An opportunity is an external positive event. Potential demand in China could be a positive thing for the company, and since it deals with Chinese consumers it is an external factor. A lower cost structure is a positive internal factor--a strength. The remaining factors are negative, and so cannot be opportunities. AACSB: Analytic Blooms: Analyze Difficulty: 3 Hard Learning Objective: 02-03 Analyze a marketing situation using SWOT analysis. Topic: Step 2: Conduct a Situation Analysis 121. When Nike, the prominent athletic shoe manufacturer, branched out from selling only athletic shoes to also offering athletic clothing and gym bags, what type of growth strategy did this represent? It is reasonable to suppose that athletic clothing and gym bags would appeal to the same customers who already purchased Nike shoes. Thus, this is an example of offering new products to the same customers, which is a product development strategy. AACSB: Analytic Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-07 Describe how firms grow their business. Topic: Growth Strategies 122. In its discussion of Nike and adidas, two major athletic shoe manufacturers, the text mentions that Nike has purchased Umbro, a sports brand that has appealed mainly to soccer (European football) enthusiasts in the past. This action suggests that Nike intends to compete head to head with adidas, which got its start designing soccer shoes. On a SWOT analysis for adidas, how should Nike's acquisition of Umbrobe categorized?
An opportunity is an external positive event. Potential demand in China could be a positive thing for the company, and since it deals with Chinese consumers it is an external factor. A lower cost structure is a positive internal factor--a strength. The remaining factors are negative, and so cannot be opportunities. AACSB: Analytic Blooms: Analyze Difficulty: 3 Hard Learning Objective: 02-03 Analyze a marketing situation using SWOT analysis. Topic: Step 2: Conduct a Situation Analysis 121. When Nike, the prominent athletic shoe manufacturer, branched out from selling only athletic shoes to also offering athletic clothing and gym bags, what type of growth strategy did this represent? It is reasonable to suppose that athletic clothing and gym bags would appeal to the same customers who already purchased Nike shoes. Thus, this is an example of offering new products to the same customers, which is a product development strategy. AACSB: Analytic Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-07 Describe how firms grow their business. Topic: Growth Strategies 122. In its discussion of Nike and adidas, two major athletic shoe manufacturers, the text mentions that Nike has purchased Umbro, a sports brand that has appealed mainly to soccer (European football) enthusiasts in the past. This action suggests that Nike intends to compete head to head with adidas, which got its start designing soccer shoes. On a SWOT analysis for adidas, how should Nike's acquisition of Umbrobe categorized?