
Weak Competitive Market
Strong Competitive Market
Quadrant II
Quadrant III
Quadrant I
Quadrant IVo Market Developmento Market Penetrationo Product Developmento Forward Integrationo Backward Integrationo Horizontal Integrationo Related Diversification
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