Nike Case Study

SWOT & PESTLE Analysis For Nike

Nike “Swot & Pest Analysis” Case Study:

PEST Analysis:

Political factors

 For the case of Nike, the cases are a 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 is producing and selling 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 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 for creating 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 in optimizing production and target and maximizing 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 comprises fake discounts.

Environmental factors

 The environmental problems are of developing importance. Their mass production factors are undoubtedly damaging the surrounding. They have been releasing lots of aerial pollution, such as various factories like production centres of Nike has been going to directly polluting rivers. Nevertheless, they have been showing commitments to a change in present practices having a strong resolution to turn eco-friendly.

Thus it is understood that through they might have strong healthy and brand finances, they require to focus on careful attention to the practice of their morality and look for others to be growing. You should check plagiarism of your case study assignment

SWOT Analysis:

  • Strengths:
    • Their internal strategic factors include strong brand awareness. This is of the leading brands and alone its name is memorable, simple to pronounce. Also, this is unique. Their sign is simply indefinable by all people. They have been capturing about 30% of the international athletic market for footwear. Next, they have a wide customer base. They possess millions of customers around the globe loyally following trends of Nike and take part in events and deliver customer feedback. Then, they have a broad customer base. They have lots of customers throughout the globe following the trends of Nike and take part in their events. This also helps them to provide customer feedback. Because Of their large customer base, their capital of market has raised to 225 billion dollars as of February 2021. Understanding their sustainability, their CEO named Mark Parker, has been addressing that they must be continuing to acknowledge their environmental problems within their communities. Their CEO has assured that Nike would be useful in finding solutions to those environmental problems. Then, there are iconic relations. If you are looking for such relevant case study factor. then take help from's expert.
  • Weakness:
    • There are poor conditions of labour in foreign nations. For the past couple of decades, it is investigated that they have constantly been targeting on poor conditions of labours. Their problems comprise horrific working conditions, low wages, child labour and forced labour referred to as unsafe. Further, their retailers have a stronghold. Their retail sectors have been making them weak because of sensitivity that is against cost. Most of their products are directly sold to retailers or wholesalers. Having retailers serve core customers, they have never put up a fight against their cost structures. Further, there are pending debts. Though their income statements have been prosperous, a fast look at the balance sheet has been drawing a distinct image. Still, they have been encountering economic issues. Till 220, their overall long term debt has been 9.54 billion pounds. Further, they have a lack of diversification. Their overall dependence on diversification lack and sporting apparel is an important weakness. Their latest pandemic has been discouraging the physical level of interaction and collecting sports events that are postponed or cancelled. Various sporting groups are found to be collapsing. As this sort of crisis gets discouraged by any kind of sporting event for more time, their losses can be catastrophic. Further, there are contradicting strategies. They have been pledged to transform all that it facilitates to overall renewable energy having carbon emissions that is net-zero within the scheme named “move to zero”. As their strategy is welcomed and great, it has been found to be contradicting their strategy. It has been favouring its innovation in terms of sustainability. It has been generating the idea that the brand is not found to stay committed to addressing the change in climate and pledging marketing stunts.
  • Opportunities:
    • Their cutting ties with various retailers. It is seen that Nike has taken a decision to cut bonds with a few of their greatest retailers that are multi-brand and partners of wholesale. As per their report, it is found that Nike has been no longer working. This is different wholesalers retailers like Dillard’s and Zarpoo’s, Bob Stores and Fred Meyers and so on. Moreover, this step would be considered for positioning products better and more effective customer experience. Gaining AI start-up. These are high economic resources. They have been acquiring medium or small start-ups or companies. Recently they have gained a platform for predictive analytics. Again, there are direct consumer strategies. The company have accelerated strategies that are consumer direct. This means transforming of emphasis for digital business. Thus they have to shut physical stores subsequently. During the 2020’s fiscal year, it was analysed that 35% of revenue of their brand has been coming online sales. It is clear that the present pandemic has been shaping the way Nike has been interacting with customers.
  • Threats:
    • Here, currency foreign exchange risks are there. Nike has been internationally globally. This is influenced by rates of fluctuating foreign exchange. They have reported their financial earnings as per U.S. dollars. It has been affecting their revenue as U.S. dollar gets exposed to volatility as per various other financial currencies. Besides, there is economic uncertainty. Irrespective of the sector, Nike is susceptible to adverse impacts of a global recession. Moreover, they have registered a 40% decrease in sales in the second quarter of 2020. This can decline more in the upcoming days as a recession is striking hard.

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