Nike: The Pest Analysis Of Nike

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1.1 PEST Analysis Political: Nike is exposure to threats in the new political shifts and eliminated the advantage from the withdrawal of Trans-Pacific Partnership (TPP). Economic: The increase global cost does impose threat to the company, but with the automation of their production process tend to overcome the issues. While Nike could enjoy the opportunity from the recent income inequality by offering lower-priced products and the global economy shift the open up new market for the industry. Social: Fewer sport involvement among children may be concerning, but the company seem to address the issues well on encouraging more youth participation in active lifestyle. The increasing focus and demand of ethical labour practice from the public may give the company some advantage since the company has successfully embraced the ethical labour practices across their supply chain. Technology: The data technology will provide an edge in their product development and customer data management with better integration of artificial intelligence. Industry 4.0 that featuring automation production will helps to reduce the production cost and addressing the issues of global labor shortage. While the green technology innovation has given the way to more sustainable practices in the company. 1.2 Porter’s Forces Analysis Low Threat of New Entry: High economies of scale, product differentiation and proprietary knowledge imposed barriers to entry. Moderate capital investment and low control

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