Essay On Nike Pest Analysis

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Macro Environment Analysis
Pest Analysis is used to analysis external macro environment that offers opportunities or threats to a company (Kolter and Armstrong, 2008). The PEST analysis is all generally considered to be an uncontrollable environment which out of the company control. PEST standing for Political, Economic, Social, and Technological.
Political Analysis
The growth-orientated policies of the US government help companies foster the business growth. In this context, US policies offer Nike the opportunity to modernize their product (Research and Markets, 2007). With the policies of the government which offer low-interest rates, the competitiveness of the tax system and stable currency conditions assist the Nike growth. Nike gets the opportunities to advance the growth of business when the most market politic is in stable condition. The free trade policies promote better market penetration overseas. In infrastructure development, the government has helped a lot to the developing countries, thereby gaining an opportunity to Nike expand the range of market. As the result of political analysis, Nike Inc has opportunities to expand Nike footwear market in global.
Economic Analysis
Economic recession is the biggest threat for the Nike. Nike. Inc has faced treat which is financial crises of 2008
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implement premium pricing strategy which set the price based on the quality of footwear. In this case, Nike able to set higher prices than its rivals as Nike product quality is well-known. For the customer perspective, the high quality product is worth for the higher prices. Hence, it has lead to customer willing to pay higher price for the Nike footwear. However, some people would think the price which charge by Nike product is high. In order to resist the critics of people, Nike argues that these prices reflect the quality of the product. In general, premium pricing strategy looks more effective to the customers who focus on product utility and

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