Performance Task 7.
Portfolio Analysis
Corporation Used for Comparison
Nike
Nike, as the top most popular sportswear manufacturer, is still unrelenting in moving forward
and doing its hardest to stay as the top one leading brand in the world. And because of this, the
portfolio of Nike is a very intriguing way of analyzing the market share of other sportswear brands. This
group operates in sports apparel, footwear & accessories, where there is a high degree of competency
due to the unending innovation and overwhelming rivalry of other companies. Having a yearly revenue
of 37.4 billion USD as of 2020, Nike has been the most prominent brand in the sports industry, especially
on the market of sportswear and accessories in general.
NIKE REVENUE SHARE BY PRODUCT AS OF 2021
3; 3%
31; 31%
66; 66%
Footwear Apparel Equipment
Nike is a powerful brand that is sold around the world. And it’s already been proven that Nike has a huge
foothold in the footwear and apparel section of the industry.
In this regard, we would consider Nike as our Rival in the footwear industry. And will use its product
sales for comparison to ours for the creation of the BCG Matrix of the Sustainable Sneakers (created
business).
Sustainable Sneakers BCG Matrix
Sustainable Sneakers Matrix
25.00%
Stars
20.00%
???
15.00%
10.00%
5.00%
Cash Dogs
0.00%
20.00 Cows 2.00 0.20 0.02
Products Market Share Market Share Relative Market Revenue (by
of Largest Market Share Growth Rate size)
Competitor
Footwear 15% 27.4% 0.69 3.54% 25
Apparel 3.5% 23% 0.43 21.9% 10
Equipment 2.7% 18.3% 0.27 3.5% 10
The BCG Matrix is a tool for strategic management created by the Boston Consulting Group, which helps
in analyzing the position of a strategic business and potentials and its capability to offer “success” to a
business. That matrix consists of 4 classifications which are divided into two dimensions. These
dimensions consist of the Market growth and the relative market share of the strategic business unit.
As mentioned in concept of portfolio analysis, strategic business units must always consider investing in
the stars category, and must be implemented through vertical integration. Furthermore, strategic
business units with high market growth rate and low relative market share which are called question
marks. Cash cows on the other hand, are strategic business units with low market growth rate but high
relative market share, and lastly the dogs, in which these are strategic units with low market growth rate
and low relative market share.
Apparel/Question Mark
Since the concept of introducing the company to the apparel industry is somewhat weird since,
their focus is solely on using recycled materials on producing shoes, the idea of selling apparel as a
sideline was considered, henceforth it got into the position of the Question Mark Classification since we
are unsure if the company should invest on apparel rather than on footwear production.
Equipment/Dogs
Sports Equipment in general always has a low market growth rate and relative market share,
since the overall needs of its target audience are seldom, and most often than not, those that are
actually buying In this market share are gym-goers and athletes, not for your everyday individual in
which that is the target audience of the Sustainable Sneakers Corp.
Footwear/Cash Cows
Since footwear has been the its main focus of this corporation, their overall investment and
market share is relied on this industry. And because the footwear industry has a relatively high market
share, its worth investing on this product industry as it is a guarantee to yield further revenue, as the
market growth increases.