By - Arnav

Kashyap
22010126166

A PESTLE
Analysis

of
Nike
 INTRODUCTION POLITICAL ANALYSIS

ECONOMIC ANALYSIS SOCIAL ANALYSIS

TECHNOLOGICAL
LEGAL ANALYSIS
ANALYSIS

ENVIRONMENTAL ANALYSIS CONCLUSION

Overview
01
Introduction
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.” One of the largest sport apparel and
accessory companies in existence

Nike has to keep a high guard in its extremely competitive market. In this
presentation, I'll be discussing Nike’s standings and potential future through the
lens of a PESTLE analysis, which looks at the Political, Economic, Social,
Technological, Legal, and Environmental factors that affect an organisation.

02
Political
Analysis 01 02
These include low-interest rates As a company that produces and sells
Political factors are especially physical goods, Nike is, however,
and well arranged international
important to the backend of a tax agreements. always subject to changes in tax and
company — the part we don’t normally manufacturing laws.
see. Most of today’s political changes
only affect how a company can
produce their goods or how much
profit they make 03 04
Various political conflicts can The United States, Nike’s ‘home
always make customs related country’ so to speak, has fantastic
processes difficult, or prevent policies for growth which are
imports and exports. especially valuable to this
corporation.

03

Deep Pocket of Finances
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.
Economic
Analysis
Bush League
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.
04
SOCIAL ANALYSIS
Public Relations has never been more relevant than today. A good
social status means a lot for modern corporations. Within the
footwear market, an interesting culture has been growing since the
late 1970s-early 1980s — the sneaker-head culture.
Nike’s partnership with basketball all-time-star Michael Jordan has
contributed to the sneaker-head culture rise and global
development.
Today the sneaker resale market is estimated to reach $2billion.
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.

05
 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.
Technological
Analysis Nike also gets the opportunity to
use valuable information based
metrics thanks to technological
advances
Technological developments
have been equally important to
the company’s product design
and manufacturing.
Most innovations come from the
brand’s own lab, the Nike Sport
Research Lab. The Nike Flywire
support system, Lunarlite foam
cushioning, Hyperdunk basketball
shoe are among the most famous.
06
 LEGAL ANALYSIS

The legal factor of PESTEL

analysis looks into the laws and The case of false discounts offered by Nike is a legal issue that also deteriorates
regulations of the industry. the relation of the company with its valued customers.

Tax evasion is another vital legal issue that the company should urgently rectify
Recently Nike filed a recently filed a lawsuit against footwear rival Skechers for
copying design patents.
The global athletic footwear industry is expected to rise to an estimated value of
USD 96.10 billion by 2026 so the competition within the market is fierce.

Run the day. Don’t let it run you.

07
ENVIRONMENTAL
ANALYSIS
Waste Management
Proper waste management is critical for any company's
sustainability efforts. Nike must comply with India's waste
management regulations, which may differ from those in other
countries. The company must also ensure that its
manufacturing and supply chain operations adhere to the
country's environmental regulations. Greatness is not
born, it is made
Biodiversity

India is home to diverse flora and fauna, and Nike

must ensure that its operations do not harm the
country's biodiversity. The company must also
comply with India's laws and regulations related to
biodiversity and ensure that its raw material
sourcing does not harm endangered species.

08
Thank
You