Nike, an American multinational company every individual is familiar with around the globe. Just by the name of the brand, the ‘swoosh’ logo is what turns up in the mind of everyone. They have set the brand globally by designing and providing services with great satisfaction to their clients. However, there are still some problems and challenges faced by every brand for sustainability and growth in the market.
Nike goes through with the same as well, the reason to know about it more, students look for Nike case study PESTLE analysis to understand the strategies they make to overcome and how the brand is affected with change in the external factors. Let us get insight in detail:
P stands for Political Factors
E stands for Economic Factors
S stands for Social Factors
T stands for Technological Factors
L stands for Legal Factors
E stands for Environmental Factors
Political Factors:
I. Government policies: There are certain government policies that every brand has to follow, and since Nike is expanded all over the world, they have to focus upon the rules and regulations of the particular country. Also, US policies are in favor which is a big advantage for them.
II. Taxes enforced: The enforcement of tax can be a point that makes the brand pay for different countries. However, the additional shipping charges bring in a lot of expenses for the brand.
III. Low-interest capital: This makes the operational cost low which automatically decreases the price of their products and attracts more customers.
IV. Political battles: There are battles with the governmental rules and regulations running for a decade affecting the business’s growth.
Economic Factors:
I. Currency rate: A difference in the currency rate can be beneficial for the brand from various countries.
II. Market budget: The customers have set boundaries for spending, which needs to be analyzed properly by the brand, and therefore, they make a budget properly for an increase in the product’s sale.
III. Low cost: According to all the rules being completely followed by the brand. They get the support of resources from society which indirectly affects the manufacturing cost of the company and make products at low price.
Social Factors:
I. Lifestyle: People are shifting to the use of leisure products, creating a benefit for Nike.
II. Increase in income: Increasing income of the individuals and competition of lifestyle, an advantage for the brand.
Technological Factors:
I. Innovation: The evolution of technology brings a new change in the selling pattern.
II. New marketing techniques: Shift in online marketing and use of AI helps in easier selling of the product and deliver complete customer satisfaction.
Legal Factors:
I. Legal battles with competitors: Increasing competitors also increase the battle between them, Adidas is the main competitor Nike has, and there is a legal war between them as per products.
II. Allegation of child labor: In Pakistan, child labor is used but illegal in other countries leading to a problem.
Environmental Factors:
I. Air pollution: Causing air pollution due to greenhouse emissions.
II. Water pollution: The factories’ waste is polluting the water of the sea and ocean.
III. Health issues: The pollution and other waste are causing health issues for the local people, a big concern for the brand.
The above explains the PESTLE analysis of the brand Nike to understand how it gets affected by the external factors and various implications of strategies put in by the brand to overcome the challenges.
For marketing students, this is the assignment they get to analyze the factors to understand the market in an in-depth manner and get the insight of a big brand like Nike. However, this can sometimes be challenging for the students, and taking professional assistance to make the document on Nike case study PESTLE analysis is the only solution left for submitting it in the given deadline.
Summary:
This article will help you gain knowledge on the Nike case study PESTLE analysis.
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