Nike: The PEST Analysis Of Nike

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Nike is a prestigious brand known by millions of people around the globe. The company is a major publicly traded sportswear and equipment brand based in the united states with the company headquarters near Beaverton, Oregon. The company was founded in 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike, the Greek goddess of victory. It is the world leading supplier of athletic shoes and apparel and is also a major manufacturer of sports equipment. Nike markets its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding and subsidiaries including Cole Haan, Hurley International, Umbro and Converse. In addition…show more content…
The current marketing situation for Nike has four major components such as political, economic, socio-cultural and technological factors also known as the “PEST” analysis. The political/legal factors are very important for the survival of a company in any market due to how much a company can produce and how much profit they can make. With Nike based out of the United States, the policies are in their favor. The country helps regulate low-interest rates and arranged international tax agreements thus resulting in less money spent by Nike to sell and produce their products. The political factors affect the organization in today’s standings and in the potential…show more content…
A good social status means a lot for any company and with todays health conscious trend, Nike couldn’t be happier. Diet and health are becoming more prominent around the globe which means more and more people are joining fitness clubs. Thus, resulting in accompanying demand for fitness products particularly exercise apparel, shoes and equipment. This is the perfect opportunity for Nike to be at the forefront of the surging demand. Social factors have its positive outcomes but it also has its negative outcomes. Nike receives much criticism for its poor labor and factory conditions in Asia which results in bad publicity and declining sales as society demands more socially responsible companies. Social factors affect Nike tremendously in both positive and negative ways.
Lastly, the fourth letter in the PEST analysis is the technology factor. Technology gives companies the ability to innovate in a variety of ways especially when it comes to interacting with customers and designing products. Nike takes full advantage of this with up to date software and IT technicians to help design, market and distribute its products efficiently. The PEST analysis shows many factors that affect the success and failures of any company in a given market. Nike, just like many large companies have a variety of components influencing its survival in today’s
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