If you want to learn about the external factors of Nike; check out the pestle analysis of Nike. Do you know of any other factors which might be relevant to Nike? A PESTEL/PESTLE Analysis of Nike Inc. identifies key issues that the company must include in its strategic formulation. Nike PESTEL/PESTLE analysis Big brands that sell internationally can be subject to some unique forces which impact their sales and profits. Everyday our market is changing the way it is. Social issues impact the attractiveness of Nike’ athletic shoes, apparel and equipment. The United States, Nike’s ‘home country’ so to speak, has fantastic policies for growth which are especially valuable to this corporation. 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. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. We use cookies for website functionality and to combat advertising fraud. This component of the PESTEL/PESTLE Analysis indicates Nike’s opportunities to improve the environmental impact of its business. 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. Please consider supporting us by disabling your ad blocker. 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]. 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). 31% of the global athletic footwear market. The following political external factors determine some of Nike’s strategies: Stable political conditions in most major markets present opportunities for Nike to grow its business in these areas. Nike’s sports shoe business is subject to the effects of the political landscape. This has to do with politics of the day prevailing in country. PESTLE Analysis is one of the very important tools that is used for analyzing macro-environmental factors that has an impact on the Company. 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. Copyright by Panmore Institute - All rights reserved. It has not been long since the recession passed. 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. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for NIKE, Inc. if … The company also has opportunities to rapidly grow by increasing its operations in high-growth developing countries. Many …, There are many companies the world over, that conduct PESTLE …. PESTEL analysis provides great detail about operating challenges NIKE, Inc. will face in prevalent macro environment other than competitive forces. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area. Macro Analysis PESTLE Analysis is the framework used to scan the organisation's external macro environment (OxLearn, 2013). PESTLE standing for Political, Economic, Social, Technological, Legal and Environmental. E – Economic 3. Nike PESTEL Analysis. 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. Most of today’s political changes only affect how a company can produce their goods or how much profit they make, for example. Analysing various aspects of the brand with SWOT analysis gives the case study on Nike brand major insights about Nike organisational structure. Nike, fully known as “Nike, Inc.”, is a US-based transnational corporation which provides trendy, functional sportswear across the globe. V arious exa mples, for the impressive work of Nike on R&D. 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. 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. Legal factors are sometimes grouped together with Political factors … Based on this component of the PESTEL/PESTLE Analysis, Nike Inc. has major opportunities to improve its brand image and corporate reputation. It is an acronym which when expanded includes six factors when the company is contemplating to launch or upgrade a service or a product. 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). PESTLE Analysis of Nike The focus should be on the macro environmental factors of Nike, as it is an international organization, so consists of political, economics, society, and technology. However, future political challenges cannot be ruled out. This Nintendo PESTLE analysis examines six factors that will impact the company the most and how the video game firm is responding to challenges. This company takes its name from the Greek goddess of victory named Nike (About.nike.com, 2016). Nike’s business performance depends on the state of economies where it sells its athletic footwear, equipment and apparel. A market collapse could mean bad news for Nike, along with many other big brands. 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. 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. T he PESTLE analysis evaluates the Political, Economic, Social, Technological, Legal and Environmental aspects influencing Nike externally. Favourable Policies of US governmentThe policies generated by the government have huge impact on the business proceedings especially … PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. These actions address regulatory and sociocultural concerns and, consequently, improve Nike’s brand image and corporate image. 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. T – Technological 5. Nike, fully known as “Nike, Inc.”, is a US-based transnational corporation which provides trendy, functional sportswear across the globe. Similarly, the company has opportunities to improve its health and safety measures to address expanding health and safety regulations. In this section, we will share with you first of the five pestle analysis … Image “Janoski” by Leo Hidalgo is licensed under CC BY 2.0, [1] http://help-en-us.nike.com/app/answers/detail/a_id/113/~/nike-mission-statement, [2] https://en.wikipedia.org/wiki/Nike_sweatshops, [3] http://www.marketwatch.com/story/heres-how-apple-nike-and-others-avoided-620-billion-in-taxes-2015-10-06, [4] http://koin.com/2016/04/19/nike-faces-5-million-class-action-lawsuit/, [5] http://phys.org/news/2011-07-nike-adidas-suppliers-polluting-china.html. 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. (2007). PESTEL Analysis of Nike: The international brands face several kinds of pressures while operating in a highly competitive market. 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. Organizational Structure Characteristics (Analysis), U.S. Department of Commerce. A good social status means a lot for modern corporations, so. 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. With its ‘deep pocket’ of finances, Nike has the resources to chase after small emerging markets in which they could sell products. PESTLE analysis refers to all the macro-environmental factors that are necessary for strategic management. However, Nike also shows promise of a change in their current practices, with a strong resolve to become more ‘eco’. PESTEL analysis of the macro-environment. Gratitude in the workplace: How gratitude can improve your well-being and relationships This component of the PESTEL/PESTLE Analysis model deals with the effects of social conditions on the firm’s remote or macro-environment. The online technology has enabled customers to make contact-less payments via mobile phones. These forces can have a direct impact on their sales and profits. The external factors in this PESTEL/PESTLE Analysis also highlight the importance of improving Nike’s sustainability and employment practices. Our website is made possible by displaying online advertisements to our visitors. 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 Pestle Analysis So without any due let us understand Pestle Analysis of Nike and have a close look at political, economic, social, technological, legal and environmental factors that affect Nike performance. Murphey, M., & Gause, R. (1974). Nike’s Strengths – Internal Strategic Factors. This advancement has reduced the cost of workforce which would be otherwis… PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. This component of the PESTEL/PESTLE Analysis model identifies the technological conditions that lead to significant change in the remote or macro-environment of companies. 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. BIM Implementation: PESTEL Drivers & Barriers (Cross-national Analysis). Nike uses advanced IT to market its products and targets the needs of its customers. L is for Legal. Politically, Nike has some interesting issues to contend with. Nov. 21, 2020. 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. Worldwide increases in ‘health consciousness’ means that more and more individuals are moving towards better lifestyles. Nike Inc. Five Forces Analysis (Porter’s Model), Nike Inc.’s Marketing Mix (4Ps/Product, Place, Promotion, Price) – An Analysis, Nike Inc. SWOT Analysis & Recommendations, Home Depot PESTEL/PESTLE Analysis & Recommendations, Wendy’s PESTEL/PESTLE Analysis & Recommendations, Toyota PESTEL/PESTLE Analysis & Recommendations, Harley-Davidson PESTEL/PESTLE Analysis & Recommendations, Starbucks Coffee PESTEL/PESTLE Analysis & Recommendations, Ford Motor Company PESTEL/PESTLE Analysis, Nike Inc. Generic Strategy & Intensive Growth Strategies, Nike Inc. Am i do my homework, dissertation help online who am i Reading, why i am the person i am today essay, hr … E – Environmental 6. S – Social 4. 2. Nike is an American company that is engaged in the design, manufacture and marketing of apparel, footwear, equipment, services and accessories. These days, he spends his time flipping domain names, writing articles and pursuing other interesting business ventures. This component of the PESTEL/PESTLE Analysis model deals with governmental influence on the remote or macro-environment of businesses. Also, expanding free trade policies facilitate better market penetration overseas. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. This action can help address the potential decline of Nike’s performance in the Chinese market. Be sure to leave them in a comment down below. 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. What is visual communication and why it matters; Nov. 20, 2020. The foundation stone of Nike was laid at the University of Oregon when both the founders met. The level … Pest Analysis On Nike - December 2nd, 2010 Nike, Inc. (pronounced / na ki /) (NYSE: NKE) is a major publicly traded sportswear and equipment supplier based in the United States. Like most big companies, Nike has a number of strengths. In this article, we’ll be discussing Nike’s standings and potential future through the lens of a. 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. Nike has captured approx. Nike’s mass production factories are, without a doubt, harming the environment. This component of the PESTEL/PESTLE Analysis model identifies the economic concerns that affect the remote or macro-environment of the business. Founded as Blue Ribbon Sports in the year 1964, it was officially named as Nike, Inc on 30th May, 1970. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. 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. Legal terms influence businesses like Nike. PESTEL Analysis includes factors like Political, Economic, Socio-cultural, Technological, Environmental, and Legal.Nike PESTLE Analysis is described below: 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. Gillespie, A. The global clothing apparel market is oligopolistic with for players Nike, adidas, H&M and Zara having a combined market share of 7.0%. Needless to say, the most important strengths are Nike’s powerful brand and low product cost. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. Nonetheless, this external factor provides opportunities for Nike to integrate advanced technologies in its products. Pestle Analysis Examples: Uber. These conditions are outlined in this PESTEL/PESTLE Analysis of the company. Nike’s revenues are to some extent dependent on the low cost of labour in Far Eastern countries. All of these forces may not be related to business directly but can have a deep influence on it. It is generally assumed that if political temperatures are down; businesses tend to flourish and the vice versa is also correct. Nike is doing well with using social media to build their brand, but it can be a double-edged sword if used incorrectly. In Nike’s case, the following legal external factors are important in the sports shoes, apparel and equipment business: Improving employment law in developing countries is a threat because it leads to an increase in labor costs in areas where many of Nike’s production facilities are located. It shouldn’t surprise you to hear that, like most massive corporations, Nike also dodges substantial amounts of tax [3]. Nike’s business changes according to technologies available for business processes and athletic footwear, apparel, and equipment. Its swoosh symbol is easily recognized by everyone. These include low-interest rates and well arranged international tax agreements. However, this external factor also provides an opportunity for the company to apply higher standards for labor and employment. 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. That is why you need a PESTLE analysis of Nike brand. 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. 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. See our Privacy Policy page to find out more about cookies or to switch them off. For GDPR compliance, we do not use personally identifiable information to serve ads in the EU and the EEA. Here’s the swot analysis of Nike as follows; Strengths of Nike Sub Brands. Having been founded in 1964, Nike serves to “bring inspiration and innovation to every athlete in the world.” [1]. 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. 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. 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… Industry Analysis. Also, the company has opportunities to develop safer products and use marketing campaigns that highlight the safety of its sports shoes, equipment and apparel. Public Relations has never been more relevant than today. 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. You need to focus on the external elements that influence the brand's activities. Roper, K. (2012, November). In fact, the issue of Nike sweatshops is so prominent that it has warranted an entire Wikipedia article on the topic [2]. WHO AM I NIKE SWOT PEST ANALYSIS CASE STUDY Joey Goff. This is changing, though, which might mean higher Nike prices across the globe come with the development in Less Economically Developed Countries. 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. Thomas Bush is an English-born writer, entrepreneur, and fitness enthusiast. As a company that produces and sells physical goods, Nike is, however, always subject to changes in tax and manufacturing laws. Having been founded in 1964, Nike serves to “bring inspiration and innovation to every athlete in the world.” [1]. 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. 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. 1. 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