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