competitive profile matrix for Nike. A full explanation of weights and the rating for Nike.

1. Assignment No 2
Business Policy And Strategy
Nike Industry Matrix/Competitive Profile Matrix
Muhammad Usama Khan(L1S20MBAM0002)
Syed Kashif Ul Hassan(L1S20MBAM0074)

2. Competitive Profile Matrix
Competitive Profile Matrix
Competitive Profile Matrix (CPM)
Nike Adidas Puma
Critical Success Factors Weight Rating Score Rating Score Rating Score
Price Competitiveness 0.25 3 0.75 2.5 0.63 1 0.25
Customer Loyalty 0.12 4 0.48 3 0.36 2 0.24
Advertising 0.18 4.5 0.81 3.5 0.63 2 0.36
Product Quality 0.20 3 0.60 2 0.40 1 0.20
Brand Image 0.15 4 0.60 3 0.45 2 0.30
Customer Service 0.10 2.5 0.25 2 0.20 1 0.10
Totals 1.00 3.49 2.67 1.45

3. Competitive Profile Matrix
Explanation
Weightages of Industry:
1. Price competiveness
Price competivenes is one of the most important key success factor of sportswear
industry. Before buying any product, a customer in industry first see the price tag of
the product, after that, he/she purchases the product, if it fall in his/her buying power.
Same behaviour of customers is also in sportswear industry. Companies are selling
similar products, the only difference exist is the color and somehow design, so the
price of products really matters, when it comes to sportswear industry. So it can be
right if we say, price competivenes is one of the most important key success factor in
sportswear industry, thats why we have allocated 25% weightage.
2. Customer Loyalty
Customer loyalty has been assign the weightage of 12 %, which is less from every key
success factor except customer service. The reason behind assigning such a low score
to customer loyalty because in sportswear customer wants to buy a product which has
more quality in resonable price. So the concept of customer loyalty dont made such a
drastic impact on customer buying behaviour. Concluding to this, it is not important
factor if we talk about customer loyalty.
3. Advertising
Advertisment is 3rd most important factor in sportswear industry. In todays world
advertisment is important for every industry. When its comes to sportswear industry,
it is true if we can say, the industry is operating in highlly competative enviornment,
becasue the numbers of companies are incrasing day after day, however, to stay in the
mids of customer the only way is to advertise. we can conclude, advertisment is
important to surmount the competition of industry.
4. Product Quality
Product quality is 2nd most important key success factor in sportswear industry. A
good quality is one of the most key success factor important in every wearable
industry, but when it comes to sportswear the importance sligtly increases. Customer
wants a good quality of sportswear, as these products are use while running or playing
any game. So from its usage, it is clear, that the product quality is salient factor of
sportswear industry.
5. Brand Image
Brand image is important, but not as much as advertisment. Advertisment is the
creater of brand image, thats why weightage given to brand image is less than
advertisment. Brand image does matter becasue customer buying behavior can also
influence by the image of brand. When it comes to sportswear industry the of brand is
also important, people in these days buy sportswear by inspiring from athlet players, a
company having positve brand image can mold the buying behavoir of customer

4. Competitive Profile Matrix
easily. So brand image is important factor but slightly in sportswear industry, thats
why given 15% of weightage.
6. Customer Service
Customer service is one of the least important key success in sportswear industry.
Customer service has importance in industries. But when we talk about sportswear
industries the factors lose its importance. Customer service main object is to provide
customer after sale service and guide a customer by products. In sportswear industry
the prodcust are simple and dont much required any spefic information about product
to customer exept the general one. After sale services are also not very importnt
because products dont have warrenty and any maintance. We can conclude that,
customer is least important to sportswear industrt, thats why weigtage given to it is
only 10%.
Nike’s Rating:
1. Brand Image
Nike has capture the minds of customers through their effecient and high cost
adversting. Nike has created a clear image of their brand that: nike is premium
sporstswear company having good product quality and is the market leader of the
industry. nike brand logo, the swoosh, is most recognized brand logos in the world.
Company has made his brand recognize as a athletic and fitness lifestyle brand. Nike
earn 4 rating for brand image
2. Advertising
In advertisment, nike is rulling the industry. Nike has contracted with the famous
footballer cristino ronaldo to promote and use nike’s product. This step has made nike
leading company in the industry. Further more, nike also sponsor many football
leagues to promote his brand, and create good brand image in the mind of customer,
and nike is doing this thing scuccessfully. The 4.5 rating to nike, for advertisment, is
fair enough.
3. Price competiveness.
Nike score is less in prce competivness, because of high advertment for maintaing its
brand image and create positive image in the minds of customer the price of nike’s
products are high, when compare wwith value it’s delivering. Nike is premium brand
and charging higher price for its brand image. Nike is tradding of this factor for
attaining good product image.
4. Customer Loyalty
Customers are more loyal to nike because of its strong brand image and great
advertisiing, as we discused earliear about contracting with cristino ronaldo. These
factors effect the customers and they became more loyal to it, as it is a premium brand
and own recognition in the market as a market leadder. 4 rating for its customer
loyalty is very good and satisfying.

5. Competitive Profile Matrix
5. Product Quality
Product quality of nike’s products are good, but when we compare to its brand image,
it justify it. Brand image of nike is very strong, and it is concidered as a market leader,
however, the product quality they deliver is not at up to the mark. The main focus of
nike is to make strong brand image amongst the customer, and gain business on base
of created image. So, 3 score of nike product quality is justifyable and reasonable.
6. Customer Service
Customer service of nike is good if we go through the compatitors companies,
because their is less importance of customer service in sportswear. But still when
evaulating the performance of company idividualy it is just average, cant jsutify
having a strong brand image in the market and customer services departant is working
average. 2.5 is fair enough after analysising the customer service of nike.
Overall Analysis:
Overall score of nike is 3.49, which is good. Nike mainly focusing on advertising and
brand image, whereas other companies are failed to achieve such higher score in these
respective success factors, that the main reason of nike’s direct competator, which is
adidas, is 0.82 score far away. Nike has to impore more in price competivness and
quality of the product so that it can achieve the maximum scale of profitablity which
will be possible for a company operating in sportswear industry.