Nike Inc.’s Activity Under PESTEL Analysis

General Information

Nike is an international brand founded in America in 1964, specializing in sportswear and equipment. It is universally beloved for its quality and creativity in product development. According to Jaworek and Karaszewski (2020), their main competitors in the sports apparel industry are Adidas, Puma, and Under Armour. Consequently, the factors affecting Nike in the market are the same factors affecting its competitors.

PESTEL Factors

Political Factors

The most important political factor influencing global corporations’ work is the need to follow the laws and regulations imposed by the government. The United States’ approach to industrial development is considered good by Pandey (2017) – organizations are generally supported by the government. However, since Nike is a global brand, other countries’ not-so-friendly policies can affect it considerably.

Economic Factors

With Nike’s products not being high-priced, they are capable of surviving an economic crisis without many losses. Additional savings are provided at the expense of developing countries (Hunt, 2018). It is a well-known fact that labor costs there are low as compared to the developed ones – and the company takes advantage of it.

Social Factors

Nike is amazing at connecting with customers – by building their own culture, they make every purchaser feel like they are a part of it. Moreover, as noted by Strangl (2021), in the age of obsessiveness with health, the demand for fitness products is constantly increasing. In accordance with it, the company broadens its range of products and recognizes new concepts on how to make the brand image even more inclusive.

Technological Factors

The company believes in innovation – and new technologies are almost synonymous with it. Nike has been known to use digital metrics in the analysis of customer demand for quite a number of years (Strangl, 2021). However, the current times ask for improvement of mobile presence – and Nike has been brilliant at developing it to stay relevant.

Environmental Factors

Nowadays, brands have to improve their sustainability programs in accordance with the policy of not harming the environment. Nike faces challenges in that regard: their countless factories are an actual threat to nature (Pandey, 2017). However, the company is trying to fix this issue by implementing eco-friendly measures.

Legal Factors

The legal factors are closely related to the political factors. As per Alsaffar (2020), Nike has to resort to various strategies for global growth in order to be successful internationally. The company needs to adapt to the legal and trading policies of its trading areas in various countries.

Reference List

Alsaffar, H. (2020). ‘Nike’s marketing mix and PESTEL analysis in China’.

Hunt, J. (2018). University of Nike: How corporate cash bought American higher education. United States: Melville House.

Jaworek, M. and Karaszewski, W. (2020). ‘The largest athletic apparel, accessories and footwear multinational companies: economic characteristics, internationalization’. Journal of Physical Education and Sport, 20(5), pp. 3053-3062. Web.

Pandey, B.C. (2017). Nike Inc – complete analysis: SWOT, PESTLE and marketing strategy. BookRix.

Stangl, L.J.M. (2021). ‘Digital transformation in the sports apparel industry. The case of Nike, Inc.’ Web.

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