Increased competitive pressure – Although, Nike is a dominating the athletic industry, competition, and new emerging brands are still potential threats to the company. With a higher competition ratio, Nike has to spend more money on marketing and advertising. According to strategy hub Nike spent $3.5 Billion specifically on marketing and demand generation in fiscal year 2020. 

Fluctuating foreign exchange rates:- This global brand has its financial learning in US dollars affecting its revenue, U.S dollar is exposed to volatility against other financial currencies.

Trade Tensions – Nike depends on different markets across the world evidenced by the recent increase in its stocks rallied by an increase in sales. With China and the US as its biggest markets, a large chunk of Nike’s sales will be threatened if the Trade tensions between the two giants escalate.