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Case Study of Nike - A Pestel Analysis of Shoe and Apparel Brand

Dan Rogers
Case Study of Nike - A Pestel Analysis of Shoe and Apparel Brand

Nike is a US-based multinational corporation selling functional sportswear, footwear, equipment, and accessories throughout the globe. Nike is known to be the biggest supplier of athletic shoes and apparel. Its headquarter is situated in Beaverton, Oregon in Portland. Besides being a huge brand, Nike has to safeguard itself from uprising competition. If you face any challenge in writing seek case study help. Let’s explore the factors:\

P Stands for Political

PESTEL analysis Nike is a framework assisting entrepreneurs and business people in understanding the effects of macro-environmental elements on their businesses. Political factors affect the back end of a firm. They have an impact on production and profitability. These factors may seem insignificant but indicate how long an organization survives. Some of them are well-defined policies for growth in the United States. These include a commendable international tax system and low-interest rates. As Nike is a huge brand, constant changes happen in manufacturing and tax laws. Various political clashes prevent a smooth flow of exports and imports.

E Stands for Economic Factors

Economic factors affect economic performance because of exchange, interest, unemployment rates, and taxes. All factors affect demand and supply in the market. It decides what will be the price of a commodity.

Let's take an example of the COVID-19 pandemic. There was an approximately 38% drop in sales due to the closure of physical stores. To overcome such a situation, Nike made an absolute effort towards online selling. It, in turn, rose 30% in the total revenue during the pandemic.

S Stands for Social Factors

Social factors are responsible for determining customer patterns and behavior. Nike saw a boom in the early 1980s for sneakerhead culture. Nike observed the customer pattern and analyzed the love for Micheal Jordan. It took an opportunity and collaborated with the star Micheal Jordan. Nike observes the latest trends and tries to adapt them for customer satisfaction.

T Stands for Technological Factors

Technology has the power of innovation in several ways. The role of technology is enormous concerning customer-to-product designing. Product designing and manufacturing also require up-to-date technology. You might have an idea of how important technology is in Nike's marketing and sales. Nike uses social media to promote the brand where it is successful, but one wrong move can change the whole scenario.

L Stands for Legal

Legal factors do not affect Nike much. Some of them are Nike rarely meets legal repercussions because of false discounts. Nike avoids paying a lot of taxes. Although it is not noticeable in recent years, it's still important to consider.

E Stands for Environmental Factors

Environmental factors play an equal role as technological factors. The business image goes down when its operations have a negative impact on the environment. However small the company is, it is required to reduce waste and pollution. Nike for the past twenty years is trying hard to make the environment sustainable.

Nike is a great brand that is financially sound, but it must be careful about the morality of its actions. They must keep an eye on their competitors. Nike is a part in legal disputes over the years. In the late 1980s, the business was sued for failing to disclose unfavorable working conditions. The sports footwear market is expected to grow to a projected value of USD 96.10 billion by 2026, creating intense competition. Seek case study help if you face any problems in writing the same.

Dan Rogers
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