PESTLE Analysis of Nike

Introduction

• Speaker: Mark Salinger, Marketing Expert at myassignmenthelp.com
• Topic: Conducting a thorough PESTLE analysis on Nike
• Background on Nike:
  • Established: January 25, 1964, by Phil Knight and Bill Bowerman
  • Formerly known as Blue Ribbon Sports
  • Brand Value (2019): $32.4 billion
  • Net Income (Worldwide): $4.03 billion
  • Largest supplier of athletic footwear and sports gear
  • Product Range: Athletic footwear, apparel, support equipment, and accessories

Political Factors

• Business heavily influenced by government type and stability.
• Opportunities for growth under stable political environments:
  • Low interest rates in the U.S.
  • Favorable international tax agreements
  • Government support for infrastructure
• Challenges:
  • U.S. sanctions on Iran hindered plans to sell equipment there.
  • Controversial marketing campaigns (e.g., Colin Kaepernick) faced backlash.
• Political lobbying expenditure: $750,000 in 2016, increasing over time.
• Other political determinants affecting Nike:
  • Contract enforcement laws
  • Antitrust laws
  • Varying tax rates and regulations
  • Industrial safety regulations
  • Intellectual property protection and litigation issues

Economic Factors

• Nike's performance influenced by economic conditions:
  • Managed growth and revenue from 2005 to 2018 with minor fluctuations.
• Contributing economic factors:
  • Rapid growth in developing markets
  • Stability in developed economies (e.g., U.S.)
  • Low labor costs in Far East supporting revenue growth.
  • Outsourcing policy since the 1990s.
  • Opportunities for penetration into UK, Australia, and other markets.

Social Factors

• Influences on Nike's product attractiveness:
  • Growing consciousness about fitness and sports.
  • Rising individual wealth in developing countries.
  • Emphasis on product safety and quality.
• Challenges:
  • Poor working conditions and low wages in factories may harm brand image.

Technological Factors

• Nike adapts to available technologies:
  • Advanced IT infrastructure for operations and delivery.
  • Use of SOAP and MPPS for supply chain management.
  • Emphasis on online technology for contactless payments.
  • Automation reducing labor costs.
  • Integration of mobile technology in products and strong digital presence.

Environmental Factors

• Commitment to environmental standards:
  • ISO 14000 certification for product development.
  • Focus on carbon footprint and waste management.
  • Use of organic cotton and recyclable materials in products.
• Environmental impact comparison with competitors (e.g., Adidas, Tiger).

Legal Factors

• Nike's legal challenges:
  • Discrimination and hostile work conditions litigation.
  • Issues with tax evasion and scrutiny over marketing practices.

Conclusion

• Importance of PESTLE analysis for understanding Nike's market position.
• Encouragement to seek assistance for case studies and marketing analysis at myassignmenthelp.com.