PESTEL Analysis - Nike

Extract

[...] Nike PESTEL Analysis I. Introduction A. Nike Nike is a world-renowned American brand, legally governed by a public limited company. This sign was created by two businessmen, Philip Knight and Bill Bowerman. It specializes in innovation, manufacturing and sales of sports equipment and clothing primarily focused around their shoes. With a total capitalization in 2019 of 142,289 million euros, the brand marks its territory worldwide by building three head offices, one in the United States, one in Europe and the other in Asia Pacific. [...]

[...] Nike has also developed a new brand: Golf. As the name makes it clear, the company sells golf balls, golf clubs and sport-specific clothing. This new revenue pushes the company to increase its sales sector, which attracts golfing customers. If this sport was chosen by society, it is simply because golf is the sport of the rich according to clichés. This confirms the brand's desire to have a luxurious image. C. Nike's Pestel Analysis Framework Like any brand, Nike's growth depends on factors outside of the company, which include environmental macros. [...]

[...] Many photographs denounced the acts, but no law or legislative jurisdiction has really changed the facts (although conventions have taken place like the one of 1989 defending the constitution of the rights of the child). If the brand had a luxurious image, it has been the object of media attacks in recent years, but also of boycotts by some of its customers. Faced with the drop in numbers, Nike decides in 2019 to improve its image by implementing controls as well as by applying minimum age barriers at work. The company has also created an association, the Fair Labor Association, which fights for the application of human rights at work. [...]

[...] Nike has chosen to be governed by national and international trade jurisdiction. Since the policies currently in place have been stable for several decades, the brand enjoys the benefits of policy to develop and market its products. Thus, if we add monetary conditions and interest and exchange rates that vary only slightly, the goals for the company's future remain favourable. The Pestel analysis therefore reveals that for this factor that Nike's activities (footwear, clothing and sports equipment) could evolve favorably and spread around the world if political conditions do not change. [...]

[...] Although Nike wanted to anticipate the blow by setting up its own factories directly in China, the economic crisis is also being felt throughout East Asia, causing raw material and labour costs to rise. Nike products then experience a price increase of between and 10% of the initial price in 2019, provoking controversy as in France where customers are offended by prices that are already very expensive at the outset. Product sales then flow much more slowly, but marketing and product innovation still allow the muse to take its place. While the Pestel analysis has demonstrated the positive influence of the political factor, Nike still has many adjustments to make economically. [...]