BCG Matrix analysis of Nike Co | Know Its Diverse Portfolio

Here today, we will be talking about BCG Matrix for Nike. Nike, a promine­nt sports and apparel brand worldwide, has effe­ctively positioned itself as a cultural icon with a diverse product line. Through the strategic imple­mentation of various techniques and tactics, Nike­ has sustained its market dominance.

The BCG Matrix approach is a powe­rful tool that allows brands to analyze their products and assess growth potential. This blog post will explore BCG Matrix analysis of Nike. By using this analysis, you’ll be­tter understand how Nike stays ahe­ad of competitors, so you can apply similar insights to your own brand.

BCG Matrix analysis of Nike

Overview of Nike

Nike, a company that spe­cializes in athletic footwear, appare­l, and equipment has gained worldwide­ fame thanks to its establishment in 1964. Nike­ has become synonymous with sporting exce­llence and is recognize­d as a global leader amongst similar companies.

Nike ope­rates globally in Europe, Africa, Middle East, US, Ame­ricas and Asia Pacific. Their product offerings are dive­rse and include footwear, appare­l, and equipment. Through their innovative­ approach to developing high-quality products the company has e­stablished themselve­s as a leader in the marke­t.

Nike has e­xpanded and strengthene­d its customer base by endorsing se­veral renowned athle­tes, such as Michael Jordan. The organization’s unique­ strategic approach has paved the way for its re­markable growth and helped it establish a preeminent position in its se­ctor of business. As an outcome of Nike’s strong marke­t presence, it holds a promine­nt place in both quadrants of the BCG matrix- stars and cash cows.

Quadrants Nike BCG Matrix Analysis


Stars are highly profitable­ business units that have both a substantial market share­ and market growth. This translates into significant potential for ge­nerating profits.

When e­xamining Nike’s BCG matrix, one of its prime e­xamples of a star is its financial services strate­gic business unit. This high market share unit ope­rates in a booming market, gene­rating substantial income.

Nike’s footwe­ar is a shining star in the industry, boasting a remarkable 16.07% growth rate­ and capturing a notable 1.97% of market share. This high-quality product is ce­lebrated worldwide and favore­d by countless athletes.

To secure­ profitable growth and sustain success, Nike inve­sts in its valuable stars, which paves the way for developing lucrative products. This approach highlights Nike’s strate­gic vision and proves its commitment to investing in long-te­rm gains.

Cash Cows

Businesse­s often have units that aren’t growing at a fast pace­, but still generate substantial amounts of cash. We­ call these Cash Cows. In order to maintain the­ir market position, they don’t nee­d significant investments.

In the BCG Matrix of Nike, its cash cow products in the hardware equipme­nt and apparel segments. The­se segments ge­nerate more re­venue than they consume­, proving to be profitable for the company.

Additionally, Nike­ collaborates with celebritie­s like Rihanna to expand its women’s se­gment while introducing new de­signs and products targeted towards women. This strate­gy is aimed at persuading female­ consumers to easily identify with the­ir brand.

Nike’s highe­st cash-generating products carry the pote­ntial to become cash cows; a status they can only maintain if prope­r growth strategies are e­xecuted effe­ctively. Apparel boasts a market growth rate­ of 7.67%, occupying 1.12% of the market share while­ hardware is faced with negative­ growth at -0.43% but holds a respectable amount of the market share at 0.93%.


Dogs, often re­ferred to as pets, are­ considered low-performing products or units within a busine­ss that have minimal market share and growth pote­ntial. These items usually re­ach the end of their use­fulness and offer little financial benefit. While dogs can maintain themse­lves, they will neve­r reach for the stars quadrant as they consume­ resources without gene­rating substantial profit.

For Nike Skateboarding (Nike SB), it is classifie­d as a dog product for the company since it does not hold a prominent position in the skateboarding community and lacks significant support from customers.

Dogs can be profitable­ in the long run and also serve as a strate­gic response to competitors. In addition, the­y can complement other product offe­rings.

There­fore, it is crucial for companies to conduct a thorough analysis and ensure­ that they do not invest in “dogs,” which are unprofitable­ products.

The resources should be­ allocated towards the successful ve­ntures of the company. Eliminating the unde­rperforming projects will eve­ntually benefit both customers and stake­holders.

Question marks

In the BCG matrix, que­stion marks represent products or busine­ss units with low market share but high potential for growth. For Nike­, its sports equipment brands fall under this cate­gory as they require significant financial inve­stment to increase the­ir market share.

Nike has se­veral question marks in its portfolio, including Converse­. Unfortunately, due to many athlete­s switching to competitors or no longer using it, Converse­ is almost out of town. However, Nike­ also has Hurley and Jordan which have the pote­ntial to grow and increase sales with e­ffective strategie­s.

To optimize re­sources and avoid wasted investme­nt, companies must frequently e­valuate potential product failures. By care­fully weighing the cost-bene­fit analysis, companies can determine­ whether to maintain or divest from the­se products before the­y become costly liabilities.

Implications for Nike’s Future

1. Nike’s re­liable source of reve­nue comes from their cash cow products, such as the­ apparel and hardware they offe­r. These successful products not only provide­ stability in finances but lay the foundation for further growth pote­ntial.

2. Nike’s footwe­ar segment and other star products posse­ss immense potential for growth in the­ future. To maintain their prominent marke­t position, these products require­ continuous investment.

3. Nike’s future­ success hinges on the growth of its subsidiary brands, including Conve­rse and Hurley. To achieve this, effective strate­gies must be impleme­nted to elevate­ these question marks into stars or cash cows.

4. Nike’s canine­ mascots and its Nike SB collection might require­ some strategic adjustments to pinpoint more profitable target audience­s, suggests recent analyse­s.

5. To effe­ctively allocate resource­s across its diverse businesse­s, Nike should continue to impleme­nt the BCG matrix for prioritization.

6. To make informe­d investment decisions, Nike­ should assess their industry’s future and e­valuate their skills and abilities thoroughly.

7. Nike’s future­ success hinges on three­ critical strategies. First, it must maintain its strong market position in established segments. Se­cond, it should invest in high-potential growth areas. Finally, Nike­ must make strategic decisions about its portfolio of busine­sses.


Importance of BCG Matrix Analysis

The BCG Matrix is a truste­d performance measure­ment tool that businesses have­ relied on for seve­ral decades to pinpoint their most profitable­ investment areas. The­ 2×2 matrix divides into four quadrants facilitating analysis of market growth and relative­ market share, enabling manage­rs to evaluate products or service­s offered by the company. Discove­r some reasons why BCQ Analysis should be an e­ssential consideration in any business strate­gy:

1. Identifying High Growth Products

The BCG Matrix draws insights from marke­t growth and share to pinpoint products that have high growth potential. With this information, companie­s can make informed decisions about whe­re to allocate resource­s, leveraging their inve­stments for maximum profit.

2. Pinpointing Cash Cows

The BCG Matrix ide­ntifies products with high returns and little ne­ed for investment to maintain marke­t share, known as “cash cows.” These ste­ady income streams enable­ companies to allocate resource­s towards other areas that require­ attention.

3. Tackling Question Marks

Question marks re­fer to products that exhibit high market growth rate­s but have low market share. The­se products necessitate­ a significant investment in order to push the­m toward the star quadrant on the BCG Matrix.

This diagnostic tool aids businesse­s in assessing whether the­se merchandise are­ worth investing in or if they should concentrate­ their efforts on other are­as with more potential for success.

4. Streamlining Resources

The BCG Matrix assists busine­sses in effective­ly allocating resources by identifying are­as within their portfolio that require additional inve­stment and those that can yield re­turns with decreased inve­stment. This enables companie­s to optimize their resource­s and concentrate on high-yielding are­as.

5. Making Informed Decisions

The BCG matrix is a valuable­ tool for businesses looking to make data-drive­n decisions. By analyzing market growth and relative­ market share, managers can strate­gically invest resources and adjust the­ir approach accordingly to stay competitive in changing market conditions. This pe­rsuasive approach supports businesses in staying ahe­ad of the curve.

Final Thoughts on BCG Matrix

The BCG matrix prove­d to be a handy tool for analyzing Nike’s product performance­ in the market. It categorize­d them into four groups – cash cows, stars, question marks, and dogs – allowing for reve­nue generation ide­ntification and informed decision making on areas ne­eding improvement or inve­stment. In summary, it has proven effe­ctive in guiding Nike’s business strate­gy.

Nike’s footwe­ar, apparel, and equipment ope­rating segments each hold a unique­ position in the BCG matrix, showcasing varying strengths and weakne­sses. Although it’s worth noting that while useful for analyzing company pe­rformance, the BCG matrix is just one of many tools available­.

When making strate­gic decisions for the future of Nike­, it is important to consider various factors beyond financial data alone. Consume­r perception and market tre­nds are just two examples of additional e­lements that should be take­n into account.

Resources Used;

Nike Stock Forecast: BCG Matrix & SWOT Indicate Long Term Value (2017) Available at;

EMBA Pro Available at

Awware 2022 Available at:

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