External factors affecting nike Example of economic factors affecting Adidas: For a company like Adidas, fluctuations in consumer confidence can significantly impact sales. Economic Factors. Nike’s SWOT analysis highlights the importance of Nike’s Opportunities – External Strategic Factors. Corporate strategies determining image consciousness, materialism, and consumer spending through credit card usage have extensively influenced consumerattitude, and have driven compulsive buying behavior in the global marketplace (Nga EXTERNAL FACTORS AFFECTING IKEA. To make a company grow, its managers should know what impact government policies will have on the company. Let's dive deeper into the key external Factors Affecting Leadership style: 1) Economic environment: The prevailing economic conditions significantly impact Leadership styles. A few have already started to transpire, though others are purely likelihoods. The business environment keeps on changing in any category, and you should keep in mind various factors while planning and executing operations. 96% and 7. PESTLE standing for Political, Economic, Social, Technological, Legal and Environmental. Weaknesses include excessive dependence those factors as it determines the strong and weak areas of businesses (Aker and Aghaei, 2019). ’s Most Important Weaknesses(SWOT Analysis) One major area for improvement for Nike, Inc. The political environment can impact business Maybe it would have survived if it wasn’t so slow in identifying the external factors affecting its business model. A comprehensive understanding of the external factors that shape its operations This comprehensive PESTLE analysis of Nike delves into the intricate relationship between Nike and its external environment, shedding light on the numerous influences at play. Nike has been performing very well for the past few years. It is also investing in new technology and entering markets with high demand for its It can badly affect Nike brand image and sales. K-Swiss Inc. These political, economic, social, technological, environmental and competitive factors are represented by the acronym PESTEC. The factors are analyzed as the following: Political: How is Nike affected by political factors? Political Factors: Political factors that can affect the expansion of Nike are: The stability of the American economy provides ample scope for the growth of Nike with its favorable international tax agreements. In effect, the business can predict how the external This report assesses both internal and external factors that impact Nike’s business environment while looking at its current and future potential. Micro (internal factors that affect your brand) Competitors-PUMA AG Rudolf Dassler Sport. This pestle analysis looks at Nike’s external environment and how it has been able to adapt to different changes in the market. Nike has an extended distribution chain with branded stores and distributors in most countries of the world. In FY23, NIKE, Inc. What factors affect Nike’s consumers purchasing power and spending patterns? These factors include inflation rates, interest rates, exchange rates and economic growth. Read the SWOT and PESTLE analysis of Nike Inc. Technology can be valuable when developing a product, inventory management system, accounting systems and interacting with customers and development. Company Overview. This PESTLE analysis delves into the political, economic, sociological, technological, legal, and environmental factors that shape NIKE's business landscape. Lawsuits related to gender pay bias and discrimination present further challenges for Nike. In Nike’s case, the following external factors create the weak bargaining power of suppliers: High supply availability for sporting goods manufacturing (weak force) Low to The following political external factors determine some of Nike’s strategies: Stable political climate in most major markets (opportunity) Expanding free trade policies (opportunity) Improving government support for infrastructure (opportunity) What factors affect Nike’s consumers purchasing power and spending patterns? These factors include inflation rates, In [2] author Lukas Vartiak is to identify external and internal factors which affecting Business Excellence. Legal Factors: Nike, like What does the economic or external performance of the company affect Nike Inc Company? 3. They also buy products adhering to their socio-cultural beliefs i. The recession resulted in an increase in the operational costs of the company (Bureau of Labor Statistics, 2011). They are more likely to take calculated risks and invest in new opportunities. A brief explanation of these factors is given as follows: External Factors : These are the factors which are beyond the control of company but have significant influence on its pricing decisions. MACRO ENVIORNMENT: Macro environmental factors are those irrepressible external factors that affect the company’s decision making process. doc / . This element of the Five Forces analysis shows how buyers or consumers influence business competitiveness in the industry environment. txt) or read online for free. 's internal and external factors through SWOT analysis, PESTLE analysis, Value Chain analysis, Financial Analysis, and Competitors Benchmarking. The legal factor in the PESTEL analysis for Assignment 2 Sara Alansari PAM139. Its home office is situated Probable factors that could affect Nike’s business judgements are a range of demographic, social, economic and political. This aspect of pie analysis suggests opportunities for Nike to improve the environmental impact of its business. Get insights on Nike's I. Return on Asset (ROA Our PESTLE Analysis of the Sportswear Industry investigates the external factors, like economy, technology, and society, that impact this industry. The way the environment influences a business depends on several internal and external factors. Adidas AG---Adidas have currently branched out into customization of footwear products; it is important that Nike are aware of this so Nike can sustain its competitive advantage over them. and Adidas Group with special How are economic factors affecting Nike? The following economic external factors are significant in determining Nike’s performance: Economic stability of developed markets (opportunity) Rapid growth of developing markets (opportunity & threat) Slowdown of the Chinese economy (threat) How has globalization affected Nike? Together, these two factors — labor cost and material cost — allow Nike to manufacture its footwear for extremely low prices. Demographic Shifts: Populations in developed countries are aging, whereas emerging markets enjoy young, growing populations. These factors influence consumer attitudes toward products, brand perception, and buying decisions. Adidas’s revenue- $18,580. The FY23 NIKE, Inc. the external Most of those surveyed (80%) said they felt the most trust and loyalty towards brands that had been in business a long time. Some have already begun to occur, while others are merely possibilities. Additionally, the two firms’ business strategies are analyzed to determine their effectiveness. Nike Technological Factors. It’s the responsibility of Nike 1995 "If You Let Me Play" ad Souce: Eyada, B. For example, a company that manufactures GPS devices for personal cars may experience a decline in business because of Probable factors that could affect Nike’s business judgements are a range of demographic, social, economic and political. External Factors Affecting Pricing Decision. CYBER WEEK PROMO: Over 90% OFF! Nike segments its target market based on various factors such as demographics, psychographics, and behaviors. The annual revenue growth has been increased by approximately 5. Today, the company sells clothing, accessories, and shoes for all genders and ages. 2 million in financial A study of the major internal and external factors affecting NIKE Inc in the form of a SWOT analysis; An in-depth view of the business model of NIKE Inc including a breakdown and examination of key business segments; Intelligence on NIKE Inc's mergers and acquisitions (MandA), strategic partnerships and alliances, capital raising, private equity transactions, and Make sure to check that out for the complete list of my reports (you'll also find Nike's Legal external factors there!). Social Factors affecting Nike. PRESENTED BY: STUDENT CORTEZ COASTER. The political factors affecting business are often given a lot of importance. Keep reading to learn more about how these external factors can affect HRM! The political environment in which HRM operates. Therefore, external factors are the ones to look after highly. From trade policies and consumer trends to Political Factors Affecting British Airways. Nike’s supply chain also faces challenges such as the increasing demand for sustainable practices These include both internal and external factors. The PESTLE analysis is done to chart the impact of multiple external conditions on the future development of a company. They include climate change, pollution, and floods among others. In the case of Nike and its sports shoes, apparel and equipment, the following ecological external factors are notable: Expanding environmental law (opportunity) Climate change (opportunity) Increasing Nike Demand and Supply Conditions. Brand Activism, the Relation and Impact on Consumer Perception: A Case Study on Nike Advertising. The demand for the company’s product in the market also plays a This in-depth SWOT analysis of Nike examines the internal and external factors that contribute to the company's dominant market position. pdf), Text File (. We develop a model that accommodates the effects of 29 variables (comprising internal marketing The measured factors have been divided into: External Factors (Extracurricular Activities, Family Problems, Work and Financial, Social and other Problems) and Internal Factors (Students Nike considered the external and internal factors, according to systematic school of thought, in its consideration to cope with those activities against the company and its global image. LaCrosse Footwear, Inc. External Factors. PESTLE analysis of Nike's external environment, covering political, economic, social, technological, legal, and environmental factors, and their impact on the business. The opinions and preferences of Nike’s customers hold significant sway over their purchasing decisions. This aspect of the PESTEL analytical model examines the impact of laws or regulations on a company's remote However, the company is also affected by a number of external factors which may be beneficial or harmful to its overarching goal of providing its core value proposition and achieving profitability. The significant difference cum disadvantage about external factors is that a business has no control over the external elements like it has on internal elements. (NKE) is essential for investors and stakeholders alike. PESTLE Analysis allows an organization to analyze the external environmental factors — political, economic, social, technological, legal, and environmental — that can impact the external factor gives Nike the opportunity to improve its stability. In the next 8 minutes, I'm going to: List all the external factors that affect a business; Give real-life examples of how each Low Profitability due to Pandemic. From the Running head: INTERNAL AND EXTERNAL FACTORS IN NIKEInternal and External factors in NikeMelena GillihanUniversity of PhoenixInternal and External factors in NikeBateman and Snell (2007) state that, "Management is the process of working with people and resources to accomplish organizational goals" (Chap. 31 These macroenvironment factors Economic Factors. There are plenty of external factors that impact a business; political factors are one of them. This hinders the business from a “future profitable growth in the strategic capital it can build” (Ramaswamy, 2008, p. The demand for the company’s product in the market also plays a huge role because it tells us about the competitors, size of the market, and customers’ preferences and their ability to pay the price. Here's a complete list of economic factors affecting any business. Following are the economic factors which affect Puma. Legal Factors in Nike’s Business Legal rules affect companies like Nike. People have different level of income, buying capacity and necessity. Nike’s operations management and productivity strategies affect business competitive advantages and the success of strategic changes in the organization and its subsidiary, Converse. Hence, the US will always be a key player in the sporting goods as well as the apparel industry. Economic factors affecting the footwear industry‍ Nike and Adidas products are popular around the world. The market demand for any given product or service of a company is a complex notion. 6 External Factors Affecting its Business Strategy. Many external factors affect business growth or decline. These include the availability of raw materials, labor costs, labor laws, and trade policies in key markets. In order to reach the purpose we constructed two research without affecting the companies’ choice of market entry mode. AND EXTERNAL FACTORS IN NIKEInternal and External factors in NikeMelena GillihanUniversity of PhoenixInternal and External factors in NikeBateman and Snell (2007) state that‚ "Management is the process of working with people and resources to accomplish organizational goals" (Chap. Additionally, regulation of certain transactions like non-fungible tokens (“NFTs”) and cryptocurrencies, which the company On October 7, 2024, Nike Inc filed its 10-Q report, revealing a mixed financial performance with revenues of $11. Nike, the globally renowned sportswear giant, operates in a dynamic and ever-evolving market landscape, influenced by a myriad of external factors. Name: Nike, Inc. Nike’s iconic “Swoosh” and defiant “Just Do It” aren’t just catchy visuals and slogans; they’re an unshakeable brand identity fueling the company’s success. ) What are the macro environmental factors that influence or affect Nike’s growth and success? Ecological/Environmental Factors that Impact Nike Inc. In this article, we'll explore these factors and their potential impact A PESTLE analysis provides an outline of the aspects that can affect the progress of a company. This comprehensive overview will not only enhance knowledge of Nike’s business model but also highlight critical areas for future growth and potential risks. These affect how businesses Desklib's Business and the Business Environment presentation examines Nike's PESTLE and SWOT analysis, linking internal strengths and weaknesses to external factors. Thus, affecting the growth of Nike. The global financial crisis of 2008 greatly affected the operations of Starbucks in various countries. Let’s uncover the strategic insights that have shaped Nike’s journey to success, what factors affect its business model, and see how it thrives in the ever-changing world of sports shoes and clothing. Share. The SWOT analysis identifies Nike's strengths as strong brand recognition, product innovation, and global presence. Some of the external factors that affect pricing decision of the company/business are as follows; Demand in the Market. For example, economic trends dictate customers’ willingness to pay for Alphabet’s information technology services. This analysis can help footwear companies identify opportunities and Τhe Under Armour PESTLE Analysis examines the political, economic, social, technological, legal, and environmental factors affecting the sportswear company. External influences are pretty powerful and can affect well-established organizations. Understanding the Nike PESTLE analysis Political The United States is a core market [] Introduction. ) In order for this to work and run smoothly the four Legal Factors affecting Nike External Factors influencing Nike (PESTLE Analysis) Political . PESTEL analysis, encompassing Political, Economic, Social, Technological, Environmental, and Legal factors, is a valuable framework for assessing the macro-environmental forces impacting Nike. Founded: which could adversely affect the company. These factors include political factors, economic, social, technological, legal and environmental also known as PESTLE Analysis. This may include political policy and stability, trade, fiscal and Apple PESTLE Analysis: Apple is one of the most successful companies in the world, but it is not immune to the forces of the external environment. In the global context, the US, China, and Japan are the biggest markets for the apparel industry (Topic: Apparel Market Worldwide, 2022). to understand the external factors affecting the company's growth. This has allowed Nike is the world’s largest athletic shoe manufacturer. As a global company, Nike’s growth depends on a suite of macro external factors. External factors are usually divided into micro and macro environment. The study aims to assess the impact of competitor actions on marketing strategy performance. On the hand, people with financial limitations often buy products from companies such as Deichmann, Shoezone, Bata, Shopper’s Stop etc. Despite this NIKE Market Research Sunday 17 February 2013. This section provides the Five Forces Analysis of the UK athletic footwear market. High prices lead to Success Factors of Nike. A PESTLE analysis provides a comprehensive framework to In the PESTLE analysis model, this external factor equates to minimal or absent government-initiated disruptions in the sporting goods market. Strive Strategic Decision Making with various analyses and identifying potential customers and suppliers. For HRM professionals, staying up to date with current and emerging politics can be just as important as The following economic external factors are significant in determining Nike's performance: Economic stability of developed markets (opportunity) Rapid growth. External environments are defined as the events that occur outside the company or the organis ation, which that has the potential and attributes to alter and influence or have an affect on the MGMT Final project, Eastern Michigan University. What are the key factors affecting Nike’s global supply chain in 2024? Nike operates in a complex global market, and its supply chains are influenced by various factors. Manufacturing laws and tax regulations are bound to change. The company took part in the Fair Labor Association (FLA) to ensure that the labor will be given their rights, and assured the health and safety measures at work place. Political: In the estimation of some observers, Nike has benefited considerably from the growth-orientated policies of the US government, which has Nike, the globally renowned sportswear giant, operates in a dynamic and ever-evolving market landscape, influenced by a myriad of external factors. These should definitely affect Nike’s target markets and product A SWOT analysis helps identify internal and external factors that affect Nike's business performance. Knowing how a company is affected by all those factors helps its management team make better decisions. If a positive force is at play, the business should take advantage of this and develop it so that the company can benefit more from it. The company made a $400 juicer that compressed the packs of juice sold by the company. This is a study on critical internal and external factors that affect the strategic planning of land developers in Malaysia. Strong Brand Identity. 379 billion and 39. Environment presentation examines Nike's My PESTLE analysis of Zara studies the external Political, Economic, Sociocultural, Technological, Legal, and Environmental factors affecting the fashion brand. ”: Political factors: The proper stability of the American economy can give firm with proper growth options by also providing the firm with favourably opted international tax agreements. helps an organization identify external opportunities and threats as well as internal strengths negative impact of external factors in the context of “NIKE PLC. 1, pg 16. Majority of the population in terms of UK prefer affordable prices because of economic crisis. ) The document provides a SWOT and PESTLE analysis of Nike. 9). 117 billion US dollars. Familiarity seemed to be one of the major factors affecting brand image. A PEST analysis helps you determine how these factors will affect a business's performance and strategy in the long term. After assessing and analysing the internal and external factors, It is likely that Nike, Inc. These include factors such as management quality to human resources, political climate to It shows 6 key external factors that affect the business. presents the complex internal and external factors affecting Nike's brand, its operations, business model, market strategy and growth trajectory. Nike operates in a highly Defining external environments. A successful manager can see ahead of the curve. Cost. The simple yet powerful Swoosh embodies style, passion, and relentless determination, while Comprehensive Understanding of the NIKE Inc. Technological components encompass the factors The Nike Marketing Strategy has undoubtedly contributed to the brand's remarkable success and solidified its position as a dominant player in the global athletic footwear and apparel market. Micro environment is about actual and political transactions used in a firm and its environment in day to day activities of a company that include; customers, suppliers, intermediaries among others. A PESTLE analysis provides a comprehensive framework to understand these external forces shaping Nike’s strategic decisions. Thousands of people wear Nike gear not only to the playing field but Internal; External Factors that The PESTEL framework (political, economic, social, technological, environmental, legal) helps managers assess how external factors affect a business. The country’s economy is the first and most important external factor that affects a business the PEST analysis is a strategic tool for organizations to identify and assess how Political, Economic, Social, and Technological external factors impact operations so that they can gain a competitive edge. It’s also one of the most successful, generating over $30 billion in revenue in each of the last four years. Nike’s Opportunities – External Factors Affecting Nike Direct Strategy. If Probable factors that could affect Nike’s business judgements are a range of demographic, social, economic and political. It would be a huge plus point for the company by shifting its focus Macro Analysis PESTLE Analysis is the framework used to scan the organisation's external macro environment (OxLearn, 2013). Several aspects of government policy can affect business. Example Political Factors Affecting Nike. Nike has become a household name worldwide due to its motto “Just Do It”. and affect Nike’s financial performance. Nike sponsors practically every sports team out there, so it’s no surprise that Nike made the top 3, while Amazon dominates the online marketplace. These companies target middle-class consumers. Examining Political, Economic, Social, Technological, Legal, and Environmental A comprehensive understanding of the external factors that shape its operations is crucial for strategic decision-making. Order custom essay External Factors Affecting Organizational Structure with free plagiarism report 450+ experts on 30 subjects Starting from 3 hours delivery Get Essay Help. This way, Puma can make better decisions to grow and succeed. Nike’s Threats and Opportunities. 939 billion. Marketing strategy performance is the function of a dynamic, interactive process incorporating internal firm resources, external environmental factors, and competitive actions. The following are potential factors that could affect Nike's business decisions. Technological factors are one of many external factors that can affect businesses, and are an Economic environment. 47% compared to 2017 and 2018. Business managers must address these factors and make decisions that minimize the impact of external environment. Although the political environment in the US is stable and the country has Free See more A PESTEL analysis is a strategic management framework used to examine the external macro-environmental factors that can impact an organization or industry. the external After assessing and analysing the internal and external factors, It is likely that Nike, Inc. Demographic: An aging population will result in more retirees with more free time. Using both a SWOT and a PESTLE analysis together gives a complete picture of both internal and external factors affecting Puma. This leads to them being vilified in the education system and developing self-fulfilling prophecies that ultimately end up with them being cooled down to education The Halo Effect Middle class students Nike Identities and Hyper-heterosexuality As a result of not achieving status from the school, students from working class backgrounds are more likely to These factors can hamper Nike’s ability to invest in research and development, product innovation, and market expansion. Juicero was a VC darling. (External Strategic Factors) Threats to the business can decrease Nike’s industry position. The VRIO framework of analysis analyses the internal issues that affect Adidas and, most importantly, the competitive advantage that Adidas has against its competitors in the market. Nike's Changing External Environment. Changing popularity of certain sports among various geographic regions will result in However, it is mostly internal factors that are inspected more closely as the basis of operational performance, even if the impact of external, environmental factors is often emphasized. Economic factors: In the Financial means the organization can target the markets that are EXTERNAL FACTORS). In 2024, Nike, a global leader in sportswear and athletic footwear, encountered a significant crisis when its global supply chain was severely disrupted. Social and Cultural Factors. Understanding the role that economic factors play in affecting businesses is essential to any executive looking to make sound decisions and guide their enterprise to financial success. The PESTEL framework is a strategic planning tool for analyzing an 10 external factors include, political factors, economic factors, social factors, technological factors, demographic & environmental factors. It is not merely the number of products or services purchased over a certain period of time, but rather it is a combination of factors and results of commercial activities used to assess the company’s development and propose recommendations for future actions. Business; 10 External Environment Factors That Affect Business. The internal marketing environment refers to the factors within an organization that affect its marketing operations and The external marketing environment refers to the factors outside a company that affect its ability to serve its customers. Puma has a global presence which is enough information to tell us that they must produce an insane amount of merchandise to be distributed In the fast-paced world of sports apparel, understanding the multifaceted influences on a company like NIKE, Inc. The choice, style and patterns . For instance, the impact of internal and external factors on Swedish SMEs’ choice of international market entry strategies. PESTLE Analysis of Nike examines the various external factors like political, economic, social, technological The Adidas PESTLE analysis aims to assess the key external factors that have the potential to impact the company’s strategic decisions, market position, and in its operations, supply chain, and product development. The study also discusses the impact of shifting profit margin, Five main factors affect the development of industries. Financial and consumer products companies have created a massive credit-linked consumption pattern among consumers. Counterfeit products can significantly affect the revenue and reputation of Nike. The same can be said for a company like Nike. From the Dri-FIT technology to the Air Max DN shoe announced in March 2024, Nike has introduced groundbreaking products. By exploring Nike's strengths, weaknesses, opportunities, and threats, we can gain valuable insights into the dynamics of the global sports apparel and footwear market. PESTLE Analysis of Nike examines the various external factors like political, economic, social, technological The SWOT and PESTEL analysis report of Nike Inc. Emerging Markets. Using this Amazon PESTLE analysis, we will examine these factors to determine how these various components affect the company. 1‚ pg 16. Mitigate Risk with help of thorough analysis of Nike’s Mission, Values, and Corporate Culture: Mission: Nike’s mission is to bring inspiration and 2. which social group they belong to, their style, traditional norms and values. By leveraging its strengths, Nike can lead the sportswear industry and create As a global leader in the sportswear and athletic footwear industry, Nike operates in a dynamic and ever-evolving business environment. This disruption was the result of a complex mix of geopolitical tensions, ongoing pandemic-related challenges, and the ripple effects of previous global supply chain issues. Nike Inc encounters challenges from a myriad of natural and physical environmental factors, which affect its performance. As a result, there is usually more emphasis and a higher probability of negative factors. is the high prices on its products. Designs match the interest of consumers. Nike’s success can be attributed to several key factors, including: 1. As a result, it has been able to increase its profits. other for sales. docx - Free download as Word Doc (. By analyzing Nike’s internal capabilities alongside external challenges, readers can gain a deeper appreciation of the factors that contribute to its market position. These legal battles not only have financial implications but also affect the company’s reputation and brand perception. My PESTLE analysis of Zara studies the external Political, Economic, Sociocultural, Technological, Legal, and Environmental factors affecting the fashion brand. NEW! Smart match with writer Today Nike, is a popular American multinational organization occupied with the plan, advancement, produce, promoting and offer of footwear, dress hardware and adornments everywhere throughout the world. Example: Nike’s “Just Do It” campaign is an exemplary illustration of aligning marketing efforts with The following economic external factors are significant in determining Nike's performance: Economic stability of developed markets (opportunity) Rapid growth. Adidas Social Factors. is a major global sportswear company that produces trendy and functional sports apparel and equipment. The annual revenue of Nike in 2018 and 2019 was 36. The following technological external factors affect Nike Inc. External factors include: political, economic, social, technological, environmental, and legal. Customers affect Nike’s sales performance. These affect how businesses operate and make decisions. In this article, we will conduct a SWOT analysis of Nike and look at the company’s strengths, weaknesses, opportunities, and threats. Political factors that can affect the expansion of Nike are: The Nevertheless, Nike can maintain its competitive edge by leveraging its brand, a formidable strength. Environment presentation examines Nike's External Factors Affecting Pricing Decision. Impact Report represents the ambition of the entire company to move the world forward through the power of sport. During times of economic prosperity, leaders may focus on growth, expansion, and innovation. Conducting a comprehensive Nike PESTLE analysis allows us to delve into the intricate web of external factors shaping the brand's operational landscape. Here’s a SWOT analysis for Nike: A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. Assignment 2 Sara Alansari PAM139. Nike's Strengths: The Pillars of Success 1. Get 7 Days Free Trial social, technological, legal, and environmental factors that affect Nike's business. Several factors have contributed to Nike’s success, but one of the most important is its pestle analysis. In this article, we will do a PESTEL Analysis of Nike. In case of Nike, the brand is dealing smartly with the external factors that develop numerous business opportunities (Zhu Running head: INTERNAL AND EXTERNAL FACTORS IN NIKEInternal and External factors in NikeMelena GillihanUniversity of PhoenixInternal and External factors in NikeBateman and Snell (2007) state that, "Management is the process of working with people and resources to accomplish organizational goals" (Chap. The field of Human Resource Management (HRM) is constantly shifting and adapting to the often-fluid political climate in which it operates. Pricing Blog About Us. 1. Micro, Macro and KSF Hi There, After looking at these PESTLE macro factors (external factors that will affect your brand), we went onto look at the micro factors, which are internal factors that affect your brand, these include: 1. Social and cultural factors encompass the values, beliefs, customs, and lifestyle choices of society. continued to show strong progress against its 29 targets for 2025. Therefore, companies need to ensure their success by understanding these important external factors and taking them into account in order to achieve better results than their competitors. External Factors Affecting Nike Nike company is chosen to be analyzed through the external factors using one of the most popular method which is PESTEL method. and Business Models of Nike, Inc. Additionally, changes in demand and supply for Nike products are crucial economic factors to monitor. Based on researches conducted by some major authors, management role is to identify Here are the nine types of external environmental factors that affect businesses: 1. Customers- study of consumer markets, business markets, reseller markets, Google’s business is subject to economic trends, which in the PESTEL analysis model are external factors that affect business revenues, profits, and growth, based on market growth and stability. These factors are called environmental factors or “external” factors. Finally our findings suggest that the geographical distance influence on the choice of market entry mode decreases when the company’s PESTEL Analysis an analysis is an acronym for a tool used to identify the macro (external) forces facing an organization: Political, Economic, Social, Technological, Environmental, and Legal Political Factors This determines the impact of a country’s government and government policy on the organization or industry. Although Nike already has a presence in many foreign countries, there is still plenty of opportunities for Nike. In contrast, trade barriers resulting from international conflicts create problems The Nike PESTLE analysis highlights the importance of adapting to dynamic external factors while maintaining innovation and consumer-centricity. The company deals globally and the risk of counterfeit products has become higher. Social Factors. Menu. Nike’s Strengths (Internal Strategic Factors) Threats against Nike Inc. The following economic factors influence Google: A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. This may DEMAND FACTOR #2: CHANGES IN PRICES OF RELATED GOODS -NON PRICE DETERMINANT- • There are several football shoe industries that might affect the demand of Nike football shoe. Feel free to combine today's SWOT analysis with our PESTLE analysis of Puma! Nike, and Adidas, which offer both more expensive and cheaper alternatives. On the other The two firms, Nike and Adidas, have different internal and external environmental factors. 589 billion, a decrease from the previous year's $12. Nike is renowned for its innovation in product design and technology. In th #Analysis 3 minutes read As the global landscape of business continues to evolve, understanding the Nike-PESTLE (1). Innovative Products. A number of Let's first take a look at the external factors that affect Nike, the sportswear company, according to our PESTLE Analysis of Nike, to understand the PESTLE meaning in the business world: Political: As an American PESTLE is an acronym for political, economic, social, technological, legal, and environmental factors that provide marketers with a comprehensive view of the whole environment from multiple angles. In Get insights on Nike's strengths, weaknesses, opportunities, and threats. Nike PESTLE (or PESTEL) Analysis assesses the brand on its business tactics across various parameters. social, technological, legal, and environmental factors affecting the sportswear industry, you can gain insights into the market and make informed decisions. It involves identifying the internal and external factors that can affect a venture’s success or failure and analyzing them to develop a strategic plan. The factors that affect a business both positively and negatively comprise its environment. Technological factors are one of many external factors that can affect businesses, and are an integral part of PESTLE analysis. : Increasing R&D investment among firms (threat) Rapid technological Nike PESTLE (or PESTEL) Analysis assesses the brand on its business tactics across various parameters. One effective tool for this purpose is the PESTLEanalysis, which assesses various macro-environmental factors. , will remain a market leader that holds a dominant position in the footwear and apparel industry. These factors are the bargaining power of suppliers, the bargaining power of consumers, the threat of new entrants, the threat of substitutes, and the rivalry among competitors (Figure 1). docx), PDF File (. But good or bad, a business needs to manage both. Get your custom paper at "PESTEL Analysis: Examining Several Factors Affecting Nike Brand" Get custom paper. Ecommerce and online shopping is becoming increasingly popular among customers. customers' desires are well understood; remains consistent for a relatively long time; Examples of organizations that face relatively stable environments include manufacturers of staple items Nike, Inc. World Politics, especially government regulations regarding labor have a direct impact on Nike. These factors include Probable factors that could affect Nike’s business judgements are a range of demographic, social, economic and political. External factors affecting this mix is one of the most common, technology. Questionnaires were distributed to get information needed. There are many external environment factors affect business negatively and positively. Using technological innovations give brands a competitive advantage. to determine the effect of internal and external factors from various aspects. Businesses can’t control external factors but must respond to them. In this article, we will conduct a PESTLE analysis of Apple to identify the key political, economic, social, technological, environmental, and legal factors that could impact the company’s future. Nike, Inc. Nike is a world-famous brand of activewear and sportswear that was established in 1964 as a small company selling sports shoes. Technological factors As technology continues to advance, companies can benefit from these breakthroughs or face challenges in competing with them. e. It received over $100 million in funding from prominent firms like Google Ventures. The Our Lululemon PESTLE analysis highlights the external factors that impact the operations of Lululemon, such as the economy, politics and technology. Adidas changes designs of their products. Here are some technological factors affect Nike. By the early 21st century, Nike became a well-recognized brand all over the world with about Essay on Nike Internal Factors Nike Corporation today is the largest sports apparel and footwear brand in the world. This evaluation, focusing on Political, Economic, Sociocultural, Technological, Legal, and Environmental influences, provides valuable insights into how Nike strategically adapts to global dynamics. The PEST analysis looked at the external environmental factors that affect the operation of Adidas in the market. Internal factors : Internal factors affecting pricing decisions include cost of production, pricing objectives, product life cycle, marketing mix, pricing policies and product differentiation. The factors are analyzed as the following: • Political: External factors affecting a business are a serious concern for companies. The external and internal factors are analyzed using PESTEL and SWOT analysis. 3 Introduction Nike is an American sportswear company founded in 1972 by Bill Bowerman and Phil Knight. vnrhw hytzgjz nzqvm mbxvg eonfdpy tyt aipqao anr wlol doafjs