Legal factors affect large companies around the world and Nike is one of them. While Nike always tries to comply with international laws, that`s not always possible. As in America and the Western world, laws and regulations are favorable to businesses like the footwear industry. Asian countries have complicated laws to abide by. Taking into account external factors is an appropriate recommendation for the relocation of certain Nike operations or business processes. This recommendation addresses rising labor and transportation costs, as well as the slowdown in the Chinese economy, which are threatened in this PESTLE analysis of the sporting goods sector. Nike can also benefit from new product designs and marketing strategies to better appeal to older customers, especially those who are committed to adopting a healthy lifestyle. Overall, this PESTLE/PESTEL analysis indicates potential improvements to increase the company`s sales in the international market for athletic and casual footwear, equipment and apparel. Environmental macroeconomic factors such as the rate of inflation, the savings rate, the interest rate, the exchange rate and the business cycle determine total demand and investment in an economy.
While micro-environmental factors such as competitive standards influence the company`s competitive advantage. NIKE, Inc. can use the economic factor of the country such as growth rate, inflation, and industry economic indicators such as growth rate of textile, apparel, footwear and accessories industry, consumer spending, etc. to forecast the growth trajectory not only of the sector, but also of the company. Economic factors affecting NIKE, Inc. when performing the PESTEL analysis are: The remote or macro environment described in this PESTLE/PESTEL analysis defines strategic options for achieving Nike`s mission statement and vision. The company`s pursuit of a leading position in the sporting goods market requires strategies that take into account the external factors (threats and opportunities) identified in this PESTLE analysis. Nike`s corporate governance and leadership decisions demonstrate how strategies represent business responses to the factors identified in this PESTEL analysis. This PESTEL/PESTLE analysis from Nike Inc.
evaluates trends in the company`s remote or macro environment. This environment concerns the sporting goods industry and markets. Nike`s business environment presents opportunities and risks, categorized according to PESTEL/PESTLE (political, economic, social or socio-cultural, technological, environmental or ecological and legal) dimensions. Thus, this PESTLE/PESTEL analysis is an external analysis of the footwear, clothing and equipment company. External factors and trends, such as government policy, influence Nike`s strategic choices and decisions. The company`s goal is to maximize the value of opportunities and minimize the impact of threats on the sporting goods industry. These trends in the business environment are related to the opportunities and risks of Nike Inc.`s SWOT analysis. The company`s business development reflects the impact of PESTEL/PESTLE factors on the footwear, apparel and sporting goods markets. 3.
Olson Kundig designs the LeBron James Innovation Center for Nike | Wallpaper – www.wallpaper.com/architecture/nike-headquarters-lebron-james-innovation-center-olson-kundig-usa Legal factors have to do with government regulations that come into play from time to time. They relate to an organization`s legal environment and the impact they have on an organization`s performance in the marketplace. These include health and safety laws, consumer law, competition law, labour law and discrimination law. Nike has faced many legal issues in its growth and development process. For example, the case of Stakeholder vs Nike. Nike`s stakeholders sued her, claiming Nike executives had covered up negative news and benefited from the results. The allegations said Nike`s actions had led to an increase in inventories. On the Fortune 500 list, nike.com position in 89, which was previously ranked 88th.
Nike is the powerhouse of sportswear, proving to be the largest supplier of footwear and sportswear. The marketing value of Nike Inc. was $108,094 as of March 29, 2018. In fiscal 2018, Nike Inc. generated $36.36 billion in revenue, up 6.6% from fiscal 2017 ($34.25 billion). Legal issues are always essential for a business. PESTEL analysis Nike helps identify potential legal issues that may arise: The legal factor of PESTEL analysis relates to industry laws and regulations. The threats and opportunities in this dimension of PESTEL analysis create a challenging legal environment for Nike. Nevertheless, the sports and leisure sector can implement new strategies to benefit from legal or regulatory opportunities.
New strategies must take into account the company`s subsidiary, Converse, which is also familiar with the legal factors mentioned in this PESTLE analysis. I tried to provide relevant information about Nike Pestle analysis and external environmental analysis. Despite the fact that Nike has maintained its brand image and strong financial position, it should comply with all laws and regulations. If you have any other factors related to Nike`s external environment, please let us know. Nike`s PESTLE analysis presented in this article highlights the key trends shaping the apparel, footwear, and sporting goods industry in terms of external commercial engines. The PESTLE analysis examines the political, economic, social, technological, legal and environmental factors that have a direct or indirect influence on the industry under consideration. This dimension of the PESTEL/PESTLE analysis takes into account external factors that influence the social conditions and associated behavior of stakeholders, such as athletes who use the company`s products. The following external social factors influence Nike Inc.: In summary, the apparel, footwear and sports industry is undergoing paradigm shifts, mainly due to technological innovations and the growing demand for sustainable products. Global economic indicators are improving after the setback caused by COVID-19 and emerging markets are rapidly adapting to modern lifestyles. This is a positive development for the industry that will benefit leading companies in terms of expansion in these countries. Cheap labor is also available in Asian countries, which is a great advantage for the industry.
However, high rates of corruption and poorly managed supply chains in these countries can be challenging. In addition, the industry must adapt to the stricter legal and environmental standards set globally. To learn more about the company`s internal strengths and weaknesses, you can also check out Nike`s meticulous SWOT analysis. These include factors such as climate and weather changes over a period of time. Changes in the environment are difficult to determine or control and have a greater direct or indirect impact on businesses. Nike Company has put a lot of effort into creating a better world. Implementing a sustainable product innovation cycle has helped the company develop sustainable products that go beyond customer satisfaction. The cycle guides their operations and those of their suppliers, as environmental impacts occur at every stage of the Nike product process. The use of organic cotton plays an important role in preserving and protecting the environment and the health of people living near cotton-growing areas. Nike`s environmental plan has built a very strong reach and attracted many customers and investors. Many U.S. investors are environmentally conscious, so they feel strongly involved in protecting the environment by investing in organizations they believe are environmentally ethical.
Nike shoes are more environmentally friendly and ethical than other products on the US market. Nike shoes are easier to recycle and solvent consumption is reduced by more than 85% compared to other brands such as Tiger and Adidas. Public relations has never been more relevant than it is today. Good social status means a lot to modern businesses, so it`s definitely worth considering these factors: Nike sells a respected mid-range product, so they`re less sensitive to economic factors than others, but here are some of the economic variables: Different markets have different environmental standards or standards that can affect an organization`s profitability in those markets.