Nike swot analysis elaborates nikes internal strengths, weaknesses, opportunities, and potential threats. This study considers the contemporary business environment of nike using a. And the athletes helped nike design and market the products and. The swot analysis of nike discusses the strengths, weaknesses, opportunities and threats of the leading footwear brand nike. Business analysis nike the company was founded in 1964 by a student of phil knight, middledistance runner at the university of oregon team, and his coach bill bowerman. How can nike be a globally recognized ethical brand.
Nike fosters a culture of invention creating products, services, and experiences for todays athlete while solving problems for continue reading just do it. Pestel analysis of the macroenvironment there are many factors in the macroenvironment that will effect the decisions of the managers of any organisation. Methods of analysis of the external environment of business activities. Pestel or pestle is a simple acronym framework for assessing the key features of a business environment. 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. Remote work advice from the largest allremote company. A swot framework analysis of nike inc completes this indepth company analysis. It concentrates and focuses primarily on producing sportswear and athletics products about. The pestle steepl pest analysis report is a structure to explore the impact of external factors on the macroenvironment that influences business of the nike company. Nike swot 2020 swot analysis of nike business strategy hub. A companys marketing mix refers to the strategies and tactics applied to execute the marketing plan, with focus on products, place, promotion, and price the 4ps. The findings of the study highlight nikes strategies which. A comparative analysis of strategies and business models of nike. Because of nike s marketing research, the company has decided to revamp its apparel division to be more fashion savvy.
Pestle analysis of nike macro environmental factors business essay. The analysis was given the name pestle in reference to the acronym formed by the initials of the six categories of macroeconomic variables included in the model political, economic, sociocultural, technological, legal and environmental. Sagar naresh debasish prasad soniya ganglani kavya chaudhary narendra reddy y. Supply chains and the efficiency of these chains has been critical to nike. Nike is the worlds largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment. It was found by bill bowerman and phil knight in the year 1964. However, nike also shows promise of a change in their current practices, with a strong resolve to become more eco. The pestle analysis is a useful technique to study the impact of influencers on nike s business model and business case study.
Brian saxton may 15, 2012 nike case analysis nike is a sneaker company based in beaverton, oregon. The international brands face several kinds of pressures while operating in a highly competitive market. Managements discussion and analysis of financial condition and results of. Nike 17th march 2016, by finn design this week ill be analysing the web design of one of the worlds largest footwear and sports clothing brands, nike. Nike this case is a group project that is due on march 28 just before class begins at 10. In this article, well be discussing nikes standings and potential future through the lens of a pestle analysis, which looks at the political, economic, social. By ellie boggs, alexis chan, lauren mclean and lauren van neste. Nike has defended the contingent csr critiques by arguing that it has provided employment in otherwise underdeveloped economies, and paid the. What could a swot analysis for the company nike look. The company specializes in athletic wear, providing. A financial analysis of nike inc is presented in the report which includes a ratio analysis, basic profit and loss analysis, presentation of the company balance sheet, and much more. Jan 20, 2015 nikes sales philosophy if you have a body, you are an athlete had enticed everybody who wanted to think of himselfherself as an athlete or wanted to get more athletic. Pestelpestle analysis of nike free pestel analysis.
Nike also recognizes the strategic value of the computing and information assets of others and will accordingly abide by software licenses for rights to use such assets. Reporting is the primary tool we use to disclose important information to our stakeholders about how we manage social and environmental issues and impacts. Nike has a ridiculous and robust position in the sports wear industry, having strong brand equity. A critical analysis of apple was done on its corporate governance, corporate social responsibility and strategies.
Nike financial ratio analysis nke nike financial ratio. Highlight specific issues towards labor situation and csr practice of nike. Nike is the largest seller of athletic footwear and apparel in the. A comparative analysis of strategies and business models of nike, inc. Despite being one of the largest sport apparel and. Nike product analysis famous celebrities basketball legend, michael jordan print ads nike product famous logo and slogan visibly seen quote towards the audience of women nike uses print ads featuring wellknown athletes with motivational quotes to convey as an inspiration for. Nike, an amercian multinational corporation, established in the year 1964, is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. Before starting adidas pestle analysis we will discuss company profile and employees. Ali mahdi1, mohammed abbas2, taher ilyas mazar3 1,2,3mba student, university of bahrain, kingdom of bahrain dr. These are the sources and citations used to research pestle analysis of nike. Nike belongs to the consumer discretionary sector, a sector which we have been underweight since we started seeing some signs of an economic downturn in the us in june 2007 when an inverted yield curve puzzled everyone. For example an industry may be highly profitable with a strong growth trajectory but it wont be any good for jd sports fashion plc if it is situated in unstable political environment. In the process of expanding its foreign economic activity, the pest analysis method was used by such wellknown companies as.
We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals. We use cookies to make interactions with our website easy and meaningful, to better. Nike uses it in its marketing information systems very effectively. Nike is a usbased company that sells sports apparel for men, women, and children and is a major competitor in the industry, in this paper, well be discussing nikes standings by using a pestle analysis, which looks at the political, economic, social, technological, legal, and environmental factors that affect an organization a pestle.
As a result of product and pricing research, nike has decided to continue to focus on the high end market while increasing its. Nike employees must use nike computing and information assets, including the internet, electronic mail, and other online. 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. Nike case study analysis by ahmed samir haitham salah magdy essmat magdy mohamed sherif 2. Essay about nike stock analysis 844 words bartleby. Each group will turn in one report sounds obvious, but might as well make it explicit. Political mike nike s board of directors accepted a company policy on political contributions trade association memberships and policy position adoptions. Pest analysis is a powerful and widely used tool for understanding strategic risk. Economic growth of china, led to increasing sales within nike by 2530% per year.
It was founded in 1964 as blue ribbon sports by bill bowerman. To maintain its position in the athletic shoes market, nike inc. Having been founded in 1964, nike serves to bring inspiration and innovation to every athlete in the world. Pestle approach, paying particular attention to any human resources management hrm issues that may arise under each heading. Starbucks, nike, adidas, uber pestle analysis of starbucks. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. Retail stores number nike brand factory stores 176 nike brand inline stores, including niketowns and employeeonly stores 33 converse stores including factory stores 84. Nike was able to respond positively and promised to ensure environmental friendly policies by its suppliers. Initially it was called blue ribbon sports and specialized in the order of athletic footwear in asian countries and resell them in the u. Learn how to make use of this tool to identify opportunities for your marketing with our handson practical guide to pestel analysis. The value chain as a strategicanalysis tool emerged when nike set a precedent in the.
Pestle analysis, pestel analysis examples and templates. I have tried to provide relevant information about nike pestle analysis and external environment analysis. Prioritization of the issues in a pestel and swot is typically quick and may need to be refined when dealing with a really complex challenge. Josh fernino brent hare victor hemmati lance hollister chris kerschen ty parasiliti vincent ukwu 2. Pdf introduction about the pestle analysis find, read and cite all the research you need on researchgate.
Macro environment winnie examination of nike s external marketing strategy in the form of a pestle analysis. Pestel analysis is a strategic tool to analyze the macro environment of the organization. Looking into nike inc growth rates, revenue grew by 5. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. These forces can have a direct impact on their sales and profits. Each report should have a cover page that contains the following the names of. Despite the fact that nike has maintained its brand image and strong financial position it should comply all the laws and regulation. An important and widely used tool that helps present the big picture of a firms external environment in political, economic, sociocultural, technological. Analysis of nike inc 2011 report with swot and pest analysis. Nike s popular catchphrase just do it and powerful celebrity endorsements have made the sportswear giant a household name across much of the world, as we explained in our pestle analysis of nike in this article, well be conducting a swot analysis of nike. Pestle analysis of nike macro environmental factors business essay, 20 bibliography. Pestel or pestle analysis, also known as pest analysis, is a tool for business analysis of political, economic, social, and technological factors. The famous shoe company with the swoosh logo has gone from strength to strength, since its inception in 1962. Using valuechain analysis to discover customers strategic needs.
Adidas is a world leading and valuable sports footwear and apparel brand. Aug 21, 20 analysis on nike and other kinds of academic papers in our essays database at many essays. Decomposition of nikes return on equity ratio roe, return on assets ratio roa, and net profit margin ratio as the product of other financial ratios. A five forces analysis, based on michael porters model, points out that competition, customers and substitutes are the most important external forces in nike s industry environment. Top 10 nike competitors competitor analysis of nike. Key i importance 1 not important 10 very important c compared to competitor strength 1 almost the same 10 much better weakness 1 almost the same 10 much worse l likelihood 1 not likely to happen 10 going to happen.
Jan 22, 2016 nike is an international corporation focused on designing, creating, and promoting high quality athletic wear. Political analysis it is the responsibility of government to create such economic policies, which will have a great effect on the growth of business. Politically, nike has some interesting issues to contend with. The pestel framework can be used to analyse how the most important forces in the international environment can affect large and global businesses. Environmental education resources to commemorate earth days 50th anniversary. Nike over view nike is the ancient greek goddess of victory it is one of the most recognized symbols in the world the swoosh. A comparative analysis of strategies and business models of. The pestle steepl pest analysis report is a structure to examine the influence of external factors on the macro environment that affects the business of the adidas group.
Phil knight, a dedicated long distance runner, developed a plan to make lowcost running shoes in japan and sell them in the united states as part of his work toward an mba. Dec 18, 20 in order for nike to maintain there brand strength is to keep on doing these customer relationship to have the consumers loyalty and having a strong relationship. The highest profitable technology company and historic trend setter original aspect is hidden from its customers. The company designs, manufactures and markets various athletic products like shoes, clothing, shirts, bags and watches and other related accessories. Pestel analysis of nikes external environment pestel analysis is a business strategic planning tool that is employed to perform a thorough business macroenvironment analysis so that an organization can determine the best decisions to survive in the market at any instance. Forbes magazine has named nike the worlds most admired.
The pestle analysis is a beneficial technique to study the impact of influencers on the adidass business model, growth trajectory, its business case, and market strategy. As the industry leader, nike was targeted by fair labor. Nike settled this case in california supreme court after facing defeat and suffered greatly at the hands of bad publicity. Nike is a wellknown brand of sports gear and apparel. Pestel analysis provides great detail about operating challenges jd sports fashion plc will face in prevalent macro environment other than competitive forces. This bibliography was generated on cite this for me on wednesday, november 25, 2015. It designs and sells shoes for a variety of sports including baseball, golf, cheerleading, volleyball, tennis and football. Report on pestel analysis of egypt country map and flag of egypt. It has a great aptitude to influence customers with its fashion trends and to astonishingly increase its profits.
Nike has become one of most recognizable companies in the entire world nike is now the most popular brand in, not just america, but through out the whole world. Harish chandra about nike is without a doubt one of the worlds top sports and fitness companies, and has a legacy which dates back to 1962 when they first arrived on the scene under the name of blue ribbon sports. Nike is at the front position of this surge in demand as people are looking for sports shoes, apparel and equipment. Nike s management analyzes its internal environment and makes decisions based on that analysis.
Recognize how pestel is related to the dimensions of globalization. Cuizon, 2009 technology analysis political analysis according to pest analysis the technological enviourment can be taken as strength. Essay about nike stock analysis 844 words 4 pages on january 25, 1964 nike, formerly known as blue ribbon sports was founded by bill bowerman and phillip knight. Nke detailed stock quotes, stock data, realtime ecn, charts, stats and more. Following is an analysis of how the pestel forces affect nike s business. Apart from having customers in the international market, it also has its suppliers located internationally. Firstly, the model allows managers to identify the macroeconomic variables to take into consideration for. Doc report on pestel analysis of egypt country map.
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