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