Analyzing the External Environment of Nike in Singapore: A PESTLE Analysis

A comprehensive PESTLE analysis of Singapore reveals various factors influencing Nike's operations in the country. Economically, Singapore is a market-free economy with high per-capita income and a corruption-free business environment, providing advantages for attracting labor from neighboring countries. Socially, the country follows traditional values, and Nike caters to local demands while adopting corporate social responsibilities. Technologically, Singapore boasts advanced IT infrastructure, supporting regional operational centers. Legally, government regulations support electronic commerce, and management prioritizes business ethics. Environmentally, the government takes strict measures for environmental conservation, making Singapore a favorable region for businesses like Nike. Based on this analysis, recommendations include utilizing social media for advertising, focusing on new product designs, and providing user-friendly online services to expand globally.

Contents
Introduction................................................................................................................................2
Business relation with respect to the Environment....................................................................2
SWOT Analysis.........................................................................................................................3
PESTLE Analysis.......................................................................................................................4
Recommendations......................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9
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Introduction
Nike is one of the most important players among the several other companies working under
this field in the market at present. The original founder of the Nike is Phil Knight and Bill
Bowerman and the company has occupied almost half of the world’s market by providing a
large variety of products and services. Approximately fifty percent of the global market has
been occupied by the Nike. Thus, it has become one of the best leading manufacturing brands
of the sportswear. At present, the company is also manufacturing a large variety of smart
gears for bringing inspiration as well as innovation among each and every athlete across the
world. The company is working across the different- different countries across the World
through their offices situated in the different locations of the countries. Approximately Nike
has more than seven hundred shops across the different countries of the world. The company
main motive is to possess the leading quality among the several competitors working in the
market and providing the same type of products to the people of the country. The bargaining
power of the suppliers of the company possesses very low power with respect to the strength
and power of the company in the market across the world (Ukessays Team, 2015).
Business relation with respect to the Environment
For the successful working of any type of business in any part of the country, environmental
analysis is very important. The environmental analysis helps the management in maintaining
their market works by describing the current situation of the various internal and the external
factors, which are affecting the complete working of the company. All the internal as well as
external factors are responsible for the performance of each and every employee of the
company. Singapore is the country, which provides the best environment that suits all types
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of businesses, i.e., an environment that is favorable for every type of work. In the day today’s
world everything is changing very quickly in a small instance of time, therefore, to cope up
with all the situations the environmental conditions of the surroundings of the business are
very important to be focused upon.
SWOT Analysis
 Strengths – Nike is a very famous brand among the people across the world. It has a
large number of competitors like Adidas, Puma, Reebok, etc., working under the same
field and provides similar type of products to the people. On the other hand, Nike has
attained a valuable coverage with respect to others.
 Weaknesses – one major reason is the large diversified range of the products of the
company. The retail part of the company is very sensitive due to price quality.
Sometimes, while competing with the rivals the company has to face a huge loss in
the margins of the products being delivered by the company in the market (Dalavagas,
2015).
 Opportunities – the company needs to focus on the fashion series being
manufactured by the company, which provides a great opportunity to the company
while competing with the others. The company can also manufacture a large variety
of jewellery and sunglasses, which is a great opportunity for the company to expand
its business depending upon the popularity of the brand (Bhasin, 2016).
 Threats – margins among the variety of products is not stable due to different
currencies of the different countries does not provide stability to the company. The
company has to compete with a large number of rivals to carry out its business
successfully.
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Therefore, the above described SWOT analysis helps the management of the company by
describing various strengths, weaknesses, opportunities and threats to the company while
carrying out their business.
PESTLE Analysis
This analysis plays an important role in the working of the company. The management can
easily manage the various internal and external factors with the help of pestle analysis. In the
PESTLE analysis, P stands for political factors, E stands for economic factors, S stands for
social factors, T stands for technological factors, L stands for legal factors and E stands for
environmental factors.
Political: – The political factors tell about the variety of policies being introduced from time
to time by the government of the country in which, the company is working or willing to
work. Various policies defined by the government of the Singapore help the management of
the company to work according to the laws of the taxation department and many other modes
of entry regulation, etc. According to the various policies of the Singapore government, the
risk belonging to the political factors is very low. Therefore, the Nike has a large number of
benefits from the variety of independent policies of the country.
Economic: – According to the economic factors, the company is facing various challenges
due to the financial crises from the year 2008 onwards. Due to the high popularity of the
brand the company got a large number of benefits for attracting more and more people
towards them and fulfilling their demands in the advancement of the economy of the country.
The economy of the Singapore is completely a market- free economy or in other words, we
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can say that it is completely a vibrant economy. Depending upon the information collected
with respect to the per-capita income, it is the highest of the Singapore in ASEAN. The
environment of the business in the country is totally corruption free, which is also one of the
greatest advantages to carry out any type of business in the country. Business growing in the
Singapore helps the company by providing labor at a very low price form the different-
different neighboring countries of the Singapore.
Social: – Depending upon the various social factors we can say that, Singapore is the country
which completely follows all the traditional values of the people living in the country. This
country is similar to many other western countries across the world and the present
generation of the country has the tendency to follow all the traditional values of the people
living in the country. Nike is providing a large variety of products according to the various
physical and health measures for the well- being of the people as well as for the sake of the
company’s business. Various corporate social responsibilities are producing time to time
challenges for the company to carry out its business easily. For the enrichment of the
country’s economy, the company has completely adopted the various practices of outsourcing
from different unskilled, semi- skilled and skilled manufacturing services. The management
of the company is taking strict actions regarding to the transparency related to its reporting
function.
Technology: – The main step of the PESTLE analysis is the type of technology being used
by the company for fulfilling the manufacturing tasks, etc. The increased connectivity among
the people of the Singapore is the main reason of the internet advancement in the country,
which is responsible for completely boosting up the social network of the people across the
world. Therefore, Nike is making an effective and an efficient use of all the important tactics
for controlling the whole marketing system for the accomplishment of innovation,
segmentation regarding to the economical factor (Sellick, 2011). Making the use of latest
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type of technology helps the company in increasing their overall production, which directly
influences the profit ratio of the company. The IT infrastructure is completely spread across
the country, which is very beneficial for the companies for carrying out their business
successfully across the world by developing their regional operational centers in the country.
Legal factors: – According to the government of the country, the growth of the electronic
commerce is dependent upon the various legislations and rules are market favorable. The
company is supporting various e-commerce services, which has a good impact on the various
aspects related to the legal advisory of the company. The management of the company is
responsible for the maintenance of the business ethics, which provides tendency to the brand
to perform as an international brand across the globe. All the legal issues are being handled
by the management carefully for the sake of the company’s business as well as the
surroundings of the company (Ajmera, 2013).
Environmental factors: – The government of the Singapore is taking regular and strict
actions for the sake of the environment of the country. Transportation pollution is the major
reason in most of the urban areas of the country. Shortage of water is also a big problem for
the people living in the country, which also generates a large number of problems for the
manufacturing companies, etc. All these factors of the Pestle analysis shows that the
Singapore provides favorable regions and environmental conditions which suits almost each
and every company working in the country.
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Recommendations
All the information collected for the preparation of this report shows the complete working of
the management as well as of the company in the country. According to my point of view, the
company needs to adopt a particular strategy for the advertisement purposes, which describes
that management needs to focus on the advertisement part of their brand by making an
effective use of various social media channels (Cx, 2016). The company needs to add and
modify various resources required for the manufacturing and for the marketing purposes. At
present, the main focus of the company is on the sports footwear, i.e., the management is
taking several actions for the marketing of their products, which includes all other casual
footwear. They need to focus on the new designs of the shoes for the expansion of their
business on a world- wide level. Talking about the website and online purchases, the
company should provide a user- friendly site for selling a large variety of products among the
people of the country. The company needs to focus upon the new manufacturing designs of
the shoes, etc. In the today’s world, the company should not miss even a single opportunity,
which helps them in the expansion of the company’s business across the several countries of
the world (Kissinger, 2016).
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Conclusion
Nike is one of the famous companies working across the globe. It provides a large variety of
products for the well- being of the people of the different countries. The management needs
to hire well experienced staff for the manufacturing purpose. The company should provide
training to the new employees, so that they can easily accomplish their tasks being assigned
to them by the management of the company. It should provide the best quality of products to
the people at a reasonable price so as to get more and more people attached towards
themselves. They should not need to miss even a single opportunity for having a successful
competition with the other companies working under similar field across the world and
providing the same type of products at a low price. All the data mentioned in this report,
helps the management for the successful completion of all the tasks of the company.
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References
Ajmera, S., 2013. Pestle analysis of singapore: Scribd, Available at:
https://www.scribd.com/doc/122780033/pestle-analysis-of-singapore
Bhasin, H., 2016. SWOT analysis of Nike, Available at: http://www.marketing91.com/swot-
nike/
Cx, J., 2016. Recommendations and conclusion for Nike, Available at: http://jas-
cx.blogspot.in/2013/10/conclusion.html
Dalavagas, J., 2015. SWOT Analysis: Nike Inc., Available at:
http://seekingalpha.com/article/3026966-swot-analysis-nike-inc
Kissinger, D., 2016. Nike Inc. SWOT Analysis & Recommendations, Available at:
http://panmore.com/nike-inc-swot-analysis-recommendations
Sellick, J., 2011. PESTLE analysis of Singapore, Available at:
https://prezi.com/cc4oiwqdlxsc/pestle-analysis-of-singapore/
Ukessays Team, 2015. Introduction To Nike Inc Business, Available at:
https://www.ukessays.com/essays/business/introduction-to-nike-inc-business-essay.php
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