This advancement has reduced the cost of workforce which would be otherwis… Ecological issues influence Nike’s remote or macro-environment. Nike PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. T he PESTLE analysis evaluates the Political, Economic, Social, Technological, Legal and Environmental aspects influencing Nike externally. This Nintendo PESTLE analysis examines six factors that will impact the company the most and how the video game firm is responding to challenges. This has to do with politics of the day prevailing in country. Worldwide increases in ‘health consciousness’ means that more and more individuals are moving towards better lifestyles. 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. Nike’s business performance depends on the state of economies where it sells its athletic footwear, equipment and apparel. Also, the company has opportunities to develop safer products and use marketing campaigns that highlight the safety of its sports shoes, equipment and apparel. Founded as Blue Ribbon Sports in the year 1964, it was officially named as Nike, Inc on 30th May, 1970. 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. 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. 31% of the global athletic footwear market. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. T – Technological 5. 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. Blog. Roper, K. (2012, November). 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. 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. 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… Gillespie, A. Moreover, improving government support for infrastructure, especially in developing countries, gives Nike more opportunities to expand its operations in these markets. 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. 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 has captured approx. 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. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. Social issues impact the attractiveness of Nike’ athletic shoes, apparel and equipment. In fact, the issue of Nike sweatshops is so prominent that it has warranted an entire Wikipedia article on the topic [2]. Like most big companies, Nike has a number of strengths. L is for Legal. The foundation stone of Nike was laid at the University of Oregon when both the founders met. 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. Also, expanding free trade policies facilitate better market penetration overseas. 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 …. It is an acronym which when expanded includes six factors when the company is contemplating to launch or upgrade a service or a product. However, Nike also shows promise of a change in their current practices, with a strong resolve to become more ‘eco’. PESTLE analysis of Nike brand. 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 United States, Nike’s ‘home country’ so to speak, has fantastic policies for growth which are especially valuable to this corporation. Politically, Nike has some interesting issues to contend with. 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. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. However, the rapid growth of developing markets also threatens Nike by increasing labor costs in the company’s supply chain and production facilities. Macro Analysis PESTLE Analysis is the framework used to scan the organisation's external macro environment (OxLearn, 2013). 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. Be sure to leave them in a comment down below. 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. 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. Do you know of any other factors which might be relevant to Nike? Gratitude in the workplace: How gratitude can improve your well-being and relationships 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. 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. Legal terms influence businesses like Nike. These forces can have a direct impact on their sales and profits. From interacting with customers to designing products, technology provides value to organizations just like Nike. 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]. Nike PESTEL/PESTLE analysis Big brands that sell internationally can be subject to some unique forces which impact their sales and profits. 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). Everyday our market is changing the way it is. Phil Knight was the track athlete & Bill Bowerman was his coach. These actions address regulatory and sociocultural concerns and, consequently, improve Nike’s brand image and corporate image. E – Economic 3. WHO AM I NIKE SWOT PEST ANALYSIS CASE STUDY Joey Goff. 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. Nike is doing well with using social media to build their brand, but it can be a double-edged sword if used incorrectly. 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. PESTEL Analysis of Nike: The international brands face several kinds of pressures while operating in a highly competitive market. 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 identifies the economic concerns that affect the remote or macro-environment of the business. Based on this component of the PESTEL/PESTLE Analysis, Nike Inc. has major opportunities to improve its brand image and corporate reputation. What is visual communication and why it matters; Nov. 20, 2020. Nike being number one sportswear in the USA, its profits, turnovers, marketing sponsor ships and advertising surmount all other sports wea… The increasing sustainability strategies of firms threaten Nike by imposing more pressure for increased sustainability efforts throughout the industry. However, this external factor also provides an opportunity for the company to apply higher standards for labor and employment. This component of the PESTEL/PESTLE Analysis model deals with governmental influence on the remote or macro-environment of businesses. 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. 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