That is why you need a PESTLE analysis of Nike brand. The company also has opportunities to rapidly grow by increasing its operations in high-growth developing countries. 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. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. PESTEL Analysis of Nike: The international brands face several kinds of pressures while operating in a highly competitive market. Its swoosh symbol is easily recognized by everyone. In this article, we’ll be discussing Nike’s standings and potential future through the lens of a. 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. 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. 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. L – LegalLets look at each of these macro-environmental factors in turn.All the external environmental factors (PESTEL factors) In. Nike, fully known as “Nike, Inc.”, is a US-based transnational corporation which provides trendy, functional sportswear across the globe. 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. Also, Nike occasionally meets legal repercussions for its shady marketing practices, which include false discounts [4]. 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. Murphey, M., & Gause, R. (1974). In recent years, there hasn’t been too much of a crackdown on this, but it’s still valuable to consider. 1. 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. WHO AM I NIKE SWOT PEST ANALYSIS CASE STUDY Joey Goff. Rapid technological obsolescence also threatens Nike by putting pressure on the company to increase its product development efforts. Nike’s revenues are to some extent dependent on the low cost of labour in Far Eastern countries. A PESTEL/PESTLE Analysis of Nike Inc. identifies key issues that the company must include in its strategic formulation. 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. See our Privacy Policy page to find out more about cookies or to switch them off. Nike uses advanced IT to market its products and targets the needs of its customers. UCF Research Guides. From interacting with customers to designing products, technology provides value to organizations just like Nike. Nonetheless, this external factor provides opportunities for Nike to integrate advanced technologies in its products. Like most big companies, Nike has a number of strengths. Political AnalysisIt is the responsibility of government to create such economic policies, which will have a great effect on the growth of business. 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. Pestle Analysis Examples: Uber. The level … It is generally assumed that if political temperatures are down; businesses tend to flourish and the vice versa is also correct. Roper, K. (2012, November). It is an acronym which when expanded includes six factors when the company is contemplating to launch or upgrade a service or a product. 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. However, this external factor also provides an opportunity for the company to apply higher standards for labor and employment. (2007). 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 PESTEL/PESTLE analysis Big brands that sell internationally can be subject to some unique forces which impact their sales and profits. 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. This component of the PESTEL/PESTLE Analysis model deals with governmental influence on the remote or macro-environment of businesses. Nov. 21, 2020. These conditions are outlined in this PESTEL/PESTLE Analysis of the company. 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’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. P – Political 2. 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 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. The United States, Nike’s ‘home country’ so to speak, has fantastic policies for growth which are especially valuable to this corporation. Thomas Bush is an English-born writer, entrepreneur, and fitness enthusiast. Am i do my homework, dissertation help online who am i Reading, why i am the person i am today essay, hr … PESTEL Analysis includes factors like Political, Economic, Socio-cultural, Technological, Environmental, and Legal.Nike PESTLE Analysis is described below: Legal terms influence businesses like Nike. 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 …. 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. PESTLE Analysis is one of the very important tools that is used for analyzing macro-environmental factors that has an impact on the Company. 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… These actions address regulatory and sociocultural concerns and, consequently, improve Nike’s brand image and corporate image. The global clothing apparel market is oligopolistic with for players Nike, adidas, H&M and Zara having a combined market share of 7.0%. Various political conflicts can always make customs related processes difficult, or prevent imports and exports. 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). 1. A market collapse could mean bad news for Nike, along with many other big brands. Needless to say, the most important strengths are Nike’s powerful brand and low product cost. Nike is the main brand of the company and it has the proven experience of adding billions of dollars to the brand’s account. 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. V arious exa mples, for the impressive work of Nike on R&D. 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 analysis provides great detail about operating challenges NIKE, Inc. will face in prevalent macro environment other than competitive forces. Legal factors are sometimes grouped together with Political 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. Nike Inc.’s growth partly depends on external conditions. 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 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 PESTLE analysis, which looks at the Political, Economic, Social, Technological, Legal, and Environmental factors that affect an organization. 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. Here’s the swot analysis of Nike as follows; Strengths of Nike Sub Brands. T he PESTLE analysis evaluates the Political, Economic, Social, Technological, Legal and Environmental aspects influencing Nike externally. These days, he spends his time flipping domain names, writing articles and pursuing other interesting business ventures. 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. Having been founded in 1964, Nike serves to “bring inspiration and innovation to every athlete in the world.” [1]. Nike’s business changes according to technologies available for business processes and athletic footwear, apparel, and equipment. Gillespie, A. 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. Organizational Structure Characteristics (Analysis), U.S. Department of Commerce. 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). These people will undoubtedly buy plenty of sports apparel, something which would make Nike very happy. This has to do with politics of the day prevailing in country. E – Environmental 6. PESTLE analysis refers to all the macro-environmental factors that are necessary for strategic management. All of these forces may not be related to business directly but can have a deep influence on it. However, the rapid growth of developing markets also threatens Nike by increasing labor costs in the company’s supply chain and production facilities. Nike has captured approx. Many …, There are many companies the world over, that conduct PESTLE …. The PESTEL/PESTLE Analysis model identifies the external factors that present opportunities and threats in the remote or macro-environment. L is for Legal. 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. However, Nike also shows promise of a change in their current practices, with a strong resolve to become more ‘eco’. Everyday our market is changing the way it is. These forces can have a direct impact on their sales and profits. Moreover, improving government support for infrastructure, especially in developing countries, gives Nike more opportunities to expand its operations in these markets. A PESTEL/PESTLE Analysis of Nike Inc. identifies key issues that the company must include in its strategic formulation. Phil Knight was the track athlete & Bill Bowerman was his coach. To us, this may seem insignificant, but Political factors decide the survivability of an organization. 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. 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. 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. Be sure to leave them in a comment down below. 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. 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. In this section, we will share with you first of the five pestle analysis … Politically, Nike has some interesting issues to contend with. (Pestle Analysis Of Nike Macro Environmental Factors Business Essay, 2013). 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