PESTEL Analysis - Nike

Extract

[...] Nike, which specializes in sport, must therefore offer products corresponding to these current trends with stylish, comfortable and sporty shoes. Its clothing and sports equipment must meet the same criteria. The downside is that the demand is growing, but Nike is unable to meet and manage the innovation of all of its products. If the brand continues in this direction, its image will be all the more negative without counting the decline in sales, customers will look elsewhere to other more socially responsible companies. D. [...]

[...] Finally, Nike should try a more aggressive approach in its free trade policy, in particular for countries which are in the process of development. In conclusion, Nike should consider making a smaller profit by accepting more expensive labor, longer lasting quality shoes for relatively fairer prices. The company would improve its brand image, and it could thus prosper over time. [...]

[...] In this way, it will enable Nike to target potential threats to avoid them and respond to opportunities for the company over time. II. Nike's Detailed Pestel Analysis A. Political What are the criteria of the Pestel Analysis Political sector? The main question that needs to be answered is the political stability of a country, as this plays a very important role in the economic sector of a company. However, it also concerns the financial policy, foreign trade (European Union, but also worldwide) or social protection. Nike, which is a world-renowned company, is very much subject to government political effects. [...]

[...] 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. The brand's strategy must therefore be based on its knowledge of the past in order to avoid making mistakes, but should also focus on current trends to meet customer demands, as well as on a futuristic vision to anticipate future needs that would make the business flourish. [...]

[...] Target of potential customers and market Who is the target market for the brand? First of all, the brand targets mainly sporty customers, who are looking for superior quality goods. The main consumers are young people aged 15 to 30, but also older people who want to stand out with expensive clothes. Geographically, the brand targets strategic points: the factories are in China, East Asia, Brazil and in Mexico (Northern countries), while the points of sale are located in Europe, in South America and Australia (Southern countries). [...]