Based on this component of the PESTEL/PESTLE Analysis, Nike Inc. has major opportunities to improve its brand image and corporate reputation. 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. 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. However, the rapid growth of developing markets also threatens Nike by increasing labor costs in the company’s supply chain and production facilities. Nike’s business changes according to technologies available for business processes and athletic footwear, apparel, and equipment. Nike is the main brand of the company and it has the proven experience of adding billions of dollars to the brand’s account. You need to focus on the external elements that influence the brand's activities. 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 or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. (Pestle Analysis Of Nike Macro Environmental Factors Business Essay, 2013). 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. Am i do my homework, dissertation help online who am i Reading, why i am the person i am today essay, hr … 1. 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. Worldwide increases in ‘health consciousness’ means that more and more individuals are moving towards better lifestyles. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. However, this external factor also provides an opportunity for the company to apply higher standards for labor and employment. A market collapse could mean bad news for Nike, along with many other big brands. 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. Nike, fully known as “Nike, Inc.”, is a US-based transnational corporation which provides trendy, functional sportswear across the globe. What is visual communication and why it matters; Nov. 20, 2020. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. Needless to say, the most important strengths are Nike’s powerful brand and low product cost. E – Economic 3. It shouldn’t surprise you to hear that, like most massive corporations, Nike also dodges substantial amounts of tax [3]. This has to do with politics of the day prevailing in country. Nike Inc. must address a variety of opportunities shown in this PESTEL/PESTLE Analysis. This company takes its name from the Greek goddess of victory named Nike (About.nike.com, 2016). This action can help address the potential decline of Nike’s performance in the Chinese market. In addition, Nike has the opportunity to improve its brand image by highlighting customer satisfaction in marketing its sports shoes, apparel and equipment. This component of the PESTEL/PESTLE Analysis model considers the effects of laws or regulations on the remote or macro-environment of businesses. To us, this may seem insignificant, but Political factors decide the survivability of an organization. Nike uses advanced IT to market its products and targets the needs of its customers. Most of today’s political changes only affect how a company can produce their goods or how much profit they make, for example. 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… Do you know of any other factors which might be relevant to Nike? 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. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. It has not been long since the recession passed. Nike PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for NIKE, Inc. if … Nov. 21, 2020. 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. This component of the PESTEL/PESTLE Analysis model identifies the economic concerns that affect the remote or macro-environment of the business. Nike, fully known as “Nike, Inc.”, is a US-based transnational corporation which provides trendy, functional sportswear across the globe. Moreover, improving government support for infrastructure, especially in developing countries, gives Nike more opportunities to expand its operations in these markets. Legal terms influence businesses like Nike. Nike being number one sportswear in the USA, its profits, turnovers, marketing sponsor ships and advertising surmount all other sports wea… E – Environmental 6. 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 this particular case, it can be said that it is neutral and thus not expected to cause much rubble in the new companies operations. BIM Implementation: PESTEL Drivers & Barriers (Cross-national Analysis). These people will undoubtedly buy plenty of sports apparel, something which would make Nike very happy. 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. Political AnalysisIt is the responsibility of government to create such economic policies, which will have a great effect on the growth of business. A PESTEL/PESTLE Analysis of Nike Inc. identifies key issues that the company must include in its strategic formulation. It is generally assumed that if political temperatures are down; businesses tend to flourish and the vice versa is also correct. WHO AM I NIKE SWOT PEST ANALYSIS CASE STUDY Joey Goff. Our website is made possible by displaying online advertisements to our visitors. 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. This component of the PESTEL/PESTLE Analysis model deals with governmental influence on the remote or macro-environment of businesses. Analysing various aspects of the brand with SWOT analysis gives the case study on Nike brand major insights about Nike organisational structure. Nike’s business performance depends on the state of economies where it sells its athletic footwear, equipment and apparel. 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 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. 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. 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. Similarly, the company has opportunities to improve its health and safety measures to address expanding health and safety regulations. 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. Like most big companies, Nike has a number of strengths. 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]. Be sure to leave them in a comment down below. See our Privacy Policy page to find out more about cookies or to switch them off. Copyright by Panmore Institute - All rights reserved. Everyday our market is changing the way it is. All of these forces may not be related to business directly but can have a deep influence on it. PESTEL analysis of the macro-environment. 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). 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. 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. 2. Also, the company has opportunities to develop safer products and use marketing campaigns that highlight the safety of its sports shoes, equipment and apparel. In fact, the issue of Nike sweatshops is so prominent that it has warranted an entire Wikipedia article on the topic [2]. PESTLE Analysis is one of the very important tools that is used for analyzing macro-environmental factors that has an impact on the Company. 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. These forces can have a direct impact on their sales and profits. Ecological issues influence Nike’s remote or macro-environment. The PESTEL framework can be used to analyse how the most important forces in the international environment can affect large and global businesses. The company also has opportunities to rapidly grow by increasing its operations in high-growth developing countries. Also, expanding free trade policies facilitate better market penetration overseas. 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. In this section, we will share with you first of the five pestle analysis … 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. 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. Nike is doing well with using social media to build their brand, but it can be a double-edged sword if used incorrectly. 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 …. With its ‘deep pocket’ of finances, Nike has the resources to chase after small emerging markets in which they could sell products. 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. The global clothing apparel market is oligopolistic with for players Nike, adidas, H&M and Zara having a combined market share of 7.0%. This advancement has reduced the cost of workforce which would be otherwis… PESTEL Analysis of Nike: The international brands face several kinds of pressures while operating in a highly competitive market. However, Nike also shows promise of a change in their current practices, with a strong resolve to become more ‘eco’. Founded as Blue Ribbon Sports in the year 1964, it was officially named as Nike, Inc on 30th May, 1970. PESTLE standing for Political, Economic, Social, Technological, Legal and Environmental. These include low-interest rates and well arranged international tax agreements. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. PESTEL Analysis includes factors like Political, Economic, Socio-cultural, Technological, Environmental, and Legal.Nike PESTLE Analysis is described below: For GDPR compliance, we do not use personally identifiable information to serve ads in the EU and the EEA. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. 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). 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. Legal factors are sometimes grouped together with Political 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. (2007). In the case of Nike Inc., the PESTEL/PESTLE Analysis enumerates such external factors that influence the company’s strategic decision-making processes. 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 external factors in this PESTEL/PESTLE Analysis also highlight the importance of improving Nike’s sustainability and employment practices. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area. 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