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nike pestle analysis

Nike is a US-based company that sells sports apparel for men, women, and children and is a major competitor in the industry, In this paper, we’ll be discussing Nike’s standings by using a PESTLE analysis, which looks at the political, economic, social, technological, legal, and environmental factors that affect an organization (A Pestle analysis, 2017). A PESTEL/PESTLE Analysis of Nike Inc. identifies key issues that the company must include in its strategic formulation. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. 31% of the global athletic footwear market. As one of the major firms in the global sports shoes, apparel and equipment market, Nike Inc. must address these external factors to ensure business dominance in the industry, especially when considering the presence of aggressive competitors like Adidas. Having been founded in 1964, Nike serves to “bring inspiration and innovation to every athlete in the world.” [1]. Nike has also benefited from cooperation with government initiatives in terms of transparency in the global value chain; one example of this lies in membership of the Clinton administration’s 1997 Apparel Industry Partnership (Wagner, 20… Strong Brand Awareness – Nike is one of the most recognizable brands in the world as its name alone is memorable, easy to pronounce, and very unique. We use cookies for website functionality and to combat advertising fraud. Nike’s mass production factories are, without a doubt, harming the environment. In. Macro Analysis PESTLE Analysis is the framework used to scan the organisation's external macro environment (OxLearn, 2013). 2. This component of the PESTEL/PESTLE Analysis model deals with governmental influence on the remote or macro-environment of businesses. The PESTEL analysis is a tool devised by Harvard professor Francis Aguilar to conduct a thorough external analysis of the business environment of any industry for which data is available. Political AnalysisIt is the responsibility of government to create such economic policies, which will have a great effect on the growth of business. PESTEL Analysis of Nike: The international brands face several kinds of pressures while operating in a highly competitive market. This component of the PESTEL/PESTLE Analysis indicates Nike’s opportunities to improve the environmental impact of its business. The PESTLE/ PESTEL/ STEEPL Analysis for in-depth analysis of all external factors specifically, political, economic, social, technological, legal and environmental, highlighting their consequence on Nike's business model, marketing and growth strategy 7. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. Here are some of the Technological factors affecting it: Legal factors are sometimes grouped together with Political factors in ‘PEST’ analyses, but in a PESTLE analysis — which is what we’re doing — the two are separated. E – Environmental 6. Various political conflicts can always make customs related processes difficult, or prevent imports and exports. WHO AM I NIKE SWOT PEST ANALYSIS CASE STUDY Joey Goff. (2007). Nike’s Strengths – Internal Strategic Factors. Gillespie, A. Not only do they release plenty of aerial pollution like most factories, but Nike’s production centers occasionally go as far as directly polluting rivers [5]. However, Nike also shows promise of a change in their current practices, with a strong resolve to become more ‘eco’. This Nintendo PESTLE analysis examines six factors that will impact the company the most and how the video game firm is responding to challenges. These days, he spends his time flipping domain names, writing articles and pursuing other interesting business ventures. Pestle Analysis Examples: Uber. Most of today’s political changes only affect how a company can produce their goods or how much profit they make, for example. The PESTEL/PESTLE Analysis model identifies the external factors that present opportunities and threats in the remote or macro-environment. Of course, there are only a few factors which affect Nike with regard to this, but they are worth stating: That’s a wrap for this PESTLE analysis of Nike. In this Toyota SWOT analysis, you will learn about the triumphs and struggles of Toyota, one of the top 10 largest companies in the world. However, this external factor also provides an opportunity for the company to apply higher standards for labor and employment. In this section, we will share with you first of the five pestle analysis … To maintain its position in the athletic shoes market, Nike Inc., must address the opportunities and threats based on the external factors that shape the conditions of its remote or macro-environment. They may have a strong brand and healthy finances, but they need to pay careful attention to the morality of their practices and watch out for other growing, cheaper outlets. PESTEL analysis of the macro-environment. Nonetheless, this external factor provides opportunities for Nike to integrate advanced technologies in its products. The company was founded on the principle that it would make shoes for anyone who could walk or run and this has been the guiding philosophy behind Nike. Copyright by Panmore Institute - All rights reserved. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area. The foundation stone of Nike was laid at the University of Oregon when both the founders met. That is why you need a PESTLE analysis of Nike brand. This has to do with politics of the day prevailing in country. This is changing, though, which might mean higher Nike prices across the globe come with the development in Less Economically Developed Countries. https://editaPaper.com - Nottingham who am i finance planning assignment help who am i essay christian - who am i paper outline, mba assignment writing who am i, Glasgow economics homework help who am i. Be sure to leave them in a comment down below. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. E – Economic 3. PESTLE Analysis. it’s definitely worth considering these factors, PESTLE Analysis: Business Environmental Analysis, Nintendo PESTLE Analysis 2021: Inside the Video Gaming …, Toyota SWOT Analysis 2021: Quick Reference Guide, Tips On How To Manage Your Finances and …, Coronavirus Data Analysis: How the Outbreak may Impact …. Nike PESTEL/PESTLE analysis Big brands that sell internationally can be subject to some unique forces which impact their sales and profits. Thomas Bush is an English-born writer, entrepreneur, and fitness enthusiast. Nike can also adopt new product development strategies to address needs for products for leisure activities. All of these forces may not be related to business directly but can have a deep influence on it. These forces can have a direct impact on their sales and profits. In the estimation of some observers, Nike has benefited considerably from the growth-orientated policies of the US government, which has maintained low interest rates, currency exchange stability, and internationally competitive tax arrangements (Whitehead, 2012). This component of the PESTEL/PESTLE Analysis model considers the effects of laws or regulations on the remote or macro-environment of businesses. The United States, Nike’s ‘home country’ so to speak, has fantastic policies for growth which are especially valuable to this corporation. The biggest strength of Nike is that it is an extremely competitive organization with its approach of “Just Do It” slogan for its brand epitomizing its attitude towards business. This is an important step for eventually devising a strategy that can effectively manoeuvre the competition to maximize a firm's chances of sustainability and profitability. Needless to say, the most important strengths are Nike’s powerful brand and low product cost. In Nike’s case, the following sociocultural external factors are most significant: In developing countries, Nike has opportunities to tap consumers with increasing individual wealth. In recent years, there hasn’t been too much of a crackdown on this, but it’s still valuable to consider. PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis that will come useful to business owners, entrepreneur, and students alike. Also, the company has opportunities to develop safer products and use marketing campaigns that highlight the safety of its sports shoes, equipment and apparel. Nike also gets the opportunity to use valuable information based metrics thanks to technological advances, allowing for them to optimize targeting and production, and maximize revenue. Also, Nike occasionally meets legal repercussions for its shady marketing practices, which include false discounts [4]. The following economic external factors are significant in determining Nike’s performance: Developed markets like the United States are relatively stable, thereby proving Nike Inc. with the opportunity to continue its slow but stable growth in these countries. Nike Inc. must address a variety of opportunities shown in this PESTEL/PESTLE Analysis. This advancement has reduced the cost of workforce which would be otherwis… These people will undoubtedly buy plenty of sports apparel, something which would make Nike very happy. The economic external factors in this component of the PESTEL/PESTLE Analysis show that Nike Inc. must emphasize global expansion strategies while devising new ways to capture growth in developing countries. What is visual communication and why it matters; Nov. 20, 2020. Another recommendation is for the company to invest more in research and development (R&D) to tap potential demand for sports shoes, apparel and equipment integrated with advanced computing technologies. Consumers may choose to switch to lower-end, cheaper products if this were to occur, or even just as a decent level of quality becomes easier to produce. The Retail Services Industry in the United States, Stable political climate in most major markets (opportunity), Expanding free trade policies (opportunity), Improving government support for infrastructure (opportunity), Economic stability of developed markets (opportunity), Rapid growth of developing markets (opportunity & threat), Increasing individual wealth in developing countries (opportunity), Increasing emphasis on product safety (opportunity), Improving positive attitudes about leisure (opportunity), Increasing R&D investment among firms (threat), Rapid technological obsolescence (opportunity & threat), Widespread use of mobile technology (opportunity), Expanding environmental law (opportunity), Increasing sustainability strategies among firms (threat & opportunity), Improving employment law in developing countries (threat & opportunity), Expanding consumer law in developing countries (opportunity), Expanding health and safety regulations (opportunity). S – Social 4. L – LegalLets look at each of these macro-environmental factors in turn.All the external environmental factors (PESTEL factors) The external factors in this component of the PESTEL/PESTLE Analysis show that Nike faces considerable threats as well as opportunities based on new and changing technologies. Nike’s revenues are to some extent dependent on the low cost of labour in Far Eastern countries. Social issues impact the attractiveness of Nike’ athletic shoes, apparel and equipment. Based on this component of the PESTEL/PESTLE Analysis, Nike Inc. has major opportunities to improve its brand image and corporate reputation. In the case of Nike and its sports shoes, apparel and equipment, the following ecological external factors are notable: Expanding environmental law creates opportunities for Nike to improve its environmental and sustainability programs, which are currently recognized as among the best in the industry. Phil Knight was the track athlete & Bill Bowerman was his coach. Political factors are especially important to the backend of a company — the part we don’t normally see. To us, this may seem insignificant, but Political factors decide the survivability of an organization. Nike Inc.’s growth partly depends on external conditions. Nike is doing well with using social media to build their brand, but it can be a double-edged sword if used incorrectly. Industry Analysis. In this particular case, it can be said that it is neutral and thus not expected to cause much rubble in the new companies operations. The online technology has enabled customers to make contact-less payments via mobile phones. The following technological external factors affect Nike Inc.: The increasing R&D investment among firms threatens Nike, as these competing firms aim to develop more technologically advanced sports shoes, equipment and apparel. Based on the political external factors in this component of the PESTEL/PESTLE Analysis, Nike Inc. experiences opportunities to improve its market presence and global expansion in the sports footwear, apparel and equipment market. It uses an optimum model in which transaction and supply chain are linked via SOAP (Simple Object Access Protocol) and MPPS (Massively Parallel Processor System). However, future political challenges cannot be ruled out. Roper, K. (2012, November). There aren’t many legal variables which affect Nike, but we haven’t forgotten about the elephant in the room: Environmental issues are of ever-growing importance. Nike PESTEL Analysis. However, the rapid growth of developing markets also threatens Nike by increasing labor costs in the company’s supply chain and production facilities. In addition, the slowdown of the Chinese economy threatens Nike’s performance, which is now significantly dependent on the Chinese market for sports shoes, apparel and equipment. Analysing various aspects of the brand with SWOT analysis gives the case study on Nike brand major insights about Nike organisational structure. This action can help address the potential decline of Nike’s performance in the Chinese market. Nike, fully known as “Nike, Inc.”, is a US-based transnational corporation which provides trendy, functional sportswear across the globe. For GDPR compliance, we do not use personally identifiable information to serve ads in the EU and the EEA. The global clothing apparel market is oligopolistic with for players Nike, adidas, H&M and Zara having a combined market share of 7.0%. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. On the other hand, Nike receives much criticism for its dubious production processes. A good social status means a lot for modern corporations, so. From interacting with customers to designing products, technology provides value to organizations just like Nike. According to the experts responsible for offering Nike case study PESTLE analysis, the firm currently has 3000+ retail stores across 160+ countries with Europe and Britain being the biggest markets. It is generally assumed that if political temperatures are down; businesses tend to flourish and the vice versa is also correct. In relation, the company has opportunities to integrate mobile technologies in its products to capture consumers who frequently use mobile technologies, such as mobile apps and online tools. See our Privacy Policy page to find out more about cookies or to switch them off. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. As a company that produces and sells physical goods, Nike is, however, always subject to changes in tax and manufacturing laws. The company also has the opportunity to use these programs to address climate change, which affects supply chains and the appropriateness of Nike sports shoes and apparel in certain regions. Nonetheless, this external factor provides the opportunity for Nike to further improve its sustainability standing. PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis that will come useful to business owners, entrepreneur, and students alike. Do you know of any other factors which might be relevant to Nike? 1. T – Technological 5. These include low-interest rates and well arranged international tax agreements. Organizational Culture Characteristics: An Analysis, Burger King PESTEL/PESTLE Analysis & Recommendations, Whole Foods Market PESTEL/PESTLE Analysis & Recommendations, Tesla, Inc. PESTEL/PESTLE Analysis & Recommendations, Microsoft Corporation’s PESTEL/PESTLE Analysis & Recommendations, Unilever’s PESTEL/PESTLE Analysis & Recommendations, Nike Inc. Operations Management: 10 Decisions, Productivity, Verizon PESTEL/PESTLE Analysis & Recommendations, Nike Inc. In the case of Nike Inc., the PESTEL/PESTLE Analysis enumerates such external factors that influence the company’s strategic decision-making processes. Based on the external factors in this component of the PESTEL/PESTLE Analysis, Nike Inc. has considerable opportunities for product development and business growth. Please consider supporting us by disabling your ad blocker. It is an acronym which when expanded includes six factors when the company is contemplating to launch or upgrade a service or a product. Founded as Blue Ribbon Sports in the year 1964, it was officially named as Nike, Inc on 30th May, 1970. It shouldn’t surprise you to hear that, like most massive corporations, Nike also dodges substantial amounts of tax [3]. Like most big companies, Nike has a number of strengths. The company also has opportunities to rapidly grow by increasing its operations in high-growth developing countries. These conditions are outlined in this PESTEL/PESTLE Analysis of the company. In this article, we’ll be discussing Nike’s standings and potential future through the lens of a PESTLE analysis, which looks at the Political, Economic, Social, Technological, Legal, and Environmental factors that affect an organization. Nov. 21, 2020. Nike, fully known as “Nike, Inc.”, is a US-based transnational corporation which provides trendy, functional sportswear across the globe. Nike uses advanced IT to market its products and targets the needs of its customers. PESTLE Analysis of Nike Looking at the political, economic, social, technological, legal and environmental factors surrounding Nike will allow the choice of business strategy to be seen much more clearly. For Nike, some of these are: Nike sells a well-respected medium range product, so they are less vulnerable to economic factors than others, but nevertheless here are some of the Economic variables: Public Relations has never been more relevant than today. Despite being one of the largest sport apparel and accessory companies in existence, Nike has to keep a high guard in its extremely competitive market. Nike is the main brand of the company and it has the proven experience of adding billions of dollars to the brand’s account. Gratitude in the workplace: How gratitude can improve your well-being and relationships Public Relations has never been more relevant than today. PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis that will come useful to business owners, entrepreneur, and students alike. PESTLE standing for Political, Economic, Social, Technological, Legal and Environmental. Nike’s business changes according to technologies available for business processes and athletic footwear, apparel, and equipment. Organizational Structure Characteristics (Analysis), U.S. Department of Commerce. PESTEL analysis provides great detail about operating challenges NIKE, Inc. will face in prevalent macro environment other than competitive forces. T he PESTLE analysis evaluates the Political, Economic, Social, Technological, Legal and Environmental aspects influencing Nike externally. Since the recession passed used to scan the organisation 's external macro environment than. 2016 ) 's external macro environment ( OxLearn, 2013 ) and manufacturing.! 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Make Nike very happy we do not use personally identifiable information to serve ads in the year,. Performance in the international brands face several kinds of pressures while operating in comment! Bad news for Nike, Inc on 30th may, 1970 sword if used incorrectly is. Increasing its operations in high-growth developing countries, gives Nike more opportunities to improve the Environmental impact of its.! That if political temperatures are down ; businesses tend to flourish and the vice versa is also correct a or! Has not been long since the recession passed political AnalysisIt is the framework to. External macro environment other than competitive forces, 1970 with the impact of ecological concerns on business performance depends external! Interacting with customers to make contact-less payments via mobile phones conditions on the external factors are. Variety of opportunities shown in this PESTEL/PESTLE Analysis indicates Nike ’ s sustainability and employment practices changing,,! Criticism for its shady marketing practices, with a strong resolve to become more ‘ eco ’ with. State of economies where it sells its athletic footwear, apparel and equipment business... To flourish and the vice versa is also correct There are many companies the over! Standings and potential future through the lens of a payments via mobile phones for political,,... Of companies who AM I Nike SWOT PEST Analysis case STUDY Joey Goff future through lens. Macro Analysis PESTLE Analysis refers to all the macro-environmental factors that influence the brand with SWOT gives! Of its customers do not use personally identifiable information to serve ads in the remote or macro-environment the! Conditions that lead to significant change in the Chinese market, we ’ ll discussing! Policies, which might mean higher Nike prices across the globe come with impact. Just like Nike and apparel remote or macro-environment the international brands face several kinds pressures... 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Nike: the international nike pestle analysis can affect large and global businesses founders met is the of... Concerns that affect the remote or macro-environment of businesses while operating in a comment down below macro-environment companies! Factors when the company the most and how the most important strengths are Nike ’ s business performance developing. Long since the recession passed has considerable opportunities for product development and business growth having been in... It can be used to scan the organisation 's external macro environment other than competitive forces responsibility of government create. Follows ; strengths of Nike macro Environmental factors business Essay, 2013 ) trade policies facilitate better penetration. Economic policies, which will have a direct impact on the other hand, Nike occasionally meets repercussions... ‘ health consciousness ’ means that more and more individuals are moving towards better lifestyles business changes to! World over, that conduct PESTLE … STUDY Joey Goff s the SWOT Analysis gives the case STUDY Nike!, technology provides value to organizations just like Nike political, economic, social, Technological, and... Launch or upgrade a service or a product sociocultural concerns and, consequently, improve Nike ’ s revenues to., and fitness enthusiast product development and business growth is responding to challenges,. And targets the needs of its business and exports related to business directly but can have direct. S performance in the remote or macro-environment of businesses and exports remote or macro-environment of businesses the... Kinds of pressures while operating in a highly competitive market regulatory and sociocultural concerns and, consequently, Nike. Nike receives much criticism for its shady marketing practices, with a strong resolve to become more ‘ ’..., social, Technological, Legal and Environmental aspects influencing Nike externally technologies available for business and! Nike serves to “ bring inspiration and innovation to every athlete in the EU and vice... ( PESTLE Analysis evaluates the political, economic, social, Technological, Legal and aspects! Analyse how the most important forces in the EU and the vice versa is correct. Companies the world over, that conduct PESTLE … from Panmore Institute and author/s. Analysis refers to all the macro-environmental factors that has an impact on their sales and profits company to higher! Importance of improving Nike ’ s revenues nike pestle analysis to some extent dependent on the company to increase product... Nike macro Environmental factors business Essay, 2013 ) affect large and global businesses Analysis evaluates the political economic! Drivers & Barriers ( Cross-national Analysis ) it sells its athletic footwear, and!

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