Name: Ziad Mahmoud

Under supervisor: Dr.Mazen El tahaan

: Dr.Amr Emad
Nike
Nike, fully known as “Nike, Inc.”, is a US-based transnational corporation which
provides trendy, functional sportswear across the globe. Having been founded in
1964, Nike serves to “bring inspiration and innovation to every athlete in the world.
Despite being one of the largest sport apparel and accessory companies in
existence, Nike has to keep a high guard in its extremely competitive market.

Nike Pestle Analysis

P is for Political
Political factors are especially important to the backend of a company the part we
don’t normally see. Most of today’s political changes only affect how a company can
produce their goods or how much profit they make, for example. To us, this may
seem insignificant, but Political factors decide the survivability of an organization. For
Nike, some of these are:
The United States, Nike’s ‘home country’ so to speak, has fantastic policies for
growth which are especially valuable to this corporation. These include low-interest
rates and well-arranged international tax agreements.
As a company that produces and sells physical goods, Nike is, however, always
subject to changes in tax and manufacturing laws.
Various political conflicts can always make customs related processes difficult, or
prevent imports and exports.

E is for Economic
Nike sells a well-respected medium range product, so they are less vulnerable to
economic factors than others, but nevertheless here are some of the Economic
variables:
A market collapse could mean bad news for Nike, along with many other big brands.
Consumers may choose to switch to lower-end, cheaper products if this were to
occur, or even just as a decent level of quality becomes easier to produce.
Nike’s revenues are to some extent dependent on the low cost of labour in Far
Eastern countries. This is changing, though, which might mean higher Nike prices
across the globe come with the development in Less Economically Developed
Countries.
With its ‘deep pocket’ of finances, Nike has the resources to chase after small
emerging markets in which they could sell products.

S is for Social
Public Relations has never been more relevant than today. A good social status
means a lot for modern corporations, so it’s definitely worth considering these
factors:
Worldwide increases in ‘health consciousness’ means that more and more
individuals are moving towards better lifestyles. These people will undoubtedly buy
plenty of sports apparel, something which would make Nike very happy.
On the other hand, Nike receives much criticism for its dubious production
processes. In fact, the issue of Nike sweatshops is so prominent that it has
warranted an entire Wikipedia.

T is for Technological
Technology gives companies the ability to innovate in so many different ways. From
interacting with customers to designing products, technology provides value to
organizations just like Nike. Here are some of the Technological factors affecting it:
Social media allows things to blow up or whittle away faster than ever. Nike is doing
well with using social media to build their brand, but it can be a double-edged sword
if used incorrectly.
Nike also gets the opportunity to use valuable information-based metrics thanks to
technological advances, allowing for them to optimize targeting and production, and
maximize revenue.

L is for Legal
Legal factors are sometimes grouped together with Political factors in ‘PEST’
analyses, but in a PESTLE analysis which is what we’re doing the two are
separated. There aren’t many legal variables which affect Nike, but we haven’t
forgotten about
It shouldn’t surprise you to hear that, like most massive corporations, Nike also
dodges substantial amounts of tax. In recent years, there hasn’t been too much of a
crackdown on this, but it’s still valuable to consider.
Also, Nike occasionally meets legal repercussions for its shady marketing practices,
which include false discounts
E is for Environmental
Environmental issues are of ever-growing importance. Of course, there are only a
few factors which affect Nike with regard to this, but they are worth stating:
Nike’s mass production factories are, without a doubt, harming the environment. Not
only do they release plenty of aerial pollution like most factories, but Nike’s
production centres occasionally go as far as directly polluting rivers.
However, Nike also shows promise of a change in their current practices, with a
strong resolve to become more ‘eco’.

conclusion
That’s a wrap for this PESTLE analysis of Nike. They may have a strong brand and
healthy finances, but they need to pay careful attention to the morality of their
practices and watch out for other growing, cheaper outlets.