A PESTEL/PESTLE Analysis of Nike Inc. identifies key issues that the company must include in its strategic formulation. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. 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. Most of today’s political changes only affect how a company can produce their goods or how much profit they make, for example. Worldwide increases in ‘health consciousness’ means that more and more individuals are moving towards better lifestyles. Moreover, improving government support for infrastructure, especially in developing countries, gives Nike more opportunities to expand its operations in these markets. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area. These forces can have a direct impact on their sales and profits. PESTEL analysis of the macro-environment. Nike Inc. must address a variety of opportunities shown in this PESTEL/PESTLE Analysis. Political factors are especially important to the backend of a company — the part we don’t normally see. 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. 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. V arious exa mples, for the impressive work of Nike on R&D. 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. In. Nike’s sports shoe business is subject to the effects of the political landscape. Based on the external factors in this component of the PESTEL/PESTLE Analysis, Nike Inc. has considerable opportunities for product development and business growth. These conditions are outlined in this PESTEL/PESTLE Analysis of the company. Gratitude in the workplace: How gratitude can improve your well-being and relationships 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. You need to focus on the external elements that influence the brand's activities. PESTEL analysis provides great detail about operating challenges NIKE, Inc. will face in prevalent macro environment other than competitive forces. Needless to say, the most important strengths are Nike’s powerful brand and low product cost. In the case of Nike Inc., the PESTEL/PESTLE Analysis enumerates such external factors that influence the company’s strategic decision-making processes. 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. All of these forces may not be related to business directly but can have a deep influence on it. BIM Implementation: PESTEL Drivers & Barriers (Cross-national Analysis). Nike being number one sportswear in the USA, its profits, turnovers, marketing sponsor ships and advertising surmount all other sports wea… The external factors in this PESTEL/PESTLE Analysis also highlight the importance of improving Nike’s sustainability and employment practices. 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. Like most big companies, Nike has a number of strengths. Be sure to leave them in a comment down below. A good social status means a lot for modern corporations, so it’s definitely worth considering these factors: Technology gives companies the ability to innovate in so many different ways. In this article, we’ll be discussing Nike’s standings and potential future through the lens of a. 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. However, the rapid growth of developing markets also threatens Nike by increasing labor costs in the company’s supply chain and production facilities. Various political conflicts can always make customs related processes difficult, or prevent imports and exports. 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. S – Social 4. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. Nike is an American company that is engaged in the design, manufacture and marketing of apparel, footwear, equipment, services and accessories. 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. Having been founded in 1964, Nike serves to “bring inspiration and innovation to every athlete in the world.” [1]. Many …, There are many companies the world over, that conduct PESTLE …. WHO AM I NIKE SWOT PEST ANALYSIS CASE STUDY Joey Goff. The foundation stone of Nike was laid at the University of Oregon when both the founders met. This company takes its name from the Greek goddess of victory named Nike (About.nike.com, 2016). Nike, fully known as “Nike, Inc.”, is a US-based transnational corporation which provides trendy, functional sportswear across the globe. Copyright by Panmore Institute - All rights reserved. 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. Favourable Policies of US governmentThe policies generated by the government have huge impact on the business proceedings especially … 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. Nike uses advanced IT to market its products and targets the needs of its customers. Am i do my homework, dissertation help online who am i Reading, why i am the person i am today essay, hr … 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. Nike Inc.’s growth partly depends on external conditions. What is visual communication and why it matters; Nov. 20, 2020. In fact, the issue of Nike sweatshops is so prominent that it has warranted an entire Wikipedia article on the topic [2]. However, future political challenges cannot be ruled out. 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. PESTEL Analysis includes factors like Political, Economic, Socio-cultural, Technological, Environmental, and Legal.Nike PESTLE Analysis is described below: 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. This component of the PESTEL/PESTLE Analysis model deals with the impact of ecological concerns on business performance. Nike’s Strengths – Internal Strategic Factors. P – Political 2. The PESTEL/PESTLE Analysis model identifies the external factors that present opportunities and threats in the remote or macro-environment. Its swoosh symbol is easily recognized by everyone. 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. Having been founded in 1964, Nike serves to “bring inspiration and innovation to every athlete in the world.” [1]. Nonetheless, this external factor provides opportunities for Nike to integrate advanced technologies in its products. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for NIKE, Inc. if … Legal factors are sometimes grouped together with Political factors … Thomas Bush is an English-born writer, entrepreneur, and fitness enthusiast. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Also, Nike occasionally meets legal repercussions for its shady marketing practices, which include false discounts [4]. 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’s business performance depends on the state of economies where it sells its athletic footwear, equipment and apparel. In addition, Nike has the opportunity to improve its brand image by highlighting customer satisfaction in marketing its sports shoes, apparel and equipment. 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). 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