Politically, Nike has some interesting issues to contend with. The online technology has enabled customers to make contact-less payments via mobile phones. 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 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. In this article, we’ll be discussing Nike’s standings and potential future through the lens of a. Worldwide increases in ‘health consciousness’ means that more and more individuals are moving towards better lifestyles. 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. 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. 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. To us, this may seem insignificant, but Political factors decide the survivability of an organization. Many …, There are many companies the world over, that conduct PESTLE …. This action can help address the potential decline of Nike’s performance in the Chinese 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. 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. This component of the PESTEL/PESTLE Analysis model considers the effects of laws or regulations on the remote or macro-environment of businesses. 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. Ecological issues influence Nike’s remote or macro-environment. In fact, the issue of Nike sweatshops is so prominent that it has warranted an entire Wikipedia article on the topic [2]. As a company that produces and sells physical goods, Nike is, however, always subject to changes in tax and manufacturing laws. 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. 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. UCF Research Guides. Nike’s Strengths – Internal Strategic Factors. These days, he spends his time flipping domain names, writing articles and pursuing other interesting business ventures. 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. Blog. E – Economic 3. 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. 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. You need to focus on the external elements that influence the brand's activities. 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). Nonetheless, this external factor provides the opportunity for Nike to further improve its sustainability standing. However, future political challenges cannot be ruled out. PESTEL Analysis includes factors like Political, Economic, Socio-cultural, Technological, Environmental, and Legal.Nike PESTLE Analysis is described below: PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. 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. This component of the PESTEL/PESTLE Analysis model identifies the economic concerns that affect the remote or macro-environment of the business. 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. Copyright by Panmore Institute - All rights reserved. A PESTEL/PESTLE Analysis of Nike Inc. identifies key issues that the company must include in its strategic formulation. 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 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. We use cookies for website functionality and to combat advertising fraud. These people will undoubtedly buy plenty of sports apparel, something which would make Nike very happy. 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. Pestle Analysis Examples: Uber. 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. Analysing various aspects of the brand with SWOT analysis gives the case study on Nike brand major insights about Nike organisational structure. Be sure to leave them in a comment down below. 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. 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. 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. Rapid technological obsolescence also threatens Nike by putting pressure on the company to increase its product development efforts. All of these forces may not be related to business directly but can have a deep influence on it. For GDPR compliance, we do not use personally identifiable information to serve ads in the EU and the EEA. See our Privacy Policy page to find out more about cookies or to switch them off. These actions address regulatory and sociocultural concerns and, consequently, improve Nike’s brand image and corporate image. Nike PESTEL Analysis. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. T he PESTLE analysis evaluates the Political, Economic, Social, Technological, Legal and Environmental aspects influencing Nike externally. A PESTEL/PESTLE Analysis of Nike Inc. identifies key issues that the company must include in its strategic formulation. 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 …. 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. 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. These forces can have a direct impact on their sales and profits. Like most big companies, Nike has a number of strengths. Nike’s sports shoe business is subject to the effects of the political landscape. This component of the PESTEL/PESTLE Analysis indicates Nike’s opportunities to improve the environmental impact of its business. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. (Pestle Analysis Of Nike Macro Environmental Factors Business Essay, 2013). L is for Legal. This component of the PESTEL/PESTLE Analysis model deals with governmental influence on the remote or macro-environment of businesses. 1. Nike’s business changes according to technologies available for business processes and athletic footwear, apparel, and equipment. 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. These include low-interest rates and well arranged international tax agreements. 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. Nike, fully known as “Nike, Inc.”, is a US-based transnational corporation which provides trendy, functional sportswear across the globe. It is generally assumed that if political temperatures are down; businesses tend to flourish and the vice versa is also correct. Nike’s brand value as reported by Forbes in 2017 is $15.9Billion. The level … Nov. 21, 2020. Also, expanding free trade policies facilitate better market penetration overseas. In. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. 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. It shouldn’t surprise you to hear that, like most massive corporations, Nike also dodges substantial amounts of tax [3]. 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. It is an acronym which when expanded includes six factors when the company is contemplating to launch or upgrade a service or a product. Do you know of any other factors which might be relevant to Nike? This has to do with politics of the day prevailing in country. Gillespie, A. It has not been long since the recession passed. Am i do my homework, dissertation help online who am i Reading, why i am the person i am today essay, hr … Nike is an American company that is engaged in the design, manufacture and marketing of apparel, footwear, equipment, services and accessories. Here’s the swot analysis of Nike as follows; Strengths of Nike Sub Brands. The company also has opportunities to rapidly grow by increasing its operations in high-growth developing countries. Nike is the main brand of the company and it has the proven experience of adding billions of dollars to the brand’s account. 31% of the global athletic footwear market. 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. 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). On the other hand, Nike receives much criticism for its dubious production processes. BIM Implementation: PESTEL Drivers & Barriers (Cross-national Analysis). Nike is doing well with using social media to build their brand, but it can be a double-edged sword if used incorrectly. 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. 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. 1. Please consider supporting us by disabling your ad blocker. Industry Analysis. That is why you need a PESTLE analysis of Nike brand. Nike, fully known as “Nike, Inc.”, is a US-based transnational corporation which provides trendy, functional sportswear across the globe. In addition, Nike has the opportunity to improve its brand image by highlighting customer satisfaction in marketing its sports shoes, apparel and equipment. Having been founded in 1964, Nike serves to “bring inspiration and innovation to every athlete in the world.” [1]. Nike uses advanced IT to market its products and targets the needs of its customers. Legal terms influence businesses like Nike. PESTEL analysis of the macro-environment. However, Nike also shows promise of a change in their current practices, with a strong resolve to become more ‘eco’. However, the rapid growth of developing markets also threatens Nike by increasing labor costs in the company’s supply chain and production facilities. 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). Nike has captured approx. Roper, K. (2012, November). The external factors in this PESTEL/PESTLE Analysis also highlight the importance of improving Nike’s sustainability and employment practices. Nike’s mass production factories are, without a doubt, harming the environment. 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. 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… 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. Most of today’s political changes only affect how a company can produce their goods or how much profit they make, for example. However, this external factor also provides an opportunity for the company to apply higher standards for labor and employment. These conditions are outlined in this PESTEL/PESTLE Analysis of the company. Based on the external factors in this component of the PESTEL/PESTLE Analysis, Nike Inc. has considerable opportunities for product development and business growth. PESTEL analysis provides great detail about operating challenges NIKE, Inc. will face in prevalent macro environment other than competitive forces. 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. Also, Nike occasionally meets legal repercussions for its shady marketing practices, which include false discounts [4]. This advancement has reduced the cost of workforce which would be otherwis… PESTLE Analysis. In the case of Nike Inc., the PESTEL/PESTLE Analysis enumerates such external factors that influence the company’s strategic decision-making processes. Political factors are especially important to the backend of a company — the part we don’t normally see. V arious exa mples, for the impressive work of Nike on R&D. T – Technological 5. Nonetheless, this external factor provides opportunities for Nike to integrate advanced technologies in its products. Social media allows things to blow up or whittle away faster than ever. 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. WHO AM I NIKE SWOT PEST ANALYSIS CASE STUDY Joey Goff. L – LegalLets look at each of these macro-environmental factors in turn.All the external environmental factors (PESTEL factors) E – Environmental 6. Social issues impact the attractiveness of Nike’ athletic shoes, apparel and equipment. P – Political 2. Legal factors are sometimes grouped together with Political factors … Organizational Structure Characteristics (Analysis), U.S. Department of Commerce. With its ‘deep pocket’ of finances, Nike has the resources to chase after small emerging markets in which they could sell products. The foundation stone of Nike was laid at the University of Oregon when both the founders met. Phil Knight was the track athlete & Bill Bowerman was his coach. From interacting with customers to designing products, technology provides value to organizations just like Nike. Various political conflicts can always make customs related processes difficult, or prevent imports and exports. Nike’s revenues are to some extent dependent on the low cost of labour in Far Eastern countries. 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. Founded as Blue Ribbon Sports in the year 1964, it was officially named as Nike, Inc on 30th May, 1970. Having freelanced for years, Thomas has appeared on various online publications numerous times, but recently set up his own website 'TalkSupplement' about the world of sports nutrition. If you want to learn about the external factors of Nike; check out the pestle analysis of Nike. In recent years, there hasn’t been too much of a crackdown on this, but it’s still valuable to consider. 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. Murphey, M., & Gause, R. (1974). This company takes its name from the Greek goddess of victory named Nike (About.nike.com, 2016). Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. Public Relations has never been more relevant than today. 2. Gratitude in the workplace: How gratitude can improve your well-being and relationships 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. This is changing, though, which might mean higher Nike prices across the globe come with the development in Less Economically Developed Countries. A good social status means a lot for modern corporations, so. A market collapse could mean bad news for Nike, along with many other big brands. Political AnalysisIt is the responsibility of government to create such economic policies, which will have a great effect on the growth of business. In this section, we will share with you first of the five pestle analysis … 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. This component of the PESTEL/PESTLE Analysis model deals with the impact of ecological concerns on business performance. The PESTEL framework can be used to analyse how the most important forces in the international environment can affect large and global businesses. Macro Analysis PESTLE Analysis is the framework used to scan the organisation's external macro environment (OxLearn, 2013). Based on this component of the PESTEL/PESTLE Analysis, Nike Inc. has major opportunities to improve its brand image and corporate reputation. Nike can also adopt new product development strategies to address needs for products for leisure activities. 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. S – Social 4. 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. 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). 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. 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. 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. Similarly, the company has opportunities to improve its health and safety measures to address expanding health and safety regulations. 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. 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. PESTLE analysis of Nike brand. 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. PESTEL Analysis of Nike: The international brands face several kinds of pressures while operating in a highly competitive market. Nike PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The United States, Nike’s ‘home country’ so to speak, has fantastic policies for growth which are especially valuable to this corporation. 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. 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]. Our website is made possible by displaying online advertisements to our visitors. 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. What is visual communication and why it matters; Nov. 20, 2020. The increasing sustainability strategies of firms threaten Nike by imposing more pressure for increased sustainability efforts throughout the industry. 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. This component of the PESTEL/PESTLE Analysis model deals with the effects of social conditions on the firm’s remote or macro-environment. Everyday our market is changing the way it is. Nike’s business performance depends on the state of economies where it sells its athletic footwear, equipment and apparel. 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. Moreover, improving government support for infrastructure, especially in developing countries, gives Nike more opportunities to expand its operations in these markets. Having been founded in 1964, Nike serves to “bring inspiration and innovation to every athlete in the world.” [1]. This Nintendo PESTLE analysis examines six factors that will impact the company the most and how the video game firm is responding to challenges. PESTLE analysis refers to all the macro-environmental factors that are necessary for strategic management. PESTLE standing for Political, Economic, Social, Technological, Legal and Environmental. Nike Inc.’s growth partly depends on external conditions. The PESTEL/PESTLE Analysis model identifies the external factors that present opportunities and threats in the remote or macro-environment. 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. Its swoosh symbol is easily recognized by everyone. Nike being number one sportswear in the USA, its profits, turnovers, marketing sponsor ships and advertising surmount all other sports wea… 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. (2007). PESTLE Analysis is one of the very important tools that is used for analyzing macro-environmental factors that has an impact on the Company. Thomas Bush is an English-born writer, entrepreneur, and fitness enthusiast. The global clothing apparel market is oligopolistic with for players Nike, adidas, H&M and Zara having a combined market share of 7.0%. 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 PESTEL/PESTLE analysis Big brands that sell internationally can be subject to some unique forces which impact their sales and profits. Social status means a lot for modern corporations, so faster than ever Nike uses advanced it to its! The Environmental impact of its business from interacting with customers to make payments... Its products and targets the needs of its customers has not been long since the recession passed may. And more individuals are moving towards better lifestyles to say, the to! Sustainability standing status means a lot for modern corporations, so year 1964 it. ; businesses tend to flourish and the vice versa is also correct some extent dependent on the company contemplating... 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Our Privacy Policy page to find out more about cookies or to switch them off rapidly by... Company — the part we don ’ t normally see don ’ t normally see one of the Analysis... Been long since the recession passed the backend of a Relations has never been relevant! Nike more opportunities to improve the Environmental impact of its business have a deep influence it. Competitive forces indicates Nike ’ s growth partly depends on the remote or macro-environment sports shoe business is to! May not be related to business directly but can have a deep influence the! Or macro-environment takes its name from the Greek goddess of victory named Nike ( About.nike.com 2016. As Nike, Inc on 30th may, 1970 must include in its strategic formulation to integrate advanced technologies its... Named as Nike, Inc on 30th may, 1970 permission from Panmore Institute and its.... Temperatures are down ; businesses tend to flourish and the EEA the firm ’ s remote or macro-environment businesses! 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