TOWS Matrix & Critical Success Factors

Tows matrix

TOWS Matrix


Critical success factors

Weaknesses-threat
  • W2-T1,T3: Since they lack in boot diversification around different boot orientated sports, which is reducing their market share, the re-evaluation process should include an all sport strategy. e.g Nike Rugby.
  • W1-T2: Redundancy of the brand can be reduced by speeding up innovation, through technology such as including a GPS tracker chip in their boots for training purposes such as Adidas.
Strength-threats
  • S1-T1: Being known as the pioneers in fashionable boots combined with functionality, allows them to set trends and will decrease the affect of competitors diversification into other boot orientated sports.
  • S2-T2: Having such a big social media following gives Nike an advantage in terms of staying relevant as a sporting brand, gives them a focus group to help decide what is trendy and what consumers are looking for.
  • S3-T3: Having the largest sponsorship roster in sporting brands, gives them an advertising advantage through there elite stars and combats losing their market share to competitors as consumers look to emulate their stars by buying products worn by them
Weaknesses-opportunities
  • W1-O2: The lack of innovation from a technological perspective in Nike boots, is an opportunity that can be exploited by the brand by ensuring there is more faster innovation in order to keep with the times.
  • W2-O3: Though Nike Football, focus all their boots on football and don’t diversify into other sport orientated sports, the opportunity to ensure boots are made for any budget that allows them to keep focus on football without needing to expand but fully exploiting the football market.
Strengths-opportunities
  • S2-O1: Exploiting the online market is almost made simple for Nike Football with such a big online following through social media. Introducing benefits for  these followers when they shop online will allow them to exploit the online market more effectively.

TOWS Matrix & Critical Success Factors

SWOT Anylisis

SWOT stands for Strengths, Weaknesses, Opportunities, Threats. Its a situations anlysis in which internal strengths and weaknesses of an organisation and external opportunities and threats faced by the company (BusinessDictionary.com, 2015).

strengths

  • Pioneer and trend setting company both in style and functionality
  • Huge social media following (Fan Page List, 2014).
  • Huge sponsorship roster, biggest in football (Store.Nike.com, 2015)

weaknesses

  • Being such a leader in the market, innovation is not always a priority process on all front such as diversifying into other sports such as rugby and also including technology in their boots.

opportunities

  • Growth of online shopping across all retail markets.
  • Incorporation of data collecting technology into boots.

Threats

  • Better diversification by competitors, making the most of the market from all sporting codes.
  • Redundancy of the brand due to failure of being able to re-invent the brand.

Sources

  • Fan Page List,. ‘Top Brands On Facebook.’. N.p., 2015. Web. 3 Mar. 2015.
  • BusinessDictionary.com,. ‘What Is A SWOT Analysis? Definition And Meaning’. N.p., 2015. Web. 3 Mar. 2015.
  • Store.nike.com,. ‘Men’s Custom Football Boots. Nike Store UK.’. N.p., 2015. Web. 1 Mar. 2015.
SWOT Anylisis

Marketing Environment

Micro Environment

The Micro environment comprises of those elements that impinge on the firm and the industry,these factors are all internal and in the company’s control and the same factors won’t affect all companies (Jobber, 2004).

It is composed of the following factors:

  • Competitors
  • Customers
  • Company
  • Suppliers
  • Public

Company & public

The infringement of workers rights and the move to using more sustainable materials and environmentally friendly has been a big area of concern. With this in mind Nike have taken the initiative to be more transparent by disclosing all the name and addresses of contract factories producing Nike products worldwide (About.Nike.com, 2015). As a result of this the company has the control on their image which also goes with the public factor which is in control of the business because it is in their hands how they are viewed by the  public.

Suppliers

Though Nike inc. are one of the top sporting brands worldwide, and are not really affected by suppliers as they have a high supplier base, though the move towards transparency could force some suppliers to follow the same route, which could be costly for those suppliers who could then stop supplying to Nike inc. , this would mean a delay in a shipment as a result of a supplier (Foster, 2015).

Customers

The introduction of the NikeID shows how Nike football plan to retain customers. Consumer goods are starting to get more custom and personalised due to technology enhancements in the last decade. NikeID is where customers can design their own boots from a set amount of parameters, such as different colours and materials (Store.Nike.com, 2015). To ensure that they retain their customers Nike football can look to increase parameters, to more materials, stud structure etc.

Competitors

Adidas Football being Nike Footballs biggest competitor, have been the pioneering company for introducing technology into football but also most of their boot range, with the miCoach chip (Angopa, 2013). Making these boots technologically advanced and functional. Nike Football could also do the same which would give them a bigger market share as they are the bigger brand and are usually the trend setting company.


Sources

  • Angopa, Bernie. ‘Technology Review: Adidas Micoach – Telegraph’. Telegraph.co.uk. N.p., 2013. Web. 1 Mar. 2015.
  • Store.nike.com,. ‘Men’s Custom Football Boots. Nike Store UK.’. N.p., 2015. Web. 1 Mar. 2015.
  • Jobber, D. Principles And Practice Of Marketing. London: McGraw-Hill, 2004. Print.
  • Forester, Pete. ”Heads Up: Nike Store Postponed Today’s Air Jordan Restock’. Complex UK. N.p., 2014. Web. 1 Mar. 2015.
  • About.nike.com,. ‘About Nike – The Official Corporate Website For NIKE, Inc. And Its Affiliate Brands.’. N.p., 2015. Web. 2 Mar. 2015.
Marketing Environment

The Market Environment

macro-marketing-environment1-297x300

Macro Environment

This environment comprises the factors that are common to all companies in all industries. These factors that affect the business are all external and are not in any way in control of the business and companies can only safe guard or minimize the affect of the factor(Jobber,2004).

These factors include:

  • Economic
  • Political
  • Cultural or Social
  • Technological
  • Legal
  • Environmental

Political

These would be factors such as regulations set by government in accordance with the needs of the country and its people.

  • Manufacturing regulations can be adhered to by compiling to EU safety, health and environmental requirements . This is done by applying for the CE Marking that is then displayed on a product.
  • Advertising laws which could also be seen as a legal factor, can also be a political factor. These also have regulations such as ensuring the product advertising is an accurate description of the product. That marketing and advertising will be truthful, honest, decent and socially responsible. This is all under the Consumer Protection from Unfair Trading Regulations act (Gov.uk, 2015).

Economic

Any company’s objective is to make as much profit for the company as possible. With this in mind economic factors influence how much profit a company makes. These can also be overlapping with legal factors.

  • Corporation tax is one overlapping example of a factor, as companies who make profits of more than £300,000 during the financial year have to pay 21% of that towards Corporation tax( Gov.uk, 2015).
  • Though the recession is seeing an end, consumers are less inclined to buy consumer goods especially ones such as Nike being a big brand also comes with a big price for their goods when there are cheaper alternatives, this affects Nike footballs bottom line and ultimately affects their profit margin.

Legal

  • Tax laws

Cultural/social

  • Current Trends are a factor that is not controlled by the business and can at best influence the factor. Nike football are a relatively trend setters in the sectro and aren’t highly affected by this with a the highest social media following in sport and overall 14th amongst other brands (FanPageList, 2014).

Environmental

  • Manufacturing might be made difficult when shipping materials depending on the season, and where they are being shipped from and terrible weather conditions may delay the shipping which could delay orders.
  • Such as when the restock of Jordan’s which are produced by Nike had to be delayed (Forester, 2014).

Technological

New Technologies and materials being produced now open the market up to innovation in the boot realm, which will be exploited by companies who are more innovative and find ways to use them practically in boot designs to be stylish and functional.


Sources

  • Fan Page List,. ‘Top Brands On Facebook.’. N.p., 2015. Web. 3 Mar. 2015.
  • Forester, Pete. ”Heads Up: Nike Store Postponed Today’s Air Jordan Restock’. Complex UK. N.p., 2014. Web. 1 Mar. 2015.
  • Gov.uk,. ‘Corporation Tax – GOV.UK’. N.p., 2015. Web. 28 Feb. 2015.
  • Gov.uk,. ‘Corporation Tax Rates And Reliefs – GOV.UK’. N.p., 2015. Web. 3 Mar. 2015.
  • Gov.uk,. ‘Marketing And Advertising: The Law – GOV.UK’. N.p., 2015. Web. 28 Feb. 2015.
  • Jobber, D. Principles And Practice Of Marketing. London: McGraw-Hill, 2004. Print.
  • Studiowide.co.uk,. ‘Marketing Environment – Macro’. N.p., 2015. Web. 3 Mar. 2015.
The Market Environment

The World of Marketing

Nike Mission

BRING INSPIRATION AND
INNOVATION TO EVERY
ATHLETE* IN THE WORLD

*IF YOU HAVE A BODY, YOU ARE AN ATHLETE.

Benefits of Nike football

Nike are one of the leading brands in the world across most sporting platforms, and being such an organisation there are many benefits that come with being a customer.

  • Top quality brand
  • Innovative company that strive for the best
  • Extremely stylish and trend setting football boots
  • Highly inclusive of all athletes at all levels

Target markets

  • Professional Athletes
  • Footballers across all levels
  • Sport players across other sports

Competition

The biggest competitor to Nike Football is Adidas Football, who have a similar approach to Nike and are leading innovators in certain areas of the sector.

Competitive set

The advantages of Nike football combined with the mission statement are what make Nike Football one of the worlds leading sporting brands and also make up their competitive set.


Sources

  • About.nike.com,. ‘About Nike – The Official Corporate Website For NIKE, Inc. And Its Affiliate Brands.’. N.p., 2015. Web. 2 Mar. 2015.
The World of Marketing

The Roster

Clubs

  • AS Monaco
  • Athletico Madrid
  • Athletic Bilbao
  • Barcelona
  • Celtic
  • Eintracht Frankfurt
  • Galatasaray
  • Hertha BSC
  • Inter Milan
  • Juventus
  • LOSC LILLE
  • Manchester City
  • Manchester United
  • Paris Saint-Germain
  • PSV
  • SV Wender Bremen
  • FC Zenit

International

  • Brazil
  • Croatia
  • Netherlands
  • Austria
  • Greece
  • England
  • France
  • Poland
  • Portugal
  • USA
  • Korea
  • Turkey

Players

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Sources

  • Store.nike.com,. ‘National Football Team Kits, Shirts, Shorts And More. Nike Store UK.’. N.p., 2015. Web. 28 Feb. 2015.
  • Levy, Dan. ‘Which Apparel Co. Has Most World Cup Talent?’. Bleacher Report. N.p., 2015. Web. 28 Feb. 2015.
The Roster

Welcome to the Elite world of Nike Football Boots

Chief Blogger: George Tatenda Bvuma 

  • The Nike football boot was the first Nike shoe to bear the swoosh when it was first introduced in 1971 and cost $16.95.

(Nike,inc, 2015)


  • Though this was stylish looking boot  it was a massive failure  as though an appealing in looks, it could not contend with wet and cold conditions and fell to the wayside in the Nike Corporation.
  • 1978 Nike returned to the football boot platform in dramatic fashion by signing the Portland professional football team as being their official kit sponsor.
  • By 1980 Nike football sign sponsorship contracts with 10 regional associations and almost 40 players.
  • Two years later, Nike sign their first athlete star, Ian Rush and in the same year Sunderland F.C become the first club in Europe to wear The Nike Kit.
  • Present day, Nike in the 2014 Brasil World Cup, filled the field by sponsoring 10 teams at the tournament, more than any other team.
  • Showing the powerhouse corporation they have become in the realm of football boots nationwide.


Welcome to the Elite world of Nike Football Boots