In this section, we will share with you first of the five pestle analysis … Am i do my homework, dissertation help online who am i Reading, why i am the person i am today essay, hr … BIM Implementation: PESTEL Drivers & Barriers (Cross-national Analysis). This is changing, though, which might mean higher Nike prices across the globe come with the development in Less Economically Developed Countries. A PESTEL/PESTLE Analysis of Nike Inc. identifies key issues that the company must include in its strategic formulation. Worldwide increases in ‘health consciousness’ means that more and more individuals are moving towards better lifestyles. Nike being number one sportswear in the USA, its profits, turnovers, marketing sponsor ships and advertising surmount all other sports wea… 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. 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. The PESTEL/PESTLE Analysis model identifies the external factors that present opportunities and threats in the remote or macro-environment. 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. Nov. 21, 2020. Nike is doing well with using social media to build their brand, but it can be a double-edged sword if used incorrectly. 1. The global clothing apparel market is oligopolistic with for players Nike, adidas, H&M and Zara having a combined market share of 7.0%. It is generally assumed that if political temperatures are down; businesses tend to flourish and the vice versa is also correct. 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. The external factors in this PESTEL/PESTLE Analysis also highlight the importance of improving Nike’s sustainability and employment practices. You need to focus on the external elements that influence the brand's activities. Nike can also adopt new product development strategies to address needs for products for leisure activities. This component of the PESTEL/PESTLE Analysis model deals with the effects of social conditions on the firm’s remote or macro-environment. In addition, Nike has the opportunity to improve its brand image by highlighting customer satisfaction in marketing its sports shoes, apparel and equipment. We use cookies for website functionality and to combat advertising fraud. 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. These actions address regulatory and sociocultural concerns and, consequently, improve Nike’s brand image and corporate image. Ecological issues influence Nike’s remote or macro-environment. Roper, K. (2012, November). Nike’s business performance depends on the state of economies where it sells its athletic footwear, equipment and apparel. Based on the external factors in this component of the PESTEL/PESTLE Analysis, Nike Inc. has considerable opportunities for product development and business growth. If you want to learn about the external factors of Nike; check out the pestle analysis of Nike. Most of today’s political changes only affect how a company can produce their goods or how much profit they make, for example. In recent years, there hasn’t been too much of a crackdown on this, but it’s still valuable to consider. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for NIKE, Inc. if … 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). The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area. Nike is an American company that is engaged in the design, manufacture and marketing of apparel, footwear, equipment, services and accessories. Various political conflicts can always make customs related processes difficult, or prevent imports and exports. This Nintendo PESTLE analysis examines six factors that will impact the company the most and how the video game firm is responding to challenges. 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. Gratitude in the workplace: How gratitude can improve your well-being and relationships PESTLE standing for Political, Economic, Social, Technological, Legal and Environmental. Social issues impact the attractiveness of Nike’ athletic shoes, apparel and equipment. Also, expanding free trade policies facilitate better market penetration overseas. 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 …. Rapid technological obsolescence also threatens Nike by putting pressure on the company to increase its product development efforts. Nike has captured approx. Do you know of any other factors which might be relevant to Nike? Macro Analysis PESTLE Analysis is the framework used to scan the organisation's external macro environment (OxLearn, 2013). E – Economic 3. Nike’s sports shoe business is subject to the effects of the political landscape. 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. 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. 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… Having been founded in 1964, Nike serves to “bring inspiration and innovation to every athlete in the world.” [1]. This component of the PESTEL/PESTLE Analysis model identifies the economic concerns that affect the remote or macro-environment of the business. Copyright by Panmore Institute - All rights reserved. Its swoosh symbol is easily recognized by everyone. L is for Legal. 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. 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). These include low-interest rates and well arranged international tax agreements. Politically, Nike has some interesting issues to contend with. This company takes its name from the Greek goddess of victory named Nike (About.nike.com, 2016). 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. Nike, fully known as “Nike, Inc.”, is a US-based transnational corporation which provides trendy, functional sportswear across the globe. 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. 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. Be sure to leave them in a comment down below. 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. A market collapse could mean bad news for Nike, along with many other big brands. Please consider supporting us by disabling your ad blocker. Also, Nike occasionally meets legal repercussions for its shady marketing practices, which include false discounts [4]. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. 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. Political factors are especially important to the backend of a company — the part we don’t normally see. PESTEL Analysis of Nike: The international brands face several kinds of pressures while operating in a highly competitive market. Nike’s Strengths – Internal Strategic Factors. It is an acronym which when expanded includes six factors when the company is contemplating to launch or upgrade a service or a product. 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. It is recommended that Nike must pursue a more aggressive approach to international expansion based on free trade policies, with focus on high-growth developing countries. However, the rapid growth of developing markets also threatens Nike by increasing labor costs in the company’s supply chain and production facilities. Blog. 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. 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. 1. Nike’s revenues are to some extent dependent on the low cost of labour in Far Eastern countries. PESTLE analysis refers to all the macro-environmental factors that are necessary for strategic management. 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. Nike uses advanced IT to market its products and targets the needs of its customers. Needless to say, the most important strengths are Nike’s powerful brand and low product cost. 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. Thomas Bush is an English-born writer, entrepreneur, and fitness enthusiast. Nike, fully known as “Nike, Inc.”, is a US-based transnational corporation which provides trendy, functional sportswear across the globe. 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. Analysing various aspects of the brand with SWOT analysis gives the case study on Nike brand major insights about Nike organisational structure. 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. The PESTEL framework can be used to analyse how the most important forces in the international environment can affect large and global businesses. Public Relations has never been more relevant than today. The United States, Nike’s ‘home country’ so to speak, has fantastic policies for growth which are especially valuable to this corporation. Nonetheless, this external factor provides opportunities for Nike to integrate advanced technologies in its products. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. (2007). To us, this may seem insignificant, but Political factors decide the survivability of an organization. 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. The increasing sustainability strategies of firms threaten Nike by imposing more pressure for increased sustainability efforts throughout the industry. Having been founded in 1964, Nike serves to “bring inspiration and innovation to every athlete in the world.” [1]. PESTLE analysis of Nike brand. In this article, we’ll be discussing Nike’s standings and potential future through the lens of a. This component of the PESTEL/PESTLE Analysis model deals with governmental influence on the remote or macro-environment of businesses. 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. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. Gillespie, A. 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. 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. S – Social 4. Everyday our market is changing the way it is. Moreover, improving government support for infrastructure, especially in developing countries, gives Nike more opportunities to expand its operations in these markets. 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. 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. PESTEL analysis provides great detail about operating challenges NIKE, Inc. will face in prevalent macro environment other than competitive forces. Nike’s mass production factories are, without a doubt, harming the environment. Nike PESTEL/PESTLE analysis Big brands that sell internationally can be subject to some unique forces which impact their sales and profits. 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. UCF Research Guides. E – Environmental 6. Founded as Blue Ribbon Sports in the year 1964, it was officially named as Nike, Inc on 30th May, 1970. Favourable Policies of US governmentThe policies generated by the government have huge impact on the business proceedings especially … This component of the PESTEL/PESTLE Analysis model deals with the impact of ecological concerns on business performance. This component of the PESTEL/PESTLE Analysis indicates Nike’s opportunities to improve the environmental impact of its business. L – LegalLets look at each of these macro-environmental factors in turn.All the external environmental factors (PESTEL factors) With its ‘deep pocket’ of finances, Nike has the resources to chase after small emerging markets in which they could sell products. It shouldn’t surprise you to hear that, like most massive corporations, Nike also dodges substantial amounts of tax [3]. 31% of the global athletic footwear market. 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. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. It has not been long since the recession passed. However, future political challenges cannot be ruled out. On the other hand, Nike receives much criticism for its dubious production processes. 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. 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. 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). ; Nov. 20, 2020 production processes macro environment ( OxLearn, ). 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