Sports industry offers a range of potential opportunities to Nike Essay

Sports industry offers a lead of potential opportunities to Nike - Essay ExampleThe company acquired annual revenue in excess of US$ 18.6 trillion for the fiscal year 2008 despite the adverse impacts of the 2008 global financial crisis. Although Nike markets many of its products under its own brand, it withal markets some additional brands including Nike Golf, Nike Pro, and Nike Skateboarding to effectively market its sports equipments across the globe. This paper will analyse micro as well as macro business environments of Nike, Inc. using appropriate uninflected tools and a st straddlegical fit analysis. TASK A - Market Environment Analysis In the section, various market analytical tools are used to evaluate the business environment of the Nike. Here, Porters fivesome forces model is utilize to analyse the sports equipment industry (micro environment) and PEST analysis is deployed to evaluate the market potentiality of the Nike, Inc. (macro environment). Porters five forces analysis Currently, the sports equipment industry constitutes a larger number of companies dealing with production and distribution of numerous and divergent sporting and athletic equipments. The total market capitalisation has reached nearly $8 billion and it is still growing. around of the players in the sports equipment industry are grand corporate structures such as Nike, Easton, and Wilson they offer equipments to a var. of sports items. In contrast, other companies like Callaway and Schwinn own noticeable market share and prominence in their specialised area of focus. Sports equipment manufacturing companies mainly make use of two means of distribution. Wholesalers and retailers constitute the most common avenue of distribution whereas the company-owned and contracted specialty shops shape the second mode of distribution. In order to popularise their products and occult the market, most of the sports equipment companies tend to sponsor high profile or top-rated sportsmen and athletes. In addition, such companies are also willing to undertake the sponsorship of major sporting events like World Cup Football as distinguish of promoting their products. Threat of substitute products and services In general, sports can be easily substituted with a variety of different other activities, and therefore the threat of substitutes is very high in sports industry. To illustrate, people may easily bowl over their interest from physically demanding athletic or other sports activities to video/computer games. However, higher prevalence rate of obesity in the United States influences people to turn to healthy and fitness activities (U. S. Department of Health and forgiving Services). This situation relieves the sports industry from the threat of substitutes to some extent. At the same time, the substitution threat exists even in the sports industry itself. For instance, people may choose to play basketball rather than golf. Intensity of rivalry among competitor s The specialty of competitive rivalry is very high in the sports industry and many sports equipment companies have been thrown verboten of the market due to this higher degree of competition. While analysing present trends in the sports industry, it is obvious that companies are endeavour for their market competency and searching for industry consolidation. It seems that most of the sports equipment companies adopt mergers and acquisitions strategy in order to offer their product lines, to increase economies