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IFE Matrix

The IFE Matrix is a strategic management instrument for assessing main


strengths and weaknesses in useful areas of a company. IFE Matrix also gives a
foundation for recognizing and assessing associations among those parts. The IFE
Matrix is utilized in strategy formulation.
Internal Strengths Weight Rating Weight Score
Strong Brand Recognition 0.12 4 0.48
Internet Sales 0.07 3 0.21
Successful Marketing Campaigns 0.10 4 0.40
Great Celebrity Spokesperson 0.08 3 0.24
R&D 0.10 4 0.40
Successful Experience Being Competitive 0.06 4 0.24
Internal Weaknesses Weight Rating Weight Score
Heavy Dependency on Footwear Sales 0.15 2 0.30
Poor Employment Practices (Negative Public Reputation) 0.12 2 0.24
Highly Concentrate in Youth & Young Adult Market (12-24 yr old) 0.08 1 0.08
Product Pricing 0.12 1 0.12

Total 1.0 2.71

Based on IFE Matrix, the most pertinent strengths of Nike to stay competitive are
its strong brand recognition, successful marketing campaigns and its Research and
Development. Nike is a powerful brand which everyone will know by its logo. The logo
itself needs to be presented without the name and everyone will know what it is, that is
how powerful the brand is. Being innovative is crucial for a company to stay competitive
in a highly competitive market. Nike invested money in R&D to keep up with new
demands both design and functioning aspects. Nike has collaborated with Apple and is
launching new apparel and footwear that will easily carry the consumers iPod. Besides,
Nike employs many specialists including engineers, athletes, biomechanics and
industrial designers to work together in the design process. Nike is doing great on its
marketing campaigns like LiveStrong, Fuel Your Team, The Chance, The Chosen and
so on. It has been crucial for Nike to win market share.
However, based on weighted score, the most pertinent weaknesses facing by
Nike are its heavy dependency on footwear sales, negative public reputation, and its
product pricing problems. Nike does have a diversified range of sports products.
However, the income of the business is still heavily dependent upon its share of the
footwear market. This may leave it vulnerable if for any reason its market share erodes.
Nike has felt the huge impact from its poor employment practices on its public
reputation. This has been a negative effect to Nikes brand image and its sales has
decreased as customers nowadays are concern on CSR as well. Nike who marks up its
price on basic products like a plain shirt with Nike logo is selling at RM 159.00 and
sports bra is selling at RM 179.00. This has been unethical as Nike is selling for over
triple of its manufacturing cost.
Total weighted scores well below 2.5 indicates that the characterize
organizations that are weak internally, whereas scores significantly above 2.5 indicates
a strong internal position. Nikes total weighted score is 2.71 which is slightly above the
average score. Hence, it could be concluded that Nike is doing well but yet to be
improved.