The Analysis of Nike in Athletic Footwear Market Based on Porter’s Five Forces Model

The task instruction is: Analyze Company G’s competitive environment utilizing Porter’s Five Forces Model of competitive forces. While headings below may provide some guidance for how to organize the paper, please refer to the recommended text (index topic: “Porter’s 5 forces model”), the learning community, and recommended web sites. As you will see from the reading, Porter’s 5-forces is a way to examine threats to a company’s success – which was competition imposes.

Porter's Five Forces of Competitive Position Analysis is a tool developed to help in assessing and evaluating the competitive strength and position of a business organization and determine the competitive intensity and attractiveness of a market. Understanding of the five forces help to know the strength of an organization’s current competitive position, and the strength of a position that an organization may look to move

Purpose of this paper is to analyze Germany as it is profitable for Nike to open a store in Germany, this paper start with the background both of the company and country and continue with the PESTLE analysis, Porter’s five forces analysis of the company’s competitive environment, strategic recommendations to avoid problems uncovered from the PESTLE or Porter’s analysis and the conclusion of the current state of the company and its operating environment.

In this paper, we present an elaborate analysis of the marketing mix employed by Nike in its marketing strategy. The marketing mix is conducted on the basis of the concept of "marketing mix" which is usually referred to as the "4Ps" as an important means of effectively interpreting as well as translating the marketing strategy into practice as noted by Bennett (1997).A recommendation is also provided.

At its core, Porter’s 5 forces describes a firms overall ability to compete in a market. We discuss our analysis of the 5 forces and how they affect SAS Corporation and its stakeholders. Please examine Figure 1.1 to view a diagram that depicts the 5 forces.

The Porter’s five forces of competition framework were first established in the year 1979 by Michael E Porter with the aim of facilitating the assessment and the evaluation of the strength of competition and state of a business organization. Porter (2008) states that, the five forces determines the intensity of competition and appealing nature of available market. The Porters forces like the SWOT analysis assist a business in identifying its strengths and weaknesses and work on them and also to avoid making any forms of mistakes. The forces enable that same organization to determine what position they lie in and where they want to fall into or move to. The Porter’s five forces of competition framework are; supplier power, buyer power, competitive rivalry, threat of substitution and threat of new entry.

The analysis of the Porters five forces are very important to business entities. Based on the analysis a business can evaluate their current position and positions that they plan to progress towards as it relates to the industry they are operating in.

This report examines NIKE Inc. one of the leading sports brand in the world. It uses business analysis techniques such as SWOT, PESTEL, Porter’s five forces, and Ratio analysis to analyse the business environment and performance of this company.

Michael Porter’s proofs a framework that shapes and shakes an industry as being influences by 5 forces(Porter, 1985) .A smart business manager will develop an edge over rival firm just to be ahead in the Market ahead of their rival and adopt the strategy which the company will use for better understand of the industry context in which the firm will operate. This model was named after Michael E Porter. Which identifies and analyzes 5 competitive forces that shape every industry and helps identifies the weakness and strengths also.

Michael Porter developed a highly useful tool for managers called Porters Five Forces (Rothaermel, 2015). The main focus of Porters Five Forces is to help managers understand their firm’s position and how to help them find a competitive advantage (Rothaermel, 2015). The Five Forces consist of, threat of entry, power of suppliers, power of buyers, threat of substitutes, and rivalry among existing firms.

Building on the SCP model, Michael Porter developed the highly influential five forces model. Porter’s model identifies five key competitive forces that managers need to consider when analysing the industry environment and formulating strategy:

The objective of the Porter’s 5 forces model is to identify and elucidate the current levels of competition existing with a market, by examining what the 5 forces

Porter five forces analysis is used as a framework for exploring industry environment and business strategy development. It was formed by Michael E. Porter of Harvard Business School in 1979. Porter’s Five Forces Model is a key technique for making strategic decisions since it allows a business to determine how attractive a specific area is, and therefore maximize allocation and utilization of resources and investments against the opportunities with the greatest potential. It consists of five parts: threat of new entrants to the market, power of suppliers, power of customers,

Michael Eugene Porter is a management consultant who develop ‘Five Competitive Forces Model’ to determine and analyze the intensity of competition within an industry and also for analyzing an organizations industry structure and profitability and attractiveness of market. Porters model become an important tool in strategic processes. This model is based on the on the way that a corporate strategy should meet the threats and opportunities in the organizations external environment. This five competitive forces shape every industry and every market. Corporate strategy’s objective is to transform these competitive forces in such a way that improves the position of the organization. On the basis of Porter’s model analysis, a management can decide how to exploit particular characteristics of their industry.

Porters five forces analysis is a framework to analyze the level of competition within an industry and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of an Industry. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit. This analysis is associated with its principal innovator Michael E. Porter of Harvard University.