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Introduction To Nike

Nike is a major international corporation that designs, develops, and markets athletic footwear, apparel, equipment, and accessories. It employs traditional and non-traditional distribution channels to sell its products in almost 200 countries globally. Nike accounts for 33% of the global market share in the athletic footwear industry. The document then analyzes PEST factors that affect Nike's business, including how political and economic conditions, social trends, and advancing technology shape Nike's operations and marketing strategies on a global scale.

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Kushal Gowda
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5K views

Introduction To Nike

Nike is a major international corporation that designs, develops, and markets athletic footwear, apparel, equipment, and accessories. It employs traditional and non-traditional distribution channels to sell its products in almost 200 countries globally. Nike accounts for 33% of the global market share in the athletic footwear industry. The document then analyzes PEST factors that affect Nike's business, including how political and economic conditions, social trends, and advancing technology shape Nike's operations and marketing strategies on a global scale.

Uploaded by

Kushal Gowda
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Introduction to Nike:

Nike, Inc. is an incorporated company that designs, develops and markets worldwide athletic
footwear, apparel, equipment and accessories. Nike employs both traditional and non-
traditional distribution channels in almost 200 countries with primary market regions in the
United States, Europe, Asia Pacific, and the Americas.

Nike has some 20,000 retailers worldwide including Nike factory stores, Nike stores, Nike
Towns, Cole Haan stores, and Web sites which sell Nike's sports and leisure products. Nike
accounts for 33% of the global market share in the athletic footwear industry.

Nike, being an international organization, needs to focus on macro environmental factors.


The external factor that affects brand/product Nike is political, economic, social and
technology.

PEST Analysis of Nike

Political Analysis:

The government must create economic policies that will foster the growth of businesses.
Nike, fortunately, has been helped by the US policies which enable it to advance its products.
The support accorded to Nike by the US government, particularly in the general
macroeconomic stability, low interest rates, stable currency conditions and the international
competitiveness of the tax system, form the foundation critical to Nike’s growth.

Economic Analysis:

In economy, the biggest threat for Nike would be economic recession. During recession,
Nike’s growth will be adversely affected. The US economy is experiencing a downturn right
now. Consumer purchases are slowing down. Currently, Nike's feeling the pinch of the
economic recession. The Asian economic crisis also affects Nike since its goods are
manufactured in Asia. The labour costs and material prices are going up.

Nike's growth is not just affected by the local economy but also in the international economy.
A weak Euro and an Asian recession could mean weak sales for Nike. The overall results in
the sales generated by Nike in athletic footwear, however, remained stable. The global market
makes up for the variances in sales particularly between peak and lean seasons.

Society Analysis/social analysis:

People are more health conscious nowadays. Diet and health are getting more prominence.
Consequently, more and more people are joining fitness clubs. There is an accompanying
demand for fitness products particularly exercise apparel, shoes and equipment. Nike is at the
forefront of this surge in demand as people are looking for sports shoes, apparel and
equipment.

Nike, however, failed to foresee problems brought about by a sweatshop expose pertaining to
labour and factory conditions at production locations in Asia. This caused bad publicity and
declining sales as society and consumers demand more socially responsible companies.

Technology Analysis:

Nike uses IT in its marketing information systems very effectively. Nike applies marketing
information systems to the economics of innovation, segmentation and differentiation for
most of its businesses. Nike’s leadership status owes in large part to the use of extremely
valuable Information Technology, and applying it to every aspect of the product from
development to distribution.

Nike, being the world leader in the athletic footwear industry, is able to effectively harness its
environment to boost its marketing efforts. This strategy has translated into robust sales of
Nike's products

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