Nike Case Study: An Insight into the PESTLE Analysis

Guess, which is one of the world's most iconic brands for shoes and apparel? Did you guess it right? Yes, it is Nike! There are features that you may know about the company, but others that you may not. So let's take a cavernous dive into the content to learn all you want to know about the company. Here is a brief Nike case study using pestle analysis. The performance of the company shows the real growth of the company. With the help of scanning, people can map out the future scope of the development. Multiple factors affect the growth of a particular company. The pestle analysis is the right way to understand the various socioeconomic factors affecting the company growth. Hence, it is necessary to do a pestle analysis before drafting an action plan for any organization. Let’s jump into some of the information you need to learn before diving into scrutiny.

Background of Nike
Nike is a well-known American multinational company. It exclusively deals with apparel and sports gear. In the year 2020, the most valuable sports brand is Nike thanks to its high brand value. It is also the world largest supplier of athletic footwear. These are some of the elements that you might be interested in, as mentioned below in the table.

-Company Name- Nike Inc.
-CEO- John Donahoe
-Company Type- Public
-Founder- Bill Bowerman, Phil Knight
-Headquarters- Beaverton, Oregon, U.S
-Operating Income- US$6.675B

Pestle Analysis of Nike
A pestle analysis provides an overview of the things that can affect the progress of the company. The influences can be pretty harmful and can affect a well-established organization. It demonstrates the impact of events on the company's future development. To do this, the company analyses the problems. They identify the things that can affect growth through the analysis, and they can now devise appropriate solutions to those problems. Let’s see what the term "pestle" really means and what type of analysis it can do for the company.

Political Factors:
A favourable political situation can boost the company's growth. It results in a suitable business environment for potentially politically stable areas. The following are the various political factors influencing Nike's expansion:

-Manufacturing and taxation laws are bound to change, affecting Nike's growth.
-The stability of the economy provides ample growth for the company with its favourable tax agreement.
-The political issues in the countries can hamper the export and import of goods worldwide, which can hamper smooth operations.

Economic Factors:
-It directly deals with all the profits and sales of the company. It is less vulnerable to economic problems because its product is both affordable and popular. The probable economic factor that can affect Nike is:
-Nike can target the market across the globe financially. Nike can expand its reach in the new market with a concise market strategy.
-Nike's production costs will eventually rise as developing-country economies develop. The availability of lower-cost products is a problem for the brand, as consumers prefer higher-quality products.

Social Factors:
Social conditions can affect the sales of any business. The PESTLE analysis Nike did for proper research on what is affecting the company's salespeople research on what is affecting the company's sales. Here are some examples of how the social factor may affect Nike:

-Some consumers are very much into the health-conscious approach. Nike has an opportunity to promote its products among health-conscious people.
-Work stress is one thing that often forces people to find some leisurely activity. Nike can use this opportunity to advance its strategy in a development avenue that aids leisure activities.
-Safety is something that every customer wants, so make sure to make them safer so that customers do not have to think much about it.

Technological Factors:
It is one of the vital things for Nike for the innovation of the product, which is technology. The Nike pestle analysis demonstrates how technology has accelerated growth:

-Nike can use the available data for the vantage points to increase profits.
-Nike used social media so effectively that it increased the brand's value.
-The interaction is possible due to social media itself, but overusing it can be counter productive.

Ecological Factors:
Because of the increased environmental issues caused by climate change, ecological factors are critical. The environmental problems that can cause issues for the business Nike are:

-Nike must promise to manufacture nature-friendly products.
-They have to make an appropriate management plan for the waste so that it does not impact the environment.
-The factories related to Nike are known to cause air and water pollution. It may enrage environmentalists.

Legal Factors:
Legal issues are always necessary for the company. PESTLE analysis Nike helps identify these possible problems that can crop up:

-Tax evasion is a vital issue that a company should urgently rectify to avoid any further processing.
-The case of the false discounts by Nike is a legal issue which has also progressively worsened its relationship with its valued customers.

All of the points mentioned above explain the Nike pestle analysis. It shows how one of the factors can affect things regarding the company in any area. These are some of the major issues that a company may face and suffer from. There is a lot more information about Nike available. If you want to work on the case study for the college submission of this, then you can also refer to the university assignment help. It can be beneficial in that you can complete the work in the time allotted while also discovering related information that you were previously unaware.

Key Takeaways
The analysis above shows the crucial elements that can disturb the expansion of the business. For deciding a better strategy the company has to keep threats and opportunities into account.The business is already in a strong position.as it makes a considerable profit. They can further work on comfort and trends. They should be aware of the all the new market strategies coming and implement the best for it. Here comes the end of a brief Nike case study that is made with pestle analysis to help you gain the appropriate knowledge.