NIKE PESTLE ANALYSIS

NAME: ARCHITA GOYAL

PRN: 22010126121
DIVISION: B
ABOUT NIKE INC.

• Nike Inc. is an American multinational corporation known best for its

footwear, sportswear, apparel and equipment.
• Nike was founded in 1964 as ‘Blue Ribbon Sports’ but later became ‘Nike’ in
1971.
• Nike's vision is “To bring inspiration and innovation to every athlete in the
world.”
• It is the world's largest supplier of athletic shoes and apparel and a major
manufacturer of sports equipment with revenue in excess of US$46 billion in
its fiscal year 2022. f

ARCHITA GOYAL 22010126121

WHAT IS PESTEL ANALYSIS?

• PESTEL is an acronym that stands for six external factors affecting your
business: political, economic, sociological, technological, legal and
environmental.
• It is believed that PEST Analysis was first introduced under the name ETPS by
Harvard professor Francis J. Aguilar.
• . In the 1967 publication "Scanning the Business Environment," Aguilar
presented the economic, technical, political, and social factors as being major
influences on the business environment.
• The framework is used by management teams f and boards in their strategic
planning processes and enterprise risk management planning.

ARCHITA GOYAL 22010126121

POLITICAL FACTORS:
• The political metrics of PESTEL analysis encompass the government
rules and laws that directly affect the finances of an industry.
• These include foreign trade policy, income tax, service tax, sales
tax, tax policy, corruption, and more.
• The political situation in India is relatively stable, and the
government has been supportive of foreign f investment.
• The government has also been known to be protectionist, particularly
in the area of manufacturing, which could impact Nike's operations in
India.
•  India is a republic country and the world’s largest democracy.
However, the company should cope with the challenges posed by
corruption.

ARCHITA GOYAL 22010126121

ECONOMIC FACTORS:
• India is one of the fastest-growing economies in the world, and its middle
class is expanding rapidly.
• Economic growth, inflation, and currency rates are examples of
economic external variables that may have an impact on Nike Inc.
• Economic growth can have an impact on a company's sales, profitability,
f
and manufacturing costs.
• Inflation may also have an impact on a company's profitability and
manufacturing costs.
• Currency rates can have an impact on the company's ability to enter
particular markets as well as the cost of manufacturing.
• The Indian economy has shown a positive trend over the years.

ARCHITA GOYAL 22010126121

SOCIAL FACTORS:
• India is a diverse country with many different cultures and traditions.
• The aging population, customer tastes, and lifestyle changes are examples
of external social variables that may affect Nike Inc.
• The aging population may offer possibilities for the firm and enhance
demand for particular items.
• Customer preferences can have an impact on bothf
sales and manufacturing
costs.
• Nike would need to consider the social norms and customs of the different
regions in India, particularly when it comes to marketing and advertising.

ARCHITA GOYAL 22010126121

TECHNOLOGICAL FACTORS:
• India has made significant progress in the field of technology, particularly in areas
such as mobile phones and e-commerce.
• Technology trends, research and development, and automation are examples of
technological external variables that may impact Nike Inc.
• Technological developments can have an impact on the company's operations.
f
• R&D can also have an impact on the company's operations and manufacturing
costs.
• Automation can have an impact on the company's operations as well as its production
costs.
• Nike would need to keep pace with these developments and ensure that its products
are accessible and available through online channels.

ARCHITA GOYAL 22010126121

ENVIRONMENTAL FACTORS:
• India faces significant environmental challenges, particularly with regard to air
and water pollution.
• Climate change, pollution, and natural catastrophes are examples of
environmental external variables that may affect Nike Inc.
• Climatic change can have an impact on the company's operations and can have an
f
effect the manufacturing process.
• Natural catastrophes can also have an impact on the company’s profitability and
production costs.
• Nike would need to ensure that its manufacturing processes are environmentally
friendly and that it complies with all the relevant regulations in this area.

ARCHITA GOYAL 22010126121

LEGAL FACTORS:
• India has a complex legal system, and Nike would need to ensure that it complies
with all the relevant laws and regulations.
• Labor laws, antitrust laws, and intellectual property laws are some of the legal
external variables that may influence Nike Inc.
• Labor rules can have an impact upon the workers of the company which can affect
the production process of the company. f
• Antitrust rules can also have an impact on the company's operations and
manufacturing costs.
• The legal climate in India may be complicated, and businesses must comply with a
variety of laws and regulations.
• In Conclusion, to be successful in the market, Nike would need to carefully manage
the complicated and continuously changing commercial climate in India.

ARCHITA GOYAL 22010126121

LEGAL FACTORS:
• India has a complex legal system, and Nike would need to ensure that it complies with all the
relevant laws and regulations.
• Labor laws, antitrust laws, and intellectual property laws are some of the legal external variables
that may influence Nike Inc.
• Labor rules can have an impact on both the company's operations and the cost of manufacturing.

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• Antitrust rules can also have an impact on the company's operations and production costs.
• Intellectual property rules can also have an impact on the company's operations and manufacturing
costs. f
• The legal climate in India may be complicated, and businesses must comply with a variety of laws
and regulations.