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Nike “Swot & Pest Analysis” Case Study:
PEST Analysis:
Political factors | For the case of Nike, the cases are as follows. The United States, as the home country, has their own policy for development. These are expensive for this company. It comprises well-arranged and low-interest-rate global tax agreements. Being a business that produces and sells goods, Nike is every time subjected to transformations in manufacturing and tax laws. Different political problems are all-time making customs that are associated with processing complexity and preventing exports and imports. |
Economic factors | They have been selling popular mid-range products. These are less costly to various financial factors than the others. However, some of the economic variables are listed below. Market collapse indicates bad results for them. Their consumers might select to transform towards the lower end along with cheaper products as these are to happen and there is a decent quality level that is simpler to generate. To some extent, their revenues are relying on labour’s low cost in eastern nations. It is changing, indicating greater Nike costs worldwide and coming with development in less financial developed nations. Having their in-depth level of finances, they have their resources for chasing little emerging market segments where they can sell products. |
Social factors | Public relations has never been of so much relevance as it is today. In this situation, an effective social status indicates many things to current companies. This makes them worth considering various factors. Global rise in health understanding indicates that more individuals are moving towards a better level of life. Those customers would be buying lots of sports apparel and this makes the business happy. Again, Nike has been receiving lots more criticism meant for its dubious production process. |
Technological factor | It provides organizations with the capability of innovating in various manners. From interacting with customers for designing products, their technology has been providing value to businesses such as Nike. A few of the technical factors affecting that are social media are permitting things to be blown up or whistling away quicker than ever. They are performing well through social media to create their brand. However, this is a double-edged sword as incorrectly used. They are getting scopes of using costly data as per metrics due to technological developments. This permits them to optimize production and target and maximise revenue. |
Legal factors | They are grouped together with PESTL analysis’ political factors. Similar to most huge nations. Nike has been dodging a high quantity of tax. Moreover, they have occasionally met legal repercussions for their marketing prices that are shady and that comprise fake discounts. |
Environmental factors | The environmental problems are of developing importance. Their mass production factors are undoubtedly damaging the surroundings. They have been releasing lots of aerial pollution, such as various factories like production centres of Nike which have been going to directly polluting rivers. Nevertheless, they have been showing commitment to a change in present practices having a strong resolution to turn eco-friendly. |
Thus it is understood that although they might have strong healthy and brand finances, they are required to focus careful attention to the practice of their morality and look for others to be growing. You should check for plagiarism in your case study assignment
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