Objective of the strategic analysis:
The purpose of this analysis is to discuss the issue Nike deals with, in terms of their competence of creating ‘heroes’, and the way their representatives impact the company’s public image. Furthermore, this paper aims to present a solution to said issue, as well as investigate potential opportunities and risks this strategy involves.
|Diagnosis of the problem|
The issue discovered within Nike’s operations, are the somewhat questionable choices the company makes when selecting their representatives and signing contracts with the ‘new faces’ of their brand. Some of Nike’s superstars and athletes, which represent the company’s public image, were also involved in numerous scandals and disgraces. Some of stars sponsored by Nike turned out to be frauds and cheaters, and some even, were accused of serious crimes. Such bad press surrounding the company and instability of the ‘hero’ status of their athletes, can be very damaging to a company of this magnitude, as public opinion is known to change drastically. This could then directly translate onto Nike’s success and profitability. On top of those issues, Nike as a company has been accused of wrongdoing in the past, which combined with their athletes falling from grace, creates a risk of their image and public reactions being negatively affected. If not taken care of, the issue could grow, resulting in Nike losing its competitive advantage and their customers turning to Nike’s competitors instead.